"Extreme bureaucracy" and "not accompanying banks", a barrier to "production boom"

"Extreme bureaucracy" and "not accompanying banks", a barrier to "production boom"
  • 2019-10-06
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Member of the Board of Directors of the House of Industry, Mine and Trade of Iran: Although efforts have been made to promote prosperity, the lack of coordination between the agencies and the severe bureaucracy, the failure to enforce the laws, the failure of banks to justify their internal bylaws, and their own interpretations and interpretations of the norms. , Continues to deter production boom.

According to Iran Stone Exhibition, Ali Mohammad Zamani, treasurer and member of the board of directors of Iran's House of Industry, Mining and Commerce in reviewing Iran's economy and especially its production in the year, stated: Iran's economy in the year due to lack of production and intensification of anti-boom production factors, and The simultaneous and unrelenting pressures of some areas, such as "foreign exchange", "liquidity and working capital", "tax", "insurance" and "customs", which have led to "unfavorable business environment" are one of the most severe shocks in recent decades Experienced.

He pointed out that the disregard for production was followed by the exchange rate jump and inflation. With "purchasing power parity" it has at least more than doubled, with little or no record of its kind.

Head of Qazvin Province Industry, Mine and Trade House noted: According to the Iranian Statistics Center, the economic growth was negative by 4.9%, which led to a deep recession in some sectors of services, oil, industry, construction and others. There were economic sectors that all stemmed from neglecting to invest in the country's economy for at least the past decade.

He noted that factors such as the volatile macroeconomic environment, barriers to bank transactions and the problems of financing firms and the unfavorable business environment contributed significantly to slowing economic growth and driving negative growth.

Zamani noted: Of course, there are other important factors, including the shock caused by the sharpening of foreign sanctions in the middle of last year and the government's irrational policies to manage the market and control the prices, but despite its economic objectives, The recession added further effects on slowing economic growth.

Let's learn from last year's economic shock

A member of the board of directors of the Iranian House of Industry, Mine and Trade added: It is noteworthy that the factors that contributed to the decline in production last year and the lesson to be learned are the continuation of previous policies and non-expert decisions and lack of acquisition. The expert view of private sector stakeholders can continue to lead to stagnation and deterrence. Therefore, it is imperative to rethink economic policies and facilitate the production boom.

In his review of the economy in the first six months of this year, he said: Many experts believe that the first half of the year has been the most unpredictable period of recent years. As it was difficult to imagine forecasts, most experts cautiously avoided forecasts of any kind of economic outlook.

First 6 months; half of investor confusion

It continued, however, to a large extent for the first six months - half the wait, half the uncertainty of the economic stability and the confusion of investors, which led to economic decision-makers being left uncertain, deciding conditions; New investment halts or slows down decision making.

He pointed out: In the first six months of this year, the relative stability of the exchange rate has been steadily tightening with the central bank's controls. It has a lot to do with the price of raw materials and production, because supply and demand are still unbalanced and demand-side constrained, and supply-side constrained.

The head of the House of Industry, Mining and Commerce of Qazvin explained: At least six months have passed since the boom in production and we have entered the second half of the year; there have been ups and downs in Qazvin during this period. The province's industry and production have high potential and I believe they will be able to solve their problems if production is left to the producers and the barriers removed.

He said: Although efforts have been made in the province to boost production and facilitate production, and the level of support has been more and somewhat better than in the past, the lack of coordination between the agencies and the severe bureaucracy in the province, lack of enforcement, lack of banks to justify. Extrajudicial internal rules and judgments on self-standardized interpretations and interpretations of laws continue to deter production booms. Of course, we must also add to other problems, such as inflation, stagnation and outrageous sanctions.

Qazvin province's House of Industry, Mining and Commerce, during the first three quarters of this year, was scrutinizing the problems of industrial units and businesses, trying to update and accurately identify problems and barriers, and achieved different results than previously imagined.

"Supplying raw materials" is the most important problem for the province's production units

A member of the board of directors of the House of Industry, Mine and Trade of Iran noted: In the case of studies where previously working capital was the main production problem, "raw material supply" was the first and most important problem of the production units.

He explained that part of the supply of raw materials goes back to sanctions, which either are not provided with the raw materials or are imposed by bypassing the sanctions by imposing high costs. A significant portion of the problems related to the supply of raw materials have nothing to do with sanctions and are mainly due to the policies adopted by economic officials; It has confused and unconcerned both executives and executives of production and trade.

Zaman added: Although we have seen the exchange rate decline in the last month, the decline has not yet had a significant impact on the decline in prices, especially for raw materials; Today's liquidity situation of firms is such that the price of raw materials has increased by several times the price, so the need to supply raw materials in the current situation has increased to at least three times the liquidity, which is easy given the rigidity and lack of cooperation of many banks. Units are not possible.

"Currency problems" The second problem of Qazvin production units

He said: After the raw materials are the second most common problems of production units called "currency problems", the decisions of the central bank and other agencies, the lack of trust and confidence in the real and reputable manufacturers and exporters that have repeatedly tested the country's hard realms, In this context, they end their export boom, and in this field, conditions have been raised to increase the number of unprecedented exporters by several times, of course, with export problems and barriers, money transfers that put high risk and high costs on production units. Imposes Add, d, to this category.

"Working capital" is the third problem of the province's production units

The head of Qazvin's House of Industry, Mine and Trade, pointing out that "working capital" is the third problem of Qazvin's monitored production units, added: "Banking problems and banking issues" are in the fourth category, followed by "tax" and "tax problems". Customs are in the fifth and sixth categories.

Customs clearance by issuing a directive each week

He said: In export barriers, customs are issued at least one circular at least weekly so that the authorities do not know which ones to execute and in fact the operators themselves are confused. During the first five months of this year, the province's customs exports, although mainly by weight, were mainly steel exports, but in terms of value, there was a significant decline that could be tolerated. In sum, many people try to justify the problems caused by sanctions, but the reality is something else.

"It should not be overlooked that while sanctions are a threat and an increase in spending, they also provide good opportunities."

In the first half of this year, we cured some of our sanctions with more sophisticated policies

In the months leading up to the first half of this year, we cured some of our sanctions with more sophisticated policies, alleviating economic turmoil, and the psychological climate of business and production was on the path of relative relaxation, a member of the Iranian House of Industry, Mine and Commerce said. The boom has had a positive effect on parts of the industry, with some units achieving relative productivity growth and employment growth.

He continued: According to the latest estimates, the selected goods in the two groups: "Mining and Mining" and "Chemical and Petrochemical" performed better than the "Industry" sector and although in the industry the largest decline was due to automakers but Among the 7 selected industrial products, 3 experience growth in production.

Zamani noted: Although production in all three groups was not significant, given the current situation, the same limited growth can be attributed to phalenic, which could, if persisted, be a sign of a decline in output in the second half of the production boom. .

At the end of the meeting of the Board of Directors of the House of Industry, Mine and Trade of Iran, it was noted that by facilitating the process of producers' access to the raw materials needed and injecting financial resources and smoothing the export platform, one can see a further improvement of the production process and achieving economic growth in the path of production boom. Was.