President Khatami Says Iran's Economy Is on Right Track
Speaking at a gathering of Austrian private sector officials, he added that improving economic indices indicate the emergence of a trend based on structural reform which in turn is manifestations of enhanced people's resolve and participation in the national affairs.
He cited the rise in economic growth from 2.2 percent to 5.9 percent, increase in net investment to roughly 8.8 percent, dwindling of inflation rate in the past four years and reduction in foreign actual debts from $16.8 billion to $7.7 billion as all measures of governments' success in carrying out its economic policies.
He alluded to lowering of Iran's investments risk from 6 to 4, establishing stability and growth in economic transactions with other nations and initiation of the oil surplus reserve fund for the first time in the country as among other positive outcomes of Iran's economic health.
More prudent socio-economic development planning and spelling out economic priorities have all boosted suitable grounds for private sector and foreign investments, adding that government's five-year plans are all following well-defined goals and clear priorities in economic affairs.
He said Iranian government stresses privatization, trade liberalization, removal of monopolies, promotion of foreign investment and a unified exchange rate as its policy goals.
Since about six months ago, reliance on structural reforms in the economy has paid off, Khatami said, adding, ''the trade liberalization process has been accelerated in the period.''
New customs regulations, reform in the tax system, establishing private insurance and banking firms and improving foreign exchange reserves have been contributing factors in facilitating domestic and foreign private investments.
Khatami further said the signing of several agreements with Austria is indicative of brighter prospects in bilateral economic and trade relations and enhancement of Austrian private investments in Iran.
However, he stated that despite improving ties and holding of joint economic commissions sessions, the level of economic and social relations are not up to par with excellent diplomatic, cultural and historical ties.
He said stability in economic and trade relations should be based on striking a reasonable and acceptable balance in bilateral trade, adding in this vein alleviating prevailing trade imbalances between the two countries is desirable.
Khatami called for increase presence of Austrian companies in Iran and referred to the abundant energy resources, variety of mining reserves, skilled manpower in Iran and existence of technology and capital in Austria as suitable grounds of cooperation.
He said Iranian and Austrian firms could participate in Afghanistan reconstruction drive backed by their governments' support and using new facilities that have come to the fore in the framework of new agreements singed between the two countries.
Meanwhile the Austrian President Thomas Klestil conferring with Khatami stressed the need to improve Tehran-Vienna trade balance.
Klestil said the Austrian government will strive to improve Tehran-Vienna trade balance given that a such a balance would have a significant role in consolidating long-standing mutual relations.
He said Austria's exports to Iran outweigh its imports by two-folds, and said Vienna would help Iranian traders in marketing their products in Austria as well as Europe.
Klestil stressed that all requirements to broaden Tehran-Vienna relations have been prepared, and voiced Austria's readiness to invest in Iran's major development projects, including railways, the underground and the power plants.
He recalled the interest of Iranian and Austrian entrepreneurs to broaden ties, and described the future of Tehran-Vienna relations as promising.
The Austrian presidents' observations follow the conclusion of four agreements signed between Iran and Austria on Tuesday valued at one billion Euro to promote Iran's infrastructure.