Iran launched its subsidy reform plan last December aimed at overhauling the country's economy by shelving energy and food subsidies. Banking, currency, taxation, customs, construction, employment, the development of nationwide distribution of goods and services, social justice and productivity are a series of measures included in the plan.
Accordingly, officials and economists gathered in Tehran to discuss the achievements and repercussions of the plan one year after it was implemented.
Addressing the conference, President Ahmadinejad whose government has carried out the plans of gasoline rationing and subsidy reform said:
“The subsidy reform plan has narrowed the gap between the poor and the rich. This plan has influenced our economic ideas. Two years ago, our country used to use the experience of others but now it has become a source of experience for other nations.”
The Economist Intelligence Unit (EIU) in its April report praised Iran's subsidy reform plan for what it calls its substantial positive outcomes for the country, such as boosting industry and manufacturing, lifting oil exports, falling domestic fuel consumption and reducing government's expenditures.
Economists expect an increase in consumer price growth this year, to over 20%. With the phased removal of subsidies planned to occur over almost the entirety of the forecast period, we expect inflation to average 16% in 2012 to 14.
The economic reform plan which is also called the big surgery of Iran's economy entered a new phase early December when the second phase of the plan namely taxation reform was launched.
