CBI Chief Tahmasb Mazaheri

Governor of the Central Bank of Iran (CBI) Tahmasb Mazaheri said on Sunday that
commercial and financial institutions
would increase their participation in export activities.
Speaking at the Production for Exports Conference, Mazaheri noted that efforts by successful development banks and producers in recent years created grounds for active involvement of financial institutions in the export sector, IRIB reported.
He recalled that Exports Development Bank of Iran (EDBI) and Sanat va Madan (industry and mine) Bank provided exporters with financial backing and covered the risks.
Private and commercial banks can benefit from the experiences of development banks and producers to support exporters, he underlined.
Referring to a plan to increase the capital of commercial banks, he said once the plan is approved, financial institutions can channel part of their capacities into strengthening and supporting transactions.
Meanwhile, the top banker noted that between 1.5 billion and two billion dollars have been allocated to EDBI and Sanat va Madan Bank to increase loans for production and export activities by eight to ten times.
Speaking at the same gathering, EDBI managing director, Koroush Parvizian stated that the bank plans to open branches in six countries. He listed these countries as Algeria, Belarus, Iraq, Kazakhstan, Venezuela and Uganda.
Parvizian added that EDBI will also purchase some shares of an Islamic bank in Malaysia. The official elaborated that the measure is aimed at decreasing costs of export and developing trade. “Some 53 percent of exemplary exporters have received funds from this bank,“ he noted.
The official named swift and low-cost financing for exporters of non-oil commodities as among the main responsibilities of the bank.
Parvizian noted that Iran-made products have good markets in Central Asia, South Africa and neighboring states.
Meanwhile, director of Tejarat (commerce) Bank, Reza Raei told the same gathering that majority of businessmen involved in exports do so without a specific program or strategy.

Experts from Iran and Pakistan have finalized an agreement on a multi-billion-dollar pipeline to transfer gas from Iran to the neighboring state. The timeframe for signing of the deal have been left to the two governments. It is expected Iran will begin exporting gas to Pakistan from late 2012.
Iranian oil minister’s special representative for Iran-India-Pakistan (IPI) gas pipeline talks Hojjatollah Ghanimifard, in a joint press conference with his Pakistani counterpart before the finalization of the agreement, underlined that Pakistan has pledged to bring the Indian side back to the negotiating table.
In addition, an advisor to Pakistani prime minister on energy affairs, Mukhtar Ahmed also underlined at the same press conference that India has pulled out of the negotiations for domestic problems rather than the difference over transit fees. Ahmed further noted he did not have the details about Indian problems.
Why energy-savvy New Delhi has refrained from active involvement in the IPI project negotiation is not yet clear. India has not taken a clear stance on the issue. This suggests that the problem lies in internal considerations. Some reports also speak about unclear Indian stance on its nuclear agreement with the US administration. The only important step taken with regard to the pipeline project in recent weeks is the remark by India’s petroleum minister. Murli Deora stated that his government is still ’committed’ to the construction of the $7.4-billion gas pipeline.
Despite its laggard involvement in IPI talks, the southern Asian country needs huge amount of energy for its flourishing economy. Any Indian government has to strive to meet its energy demands from various and diverse sources in the future. In other words, diversity of energy sources is a must in the current world political climate.
Dependency of countries on one source or one route is too risky and would reduce energy security. Indian officials are undoubtedly well aware of this.
Even if investments by the Indian government in oil and gas explorations are successful, it will be unable to meet domestic energy demand from these sources. Furthermore, gas will become an important source of energy in the future. Some reports indicate that even if India joins the gas pipeline project linking Turkmenistan, Afghanistan and Pakistan, it still needs to import gas from Iran.
Oil prices climbed to $98 per barrel last week. Some analysts contend that it is edging towards $100 a barrel. A host of policymakers and oil experts believe the rise in the price of the strategic fuel is inevitable.
As is evident in reports by the International Energy Agency (IEA), India and China will be world’s main energy consumers in the next decade. The agency has also warned that current oil and gas supply cannot meet the demand.
The IPI pipeline known as the ’Peace Pipeline’ can become a major source of energy for both Pakistan and India. Iran plans to export 30 million cubic meters of gas per day to each of these countries. The project can remove future energy concerns of both states. It is hoped India will take note of the importance of the project and overcome its qualms about involvement in the ’Peace Pipeline’. Implementation of the project is not just a regional issue; it can also ensure global energy security.

