Investment-productivity, Key To Growth

Tehran, Oct 8, IRNA - The participation of the private sector in Iran is integral to the performance of the government in major economic sectors, including oil and gas, suggested 'Iran Daily' on Wednesday. If the government’s performance is satisfactory, then the private sector will be encouraged to make new investments, added the English-language daily in its Opinion column (pg 4). The private sector only invests in the production sector when it receives positive signals and assurance that its money will not go in vain. Many investors in recent years preferred to inject their money in non-production sectors, which caused all economic indexes to decline over a short period of time, noted the paper, adding that if the government seeks more investments, it should extend full support to the private sector. Productivity is another issue that the government should pay attention to, suggested the daily adding that an increase in productivity in public and private sectors would bring about economic growth. But it needs a range of reforms like reducing bureaucratic procedures, removing unnecessary restrictive laws and easing access to credits for all real investors and not just people with links to those in a position of authority, pointed out the daily. These measures will improve the situation for doing business. If the government grants subsidies to real investors, its long-term economic goals will be realized, it said. The production sector has witnessed a considerable decline in the past few years. The auto industry, for example, produced a record one million cars annually but the figure dropped to 650,000 after new sanctions came into effect. It concluded by saying that the government should compensate those declines./end