TEHRAN (Iran News) Speaking upon return from a three-day visit to Pakistan on Friday, Ghalibaf said, “If border markets are developed and trade with Pakistan flourishes, a major part of the insecurity and border challenges between the two countries will be definitely resolved because when borders become hubs of legal and large-scale economic activity, smuggling and insecurity are minimized.”

Ghalibaf’s trip began on Wednesday at the official invitation of Pakistan’s National Assembly Speaker Sardar Sadiq.

During the visit, he held extensive meetings with senior Pakistani officials, including Acting President and Senate Chairman Yusuf Raza Gilani, Prime Minister Shehbaz Sharif, and Chief of Army Staff Asim Munir.

“One of the main purposes of this visit was to express appreciation to the people and officials of Pakistan for their valuable positions during the 12-day war against the Zionist regime (of Israel),” Ghalibaf said, adding that wherever the Iranian delegation met with the public, “they expressed happiness over Iran’s strong and decisive response to the Zionist regime’s aggression.”

The parliament speaker said political, economic, and security issues were discussed during the meetings.

He also took part in economic sessions attended by Iranian and Pakistani traders and chambers of commerce in Islamabad, describing the talks as “very useful and constructive.”” economic growth”

Ghalibaf further noted that the visit also followed up on the implementation of 12 cooperation documents signed during President Masoud Pezeshkian’s recent trip to Pakistan.

“Good progress has been made in this regard, especially in areas such as free trade and barter, which were discussed in detail,” he added.

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Raisi made the remarks at the 27th Grand Conference on the National Day of Industry and Mining in the capital Tehran on Saturday in the presence of craftsmen, miners, syndicates, traders and merchants.

“In the year 1401, we had considerable growth in the field of production,” Raisi said. “The industrialists have made good efforts, and the growth of investment, produced machinery, output, employment and finally the economic growth in the country in the second six months of 1400 and the end of last year as well as the current year show that the country has started a good move towards economic and production growth.”

Stressing that the aforementioned growth is technology-based and knowledge-based, the Iranian president added, “Today, the craftsmen have come to this conclusion that growth should be followed by the growth in science and technology.”

Raisi said, “We believe that university, industry and mining should conjoin and this can add value to the work. This extensive nexus is necessary and will lead to an upturn in production and economic growth.”

Stressing that production is the country’s strong point and should not be undermined, the Iranian chief executive said, “Just as missiles are a strong point and a source of power, production is also a strength and a source of power.”

Raisi affirmed that knowledge-based production creates strength in the country, adding, “Heads of countries, the world’s authorities and decision-making centers view the power of the Islamic Republic as a country that has made the production grow from within.”

The Iranian president also argued that evolution in industries is an inevitable necessity, noting that the country’s strengths must be consolidated and its weaknesses diminished.

“This is the very evolution from the Leader’s perspective that will be achieved by the capable hands of our producers, artisans and merchants.”

President also said that in case the producers face problems, the government should even waive its taxes so that their production does not stop.

Raisi noted that in the first year of the administration’s term in 2021, it proposed a 5% tax and a 7% tax in the next year to the producers.

He referred to the issue of energy and its uneven distribution: “We have disharmony in electricity, water and monetary system and we must balance it. We must separate the share of industries from daily consumption.”

Raisi added that the solution to the challenges is not sought from foreigners; the administration benefits from other countries’ experiences but presents its own localized solutions.

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During the meeting with a group of entrepreneurs and manufacturers and knowledge-based companies on Monday in the Imam Khomeini Hussainiyah, Ayatollah Khamenei said, “If we want to eliminate poverty and increase welfare in the country, it won’t happen unless economic growth in the country met.”

The Leader also urged executive bodies in the country to support the development of private enterprises.

Emphasizing that Iran’s position in the region and the world should be maintained through economic growth, he said, “The advancement of a country is largely related to its economic status. When a country’s currency becomes weak, its economic potential decreases, and its prestige and position in the world decreases. We need economic growth in order to maintain the country’s position in the region and in the world.”

Meanwhile the Leader announced that the bright future of the country is in need of rapid and continuous economic growth. The Leader explained the reasons and requirements for economic growth while referring to the Seventh Development Plan which prioritizes economic growth along with justice. He emphasized, “economic growth is absolutely crucial in order to solve the tangible problems associated with people’s livelihood and the difficulties experienced in households.”

He expressed his satisfaction with the spirit, optimism and tangible endeavors of those who are active in the fields of manufacturing and entrepreneurship. “As I have said many times before, due to the country’s God-given resources, its geographical, international, political position, and especially its human resources, the country’s talent and growth capacity are very high and exceptional in certain fields. For this reason, the future of the nation and the prospects of Iran’s progress are much brighter than the current predictions,” the Leader added.

Referring to this year’s slogan titled, “Production: Knowledge-Based and Job-Creating”, the Leader stated, “the exhibition that I visited two days ago, showed that relatively good endeavors have been made in line with this year’s slogan. The official indicators of the first half of 1401 [2022 AD] mainly indicate movement and growth.”

