Iran Determined to Increase Its Non-Oil Exports to $100b
IRAN NEWS ECONOMIC DESK
TEHRAN – Head of Iran Trade Promotion Organization says non-oil export is the only way for cutting dependence on oil revenues and the country has potential to increase its non-oil exports to $100b due to the needs of neighboring states.
Speaking in an interview Hamid Zadboum said that in the first quarter of the current year, Iran’s non-oil exports slumped by 44 percent due to the sanctions and the outbreak of Coronavirus which led to the lockdown and closure of borders of other countries.
He said after the reopening of the borders, non-oil exports have grown but one cannot expect the growth as it was before the pandemic because it takes time.
Zadboum added that neighboring states have reopened their borders but still few borders are closed because of the virus. He emphasized that this slump in the exports is seen in most countries in the world and the amount of slum is very significant, admitting that those countries have no sanctions problems in their exports.
He said in the current condition non-oil export is very vital for Iran to replace its oil revenues which have been affected by sanctions. He said the total amount of non-oil exports last year stood at $42b and this year despite the sluggish start in the first quarter of the current year, the country can repeat $42b mark, admitting that all depends on the borders and restrictions.
Zadboum added that 15 neighboring countries import goods worth of $1100 per annum and Iran can have major share of their markets and for this reason Iran can enhance its non-oil exports to $100b annually. But he said to touch the $100-billion mark; infrastructures for exports should be improved. He said the current amount of exports to 15 neighboring countries is around $24b but Iran can increase it significantly because those countries have good potentials for Iran’s exports.
He also urged the exporters to improve quality of their products in order to stabilize their positions in the neighboring countries and in competition with their rivals.
Zadbom noted that Pakistan has good potential for Iranian goods to be exported there, adding that currently Iran’s trade with Pakistan is around $4b while it could be raised to some $16b.
He said Pakistan is a bigger market comparing to Iraq and most goods needed by Pakistan are produced in Iran but Iraq’s market is almost limited comparing to Pakistan and currently Iran accounts for has 25 percent of Iraq’s market while its share of Pakistan market is very low.
Zadboum noted that during the sanctions era, the role of neighboring states is very important for Iran’s exports and earnings, and currently Iraq is the major destination for Iran’s exports among the neighboring states.
He admitted that Iran’s non-oil exports reached $50b in 2011 and it has been a record but the country can get past that record and even reach $100b mark.
He said devaluation of national currency is to the benefit of exporters and it encourages them for more exports.