A number of countries, including Switzerland, Germany, the littoral states of the Persian Gulf, Syria, Turkey, Azerbaijan and Armenia have either inked agreements or expressed an interest in importing gas from Iran.

National Iranian Gas Export Company (NIGEC) says that Tehran has every right to revise the price of gas supplied from the proposed Iran-Pakistan-India (IPI) pipeline in view of the increase in energy prices and demand, coupled with the fact that Pakistan and India have not inked any deal yet.
“Given the upward trend of energy prices, a review of the price is a must,“ Fars news agency quoted the company’s Managing Director Nosratollah Seifi, as saying.
According to the official, while discussions on the price of gas are continuing among the three countries, a number of specialized domestic committees are in the process of reviewing the price of the gas.
Certain aspects of the agreement to export Iranian natural gas to the United Arab Emirates also need to be clarified, with price as one of the areas of concern.
Iran’s gas exports are projected to reach 96 billion cubic meters by 2020. A number of countries, including Switzerland, Germany, the littoral states of the Persian Gulf (except Saudi Arabia), Syria, Turkey, Azerbaijan and Armenia have either inked agreements or expressed an interest in importing gas from Iran.
Interestingly, India still seems apprehensive about the successful implementation of the $7 billion project, as it is opposed to the draft agreement Tehran has submitted seeking revision of prices at any time during the contract period.
In the past, India’s Petroleum and Natural Gas Ministry showed enthusiasm when the first breakthrough on the 2,600-kilometer natural gas pipeline draft deal occurred. But later the ministry described the Iranian proposal as ’partisan, undermining the interests of two major partners, India and Pakistan!’
In addition, India’s Petroleum and Natural Gas Minister Murli Deora claimed at the time that, “The Iranian draft agreement has been formulated in a way to allow Tehran to revise the price of gas whenever it likes during the entire contract period in line with volatile global gas prices.“
However, Iran, in the initial stage, agreed with India and Pakistan’s suggestion that the price of gas should be fixed for the entire period of the IPI gas pipeline project and only later (thanks to the political uncertainties in Islamabad and New Delhi not to finalize the deal under US pressure) Tehran was forced to shift its stance on the pricing of gas and pressed for the insertion of a new clause in the contract, allowing the country to revise the price in the international market.
Iranian officials made the right decision at the time. Given the current prices in the world market, it no longer makes economic sense to export gas to India--who knows after how many years--at a price tag that was only partially agreed few years ago and with no executive guarantees!
India had also earlier accused Tehran of ’attempting to betray the commitment it made during several rounds of talks’.
New Delhi claimed it was concerned that if the condition mentioned in the draft was agreed to, Tehran could walk out of the pipeline project any time.
But Tehran never did walk out of the project.
To the contrary, it did everything to make the deal work and it was New Delhi that had another agenda on its mind. For those with short memory, it suffices to say that India was one of the first countries to vote in favor of the first anti-Iran IAEA resolution sending the country’s nuclear case to the UN Security Council - amid IPI gas project talks!
To make matters worse, India’s Petroleum and Natural Gas Ministry later officially announced that the trilateral talks had failed, while expressing worry about the security of the pipeline.
Anyhow, as maintained by the NIGEC, Tehran is no longer willing to supply the LNG at the proposed price of $3.215 per million British thermal units. This is because in June 2005, when the LNG deal was inked, the price of crude oil was just about $31 a barrel.
Oil prices have passed the $118 mark now! Therefore, Tehran is no longer obliged to honor any half-baked agreements and it has every right to press for a price above the meager $3.215.

Imam Khomeini Port witnessed a 24 percent increase in exports during the Iranian year to March 19, reported IRNA. The rise was recorded in the export of chemicals, iron and wheat, Khuzestan province Ports and Shipping Department announced.
Imam Khomeini port exported 6.3 million tons of commodities last year, loading and offloading 21.8 million tons of goods showing an increase of six percent compared to the figure for the previous year.
The port is now a major hub for the export of wheat. Some 40 percent of Iran’s exports are shipped from this port.
Meanwhile, Golestan province exported 151,000 tons of goods valued at $79.3 million during March 2007-2008.

A senior official declared Iran’s willingness to share technical expertise in the field of telecommunications with other countries.
“Tehran aims to increase international and regional cooperation in the telecommunication sector, particularly with countries that share cultural similarities with Iran,“ said Deputy Minister of Communications and Information Technology Kamal Mohammadpour.
“Development of regional countries depends on their ability to work with each other,“ he said while addressing the opening session of an international course titled ’Optimal Use of Spectrum in Cellular Networks’ in Isfahan, ISNA wrote.
Mohammadpour further called on members of the International Telecommunications Union (ITU) to expand regional cooperation.

Labor Minister Jahromi has warned that as a consequence of the new banking policies, banks will be encouraged to get into the investment market and trade.

