The Trade Promotion Organization of Iran will offer 15 trillion rials ($53 million) in incentives in the next fiscal year starting in March 2022, the TPO head said.
“The TPO has held talks with the Planning and Budget Organization to secure the funds from government revenue from oil and gas sales,” Alireza Payman-Pak was quoted as saying by IRNA.
According to Payman-Pak, the funds will be used to expand export markets, bolster logistics and pay for discounts in customs charges.
The package is to be financed by the National Development Fund of Iran, the country’s sovereign wealth fund as well as banks, including the Export Development Bank of Iran and other state-run banks.
The government approved a 30-trillion rial ($107m) package in the present fiscal year (March 2021-22) to help improve exports. It included 20 trillion rials ($70m) in working capital loans to exporters at lower rates.
Provisions of the 2021-22 budget stipulate that the government should give 7.6 trillion rials ($27m) in export incentives to exporters.
Furthermore, 1.9 trillion rials from custom revenue is to be given for expanding agro export.
Grappling with US economic sanctions and the coronavirus pandemic, trade authorities are struggling to expand the export sector, in particular with neighbors.
According to data released by the Islamic Republic of Iran’s Customs Administration, exports to 15 neighboring states reached 47.89 million tons worth $14.78 billion in first seven months (March 21-Oct. 22) this year.
Iraq with 19.74 million tons worth $5.48 billion was the biggest destination. It was followed by Turkey with 11 million tons worth $3.4 billion, the UAE 6.6 million tons worth $2.5 billion, Afghanistan 2.79 million tons worth $1.13 billion and Pakistan 1.59 million tons worth $655.15 million.
Imports from neighbors during the same period hit 13.58 million tons worth $13.5 billion.
Iran exported 98.7 million tons of non-oil goods worth $54.8 billion in the seven months under review – up 16.5% in weight and 43% in value compared with the corresponding period last year.
According to Mehdi Mirashrafi, head of IRICA, exports stood at 75.2 million tons worth $27.1 billion, which was 15% and 47% higher y/y in weight and value, respectively.
