The head of the Industries Commission of the Iran Chamber of Commerce considers the “sudden jump in the exchange rate” and the “supply of raw materials” the two main problems of economic enterprises and manufacturers. At the same time, he believes that in the current situation of the country, the threats posed by sanctions and the outbreak of the Corona virus can be turned into an opportunity by relying on domestic capabilities.

In an interview with “Iran Chamber of Commerce News Agency”, referring to the results of monitoring the business environment in the spring of 2020, Abolfazl Roghani Golpayegani said, “The monitoring results especially over the past 4 years show that indicators of the business environment will daily be aggravating. The various components also affect these indicators, the most important of which, in my opinion, has been the sudden jump in the exchange rate.”

According to Roghani Golpayegani, the sudden jump in the exchange rate has caused a slowdown in the production and the development of enterprises, and at the same time, the outbreak of the Corona virus has put additional pressure on industrial units.

The head of the Industries Commission also mentioned the “supply of raw materials” for economic enterprises as another problem that has become a concern of economic activists in the current situation. Roghani Golpayegani said, “If we do not think about supplying raw materials now, as the head of the Iran Chamber has repeatedly warned, the issue could become the biggest crisis in the field of production in the near future.”

In this regard, he suggested that the government solve this problem through financing methods, refinancing and usance or neighboring countries.

Let’s turn threats into opportunities

Referring to the sanctions situation and the restrictions of Corona for the country’s economy Roghani Golpayegani said, “I believe that the threats posed by sanctions and the outbreak of the Corona virus can be turned into an opportunity by relying on domestic capabilities. It is possible to manufacture many parts needed by industries in the country.”

In this regard, he cited the actions taken in Isfahan Mobarakeh Steel Complex as an example and said, “After the US Treasury Department sanctioned eight companies related to Iran’s metal industry, including Isfahan Mobarakeh Steel, The complex, in an intelligent action and with an engineering approach,  has handed over the parts it previously imported to domestic manufacturers.”

According to the head of the Commission of Industry at Iran Chamber of Commerce, the creation of a “localization” unit is one of the measures taken in this complex to neutralize sanctions.

He explained in this regard, “The experts of the localization unit, after researching and examining the internal capabilities, handed over all the needs of the factory to the local producers and suppliers, including the construction of part of the key infrastructure and technological needs such as hydraulic cylinders and hydraulic power packs that were entrusted to Lajoor Hydraulic Company in Arak Industrial City. This action, which was carried out in the shadow of the joint engineering activity of research and development units (R&D) of both companies, prevented the stoppage of Mobarakeh Steel production line in Isfahan and led to the prevention of foreign currency leaving the country. At the same time, by transferring technical knowledge to domestic engineers,the economic turnover and strengthening of the country’s industrial foundations and maintaining employment were created.”