Strengthening the powers of free zones and supporting the private sector can stimulate investment in free zones
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Tehran Times
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Strengthening the powers of free zones and supporting the private sector can stimulate investment in free zones

The Secretary of the Supreme Council of Free and Special Economic Zones emphasized the potential of these zones to strengthen the country's economy. He stated that expanding the powers of free zones and more actively utilizing the experience and opportunities of the private sector would form the basis for attracting investment, developing economic activity, and more effectively utilizing the potential of these zones.

According to IRNA, citing the Secretariat of the Supreme Council of Free and Special Economic Zones, Hossein Forouzan noted during a meeting with deputies of the Secretariat and general directors of free and special economic zone organizations, which was attended by Mohammad Jafar Ghaempanah, Executive Deputy President, that enemies had counted on Iran's capitulation under pressure, but courage, planning, and measures taken prevented this goal.

Forouzan added that in the current conditions, economic warfare is a key problem, and therefore, free zones need to be trusted more. He appealed to the government to provide free zones with sufficient time and authority, assuring that the leaders of these zones would strive to achieve the set goals and would not disappoint the government.

He continued that they would exert all efforts to develop the free zones and the country's economy, believing that granting greater powers to the zones would allow them to utilize existing opportunities to overcome difficult economic conditions.

The Secretary of the Supreme Council of Free and Special Economic Zones proposed increasing the share of the private sector in the decision-making structure concerning free zones. Forouzan suggested that in the five-member decision-making body, there should be at least two representatives from the private sector, as private sector participants can significantly help in attracting investment and solving economic problems.

He stressed that instead of government managers trying to attract investors, the potential of private sector actors possessing the necessary experience, connections, and motivation to attract investment and participate more effectively in this process should be utilized.

Highlighting the importance of special economic zones, the Secretary of the Supreme Council of Free and Special Economic Zones noted that these zones represent an important opportunity for the country that must be utilized in the current economic circumstances.

Criticizing some limitations placed on the operation of special economic zones, Forouzan pointed out that new problems arise daily in various fields, including land and banking issues, which hinders the work process of these zones. He also noted that the Central Bank, in some cases, instead of assisting special economic zones in utilizing their potential, imposed restrictions and even raised the issue of cutting resources for these zones.

In conclusion, the Secretary of the Supreme Council of Free and Special Economic Zones called on the government to provide more opportunities for the functioning of free and special economic zones, asking for time to demonstrate the role these zones can play in the country's economy.

Forouzan concluded his speeches by expressing his expectation of trust from the government towards the free zones, and in return for the granted powers, he expects an evaluation of their work. He assured that he would use this trust to develop the country and try not to let down the government and the memory of the fallen.

During the continuation of the meeting, Mortez Safdarizadeh, General Director of the Birjand and Sarv Urmia Special Economic Zone, spoke about the activities in these zones. He reported that the private sector's activities in these zones have provided employment for about 7,500 people in various industries, indicating significant opportunities for investment and employment in special economic zones.

Safdarizadeh thanked the government and officials for the measures taken in recent difficult conditions. He expressed hope that after overcoming the current crisis, the position of Islamic Iran on the international stage will strengthen.

Referring to the incomplete implementation of Article 119 of the Development Plan Law, he noted that this law emphasizes enhancing the status of the Secretariat of the Supreme Council of Free and Special Economic Zones, but the necessary mechanism for implementing this point has not been fully introduced.

The General Director of the Birjand and Sarv Urmia Special Economic Zone commented on the changes in the status of the Secretariat of the Supreme Council of Free Zones: previously the Secretary held the position of deputy and advisor to the President, but later this body was subordinated to the Ministry of Economic Affairs and Finance.

Safdarizadeh insisted on the need for expert analysis of the position of the Secretariat of the Supreme Council of Free and Special Economic Zones, demanding a thorough review of the consequences of any changes to its status regarding their alignment with the country's interests.

Speaking about the potential of free and special economic zones, he argued that they could be the best way to solve some of the country's modern problems, and their potential should be used to develop trade, investment, and relations with neighboring countries.

The General Director of the Birjand and Sarv Urmia Special Economic Zone mentioned the work of the South Khorasan Special Economic Zone on the Iran-Afghanistan border. According to statistics, over 55 percent of goods exported by Iran to Afghanistan or transiting through the country to Afghanistan pass through this route.

