An executive order for privatization envisaged by Article 44 of the Constitution of the Islamic Republic of Iran was issued by the Supreme Leader in July 2006.
According to the action plan, the government is assigned to cede 80 percent of the shares of major state-owned enterprises to the people in order to support the targets envisioned by the 20-Year Strategy for Economic, Social and Cultural Development The executive order indicates that ceding 80 percent of the shares of large companies will serve to bring about economic development, social justice and elimination of poverty.
By putting into practice the action plan, the government's role will undergo a shift from direct involvement in ownership and running the large companies to supervisory and guidance of different sectors of the economy to meet the regulations of the World Trade Organization (WTO) gradually.
Pricing of the outputs of the large companies should be made in line with the world trade regulations and a special team will be formed to monitor full implementation of the action plan on privatization.
Sectors subject to modification:
Main objectives of the initiative:
According to official figures from the Iranian Privatisation Organization, since 2006 some US $82,770 has been received by the Iranian government through its program of privatisation, representing over 60% shares in large companies. Plans are currently underway to divest another 20% by 2015.
So far the program has led to sale of refineries, banks, petrochemical industries, steel, aluminium, shipping, telecommunication and insurance companies.
By far the largest privatisation of the Iranian public sector to date has been the sale of a majority stake in Iran's only state-owned telecommunications firm September 27 2009. In this sale three Iranian firms part of a consortium called Etemad Mobin Development bought 50% plus one share of the Telecommunications Company of Iran for 7.8 billion dollars.
Most recently on the 17 of July 2012, the state divested 50.5% of its shares in Khuzistan Steel Company on the Tehran Stock Exchange. Plans are also being drawn up to divest total shares of Sefidroud Agricultural and Animal Husbandry Company in the near future.