Iran News ...


11/25/03

World Bank calls on Iran to define the private sector

The World Bank (WB) declared on Tuesday that the lack of a clear definition for the private sector in Iran mainly accounts for the difficulties faced by the government in implementing its privatization policy, IRNA reported from Tehran.

The World Bank recommended that Iran pay attention to its criteria in defining private companies in Iran.

A report released in the Post Bank periodical said that according to the WB, the private sector should receive no fund from the general state budget and government should not control the financial affairs and management of private enterprises.

The WB further suggested the government's direct and indirect participation can be channelled through investment, retirement funds and major companies as well as other institutes which are either fully or partially government-owned with the state share not exceeding 20 percent.

The WB underlined that at present access to reasonable and reliable information on the financial position and the ownership of Iranian institutes is unclear and no company affiliated to the government has an idea on the scope of activities of its government affiliate.

Meanwhile, given the lack of transparency in reporting the activities of state-owned companies, such reports have no clear criteria and principles.

The bank called on Iran's government to seek a standard method for development of information on all the companies affiliated to the government.

According to the World Bank, without having access to the required information, Iranian government will not be able to achieve a clear and full image on the structure of the ownership of the government sector's companies.

Moreover, Iran's government should draw up an index on the laws and by-laws applicable to the financial affairs of the institutes affiliated to the government to contribute to further introduction of the various dimensions of such companies.

... Payvand News - 11/25/03 ... --



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