Safdarizadeh added that the necessary infrastructure and facilities have been created in this zone, and thanks to management by the private sector, the attention of Iranian and Afghan traders has been drawn to this border. He compared this border to older borders of the country, noting that this border crossing managed to establish itself as one of the important trade routes with Afghanistan in a short time.

The General Director of the Birjand and Sarv Urmia Special Economic Zone noted that due to the activation at this border, the government has also begun completing road infrastructure and taking necessary measures. At the same time, the Afghan side has also provided appropriate cooperation, and Afghan authorities have supported the development of trade and border interactions.

Emphasizing the need to transfer economic affairs to the private sector, Safdarizadeh stated that with the creation of a suitable foundation, the private sector is capable of solving many issues faster and more productively. Experience has shown that wherever the private sector has participated, it has benefited not only itself but the country as a whole. He added that such a model is applicable in many sectors of the country's economy, and Iran has export relations with approximately 40 countries, indicating numerous economic and trade opportunities.

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Mehran Free Trade Zone moves towards creating a joint economic center with Iraq
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Mehran Free Trade Zone moves towards creating a joint economic center with Iraq

The Director General of the Mehran Free Trade Zone Organization announced that negotiations to establish a joint free trade zone between Mehran and Zurbatiya in Iraq have accelerated. A welcome from the Iraqi side could lead to the formation of a common economic hub on both sides of the border and a significant increase in trade in western Iran.

Furthermore, the process of importing and registering vehicles for free trade zones is in its final stages. Mehdi Rayati stated in a video interview for the IRNA news studio on Sunday that after being approved in 1400 (2021), the Mehran Free Trade Zone Organization faced delays in its initial operations due to changes in government and the inability to ensure the necessary conditions for forming a board of directors and organizational structure. Nevertheless, official activities began last Bahman (February).

He added that after the organization started operating, its structure was formed, deputies and departments were established, and numerous legal and executive measures were included in the agenda to activate the potential of the free trade zone. Today, the Mehran Free Trade Zone has overcome the stage of organizational establishment and moved to the stage of implementing economic, infrastructural, production, and commercial programs.

One of the first tasks after the organization's creation was activating the company registration process and issuing permits for economic activity, which is currently taking place in the Mehran Free Trade Zone. The Director General of the Mehran Free Trade Zone Organization noted that 470 manufacturing, service, and predominantly commercial companies are being registered in the Mehran Free Trade Zone, and this interest reflects the expectations of economic entities regarding the legal opportunities and the zone's location near the border.

Rayati reported that the process of issuing permits for economic activity has also been defined and activated within the organization, allowing economic entities to conduct their business legally through the free trade zone. He continued that the transfer of official documents to the territory of the free trade zone into the organization's custody was carried out in cooperation with the National Organization for Document and Property Registration. This measure is an important infrastructure for stabilizing economic activity and investment in the zone.

The Director General of the Mehran Free Trade Zone Organization announced the completion of the creation of the free trade zone customs, and the Customs Administration of the Islamic Republic of Iran issued a customs code for this zone. Negotiations were also held with the Iraqi customs in the field of foreign trade. Recently, at a meeting with the director general of this country's customs, issues and questions raised by Iranian traders were discussed.

Rayati emphasized that the Iraqi side sent a representative to monitor issues and resolve customs and trade problems, and this matter will be actively promoted in the coming days. He stressed that the organization is prioritizing border organization and the creation of necessary infrastructure for economic activity, striving to simplify and accelerate the trade process in the region.

The Director General of the Mehran Free Trade Zone Organization added that the activation of the free trade zone customs, issuance of permits, and document stabilization have created the necessary foundation for a more serious entry of investors and economic entities. He stated that the Mehran Free Trade Zone Organization aims to transform the zone's legal potential from a stage of regulations and administrative institutions into real economic activity. The main goal is to simultaneously activate production, trade, services, and investment in the free trade zone so that the residents of the region can see its positive impact on the economy of Mehran.

In other remarks, the official noted that the creation of a joint free trade zone with Iraq is one of the important programs of the Mehran Free Trade Zone Organization, and negotiations with officials of the Iraqi free trade zone are proceeding seriously. He mentioned that during two meetings with officials of the Iraqi free trade zone, the issue of creating a commercial free trade zone opposite Mehran was raised, and the Iraqi side welcomed this idea. The Iraqi side is studying and determining the desired territory in Zurbatiya, and the cooperation process in this area has accelerated during the meetings.

