Iran has privatized $63 billion worth of government equity in state-owned firms since 2005, says the head of Iran's Privatization Organization.

Gholam-Reza Heydari-Kord Zangeneh said in a Sunday press conference that the disinvestment cut the government's share in the gross domestic product (GDP) from 80 percent to between 40 and 45 percent.

“The government's assets were estimated at about $120 billion. In the past five years, about $63 billion of the assets was privatized,” Zangeneh said, adding that the government's privatization program had met half of its target since 2005.

The program was launched as part of the government's 10-year plan to privatize 80 percent of state-owned assets, under Article 44 of Iran's Constitution.

Several state banks have offered a fraction of their stake as part of the program. Iran also plans to transfer its three large insurance companies — Dana, Alborz and Asia — to the private sector.

In the biggest deal so far on the Tehran Stock Exchange, 51 percent of shares of the Telecommunication Company of Iran (TCI) were sold to an Iranian consortium for $8 billion.

Some economists have criticized the sell-offs, saying the stakes sold in such equity disinvestments do not really end up in the private sector.

AKM/HGH