Iran Economy in Brief – No. 92

Human beings are members of a whole,

In creation of one essence and soul.

If one member is afflicted with pain,

Other members uneasy will remain.

If you have no sympathy for human pain,

The name of human you cannot retain.

From Gulistan, by Saadi (1184-1283)

Iran in mourning

A 7.3 magnitude earthquake hit the western border of Iran with Iraq on Sunday evening, killing more than 400 people and injuring nearly 8000. Some 70.000 people are said to be homeless. Sarpol-e Zahab and Qasr-e Shirin, two border towns in Iran suffered the most. Although, several old houses remained standing, the newly constructed buildings, known as “Mehr Housing Project”, were dramatically damaged, questioning the quality of the construction. The Mehr Housing Project, launched by Mahmoud Ahmadinejad, the former President of Iran, was supposed to provide new apartments for the low-income households. The project which caused huge debt for the Government, is now asked by the Parliament to be investigated for its quality. Officials have confirmed that 12.000 homes have been 100% destroyed.

CNG buses will replace old ones

The Iran Fuel Conservation Company, a subsidiary of the Ministry of Oil has signed a contract with Shahab Khodro to renovate 4000 diesel buses and replace them with CNG buses. The contract which is to be carried out over two years procure 9, 12 and 18 meter CNG city buses.

Shahab Khodro is an Iranian automotive manufacturer which began operations in 1962 under the name Iran Leyland Motors in association with British Leyland Motors and specializes in assembling buses and trucks. In 1999, ownership of Shahab Khodro was transferred from the Ministry of Industries and Mining to Astan Quds Razavi.

Shahab Khodro which has entered cooperation with French Renault is the second largest city bus manufacturer in Iran and holds the second place in terms of market shares. Shahab Khodro’s main customers are municipalities, the Ministry of Oil, the Army and other governmental organizations and companies. The company also manufactures garbage trucks, fire trucks and tankers.

Iran, the world’s third largest apple producer

While Iran is the world’s third largest apple producer, it is the eighth largest exporter of apples. Based on data from the Office of Agricultural Exports at the Trade Promotion Organization of Iran, in the first six months of this year, the value of apple exports has decreased by 80%.

Mahmoud Bazari, Director General of the Office of Agricultural Exports said: “The lack of care and necessary infrastructure in apple production has prevented us from having adequate exportation in terms of price and quality.”

This year, production of 3.7 million tons of apples was forecasted. Based on numbers from the customs office, in the first half of this year 40.000 tons of apples valued at 12 million dollars were exported.

Read more about “Iran fruit export”

Iran: Kirkuk’s gate to export oil

Based on agreements between the Iranian and Iraqi Ministries of Oil, 30 to 60 thousand barrels of Iraqi oil will be exported to the north of Iran, every day. Iran will deliver the same amount of oil to Iraq via the southern border of the two countries. The Iraqi Minister of Oil, Jabar Ali Al-Luiebi said: “This will allow for new ways of exporting oil, refining Kirkuk oil and gaining income for Iraq’s economy as well as strengthening relations with Iran.”