Iran can circumvent sanctions through full implementation of subsidy reform plan: Ahmadinejad

TEHRAN,Jan.17(MNA) – President Mahmoud Ahmadinejad told MPs on Wednesday that the full implementation of the subsidy reform plan will help Iran circumvent the sanctions and neutralize the pressure being exerted on the country by the enemy. The implementation of the subsidy reform plan began in December 2010. At the time, Ahmadinejad called it the “biggest economic plan of the past 50 years.” The plan allows the government to gradually slash subsidies on fuel, electricity, and certain goods over the course of five years, with low-income families being compensated with direct cash handouts. In November 2012 MPs voted in favor of halting the second phase of the subsidy reform plan until March 20, which marks the end of Iranian calendar year 1391. In his speech during an open session of the Majlis, Ahmadinejad said, “The enemies claim that they have imposed the toughest sanctions on us, including restrictions on oil sales and sanctions on the central bank and financial transactions.” “Naturally, the sanctions create a series of problems, including a slowdown in the country’s growth and pressure on a wide range of the people - which is one of the main objectives of the enemies - fluctuations in prices and unjustified price increases that put pressure on a wide range of the people who have a fixed income, disruption in foreign trade, and of course a gap between classes,” he stated. Ahmadinejad added, “One of the best development measures to ensure sustainable growth and circumvent the sanctions and neutralize the enemy’s pressures has been the subsidy reform plan.” “If the plan is fully implemented, wealth will be fairy distributed, national capital will be preserved, production efficiency will increase, the government’s dependency on petrodollars will be reduced, and poverty will be eradicated,” he stated. The president added that the implementation of the subsidy reform plan is a “source of honor” for the Majlis and the administration, saying that the implementation of the first phase of the plan helped the administration of justice in the country. He also said that inflation was controlled through the implementation of the plan, adding, “The administration is ready to fully implement the plan.” Today (Wednesday), representatives of the Majlis and the administration and economic experts will hold a meeting to discuss the implementation of the second phase of the plan, Ahmadinejad added. “We are not seeking any electoral purposes” through the implementation of the plan, he stated. Ahmadinejad left the parliament after delivering his speech. A number of MPs criticized both Ahmadinejad’s speech and his insistence on the full implementation of the plan. MP Ali Motahhari told MPs that the president used the platform to accomplish his own purposes. And MP Massoud Mir Kazemi, who formerly served as oil minister, said that the plan was “imperfectly implemented”, adding that what is currently threatening the country’s economy is increasing dependence on oil revenues.