Ahmad Tavakoli also the Head of Majlis Research Center said domestic resources and new technologies, if utilized properly, will boost economic activities in the country and "there will be no need for foreign investments."
Short-term foreign investments is problematic for Iran such that a large lump-sum of capital flow into the economy can destabilize production, create crisis in the real estate and stock markets and skew market prices.
Various measures of investment risk and stability of economic environment as is gauged by Western economic institutions are not appropriate for our country, he added.
Deficient ownership laws, pervasive corruption, economic instability, fickle laws and regulations including labor laws are the problems of the domestic economy, Tavakoli said.
He also added most of the government investment in the period 1370-1381 (1990-2001) were channeled in the service sector, creating unsuitable situation for economic growth.
He said there is a need to prevent capital flight and wastage of resources.
"To attract foreign investments, domestic industry should be strengthened," he added.
He further said improving the investment situation is only possible through removing hurdles on investments for domestic, expatriates and foreign investors.
Managing Director of Economy and Finance Ministry for Foreign Investment Affairs said here in September that the total foreign investment inflows to the country stood at dlrs two billion in the last Iranian year (ended March, 19).
"The figure will, at the minimum, register a fourfold rise this year," Ahmad Taqavi underlined.
Speaking to reporters, he said the announced figure of dlrs 120 million of foreign investment in Iran in 2003 by the United Nations Conference for Trade and Development (UNCTAD) is erroneous.
He said since the period 1993-94, the foreign investment trend has been favorable and continuous. Notably, beginning last year and in the first five months of this year foreign investment inflows have showed solid growth, he added.
In the first five months of the current year over dlrs 3.871 million of foreign investment projects have been commissioned, Taqavi remarked.
"Facilitating the domestic payment system is one of the constructive steps in instilling incentives foreign investors," he added.
Iran has signed agreements with 48 nations on support of joint trade and investments. The agreements stipulate for governments to finance private companies making the pacts an effective tool in support of economic vibrancy in Iran.
... Payvand News - 12/6/04 ... --