The economic growth of rate of six percent envisioned in the Third Five-Year Development Plan (March 2000 – March 2005) is not sufficient for generating 750,000 new jobs a year, according to the Deputy Minister of Labour for Legal and Parliamentary Affairs Mr. Ali Yaghoobi.

The official argued that to realize such a high number of jobs, the economy should grow by an average of 12 percent a year.

Published figures indicate about 3.5 million people of the active population, (in the 15-64 age bracket), are currently unemployed. However, unofficial estimates put the jobless figure much higher. The problem is compounded by the fact that factories and small businesses are laying off staff due to falling revenues and depressed markets, at a time when several hundred thousand graduates enter the already saturated market.

At least 5.5-mn high-school graduates will join the queues within the next four years. This will increase and push the unemployment rate over 24%, economists believe.

Macro-educational planners have focused most of their attention on expanding the university admissions, which in recent years has inflated both the number of degree holders and their expectations from the government.

New cooperation between Iran and IDB

Mr. Ghareh Baghian stated that in the meeting that is supposed to be held in Tehran in mid-Shahrivar (23 August to 22 September 2002), it is expected that loan proposals for the implementation of three projects to be presented to high officials.

The official added that Iran expects to receive $14.4 million in loans from IDB for the renovation of flood-hit Golestan province, restoration of power lines and establishment of water reservoirs. He further reported that these loans will have a grace period of 3 years, a repayment period of 21 years and will bear a 6% interest rate.

Also it is expected that a further $10 million loan to be granted to Iran for the renovation of Golestan province’s infrastructure, bearing an interest rate of 2.5%.

Alstom Gets 200 Million Euro Contract

The first GT13E2 turbine is to be delivered in March 2003, with the last arriving the following October. The order brings to 83 the total number of these units sold to date.

The contract was awarded by the MAPNA International, a company formed in the United Arab Emirates to finance independent power producer projects in the region.

Iranian Commercial Code to be modified

The Iranian Commercial Code was initially written in 1942, and within the past year, much research has been done to identify its weak points and to modify the law.

The Commerce Minister further noted that currently the Trade Law has 600 clauses. The amendments will reflect the situation of economic institutions in relation to the new economic climate. In the amendment, all 600 clauses will be studied diligently and the first draft of the amendment will be handed over to the Council of Ministers by February 2002 for approval.