Granting Export Incentives the Only Way to Overcome Sanctions

IRAN NEWS ECONOMIC DESK

TEHRAN – Director of Economic and Investment Development Department in Iranian Mines and Mining Industries Development and Renovation (IMIDRO) believes granting incentives for exports is the only way to overcome the current sanctions and woes due to the outbreak of the Coronavirus.

Speaking to IRNA, Mr. Amir Sabbagh said that today and in the sanctions era while the production units are affected by the Coronavirus, one of the options for boosting the economy is to grant incentives for exports especially in mining and mineral industries sector as a replacement for oil revenues.

He said in 2018, the country earned $160 per ton for exporting minerals and the total value of exports stood at over $9b and the country set the target for earning $10b in 2019.

Sabbagh further said that companies in mining and minerals sector adopted necessary policies for their exports in the first quarter in 2019 and took action in pre-sale of their exports and they materialized their goals in steel, copper and some other sectors.

He noted that today exports are totally interlinked with existing conditions in transportation especially marine transportation, and exported consignment has to be quarantined for 14 days and it needs proper management by importers and exporters while air transportation has halted.

Sabbagh admitted that exports to Oman, while the cargo is to be quarantined for 14 days, have no economic justification and with good management, currently expansion of exports to East Asia is on the agenda because there is no need for quarantine in port of embark and standardization in the port of departure can resolve the problem of transportation.

He said that it is predicted the effects of Coronavirus to show themselves in the exports sector after June and this needs a strong management and it is also expected the volume of exports to decrease.

He noted that this year has been named “production leap” and the country due to its huge capacities in mining and minerals sector should increase exports in terms of weight in order to avoid decline in terms of value.

Dabbagh noted that economic experts believe that with the current trend this year, the value of exports will drop between 10 to 15 percent comparing to last Iranian calendar year which ended on March 19 but with good management, the country can overcome this woe with the least problem.

He reiterated that the main factor for surge in production is to constantly monitor our rivals in the export markets and their production processes.

He stated that any damage on the trend of exports will show its effect in the rate of forex, hence, stability and boom in exports will show its positive impacts on the body of national economy.