OVERWHELMING VOTE OF CONFIDENCE IN PARLIAMENT FOR IRAN NEW ECONOMY MINISTER

An overwhelming vote of confidence in parliament backs Masoud Karbaisan as minister for Economic Affairs and Finance in Iran’s 12th administration.

Iranian lawmakers give a vote of confidence on Saturday, August 20, to President Hassan Rouhani’s nominee for the post of Economy and Financial Affairs Ministry with 240 votes in favor.

In his remarks, Masoud Karbasian, who previously served as the head of Customs Administration, stressed on reforming the lending practices of banks and giving all-out support to small- and medium-sized enterprises to get a new lease on life.

"The capital market in Iran has great potential and it has significantly expanded during previous administration. Therefore, a development plan for capital market has been devised, which will be implemented after conferring with the parliament," he said.

Elsewhere in his remarks on the capital market, Karbasian pledged to increase speed and transparency in the capital market and provide depth to it, safeguard the rights of minority shareholders, implement more effective growth strategies to expand the role of capital market, attract more foreign investments and ultimately create opportunities to expand the capital market and strengthen its role as well as to provide financial assistance to corporations.

Karbasian noted that the previous government managed to end a critical period in Iran's economy through public trust and support from the parliament and established a relative stability in the market.

He, meanwhile, expressed gratitude to his predecessor, Ali Tayyebnia, whose proper policies had a big share in “an economic growth of 12%, single-digit inflation rate and regulated liquidity growth” during the 11th administration.

GOVERNMENT EYEING $65 BN OF FOREIGN INVESTMENT

The first meeting of the new Cabinet was held later in the day.

Following the session, Karbasian introduced six root axes which could power up advances in production and employment and listed the priorities of his ministry accordingly. There, he termed the capital market and foreign investment s among the most significant ones.

“Finance Ministry’s wide range of activities includes implementation of Article 44 of the Iranian Constitution, taxing, privatization, capital market, cooperation with banking system and attraction of foreign investments,” the minister said after the cabinet’s first meeting, underlining that reaching the goal requires planning unified programs and collaboration with other ministries.

According to the foreign investment office of Organization for Investment, Economic and Technical Assistance of Iran, to realize the objectives of the 6th five-year Development Plan (2016-21), $65 billion of foreign investment should be absorbed in various sectors.

News sources quote the Organization officials as saying that this expected amount of investment includes $30 billion in finance, $20 billion in economic partnership and $15 billion in direct investment. The new Economy Minister went to say that implementation of the Article 44 of the Constitution, taxation system, privatization, the capital market, banking system and attracting foreign investments are going to be the six pillars based on which his ministry will perform during his tenure in office.

There is significant economic potential for foreign investors in Iran that can create precious achievements for bilateral cooperation.

Iran is by far the most populous country in the Middle East and has an astounding population of over 81 million. It possesses 9% of oil reserves and 18% of world gas reserves and abundant mineral resources; therefore, such very important factors in the economy are the best stimulus for the participation of foreign investors in Iran’s competitive market. 

Release Date: 9/2/2017


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