Iran's economy
The Iranian government has made debt reduction one of its top priorities. Iran was
forced to reschedule much of its foreign debt in 1 992. Since then, it has been diligently
paying off what it owes, in an effort to improve access to longer-term financing. 
As a result, Iranian letters of credit are much better received
now than they were two years ago.
The economy is centrally planned, relying heavily on five-year plans. However, the
government is taking measured steps toward its espoused goals of economic liberalization
and inflation-fighting.
Iran's chief source of foreign currency is the sale of oil and gas; as a result, the
health of its economy depends upon prices for those commodities and on the size of its oil
quotas under OPEC.
Oil and Gas
lran's most important economic sector is also the most promising sector for businesses.
Iran holds almost 10 per cent of world oil reserves; it is OPEC's second largest
producer. It has the second largest oil and gas reserves in the world.
It promises to grow in the coming years in exploration, drilling refining and training.
Since the end of the war with Iraq (1988), the Iranian government has been rebuilding
its oil production and export facilities. The government is stepping up exploration and
developing its petrochemical industry. Its strategy is to increase its production capacity
and the value-added of hydrocarbon exports.
In a very important development, the Iranian government announced in 1 995 foreign
companies would be allowed to contribute to the development of new oil fields through
buy-back deals, creating new opportunities for investment. That commitment has recently
been renewed and expanded.
Mining
Iran is rich not only in oil and gas, but in mineral deposits, as well. Iran has the
world's largest zinc reserves and second-largest reserves of copper. It also has important
reserves of iron, uranium, lead, chromite, manganese, coal and gold. To date, however, the
mining industry remains underdeveloped.
Developing its mineral resources is a priority for the Iranian government. The
government is actively encouraging foreign participation in this sector.
Opportunities are abundant for firms who can offer equipment, know-how or investment.
Foreign companies are already active in virtually every aspect of mineral production in
Iran -- from surveying to conducting feasibility studies to providing equipment for
smelters. The Second Five Year plan encourages buy-back deals but also calls for other
forms of foreign investment in this sector.
The Ministry of Mines and Metals is the decision-maker in this sector. It operates
through a number of national companies, including ones responsible for steel, copper,
exploration and smelting.
Telecommunications
Iran is one of the fastest growing telecommunications markets in the Middle East and
aims to become a Middle Eastern market leader. It has the largest telecommunication
network in the region.
The government has recently introduced a number of privatization measures and is
promoting private investment.
Major areas of future growth include the expansion of public switching systems to
increase the number of telephone lines, satellite communications, mobile cellular
networks, rural telecommunications and data communications systems. Transition from the
analogue to the digital system and wider introduction of satellite networks are the major
aims of the country's telecommunication plan. Fiber optic systems will increasingly be
used as junctions or for long-distance connections.
The decision makers in the telecommunications field are the Ministry of Post, Telegraph
and Telephone (MPTT) and its operating company, the Telecommunication Company of Iran
(TCI).
Environment
Rapid industrialization, explosive population growth, uncurtailed urbanization, and the
devastating effects of an 8 year war with Iraq have left Iran with serious environmental
problems.
The Iranian public is increasingly pressuring the government to tackle these problems.
As a result, most government Ministries have either set up or are in the process of
setting up environmental departments. Environmental advisors are now present on most of
the senior decision-making bodies.
The Municipality of Tehran needs pollution prevention technologies, primarily for
vehicle emissions, as well as pollution monitoring and measuring equipment. The mineral
processing and petrochemical industries are looking for technologies to increase
efficiency while minimizing environmental impact. The Ministry of Energy is interested in
water and wastewater management technologies, with treatment plants planned for the near
future.
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