Veep: Gov’t not to allow rivalry between state companies, private firms
Vice President Mohammadreza Aref emphasized that the government would not permit any state-owned companies to compete with private firms under any circumstances during the current administration.
“We are committed to creating a favorable environment for strong private companies,” he stated.
During a meeting with members of the Association of Exporters of Techno-Engineering Services, Aref praised Iranian engineers working both domestically and abroad, calling them a “source of pride” for Iran.
He highlighted their skill and ethical standards, recounting a conversation with a neighboring country’s official who expressed full trust in Iranian engineers, technicians, and workers for their quality of work and adherence to ethical principles.
Aref acknowledged the challenges faced by Iranian engineers and contractors in securing contracts with foreign countries, despite their strong interest in doing so.
He noted that even within Iran, many are owed significant sums to the government, yet they continue to work diligently and with motivation for the country.
The VP also commended the engineers for their contributions to major domestic projects, such as highway construction, dam building, and housing development and stressed that addressing their challenges is a priority for the government, particularly given the difficulties posed by international pressure and sanctions.
Key to achieving Seventh Development Plan goals
Aref stated that reaching the growth targets outlined in the Seventh Development Plan (2024-28) would be difficult without the contributions of technical and engineering service exporters.
He urged exporters to take their work more seriously than ever, emphasizing the importance of deepening ties with the Eurasian Economic Union.
He encouraged companies to explore opportunities in countries like Uzbekistan, Tajikistan, Kyrgyzstan, and Armenia, which share cultural ties and a strong interest in cooperation with Iran.
He also called on experienced members of the association to mentor younger professionals, advising them to focus on long-term goals rather than quick profits.
Aref emphasized the importance of offering competitive pricing and superior quality to attract foreign partners and leave a positive legacy for Iran.
Avoiding internal competition
Aref reiterated that Iranian companies should not compete against each other, especially in international projects.
He assured that the government would prioritize private companies over state-owned entities in such cases, pledging strong support for the private sector to enhance its activity.
He also highlighted the upcoming implementation of a free trade agreement with EAEU countries, urging Iranian companies to prepare for stronger engagement in the region.
Government guarantees for exporters
During the meeting, members of the association raised concerns about the impact of sanctions on their ability to secure bank guarantees, which has hindered their operations.
They estimated that resolving these issues could boost exports of technical and engineering services to at least $6 billion in the first year.
Aref ordered a comprehensive review of the challenges related to issuing government guarantees for Iranian companies affected by sanctions. He instructed the ministries of industry, mine and trade, economy, and foreign affairs, along with other relevant bodies, to propose solutions to address these issues.
The association members also identified resolving FATF-related issues as a critical step for increasing exports and securing projects in target countries. They proposed restoring export incentives as another measure to support the sector.