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IPO hosting intl. Event on privatization in the Iranian economy

TEHRAN – The Iran Privatization Organization (IPO) is holding the first international event on privatization in Iran’s economy from May 21 to 24 at the country’s International Conference Center, IRIB reported.

Heads of the three branches of government, heads of the country’s chambers of commerce, relevant ministers, MPs, as well as experts and scholars from the United States, Brazil, Poland and other countries will give speeches and lectures at the event.

As reported, the main purpose of this conference is to identify the privatization challenges and to prepare a comprehensive privatization document that could ultimately improve the quality of the government’s commercial assets.

In this three-day conference, the privatization process of the last 20 years will be reviewed.

Oil, electricity, petrochemicals, banking and insurance, agriculture, industry, mining, roads, and town planning and services are some of the areas whose respective ministers and representatives will share their experiences and explain the privatization measures taken during this event.

An integrated privatization system will also be presented during this international event.

Need for change in the privatization process

At the event’s opening ceremony on Saturday, Iran’s Minister of Finance and Economy, Ehsan Khandouzi, stressed the need for fundamental changes in the privatization process, saying, “Following the previous paths of privatization will bring us back to the same point where we are today, and.” if we want to move forward, we have to change the path ahead.”

“Many state-owned enterprises need to be reformed to increase the overall growth and competitiveness of the country’s economy, and this will be a turning point in the country’s economic policy path,” Khandouzi stressed.

Looking back over 20 years of work on privatization shows that despite the fact that most of the targets set in this regard have not been met, there have of course been some successes in some cases, the official said.

According to the minister, in the current Iranian calendar year (starting March 21), the shares of 187 companies and ownership of 300 state assets are to be transferred to the private sector on the basis of the state budget law.

“[In the process of privatization] There is a difference between offering shares in a company, transferring ownership or changing management and moving towards increasing productivity, and we try to put productivity first,” the official explained.

8 rounds of privatization need to be reformed

Also, on the first day of the international event, IPO chief Hossein Qorbanzadeh gave a speech in which he said that all the companies that have been privatized in the last 20 years have failed to thrive and improve.

“Eight rounds of privatization that have already taken place in the country need to be reformed,” he lamented.

“We need a proper pathology and a comprehensive look into the past to examine the positive and negative effects of privatization over the past two decades and to decide what to do from now on,” he said.

One of the most important aspects of the policy introduced in Principle 44 of the Iranian Constitution is the issue of privatization, which refers to the transfer of management and ownership of the shares of state-owned companies to the private sector.

Despite the emphasis on accelerating the implementation of the privatization process, it has become one of the most challenging issues over the past two decades. Therefore, finding the root cause and the factors contributing to this deficiency and overcoming the challenges in implementing the above policies has become a top priority of IPO as it is vital for the improvement and advancement of the country’s economic system is.

EF/MA

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