Major Challenges of the Industry Linked to Currency Policies and Central Bank Performance

According to Iran Chamber Online, quoting the Public Relations Office of Ardabil Chamber of Commerce, Hossein Pirmoazen, Vice President of Iran Chamber of Commerce, in a meeting of the Government–Private Sector Dialogue Council of Ardabil Province attended by the Deputy Minister of Public Industries of the Ministry of Industry, Mine and Trade (MIMT), praised the Minister of Industry’s efforts to secure approval for the government’s support package.

He explained that the package—prepared with the cooperation of MIMT deputies, Iran Chamber commissions, and the private sector—was designed to address many of the challenges facing industry. Although the cabinet approved 32 out of its 43 provisions, he stressed that full approval and implementation would have resolved a significant portion of industrial bottlenecks.

Pirmoazen noted that the package included debt rescheduling, allocation of foreign currency, customs clearance of goods and raw materials, extended deadlines for tax returns, and insurance coverage for workers. However, due to its one-month time limit and delays in review by ministries, the private sector could not fully benefit. Therefore, he emphasized that extending the implementation deadline is a key demand of the private sector, especially in Ardabil Province.

He further underlined the need for fundamental and transformative decisions to confront complex industrial and economic challenges, stating:

“We require revolutionary decisions for the country’s industry and economy. Minor reforms or short-term solutions cannot address deep-rooted structural issues. A comprehensive revision of approaches, policies, and frameworks is essential. Bold measures—such as targeted support for innovation, large-scale infrastructure investment, and full utilization of domestic capabilities—are needed to place the economy on a path toward sustainable development.”

Increase of Working Capital Facilities from 40% to 60%

Ebrahim Sheikh, Deputy Minister of Public Industries at MIMT, also addressed the meeting. He acknowledged the persistent financial challenges of industrial enterprises, announcing that the share of financial resources and facilities allocated to working capital has been increased from 40% to 60%.

Sheikh praised the joint efforts of Ardabil Chamber, governmental and judicial bodies, and private sector representatives in sustaining production despite difficulties. He rated the ministry’s overall performance during the past year under President Pezeshkian as “Grade A,” while also pointing out that inadequate cooperation from energy-supplying agencies has negatively impacted production.

He identified five main challenges for industries, with the shortage of financial resources and working capital topping the list. Sheikh confirmed that the ministry has requested a 45-day extension of the government’s support package to allow broader access for industrialists.

On other issues, Sheikh highlighted:

• A 34% decrease in tire imports over the past eight months,
• Increases in import duties on tires (from 10% to 20% and 4% to 5% depending on categories),
• Revisions to the national trade system and allocation of foreign currency for tire raw materials (16% increase),
• Energy supply imbalances as a national concern, with diesel quotas for industry increased by 20%,
• Delegation of foreign exchange authority to provinces (up to USD 3 million for production and USD 5 million for machinery and equipment).

Ardabil’s Economic Official Calls for Boosting Province’s Export Share

Behrouz Khalili, Deputy Governor for Economic Affairs of Ardabil Province, emphasized the need for stronger attention from the Ministry of Industry to increase Ardabil’s share of value-added exports.

Despite Ardabil’s strategic logistical and geopolitical position, the province accounts for only 0.3% of Iran’s exports (USD 240 million). Khalili noted that Ardabil produces 25% of Iran’s water resources, 30–35% of the nation’s tires, and up to 80% of the domestic demand for toys and sports equipment. The province is also preparing to launch a 1.2-million-ton sponge iron production unit in the first half of next year.

He added that while Ardabil holds three mining zones, including the Meshginshahr copper zone (with a one-million-ton capacity currently underutilized at 30–35%), expansion plans aim to reach 7 million tons, contingent upon infrastructure development.

Khalili concluded that targeted financial support is crucial, stressing that the allocation of 80–90 trillion IRR (approx. USD 1.5–1.7 billion) under a tripartite agreement between MIMT, the Central Bank, and the Ministry of Economy could resolve many of Ardabil’s industrial challenges.