Iran devises new plan to boost domestic production
The governor of the Central Bank of Iran says the CBI plans to finance installment purchase of home-grown products in an effort to boost domestic production in the country.
Valiollah Seif said the CBI, in collaboration with the Ministry of Economy and Ministry of Industry, has devised a special plan aimed at beefing up production cycle inside Iran to support the country’s manufacturers.
“Given the economic stagnation in the recent years, the Central Bank of Iran has focused on financing production units to increase the existent production capacities,” he reiterated.
The CBI governor made the comments during 26th edition of Islamic Banking Conference which was held in Tehran earlier this week.
The Iranian authorities have already used incentives including financing industrial enterprises to enhance domestic industrial production.
“Capitalizing productive enterprises has fortunately led to production increase, but given the decreasing demands, commodities have been piled up in factories. To that effect, the Central Bank of Iran, in collaboration with the Ministry of Economy, has decided to send a proposal, which is aimed at financing purchase of domestically-built products, to the Money and Credit Council,” the CBI governor added.
Boosting domestic production is seen as one of the contributing factors in the economy of resistance.
Last year, the Leader of Iran’s Islamic Revolution Ayatollah Seyyed Ali Khamenei outlined general policies of the resistance economy and called on the three branches of the Iranian government to implement the general policies of the resistance economy.
Economy of resistance is aimed at promoting knowledge-based economy and domestic production, especially in strategic products and services, slashing dependence on imports and oil revenues.