Ayatollah Khamenei also addressed government officials present at the assembly while referring to points raised by some participants at the beginning of the meeting. “In order to follow up on these issues and resolve the complaints and expectations of those active in the economic field, form a committee under their supervision and solve their problems by continuously following up their case. By doing this, the country’s economy will also grow,” he stated.

The Leader of the Islamic Revolution pointed out the direct relationship between economic growth and Iran’s position in the world. He further stated, “The advancement of a country’s position is largely related to its economic situation. When a country’s currency depreciates, its economic possibilities diminish. It becomes less credible in today’s world. We need to experience economic growth in order to maintain the country’s position in the world.”

In another part of his speech, Ayatollah Khamenei emphasized the need for rapid, continuous growth in the country. He also outlined the reasons why Iran fell behind in certain economic fields in the last decade. Certain managerial weaknesses, issues such as sanctions and the country’s focus on the nuclear issue, and as a result, the conditioning of the economy, were among some of the important reasons for Iran’s economic lag in the previous decade.

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Figures published on SCI’s website showed that the non-oil sector of the Iranian economy had also expanded by 3.4% year on year in the two quarters to late September.

The SCI had reported a year on year economic growth rate of 5.6% in the same quarter in 2021.

The latest data by the government statistics agency showed that Iran’s gross domestic product (GDP) had reached a total of 3,870 trillion rials in March-September, up from 3,745 trillion rials reported in the same period last year.

The SCI uses 2011, when one US dollar was equal to 12,500 Iranian rials, as the base year for its calculation of GDP data. That comes as the current market price of the US dollar in Iran is nearly 390,000 rials.

SCI figures showed that Iran’s mines and manufacturing sector, which includes the country’s massive oil and gas production activities, grew by 5% in the six months to late September against the same period in 2021.

Agriculture contracted by 2.2% while the service sector expanded by 2.6% year on year over the March-September period, showed the figures.

The Central Bank of Iran (CBI) also published its GDP figures on Wednesday which showed that Iran’s economy had grown by 3.6% in the quarter to late September, up from a 1% year on year growth reported in the same quarter in 2021.

Meanwhile Iran’s Ministry of Industry, Mine and Trade said that Iran’s non-oil exports in the first 8 months of the current Iranian calendar year have grown by 4.4% in value but decreased 16% in weight comparing to the same period which shows that exports of industrial and hi-tech products have increased considerably.

Reacting to a report published in Persian newspaper, the ministry refuted the report and reiterated that the amount of exports of non-oil products from the Customs Administration has been 70.4m tons worth of $32.4m in the first eight months which shows 16% decline in weight and 4.4% in value.

The ministry claimed that the country has started target-oriented exports and it minimizes exporting crude materials and for this reason we see decline in the weight of exports.

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According to the intergovernmental organization, high inflation has not only broadened out across countries and products but is also proving persistent.

It says energy supply shortages could push prices even higher and with interest rates increasing it has called on governments of the necessity to curb inflation and heighten financial vulnerabilities.

OECD says the Ukraine war has seen energy prices skyrocketing and is taking a heavy toll on the world economy, which will worsen if European gas storage runs short. This could force rationing in Europe, hurting countries worldwide as global gas prices are pushed higher.

With spot electricity prices generally being linked to the price of gas, the marginal source of electricity generation, record-high gas prices have meant similarly extreme wholesale electricity prices in Europe.

As a result, economic growth is forecast to be lower than expected and prices higher in Europe and worldwide. Retail energy prices have increased much less than wholesale prices, especially in Europe.

As Europe bears the brunt of the Ukraine war, the European Union’s business activity has taken a hit with the conflict seeing an energy price spike. The organization has forecast that the 19-country eurozone economy would grow by only 3.3% this year and then slow to 0.5% in 2023.

The OECD has predicted a contraction of 0.3% next year in Europe’s strongest economy Germany, whose industry-driven economy is highly dependent on Russian energy exports.

Outside the eurozone, the British economy was seen shrinking by 0.4% next year as it contends with rising interest rates, surging inflation, and weak confidence. Previously the OECD had expected 0.2% in growth.

China, which is not an OECD member, was one of the few major economies expected to see growth pick up next year

Those exports have been sanctioned by the West and the move appears to have backfired on households across Europe who are facing skyrocketing gas bills this winter. This comes amid what the organization has labeled as the worst energy crisis since the 1970s which will trigger a sharp slowdown.

Labour market conditions generally remain tight, but wage increases have not kept up with price inflation, weakening real incomes for workers despite the actions taken by governments to cushion the impact of higher food and energy prices on households and businesses.

Tighter monetary policy and higher real interest rates, persistently high energy prices, weak real household income growth, and declining confidence are all expected to sap growth. The United States and Europe are slowing sharply and the major Asian emerging-market economies are expected to account for close to three-quarters of global GDP growth in 2023.

