Tehran, Jan 5, IRNA � Minister of Industries, Mines and Trade says non-reliance of the national budget on oil revenues only depended on further attention to the production sector and export of non-oil commodities.
Speaking at a gathering on the sideline of first Conference on Economy, Mohammad Reza Nematzadeh pointed out that production and export demanded investment, adding that at present and contrary to the current assumptions the capacity for production and export is available in many economic fields to such an extent that large units of the country are operative with over 70% of their capacity.
Stressing that growth of export is indebted to further increase in production, the minister referred to the domestic recession of economy and noted that under the status quo for industries such as petrochemicals, tiles and ceramics, cement, steel, copper, aluminum, foodstuff industries, wire and cable, electrical equipment and carpet there are proper capacities available for export.

He said for the production of Rls. 6000 thousand billion worth of commodities Rls. 2000 thousand billion working capital is needed of which Rls. 1500 thousand billion should be supplied through banking facilities otherwise the vacant capacities of production cannot be used optimally.

He said: �If under the status quo we add $1 billion to exports a growth rate of about 0.13% will be added to the growth of the value added of industry which is about Rls. 75 thousand billion.�

Nematzadeh also added that according to the Customs Administration non-oil exports in the first eight months of the current year, including both commodities and services amounted to about $39.5 billion which shows an increase of 20% in comparison with the same period last year.

He put imports during the same period at $34.2 billion which also shows an increase of 20% as compared to the same period last year.

�If under the present circumstances the budget of the country is intended to be arranged in the absence of dependence on oil, it is necessary to open the required doors to the exports, of course further attention should be paid to the issue of exports through planning of regulations, circulars and rules.�

Putting the capital of the Export Development Bank at $200 million and stressing that nothing has been added to it in the past eight years, Nematzadeh said in case of failure to put low-price facilities at the disposal of exporters, the problems of non-oil exports will remain in place.

By IRNA

 

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