He recalled that recently, at a meeting with Iraqi officials and in the presence of the Ambassador of the Islamic Republic of Iran in Iraq, the issue of a joint free trade zone was discussed, and both sides emphasized the need to follow and implement the plan. He explained that creating a joint free trade zone between the two countries requires careful study due to its legal, political, and security aspects, and an adequate response and clear framework must be determined for each of these issues.

He added that provided a legal and executive basis is provided, the joint free trade zone can create new potential for the development of trade, industry, services, and investment on both sides of the Iran-Iraq border. The Director General of the Mehran Free Trade Zone Organization explained that establishing a free trade zone in Zurbatiya opposite Mehran could become a successful model of economic cooperation between Iran and Iraq, ensuring an economic leap for Mehran, Ilam, and western Iran.

The Director General of the Mehran Free Trade Zone Organization reported that studies on a number of infrastructural, production, commercial, and service projects have been completed. During next week's visit of the Secretary of the High Council of Free Trade Zones, executive operations on part of these plans will begin. He announced that during this visit, the foundation of a production factory with the possibility of directly employing almost 300 people will be laid, as well as several commercial and administrative complexes are planned.

Rayati continued that the fencing of the first phase of the Mehran Free Trade Zone will also enter the executive phase after the completion of studies. He also reported that the complex of services, welfare, accommodation, and culture of Arg-e Javad al-A'meh has completed its design stages and is ready to begin executive work. The Director General of the Mehran Free Trade Zone Organization added that the program also includes projects related to water, electricity, and access roads, the implementation of which will be financed by private sector investment opportunities.

He explained that in the infrastructure sector, they are looking for participatory methods, and public-private partnerships can meet a significant part of the region's infrastructure needs. Rayati stated that attracting investors for infrastructure projects is one of the organization's serious programs, and they are trying to accelerate the implementation of plans. He also reported that about 17 percent of the Mehran Free Trade Zone territory is designated for agricultural use, and this potential, along with processing industry, can become one of the axes of economic activity in the zone.

He added that a program has been launched to promote modern cultivation methods in the region, and given Mehran's access to domestic and international markets, they aim to develop agricultural production and processing industry. The Director General of the Mehran Free Trade Zone Organization emphasized that the agricultural potential of Mehran and Ilam must be utilized in this area, and conditions must be created for producers to supply their products to the market with higher added value.

He continued that the development of eco-tourism and agro-tourism is also included in other programs of the organization. Cooperation is underway with the Provincial Directorate of Cultural Heritage, Tourism, and Crafts to implement this program. Rayati reported that a memorandum of understanding has been signed with the Provincial Directorate of Cultural Heritage to facilitate and develop tourism services, and this program includes presenting the attractions of Ilam to pilgrims and travelers. He noted that Ilam possesses valuable natural and tourist potential, and the intensive traffic through the Mehran border presents an opportunity to introduce Iraqi travelers and tourists to this potential.

The Director General of the Mehran Free Trade Zone Organization added that the goal is for some of the border traffic to turn into longer stays for travelers and stimulate tourism services in the province. Addressing the new status of the Mehran Free Trade Zone Organization, Rayati said that it cannot be expected that an organization that began its activities and functioning about six months ago can solve all the accumulated problems of past years in such a short time. Despite financial resource limitations and the short period of operation, the measures taken in the fields of company registration, customs, documents, permit issuance, transport, industry, agriculture, tourism, and border diplomacy show that the organization has entered a new stage of activity and breakthrough.

The Director General of the Mehran Free Trade Zone Organization continued that the management team and board of directors of the organization have experience working in free trade zones and, with a forward-looking approach, are trying to accelerate the path of Mehran's development. He stressed that the support of the population, economic entities, traders, producers, and entrepreneurs is crucial for the implementation of the free trade zone's programs. Rayati concluded that the Mehran Free Trade Zone is still at the beginning of its journey, but its legal opportunities, its location near the border, the welcome of economic entities, and the cooperation of various bodies can pave the way for transformation in this region. The Director General of the Mehran Free Trade Zone Organization stated that the prospects for Mehran are bright, and they hope that thanks to the work being done, we will see the formation of a stable economic flow on both sides of the border and the transformation of Mehran into one of the important trade arteries and economic hubs of Iran and Iraq.

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