The uncertainty about the outlook is high, and the risks have become more skewed to the downside and more acute. The projections reflect the toll taken by high energy prices over the next two years, but outcomes could be weaker still if there are energy supply shortages in global markets that raise prices further, or if enforced rationing is required to lower gas and electricity demand sufficiently during the next two European winters.

The OECD’s economic outlook paints a grim picture.

Its general assessment suggests the global economy is facing mounting challenges with financial conditions that have tightened significantly, amidst the unusually vigorous and widespread steps to raise policy interest rates by central banks in recent months, weighing on interest-sensitive spending and adding to the pressures faced by many emerging-market economies.

“We are certainly projecting a period of pronounced weakness,” OECD head Mathias Cormann told a news conference to present the organization’s latest Economic Outlook.

Global prospects are also becoming increasingly imbalanced, with the major Asian emerging-market economies accounting for close to three-quarters of global GDP growth in 2023, reflecting their projected steady expansion but on the other hand, it has predicted sharp slowdowns in the United States and Europe.

To tackle higher inflation, many central banks in the West have hiked interest rates in an effort to curb the cost-of-living crisis.

But the OECD says higher policy interest rates could also slow growth by more than projected, with policy decisions difficult to calibrate given high debt levels and strong cross-border trade and investment links that raise the spillovers from weaker demand in other countries. Widespread and rapid monetary tightening also heightens financial vulnerabilities.

This is while slowing growth and rising interest rates have weighed on equity markets in most advanced economies.

It argues that continued monetary policy tightening is needed in most major advanced economies to anchor inflation expectations and lower inflation durably.

The organization says better government support to help cushion the impact of high energy costs on households and companies is needed.

The war in Ukraine as well as the Covid pandemic have added to the longstanding challenges for growth, resilience, and well-being from the acceleration of digitalization, population aging, and the need to lower carbon emissions.

Effective and well-targeted reform efforts are required to enhance productivity and skills, reduce inequality and improve gender balance, strengthen resilience and boost living standards, the OECD reported.

Well-chosen policies, such as increased support for childcare and reduced tax wedges for lower-paid workers, could help to address the current pressures faced by lower-income households and also offer medium-term benefits for employment and inclusion.

In many Western countries, the UK is the latest, critics say the government has taken the opposite measures by imposing higher taxes on struggling households, which include those from middle-class backgrounds, who are now feeling the squeeze of inflation.

The OECD also touched on the fallout from the Ukraine war saying it remains a threat to global food security, particularly if combined with further extreme weather events resulting from climate change.

It has called on better international cooperation to address emergency food needs and strengthen domestic supply. Stronger international cooperation on debt relief, including through the G20, is also necessary to minimize the potential adverse economic and social consequences, with a rising number of lower-income developing countries already experiencing debt distress and having fragile banking sectors.

The unexpected persistence of inflationary pressures this year owes much to the outbreak of the war in Ukraine, which resulted in an immediate spike in a number of key commodity prices – for oil, gas, and coal, a range of metals, wheat, and corn, and some edible oils, as well as fertilizers.

Also, while wage growth has picked up in most economies, it has not kept pace with inflation, resulting in a sharp erosion of wages in real terms in many OECD economies.

In essence, the report says the war in Ukraine (on the backdrop of recovery from the Pandemic) is having a persisting adverse effect on economic conditions. Global GDP stagnated in the second quarter of 2022, with sharp falls in output and a contraction of output with Europe hit harder than expected but the United States and other developing countries were affected as well.

This spells misery for families across the West and beyond while adding to the growing calls for Western governments to help lay out peace initiatives and end the crisis in Ukraine.

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“Lack of a strategic document for development in the country’s economy has overshadowed many parts of the economy,” Mohammadreza Pour-Ebrahimi told the national TV on Sunday evening.

He pointed to the home appliance industry as an example and said: “Advanced knowledge, resources, and skilled manpower are among the advantages in this field, but it seems that lack of comprehensive strategies in using the necessary capacities to partner with other countries in regional and global scale is one of our main gaps in this sector.”

The official further mentioned some other problems in the way of expanding domestic production and economic growth and said that smuggling is a major problem that has created serious problems in the way of domestic production and the government is taking serious measures to battle it.

Speaking to the same TV program, Deputy Industry, Mining, and Trade Minister Mehdi Sadeqi Niaraki mentioned the insufficient growth in the production of home appliances in the current Iranian calendar year (started on March 21), saying: “In the first four months of the current year, 40 percent growth was recorded in production compared to the same period last year, however, the growth for the previous year’s same period compared to its preceding year was recorded to be 70 percent.”

“In recent months, however, a suitable amount of foreign currency has been provided in order to supply raw material for domestic producers and such materials are properly imported into the country,” he said.

“We currently need about 220 trillion rials (about $5.2 billion) of working capital annually in the home appliance industry, which must be provided by banks and producers,” Niaraki added.

The home appliances sector has been one of the pioneers in this regard and like many other areas, the production of home appliances has witnessed a significant rise in the past two years so that in the Iranian calendar year 1398 (ended on March 19) this industry’s production capacity increased by 10 percent compared to the preceding year.

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