Removing obstacles is beyond the will of the private sector

Removing obstacles is beyond the will of the private sector
  • 2018-10-20
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Managing Director of Iranian Stone Exhibition: The most important and fundamental weakness of the Iranian stone industry is the export, and we are working to make this weakness a strong point and move on to making Iran's stone a real player in the world stone industry. Export is the key to the growth and development of an industry, without exports there will be no growth.

According to Iran's International Stone Exhibition, holding an International Stone Exhibition with a vast scope and scope can naturally be very effective for any country. Such exhibitions are generally aimed at finding foreign sales markets for the host country and increasing exports. The 11th International Stone Exhibition of Iran has the same goal and has made every effort to achieve such an achievement. The organizers of this exhibition invite world renowned stone brands and world wide information and dedicate a large space to properly hold all their energy for It has spent as much money as it can hold, but as Behnam Nikfar, managing director of Iran's International Stone Exhibition and a member of the Iranian Chamber of Commerce's mining commission and an activist with a background in the stone industry, discusses in the following interview, the political and economic factors beyond the will of the organizers. It is an exhibition, it has created obstacles on the way. Obstacles such as the imposition of sanctions and the withdrawal of some foreign companies from exhibiting or restricting banking transactions that make it impossible for a foreign exhibitor to receive a fee. Of course, these external factors were not only troublesome for this exhibition, and such detractors, as Nikfar said, have affected all the stone industry activists, and of course, Behnam Nikfar correctly points out that resolving these problems is outside the will of the private sector and depends on the efforts of government officials. .

What achievements can the International Stone Exhibition have for the Iranian stone industry in general?

The exhibition is the best place to advertise, market and introduce product units. The exhibition provides you with the latest achievements and developments of an industry. The exhibition is a gathering place for foreign and domestic companies, giving the opportunity to all companies to compare their activities with other companies and identify their shortcomings. The most important achievement of Iran's stone exhibition is its special attention to export and its efforts to increase it. Exhibition officials have done their best in the last few years to bring more international merchants and merchants together to buy Iranian stone products. At the Tenth Fair, about eighty-five percent of the stones in the fair were purchased by foreign customers. The 11th Exhibition will increase the number of international businessmen present at the exhibition. We anticipate that around 20,000 tonnes of stone crop will be purchased by foreign merchants and continue the cooperation of Iranian miners and stone merchants. The most important and fundamental weakness of Iran's stone industry is export, and we are working to make this weakness into a strong point, and to move forward so that Iranian stone finds its true place in the world stone industry. Export is the key to the growth and development of an industry, without exports there will be no growth. Exporting and boosting it is the best way to attract professionals and repel non-specialists in the industry. Exports and expertise are necessary.

Has the sanctions imposed had an impact on the exhibition and has it been restricted?

Iran Stone Exhibition started about a year ago to attract foreign companies to the exhibition. About a year ago, exhibitors at international fairs such as the Xiamen China, Izmir Turquia and Verona, Italy, ran extensive publicity campaigns to introduce the exhibition to international artisans, producers and traders. These promotions and efforts were very effective, and for the Eleventh Exhibition several companies from Turkey, China, India, the United Arab Emirates, Brazil, Spain, Italy, etc. announced their presence and registration, but when economic sanctions against Iran began, some of these companies declined. They withdrew at the Iranian Stone Exhibition. The most important problem for foreign companies at the exhibition is that there is no possibility of an Iranian banking exchange with the world, so if foreign actors are present at the exhibition, we will be prevented from receiving a booth fee from them. Some companies operating in the field of mineral machinery faced severe shortages of machinery and spare parts after the imposition of severe currency sanctions and fluctuations, which had a profound effect on their attendance at the exhibition. As a private sector in the country, we spend a year working and planning and suddenly something is happening that damages all of that planning.

What are some operational solutions to overcome these limitations?

Removing these restrictions is the responsibility of the private sector abroad. Most of these restrictions need to be addressed by the authorities.

What can the government and political officials do to lift restrictions to better organize the exhibition and achieve the goals of the exhibition?

Doing any business requires peace and stability. Without peace and stability, no economic activity can be done properly. Exhibition is no exception, and if there is not enough stability and stability it cannot be held properly. All prestigious fairs around the world start their operations a year ago, registering foreign companies, locating and receiving a percentage of the pavilion, China Xiamen Stone Exhibition or Verona Italy three months before their sales sites They close and prepare themselves for holding. But what is happening in Iran is that we are registering and locating several companies, for example in Italy or other countries, and even getting a percentage of the money, but once our relations with this country are broken! Obviously, as a result of such turbulent conditions, we will lose both stands and there will be no opportunity to replace those stands.

What has been the impact of currency and sanctions on mining activities?

Mining is not possible without relying on machinery. Production of mineral machinery in Iran is very limited and in fact it is the only Hepco company that produces mining and road construction machinery and the rest of the machinery and minerals must be imported from abroad. At present, due to exchange rate fluctuations, the price of mineral equipment has almost tripled, spare parts are very scarce, and almost three to four times more expensive. There is a shortage of spare parts for machinery so that in some mines, if the machinery breaks down, the machine will completely shut down. The shortage of in-car tires is also noticeable. There are also costs such as value added tax, government salaries, insurance, and so on, which many miners have to pay for, so they prefer to close their mines.

How do miners deal with this situation and how do they overcome the barriers to new problems?

Some miners have not been able to cope with the problems and have closed their mines, others have sold and migrated factories and mines, including miners who have good minerals and have been able to maintain their mining and earnings from high-grade mines. One, keep their second-class mines active. Currently, due to rising dollar prices, many buyers go to Iran to buy stones and buy them in cash. Those who can get their stone in cash are successful, but those who lend themselves safely face huge economic risks and may not receive their money at all.

Given these problems, what can the government do to help miners?

We expect the VAT law to be amended and remedied. Paying for government salaries in the way that they have been and with the increase that they have made over the past few years is beyond the reach of many mines. Given the current price of the dollar, the price of Iranian stone in the world markets is very competitive and we can offer our stone in the world markets. The current price of the dollar has enabled us to supply almost all our consumables and commodities at a multiple of price. We are paying for this price increase, but because of the lack of banking relationships with the world, we are devoid of the privilege of this price increase, which is an increase in exports.

*the world of economy