Lawmakers in an open session of the Majlis on Sunday studied the details of single-urgency bill on ’Organizing and Supporting Construction of Housing Units’ and ratified sections of it.
They authorized the government to support housing construction by the private sector by ceding low-cost lands, extending loans or making lands available to private investors under a 99-year lease, IRNA reported.
With the approval of MPs, the government can cede land through the following procedures: supporting the construction of rental units by private sector and encouraging the construction of housing units for low-income groups who are members of housing cooperatives or are covered by charity organizations and the benevolent.
The government is encouraged to assist mass construction by taking advantage of state-of-the-art technologies and supporting domestic and foreign investments in housing projects.
It is also authorized to support private sector in renovating and reconstructing houses.
It should also back the quality of housing units by paying a portion of quality insurance premium.
Earlier, Housing Minister Mohammad Saeedikia said that the country is facing a shortage of 1.7 million houses not to mention the 800,000 demanded by newly-wed couples.
He elaborated that some 500,000 residential units are constructed each year using traditional building methods, adding that the same number of houses (500,000) are built using industrial techniques.
“That means, apart from the current shortage of three million houses, we construct 500,000 residential units which is less than the target of 1.5 million houses set by the Housing Ministry.“
Turning to rural areas, the minister said one million houses are planned to be built in the next five years. Some 300,000 residential units are to be built by March.

Iran and Malaysia signed six documents of cooperation in economy and science in Tehran on Saturday.
The document on establishing an information technology township and information corridor in eastern Iran was signed by Malaysian Minister for Investments Dao Norovavi and Khorasan Razavi Governor General Mohammad-Javad Mohammadizadeh. The other documents were signed by managers of companies of the two nations, IRNA reported.
Under the agreement, Malaysia will undertake quake-resistance engineering in mass housing construction projects and transfer new technologies in housing industry. It will also assist Iran in economic projects for Khorasan Razavi province as well as in Zagross Auto Manufacturing Company.
Iran capabilities in biotechnology information technology, its achievement in production of drugs for cancer and AIDS and its scientific power in nanotechnology were listed by Iran as areas in which the two sides can cooperate.
About six meetings of the joint economic cooperation commissions have been held by the two countries.
The most important deals between the two countries include avoiding double taxation, customs cooperation and supporting mutual investments, two memoranda of understating in mass housing construction in Qazvin, Parand and Hashtgerd, one MoU on agricultural cooperation, establishing joint tourism office, MoU on construction of refinery in Syria and Venezuela.
Organization for Investment, Economic and Technical Assistance of Iran affiliated to the Ministry of Economic Affairs and Finance has anticipated that the value of agreements with Malaysia in constructing housing units, hotels, power plants, highways and railroads would reach $30 billion by March.
Meanwhile two investment delegations from Austria and Malaysia have arrived Iran to accelerate development of national railroad network, ISNA reported.
Managing director of Railroad Development Consultant Engineering Company elaborated that the Malaysian delegation which visited Iran to conduct negotiations to develop railroad in Western Iran, is interested in making investment in constructing Arak-Samangan-Kermanshah railroad.
The Malaysian party is to take charge of developing the railroad to Khosravi border checkpoint with Iraq.
He elaborated that preliminary talks have been held with Malaysia’s Amona Company, adding that with the formation of a consortium of Iranian and Malaysian companies, the project would be finalized with Road and Transportation Ministry. He put the value of the project at $700 million and the timeframe for making it operational at five years.

