Tehran, Dec 6, IRNA-The chairman of Majlis' Industries and Mine Commission said on Monday that with the authorization granted by the arbitration body, the Expediency Council (EC), for foreign financing of projects, problems associated with the use of foreign capital to fund projects have been removed.
Speaking on the sidelines of the 4th Iran Plast Exhibition here, Mostafa Sayyed Hashemi said that the Majlis, after nine months, has finally been able to obtain the approval of the EC on the issue of foreign financing.
He said the Guardians' Council (GC) had initially raised objections to foreign participation in strategic projects, saying this could contravene religious tenets.
However, he said it has been convinced that the current economic environment calls for foreign investment to generate growth and development and, hopefully with the removal of this problem, implementation of industrial projects which have been bogged down, will resume, the MP added.
Hashemi also praised the progress achieved in the petrochemical sector in recent years, saying in addition to meeting the domestic needs of domestic downstream industries exports of petrochemical products to international markets have played a significant role in boosting the national income.
Since the Iranian year 1383 (ended March 19), offices in various provinces have been set up to give foreign investment advice. The centers assist investors better gauge the investment potentials of various regions.
The share allowed foreign investors is from 20-100 percent of the total value of a project's initial investment. Projects are spread all over the country.
Latest official figures point to a trend of rising foreign investment inflows. According to official figures, investment inflows in the country has shown an "exponential" trend.
The director of the Plan and Budget Organization's macroeconomic office said here last month that the Fourth Five-Year Development Plan (March 2005-2010) envisions over dlr 385 billion in investments in the country.
Mohammad Kord-Bacheh told reporters that given the lack of domestic funds to finance projects, it has been decided that over dlr 31 billion of the amount allocated for implementing projects will be raised from foreign sources of which "dlr 17 billion has to include foreign facilities."
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