Emphasis on completing the production chain / drafting a factory-less production guideline

According to the Public Relations Department of the Iran Trade Promotion Organization, Ebrahim Sheikh, in the export-oriented production meeting held as part of the "7 Days with Exports" series, referring to positive developments in the export sector, stated: "Last year, the country’s exports increased by approximately 19% compared to 2023, and statistics indicate that there has been no decline in exports during the first half of this year."

He added that despite invasions and imposed restrictions, the country’s exports continue steadily. Sheikh noted that the role of the Deputy Ministry of Public Industries in the export process has mainly been focused on providing incentives and supervising the activities of industrialists. The achievement of $37 billion in exports from the public industries sector last year reflects the dedicated efforts of industry stakeholders.

Referring to a 23% growth in exports during the first five months of the current year, Sheikh stated: "The value of exports during this period reached $15.5 billion." The main export destinations for Iran’s products were primarily China, followed by neighboring countries including Iraq, the UAE, Turkey, Pakistan, and Afghanistan.

In another part of his speech, the Deputy Minister of Public Industries emphasized the Ministry’s focus on increasing the export value rather than export volume, stating: "Our goal is not to increase the volume of exports; our main concern is to enhance the value of exported goods. Currently, the average value of every ton of exported goods is approximately $370, whereas some countries earn multiple times this amount by exporting goods with lesser weight."

He underscored the importance of completing production chains, stating: "Our main challenge now is that certain stages of the production chain are conducted abroad, and consequently, the added value benefits others. However, the Ministry of Industry, Mines, and Trade has devised various measures to address this issue. Additionally, part of the foreign exchange problems has been largely resolved through the efforts of the Foreign Exchange Action Committee and negotiations with the Central Bank. We hope to announce positive news soon regarding the complete removal of foreign exchange restrictions."

The official continued: "Effective measures have also been taken in the areas of exhibition facilities, export incentives, and factory-less production. The guideline for factory-less production has been drafted and finalized."

Regarding cooperation between the Ministry and the Export Guarantee Fund, the Deputy Minister explained: "A memorandum of understanding has been signed with the Export Guarantee Fund, under which, besides export guarantees, the fund is prepared to invest in establishing production lines and export brands. This initiative can facilitate the development of exports from the perspective of investment and branding."

Sheikh concluded by expressing hope that with continued follow-up, the complete resolution of foreign exchange commitments and facilitation of the country’s export path will be achieved in the near future.