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IranIraq Chamber head highlights private sectors role in economic growth

· 2 min read

Iran-Iraq Chamber head highlights private sector's role in economic growth​

TEHRAN - Yahya Al-e Eshaq, chairman of the Iran-Iraq Chamber of Commerce, has emphasized that fostering collaboration between the government and the private sector is essential for achieving an annual eight percent economic growth envisaged in Iran’s five-year development plan.

Iran-Iraq Chamber head highlights private sector's role in economic growth

Speaking about Iran's economic performance, Al-e Eshaq noted an average growth rate of 4.5 percent over the past four years. He cited projections by the Parliament’s Research Center, which forecast growth rates of 2.5 percent for the calendar year to March 2025 and 2.9 percent for the year to March 2026.

He referred to the government's ambitious goal of 8% economic growth, noting that it involves two components: a 5.2 percent contribution from investment and production and 2.8 percent from improved productivity.

Achieving 5.2 percent growth in investment and production requires a predictable environment for businesses, trust-inspiring regulations, and adequate financing for investments, he said. He also highlighted the need for at least four years of consistent engagement between the government and the private sector as well as fulfillment of governmental commitments.

Addressing productivity growth, Al-e Eshaq stressed the importance of professional workforce development, access to advanced technology, and clear, supportive policies on foreign exchange, taxes, and insurance for producers.

Government must establish economic infrastructure, effective diplomacy, and general conditions conducive to eight percent growth, he said, highlighting that coercion or making appeals will not be able to bring any achievement in this regard.

He was certain about the feasibility of eight percent growth, arguing that the country enjoys huge economic potential, including skilled workforce, economic facilities, geographic advantages, and financial resources, while facing shortcomings in strategic planning and economic policies.

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source: tehrantimes.com