Pakistan Prime Minister Shaukat Aziz on Sunday called for expansion of trade cooperation with Iran and Turkey.
According to IRNA, in a joint meeting with Iranian and Turkish ambassadors to Islamabad Mashallah Shakeri and Ingen Soeyal respectively, Aziz stated, “Expansion of ties between the three important countries of the region and the founders of Economic Cooperation Organization (ECO) is very vital and strategic.“
The aim of the joint meeting was to consider the obstacles to developing trade and investment among the three countries, the Pakistani premier observed.
Referring to the high potentials for trilateral cooperation, Aziz said, “Iran, Pakistan and Turkey can be suitable partners particularly in the field of energy.“
Ties between Islamabad and Tehran are based on faith, belief, common history and culture and the expansion of cooperation in trade and investment can strengthen bilateral ties, he noted.
Aziz underlined Iran’s right to peaceful nuclear energy and added that the use of force by a number of countries to deprive the Islamic Republic of its right is unacceptable and the only solution to this dispute is
negotiations.
Iran’s ambassador, for his part, underscored Iran’s interest in expanding ties with Pakistan.
“Cooperation between the two countries, notably in the transportation sector can be effective in deepening relations between Tehran and Islamabad,“ Shakeri noted.
Referring to the problems hindering Pakistan economic infrastructures, the ambassador said, “Rebuilding infrastructures in Pakistan, especially in transportation, can lead to greater economic exchanges.“
Shakeri expressed Iran’s readiness to participate in transportation projects, especially in the construction of railroads in Pakistan as this will play an important role in expansion of mutual ties.

A report released by the United Nations Conference on Trade and Development (UNCTAD) indicate that Iran Trade and Development Index (TDI) has improved in 2006 compared to that of 2005.
The report titled Developing Countries in International Trade 2007: Trade and Development Index (DCIT-TDI 2006), covers 123 countries, an increase from 110 in DCIT-TDI 2005.
Iran’s TDI ranking rose nine slots to reach 93 in 2006 from 102 in 2005. The report is a useful policy assessment and policymaking tool for developing countries as it provides a framework for enhancing the enabling environment for economic and social development and promoting mutually beneficial interaction between trade and development in the context of globalization, according to UNCTAD website.
Analysis through the TDI framework brings country-specific constraints to the fore by simultaneously identifying structural, institutional, financial, trade and development policies that allow developing countries to maximize benefits and minimize costs from trade liberalization and globalization.
The analysis helps address the challenges and opportunities of trade-driven globalization.
The report gives scores of between one and 1,000 for TDI and the more the figure the more developed the country is. Iran’s score in the report stood at 423 in 2006, showing a rise compared to 386 in 2005.
The report is used to distinguish between input-based measures (such as human capital, physical infrastructure, macroeconomic stability, openness to trade and access to foreign market) on the one hand, and outcome-based measures (such as trade performance and economic and social well-being) on the other in TDI 2006.
Two indices, the Input Measure Index (InputMI) and the Outcome Measure Index (OutcomeMI), are first measured separately and then aggregated to construct the overall TDI. Iran’s InputMI rank improved to reach 63 in 2006 from 81 in 2006 while OutcomeMI was 99 from 112 last year.

Iran Aluminum Company produces 54 percent of IranÕs total aluminum.

Privatization Organization announced time schedule for transfer of block shares of Mobarakeh Steel Complex and Iran Aluminum Company (Iralco) via the stock exchange.
An estimated 20 percent of shares of Mobarakeh Complex would be floated in the stock exchange in four blocks on November 25, deputy head of the organization told Fars news agency on Sunday.
Mehdi Aqdaei added that two 10-percent blocks of Iralco would also be put on sale on November 26.
The official noted that the price of Mobarakeh shares would be 3,900 rials in cash while Iralco share is set at 6,500 rials in cash.
The organization, he said, is awaiting cabinet approval for transferring shares of Khuzestan Steel Company in block.
Shares of the companies are transferred to private sector in line with Article 44 of the Constitution which seeks large-scale privatization in key economic areas and downsizing the government.
Shares of the major aluminum manufacturing company, Iralco, were floated for the first time in the stock exchange on June 11.
Three percent of equities of the highly-profitable company were offered in the stock exchange to evaluate the prices. The company produces 54 percent of country’s total aluminum. Iralco is the first company to produce aluminum ingot in the country.
The giant Mobarakeh Steel Complex is currently the top company in the bourse.