Aref highlights gov’t focus on large enterprises as drivers of economic growth
The Iranian vice president emphasized the government’s serious support for addressing the shortcomings of large economic enterprises, stating that the current administration’s strategy is to facilitate and reduce bureaucracy for these key drivers of the country’s economic growth.
Speaking at Iran’s Top Companies Conference on Monday, Mohammadreza Aref highlighted the history of drafting and approving the first development plan, which was not implemented due to divergent views.
He stressed the need for large economic enterprises to drive growth, noting that while the government is not an effective business operator, it should play a transparent, supportive, and facilitative role in guiding these enterprises.
This approach, the VP said, has been emphasized since the third development plan and is central to the seventh development plan, which focuses on the private sector and large enterprises.
He praised the conference for elevating the role of large enterprises in the national and regional economy and addressing public demands.
He noted that Iran’s wealth, largely tied to underground resources like oil, has been framed to maintain the status quo, discouraging reliance on large economic and industrial enterprises and instead promoting assembly and imports from industrialized nations.
Oil revenue and economic challenges
The VP pointed out that Iran’s oil revenue at times “falls below the sales of dolls and toys in some other countries.”
He praised the Islamic Revolution and the efforts of prominent elites for steering the country toward the 20-Year Vision Document, which aims for regional leadership. However, he acknowledged that post-vision challenges and imposed crises have tested the nation, with the creativity of large enterprises shining during these difficult times.
Aref highlighted the valuable data collected from large enterprises at the conference, criticizing some entities for avoiding responsibility by labeling documents as confidential, often without substantive content.
He stressed the importance of sharing such information with planners to support the evolution and sustainability of these enterprises.
Resilience amid energy shortages
Despite power and gas outages affecting industrial units and large companies this year, Aref noted that these enterprises continued their operations, driven by a sense of purpose and commitment to serving the public.
He praised their resilience, particularly in the face of energy imbalances, and called for greater appreciation of their contributions.
To achieve the 8% growth target outlined in the Seventh Development Plan, Aref acknowledged the need for significant resources.
He noted a shortfall of 18,000 megawatts of electricity this summer, with predictions of a 24,000-megawatt deficit next year.
The government, he said, is planning to generate 5,000 megawatts from wind energy and 30,000 megawatts from solar energy, with domestic investments secured to meet these goals.
He expressed hope that 8,000 to 10,000 megawatts of solar energy would be operational by next year.
Export development
Aref identified export development as a serious strategy of the 14th administration, emphasizing the use of trade corridors and active participation in regional economic organizations.
He noted the emergence of strong markets in the region and within Iran’s cultural sphere.
The official also highlighted the government’s support for small and medium-sized enterprises (SMEs) alongside large economic drivers, recognizing their critical role in job creation, development, and reducing urban migration.
Economic targets and industrial growth
Aref outlined the government’s economic targets, including 8% growth, single-digit inflation and unemployment rates, 8.5% industrial growth, and 13% mining growth.
He emphasized the importance of supporting leading enterprises, as outlined in the Seventh Development Plan, which calls for the Ministry of Industry, Mine, and Trade to develop a national industrial advancement strategy.
Leveraging human capital for technological advancement
Reflecting on Iran’s industrial progress since the revolution, Aref noted the country’s ability to compete globally in new technologies, leveraging its human capital.
He cited achievements in nanotechnology as an example of this approach and stressed the importance of adopting cutting-edge technologies, including artificial intelligence, for national development.
Aref underscored the necessity of drafting a national industrial advancement strategy with input from experts and global best practices.
He called for avoiding politicization and ensuring the strategy is implemented as a national commitment.
The VP identified market expansion and competitiveness as critical for leading enterprises, warning that failure to compete with advanced nations would lead to significant challenges.
He emphasized the role of research and development (R&D) in achieving competitiveness, citing weaknesses in the automotive sector as a result of insufficient R&D investment.
Science, technology as foundation of large enterprises
Aref stressed that the foundation of large enterprises lies in leveraging science and modern technologies.
He noted the establishment of committees within the presidential office to address obstacles faced by large companies, emphasizing the complementary roles of the government and enterprises.
Aref highlighted the importance of combining competition and collaboration to drive national growth and praised the achievements of Iranian enterprises over the past four decades, noting their ability to compete with global leaders.
At the event, Aref also honored top economic enterprises with certificates of appreciation.