Labor Minister Mohammad Jahromi in a letter to President Mahmoud Ahmadinejad sought amendments to the new package of banking policies presented by the Central Bank of Iran (CBI).
According to Far news agency, the minister said, the new package of banking policies drives the last nail into the coffin of the production sector as it will hinder the much needed investment.
According to the official, the new policies will further push up inflation and channel excess liquidity to less productive sectors such as trade.
Central Bank of Iran offered a new package of regulatory policies for the banking system for the current Iranian year, (started March 20). The new package will establish bank lending rates on the basis of the rate of inflation.
Under the new policy, there will be a single set of monetary and financial regulations for all state-owned and private banks as well as financial and credit institutes. In addition, bank loans will only be extended to agricultural, industries and mine, construction, exports, trade and services sectors.
In this respect, Deputy Governor of CBI Hossein Qazavi told ISNA that bank lending rates will remain at 12 percent, maintaining that government policies are in line with new banking policies.
He, however, said banks have been urged to participate in joint projects in which minimum profits made will be equal to the rate of inflation plus three percent.
According to the official, banks are not allowed to use the deposits of saving accounts in joint ventures in which future profits will not be above the rate of inflation plus three percent.
The official added, “The package has been devised on the assumption that the executive branch agrees that monetary policies should be disciplined. That explains why last year’s budget growth was less than those in previous years. This year, likewise, the government has plans to keep its current expenditures in check, especially foreign exchange expenses.“
Qazavi reiterated that the government’s policies are in accordance with the CBI’s latest package of monetary policies which has been approved by CBI’s Strategic Council. “Once implemented properly and efficiently, the new policies will regulate banking transactions. They will also control the government’s foreign exchange expenditures.“
He said that banks will not be allowed to withdraw more money than what they have been allocated from the Central Bank to grant loans. “The plan is to adjust the government’s foreign exchange expenditures. In other words, the volume of foreign exchange in the market will be balanced with demand.“
According to the official, “If implemented efficiently, the CBI will no longer have to sell excess foreign exchange in the market. The excess foreign exchange will be deposited in the Oil Stabilization Fund which plays a key role in curbing the growth of liquidity.“
However, in his letter to the president, Labor Minister Jahromi asked whether the CBI has the authority to devise and notify banking policies without the approval of the Money and Credit Council, the Economic Commission or the Parliament?
He maintained that some of the points in the package are positive and noteworthy, but there are also missing links that need to be addressed since they go against the economic development plans and are in no way in line with the banking policy.
He warned that, as a consequence, banks will be encouraged to get into the investment market and trade.
He explained that banks traditionally tend to direct their resources toward the commercial sector. “For this reason, they should be discouraged from long-term investments. However, the new policies give a bigger share to the commercial sector than say the industries and agriculture sectors. This can practically deal a major blow to the much needed investment in the production sector, and as a result, destabilize employment and augment inflation,“ he said.
“Seeing that the government is serious about supporting the production sector and creating new job opportunities, the economic commission must discuss the new package of banking policies and make the necessary adjustments so that they address the above-mentioned areas of concern,“ the minister concluded in his letter.

By Gholamreza Mesbahi-Moqadam
Member of Majlis Economic Commission

It is essential for any political faction that gets into the next parliament to have a comprehensive economic policy and a specific agenda. Lawmakers should also set priorities to deliver on their stated objectives.
In line with this, the Conservative camp has set priorities for its programs in the eighth parliament. Under current economic conditions, the top priority is curbing inflation.
Effective solutions to tackling inflation can be divided into short-term and long-term plans. Under the circumstances, the best option to curb inflation, stabilize employment and remove obstacles to production is long-term plans. To this end, obstacles to production must be removed to increase the supply of goods in the market. This, in turn, will create new job opportunities, particularly in the deprived areas.
There are, however, short-term solutions to curb inflation as well, the most important of which is controlling the growth of liquidity. At the moment, the gross domestic product (GDP) growth stands at about five percent whereas the rise in liquidity has hit the 30 percent mark and above.

Annual steel production will exceed 32 million tons in 2011, said deputy director of Iranian Mining Industries Development and Renovation Organization (IMIDRO), Ali Palizdar.
He told Fars news agency that steel production increased from 9.28 million tons in the year to March 2007 to 10.19 million tons in the year to March 2008, showing a rise of three percent. He added that the output of steel products also rose from 9.71 million tons to 10.22 million tons during the period.
Palizdar stated that copper cathode production went up from 201,000 tons in the year to March 2007 to 202,000 tons in the year to March 2008.
“Aluminum production decreased from 205,000 tons during March 2006-2007 to 204,000 tons in the year to March,“ he said blaming a technical problem in Almahdi Aluminum Plant as the main reason for the decline.

Capacity of Tehran’s Imam Khomeini International Airport (IKIA) will reach 100 million passengers as stipulated in its comprehensive plan, observed managing director of State Airport Company, Ali Asqar Ketabchi.
He told ISNA that the plan will be implemented in three phases, adding the airport capacity would be increased in each phase to meet flight demand.
He noted that IKIA’s passenger handling capacity has been predicted to reach 20 million in the first phase, adding, “We will achieve the target in coming years based on schedule.“
Ketabchi referred to the establishment of an airport city in IKIA as another objective of the company, adding private investors can put forward economically viable plans to invest in the project.
The official said that all requirements and problems have been identified so far, hoping the ground would be prepared for further expansion of the airport.
Imam Khomeini International Airport is located about 30 kilometers south of Tehran.

Subsidized drugs worth 20 billion rials have been purchased to help beekeepers overcome the losses as a result of drought, said head of State Veterinary Organization.
On the order of Agricultural Jihad Minister Mohammadreza Eskandari, the drugs will be distributed free of charge among beekeepers in drought-hit areas, added Mojtaba Norouzi, reported ISNA.
A committee comprising representatives of all affiliated organizations and deputies in the Agricultural Jihad Ministry has been set up to identify the drought-hit areas, he explained. Based on the findings of the committee, the required drug would be handed over to the beekeepers, the official pointed out.
Norouzi also disclosed plans to purchase subsidized sugar by the ministry’s Livestock Affairs Division.