Official: Surplus Oil Revenues Should Be Used to Boost Production
November 30, 2000 - 0:0
TEHRAN The government should spend surplus oil revenues on upgrading the efficiency of production units, rather than opening up them to public use, an official said here Wednesday.
The Managing Director of the Industrial Exports Promotion Department affiliated to the Ministry of Industries Ahmad Qassemi said that extra oil revenues should be invested in those sectors which could rid the country of depending on oil revenues and increase non-oil exports, as stipulated in the Third Development Plan (2000-2005).
"By spending a large portion of the surplus oil revenues on competitive projects such as steel, petrochemical, agricultural and cement industries, we can use them in proper manner," Qassemi said.
He said that so far the country has made some six billion dollars in extra income from robust crude prices which hit unprecedented highs last year.
"The state management should seize the existing opportunity to increase forex revenues and promote cooperation with different countries," Qassemi said.
He said the recent announcement by Central Bank of Iran that each passenger was permitted to take away $2,000 upon departure, was a rash decision.
Qassemi said recent decline of forex prices on Iranian money markets could hurt some competitive industries of the country.
"Some manufacturing units which have no or little exports may become pleased with this decline. However, food, agricultural, steel, petrochemical as well as non-ferrous mineral industries could be hurt." He said this devaluation would lead to a decline in the country's exports, because Iranian exporters would not like to make losses in the wake of this slump.
"During this very short period, some of the customers of Iranian goods have complained about a suspension in trade commitments of Iranian companies," he said.
Qassemi said due to the presence of these companies in the Tehran stock exchange, any transaction at low forex rates could dissatisfy their share holders.
He said despite President Mohammad Khatami's promise about payment of compensations to those exporters making losses in the wake of forex devaluation, the government's decision to scrap export subsidies plan has disappointed Iranian exporters.
Qassemi asked the government to provide funds for participants of international trade fairs and pay them their marketing expenses.
He said the government should check further plunge of foreign exchange rates, since this would adversely affect the competitiveness of Iranian products on foreign markets.
(IRNA)
The Managing Director of the Industrial Exports Promotion Department affiliated to the Ministry of Industries Ahmad Qassemi said that extra oil revenues should be invested in those sectors which could rid the country of depending on oil revenues and increase non-oil exports, as stipulated in the Third Development Plan (2000-2005).
"By spending a large portion of the surplus oil revenues on competitive projects such as steel, petrochemical, agricultural and cement industries, we can use them in proper manner," Qassemi said.
He said that so far the country has made some six billion dollars in extra income from robust crude prices which hit unprecedented highs last year.
"The state management should seize the existing opportunity to increase forex revenues and promote cooperation with different countries," Qassemi said.
He said the recent announcement by Central Bank of Iran that each passenger was permitted to take away $2,000 upon departure, was a rash decision.
Qassemi said recent decline of forex prices on Iranian money markets could hurt some competitive industries of the country.
"Some manufacturing units which have no or little exports may become pleased with this decline. However, food, agricultural, steel, petrochemical as well as non-ferrous mineral industries could be hurt." He said this devaluation would lead to a decline in the country's exports, because Iranian exporters would not like to make losses in the wake of this slump.
"During this very short period, some of the customers of Iranian goods have complained about a suspension in trade commitments of Iranian companies," he said.
Qassemi said due to the presence of these companies in the Tehran stock exchange, any transaction at low forex rates could dissatisfy their share holders.
He said despite President Mohammad Khatami's promise about payment of compensations to those exporters making losses in the wake of forex devaluation, the government's decision to scrap export subsidies plan has disappointed Iranian exporters.
Qassemi asked the government to provide funds for participants of international trade fairs and pay them their marketing expenses.
He said the government should check further plunge of foreign exchange rates, since this would adversely affect the competitiveness of Iranian products on foreign markets.
(IRNA)