TEHRAN (Iran News) Mojtaba Dastmalchian, head of the Yazd Chamber of Commerce, criticized the practice of issuing foreign currency loans. “These loans are problematic because with the annual rise in exchange rates, repayment becomes impossible and national resources are lost,” he stated. He also warned that when importing becomes more profitable than production, even textile producers shift toward import activities.

Dastmalchian further criticized the repetitive nature of chamber sessions and the dominance of the same speakers and representatives, saying, “Personal relationships have hindered the implementation of strategic decisions.”

Hossein Selahvarzi, President of the Iran-Japan Joint Chamber of Commerce, emphasized the importance of boosting economic ties with Japan. He noted that Yazd could leverage Japanese technology and investment to trigger a significant economic transformation. “Yazd and Japan have numerous fields for cooperation, and Yazd can become a pioneering province in this regard,” Selahvarzi said.

He proposed establishing sister-city relations between Yazd and a Japanese city, and supported the expansion of joint chamber activities to increase bilateral engagement.

Highlighting Yazd’s strengths in handicrafts, carpets, and tourism, Selahvarzi called for efforts to attract Japanese tourists, asserting that despite sanctions, Yazd maintains standards capable of supporting tourism development.

He described tourism as one of the few sectors capable of revitalizing Iran’s economy under current conditions, and stressed the need to support innovation centers. “Many knowledge-based and tech firms face serious financial constraints, and a technology export consortium could help resolve this,” he added.

Selahvarzi attributed Iran’s economic problems to international sanctions, flawed currency policies, and corruption in currency allocation. He stressed that “the resolution of these issues is contingent on lifting sanctions through successful negotiations.”

He warned that inflation is driven largely by sanctions, and limited foreign currency earnings have led to erratic currency policies that disrupt imports of essential raw materials.

Selahvarzi also criticized Iran’s decision-making systems: “Many of the problems stem from an inefficient decision-making structure that overlooks expert opinions.”

Beigi, Vice President of the Yazd Chamber, highlighted persistent obstacles to production: “We’re aware of the issues, but we remain active. For example, the textile industry has opposed the allocation of subsidized currency for fabric imports, which has led to a ban on such allocations.”

Ghazanfari Amirjalili, head of the Yazd Chamber’s APFN Commission, lamented the lack of market awareness among some entrepreneurs, leading to misplaced innovation efforts. “We are working on identifying high-tech projects tailored to Yazd’s climate and focusing on producing high value-added goods. Our youth and students have the potential to lead in this area.”

Motavaselian, a chamber board member, stated that businesses are overwhelmed by external challenges and cannot predict even the next month. “Producers need at least six months of planning capability, but they’re forced to navigate constant crises.”

Mohammad Sadegh Hosseini, another speaker, compared Iran’s economic decline to that of Turkey and Saudi Arabia. “In 2010, the GDPs of Iran, Turkey, and Saudi Arabia were nearly equal. Today, Iran’s economy is half the size of Turkey’s and 60% that of Saudi Arabia’s—due to sanctions compounded by poor policymaking.”

He also referenced the concept of a “dominant coalition” in global politics—a group of powerful elites including wealthy individuals, military leaders, bureaucrats, and influential intellectuals—who together shape a nation’s strategic direction through control over money, arms, and political power. “Such a coalition in Iran resists reform to protect its privileges,” he said.

The meeting also addressed key operational concerns including power shortages, delays in foreign currency allocation for importing machinery, lack of transparency in policymaking, and protracted licensing processes for power plants.

At the end of the session, a Memorandum of Understanding (MoU) was signed between the Yazd Chamber of Commerce and the Iran-Japan Joint Chamber. The agreement, signed by Mojtaba Dastmalchian and Hossein Selahvarzi, aims to foster mutual cooperation in scientific research, education, cultural exchange, and advisory services, leveraging each side’s capabilities to improve the business environment and enhance bilateral trade and innovation.

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“I am sure that the downturn of our economy can be stopped after the summer break and that from October onwards, the economy can start growing again in Germany,” he told the mass-circulation Bild am Sonntag in an interview, Reuters reported.

While the economy would shrink by six percent in 2020, growth by over five percent would be possible in 2021, Altmaier said.

His goal was to reach the level that employment was at before the crisis by 2022, and to start heading for regaining full employment after that date, he said.

Altmaier also said that the rate of the spread of the virus in the United Status was a major concern.

“A pandemic that gets out of control there has big consequences for the world economy,” he said.

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U.S. crippling sanctions followed later by Europe’s breach of obligations towards the JCPOA and disgracing itself  for being untrustable have not only failed in crippling Iran but also they have opened a window towards  the light for economic recovery for Iranians.

IRAN NEWS POLITICAL DESK

The World Economic Forum, after releasing its report on ease in business, has released its new report titled “Regional Risks for Doing Business 2018.” The report offers a business perspective on the impact of global risks and illustrates how they are experienced differently in each region. The World Economic Forum has been publishing The Global Risks Report since 2006, highlighting each year the vulnerability of our increasingly networked and interconnected world to volatility and disruption.

The recent report has listed risks of doing business in every country. I here try to mention some points about those risks related to Iran’s economy which are as follows: 1- Water crisis 2-Growing inflation 3-Fractional conflicts 4- Liquidity crisis for investment and working capital of production enterprises in the country 5- Inefficiency of financial institutions or mechanisms and unemployment or lack of employing efficient and upgraded workforce.

The World Economic Forum claims for preparing the report, it had interviews with over 12,000 economic activists worldwide. In fact the significant number of 12,000 economic activists can be comprised of experienced activists fully familiar with Iran’s economy.

This annual report is prepared by collecting viewpoints of managers of businesses worldwide about the business climates where they are doing business.

In 2018, the report was prepared by collecting viewpoints of 12548 economic activists worldwide. The interviews were carried out between January and June 2018. At that time, most economic experts had predicted a minus 3.5 percent economic growth for Iran for 2020 because of sanctions but Iranians’ rational reaction to sanctions made the International Monetary Fund (IMF) change its previous predictions.

In its new report, the IMF believes Iran’s economy will witness positive 1.2 percent growth. The final process of Iran’s economy is to practically distance from mere sales of crude oil and to turn to non-oil exports. And this current economic condition in the country has boosted morale of entrepreneurs in Iran for national economic recovery and it has created inexplicable hope among economic activists.

While Majis election will be held in March 2019, political parties and groups are nowaday focused on naming candidates who favor the idea of supporting non-oil exports or exports of derivatives of oil. This morale has made sanctions be considered as an opportunity for the country and it will bolster the new strategy which had been ignored because of idleness and passiveness of former governments.

 By: Hamid Reza Naghashian

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