TEHRAN – President Hassan Rouhani wrote to Ministry of Finance and Economic Affairs declaring a law passed by the Iranian parliament on amending the law on implementation of the general policies of the Article 44 of Iran’s Constitution, IRNA reported on Sunday. The law on implementation of the general policies of the Article 44 of […]
TEHRAN – President Hassan Rouhani wrote to Ministry of Finance and Economic Affairs declaring a law passed by the Iranian parliament on amending the law on implementation of the general policies of the Article 44 of Iran’s Constitution, IRNA reported on Sunday.
The law on implementation of the general policies of the Article 44 of Constitution on privatizing state-owned companies was declared in 2006 in a bid to downsize the government and promote the private sector’s role in the national economy.
The government envisioned a large privatization program in the Fifth Five-Year National Development Plan (2010-2015), aiming to privatize about 20 percent of the state-owned firms each year. Under the present interpretation of the Article 44, some state-owned companies have been privatized to reduce their financial burden on the country’s budget and also increase their productivity.
Downsizing the government is on the agenda, but a number of factors has been hindering privatization trend in the country, among them government’s high interference in the management of the transferred companies is a challenging one.
