Gov’t Committed to Facilitating Private Sector Participation in the Economy

TEHRAN (Iran News) During his visit to Kazakhstan for the Eurasian Economic Union (EAEU) Intergovernmental Council meeting, Mohammad Reza Aref highlighted the importance of regional economic alliances, stating that Iran has no choice but to actively engage in significant regional unions and agreements. He noted that Iran’s efforts in foreign policy and economic diplomacy have led to the country’s participation in such organizations.

Aref recalled his initial efforts in securing Iran’s presence in the Shanghai Cooperation Organization (SCO) during the reformist government. He acknowledged that Iran faced challenges in the Economic Cooperation Organization (ECO) due to competition with certain member states, which prevented the country from fully utilizing its potential in the organization.

However, he pointed out that Iran faced no political obstacles in joining the Eurasian Economic Union and that member states have welcomed Iran’s participation. The culmination of these efforts has been a Free Trade Agreement (FTA) between Iran and the EAEU, an essential milestone that will facilitate trade by eliminating barriers. The agreement has already been approved by the Iranian Parliament and awaits final confirmation by the Guardian Council before implementation.

Aref stressed the necessity of private sector involvement in Iran’s economy, stating that the government has recognized that economic goals such as 8% GDP growth and reduced inflation and unemployment cannot be achieved without private sector participation. He clarified that the government’s role is not to control the economy but to provide necessary tools, remove obstacles, and facilitate private sector activities, as outlined in Iran’s Seventh Development Plan.

Furthermore, he emphasized the importance of providing a secure investment environment for Iranian entrepreneurs, both domestically and abroad, to encourage their active participation in the country’s economic landscape. According to Aref, this policy has been well received and is being actively pursued under the current administration.

Recognizing the impact of economic sanctions, Aref noted that the government is prepared to revise laws and regulations to support private sector involvement. He recalled that during the early years of the Islamic Republic, a state-controlled economy was prioritized, but this approach was eventually reformed with the introduction of Article 44 of the Constitution, which promoted privatization and reduced state monopolies.

He assured that the government is committed to resolving challenges rather than imposing restrictions on businesses, emphasizing that leveraging private sector capabilities and engaging in regional and international economic agreements are key strategies for countering sanctions.

Addressing concerns raised by Iranian business leaders in Kazakhstan, Aref acknowledged the economic difficulties caused by Western-imposed sanctions. He criticized these sanctions as unjust and politically motivated, stating that Western nations use them as a tool to pressure Iran despite being fully aware of Iran’s commitment to non-proliferation, as evidenced by the Supreme Leader’s religious decree against nuclear weapons.

He asserted that Iran has never surrendered to external pressure and has continuously found ways to navigate and mitigate the effects of sanctions. One of Iran’s primary strategies in this regard has been the development of international trade corridors, which are actively being discussed in government meetings.

Aref underscored the importance of long-term government support for private sector growth, citing examples of countries that have secured strong regional economic positions through sustained support for their businesses. He acknowledged that Iran has previously neglected opportunities in Central Asia and called for renewed efforts to strengthen economic ties with neighboring countries.

He also stressed the need for improving the quality and packaging of Iranian products to meet international standards and compete effectively in global markets.

Aref highlighted the deep cultural and historical connections between Iran and neighboring nations, noting that many countries in the region share common heritage with Iran. He pointed out that regional cooperation should be built upon these shared cultural and economic foundations, which can foster stronger diplomatic and trade relations.

He recounted his experiences as the President of the University of Tehran, noting that Iran’s educational institutions are highly regarded across the region. He emphasized the need to preserve and leverage this intellectual capital to enhance Iran’s soft power and economic influence.

During the meeting, Iranian business representatives in Kazakhstan presented their challenges and discussed potential solutions with government officials, demonstrating a strong commitment to fostering economic collaboration and overcoming existing obstacles.