Non-Oil Exports Reach $25.94b in Six Months

TEHRAN (Iran News) Speaking at a press conference ahead of Iran’s 29th National Export Day, Dehnavi described last year as “a remarkable and unprecedented year” for non-oil exports, with total exports hitting $57 billion, marking a 15.8 percent increase from the previous year — the highest figure in Iran’s trade history.

He noted that exports in the early months of this year faced setbacks due to events such as the 12-day war, an explosion at Shahid Rajaei Port, and energy shortages, but the trend improved in subsequent months.

According to Dehnavi, imports totaled $28.36 billion in the first half of this year — down 15 percent from $33.46 billion in the same period last year. He attributed this decline partly to tighter import controls, which reflect efforts to balance trade and reduce dependency on foreign goods.

He added that 85 percent of imports consist of raw materials and capital goods, emphasizing that a decline in imports is “not necessarily a positive sign,” as it could affect production.

Overall trade volume reached $54 billion in the first six months, showing a 9 percent decrease compared to the previous year. However, the trade deficit improved significantly, narrowing from a negative $7.5 billion last year.

Dehnavi stated that Iran’s Seventh Development Plan targets a 23 percent growth in exports. Despite internal and external challenges, he expressed optimism, saying the government is “committed to overcoming obstacles and achieving positive growth.”

The 29th National Export Day will be held at the end of October under the theme “Smart Trade, Export-Oriented Production.” The event will honor the country’s top exporters and promote a culture of export-driven growth.

Addressing the potential impact of the “snapback mechanism” (reactivation of international sanctions), Dehnavi said it poses restrictions on foreign trade but noted that “current conditions are not worse than before,” as U.S. sanctions have already limited access to formal financial systems.

He warned, however, that new restrictions could raise trade and financial transaction costs, especially in the oil sector. Despite this, Iran’s private sector has gained extensive experience in navigating such restrictions and developed alternative mechanisms to sustain trade.

Dehnavi also discussed the issue of exporters’ foreign exchange commitments (returning export proceeds to Iran), a policy introduced in 2018 and reinforced in 2022 under the amended Anti-Smuggling Law. While some exporters have complied, others have not.

He noted that not all returned currency is reflected in official statistics, as some imports occur through informal channels that are not government-approved.

Regarding gold imports, Dehnavi said that exporters were previously allowed to import gold to settle their currency commitments. However, the Central Bank of Iran has since limited this practice, citing no domestic demand for gold.

He explained that last year’s gold imports faced difficulties due to the absence of a regulated market and high conversion costs. To address this, a second trading platform will be launched, allowing exporters to exchange foreign currency more flexibly and at lower costs, without direct Central Bank intervention.

Dehnavi questioned the accuracy of currency allocation data reported by the Central Bank’s online systems, noting discrepancies in the amount of foreign currency that actually reaches importers.

He explained that for products like dried fruits, prices are aligned with global market rates and the free-market exchange rate, so exporters and producers are not harmed by currency fluctuations since domestic raw material prices are similarly tied to global benchmarks.

The TPO chief announced an extension for exporters from 2018 to 2021 to settle their foreign exchange obligations through rial-based settlements until the end of December 2025. Exporters can pay a fine to clear their records and re-enter the export cycle.

He said the program, initially set to end in September, was extended due to high demand but will not likely be renewed again. Exporters are urged to finalize their settlements before the deadline. “Non-Oil Exports”

Dehnavi also mentioned that a special committee was formed to handle delayed imports, granting temporary extensions to importers who faced legitimate obstacles such as sanctions, transportation issues, or banking restrictions. Failure to import goods within the given timeframe will result in heavy fines.

A comprehensive “Export Promotion and Currency Generation” package has been drafted under the Seventh Development Plan to enhance export support mechanisms, which is currently under review by the government.

Following the explosion at Shahid Rajaei Port, Dehnavi said several measures have been taken to compensate affected traders. The Central Bank has requested that impacted importers face no financial or trade restrictions until the end of the year and be provided with replacement foreign currency. However, he acknowledged that some compensation issues remain unresolved and require further follow-up with insurance authorities.