Over $9b needed for completing semi-finished projects: industry min.

“If funded, these projects will go operational this year with a good job creation in the country.

Rahmani made the remarks in a seminar on domestic production in Tehran on Tuesday which was attended by senior officials including Iranian Majlis Speaker Ali Larijani, Roads and Urban Development Minister Mohammad Eslami, and Agriculture Minister Mahmoud Hojjati.

“Today, one of the most important challenges in the country’s domestic production is the issue of financing,” Rahmani said.

Mentioning the importance of appropriate policy making for supporting domestic production, the official said that the Central Bank of Iran (CBI) is expected to pursue a policy in line with the country’s current monetary condition and plan with a focus on the field of production.

Rahmani further noted that the current situation requires a better coordination between CBI and the industry ministry, in order to provide facilities and support manufacturing units.

“Banks also need to take a more interactive approach,” he added.

According to Rahmani, the ministry of industry has requested CBI to provide 3.6 quadrillion rials (about $85.7 billion) of facilities for the country’s production units.
Elsewhere in his remarks the official mentioned his ministry’s new financing programs in collaboration with the government and the private sector, saying that establishing specialized funds for supporting the production is an indispensable necessity.”

“Industry ministry has it on the agenda to pursue the creation of such funds in collaboration with the private and public sectors,” he added.

Earlier this month, Head of the Planning and Budget Organization (PBO) Mohammad Baqer Nobakh said the government has allocated 270 trillion rials (over $6.4 billion at the official exchange rate) for the completion of unfinished development projects.

According to the official, despite a limitation in financial resources, a total budget of 430 trillion rials ($10.23 billion) was earmarked for the completion of unfinished development projects, of which 270 trillion has so far been allocated.

Nobakht referred to the completion of semi-finished development projects as a top priority for the government, saying that at least four quadrillion rials (over $95 billion) is needed to complete all such projects.

In February, Industry Minister Reza Rahmani had announced that completing 12,000 semi-finished industrial projects with over 60 percent progress across the country was a priority.

Meanwhile, the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) has underlined the need for implementing semi-finished projects, saying it is a top priority for the current fiscal year.