Next FY budget focuses on foreign capital, non-oil exports

TEHRAN, Jan. 17 (MNA) – Iranian President Rouhani presented the next year budget bill and the Sixth Five-Year Plan to the Parliament on Sunday. Speaking in the Parliament on the budget bill for the next Iranian fiscal year of 1395 (to begin on March 21, 2016) and the Sixth Five-Year Development Plan (March 2015-March 2020) to the Parliament for approval this Sunday morning, Rouhani said Joint Comprehensive Plan of Action is the outcome of resistance, good management and the desire of a nation which seeks peace with the world and one which is against war and violence. On the occasion of the victory, he felicitated the great Iranian nation for the patience and Iranian Leader Ayatollah Khamenei for his guidance, support and supervision. He called the nuclear agreement as a landmark in the economic history of the country and underlined that the removal of sanctions will create a huge opening for the country's economy, adding that lifting sanctions will reduce international uncertainty and resulting costs, increase the sources of foreign exchange for eliminating restrictions on oil exports and the release of blocked assets, reduce the cost of financial transactions and foreign trade and provide the possibility to use services of international banking system, to benefit the foreign funds, to attract foreign direct investment, to get access to new technologies and the development of non-oil exports. The government during the post-sanctions era will focus on attracting foreign capital, development of non-oil exports and efficient use of currency resources. “Due to the public welfare, labor market conditions and employment needs of young people, access to high economic growth in the coming years is a necessity for the country,” Iranian president said, adding that Sixth Five-Year Development Plan announced by Ayatollah Khamenei highly regards 8% economic growth rate and basically aims to achieve sustainable, increasing growth and employment. “8% economic growth requires at least 30 to 50 billion dollars of foreign capital every year,” added he. The president also pointed to the development of non-oil exports and said, “During the past decade, domestic demand has been the main engine of economic growth, however the sharp drop in national income in recent years, prospects of low oil prices in the coming years and considerable vacant capacities in many industries all suggest that domestic demand cannot alone drive 8% economic growth in the coming years.” Economic growth, he added, is necessary to expand the target markets for domestic products. Following the removal of economic sanctions in the coming years and providing new opportunities for foreign relations, President Rouhani underlined, the government will consider the development of non-oil exports as one of the main factors of economic policies to achieve rapid and stable growth.