Sep 24, 2004, 9:52 PM

Foreign investment bill, reduces investments, increases inflation and unemployment: expert

TEHRAN, Sept. 24 (MNA) — Seeking the Majlis permission before signing major foreign contracts leads to the stagnation of the domestic economy and hikes inflation and unemployment, an economic expert noted.

Implementation of the law would reduce investments in Iran, Ali Qanbari said on Thursday to Petroenergy Information Network (PIN).

 

The university lecturer added that the bill would not only affect macroeconomic variables, but would waste time in Majlis and government’s times.

 

He noted, it is expected that Majlis representatives and members of Guardian Council (GC) make amendments in the bill to prevent slowdown of economic activities of government.

 

Qanbari stressed that by this approval, the President will be restricted to sign new contracts during his foreign journeys that causes other countries not to trust on the president.

 

Despite the opponents’ views, a majority of the MPs maintain other opinions on the issue, however. For example, a member of Majlis Economic Commission said that the new bill ratified by Majlis deputies would increase self-sufficiency and leads to growth of the private sector.

 

Jalal Hosseini, representing Zanjan constituency in the Parliament said that the main target of the bill is to support domestic producers and to force the government to sign contracts with domestic contractors and companies.

 

 

MSK/RA/MA

END

MNA

 

News ID 8015

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