Bahram Sobhani, the head of the Iranian Steel Producers Association , criticized the multiplicity and instability of foreign exchange regulations, stating that a significant part of the steel industry’s problems stem from complex, contradictory, and cumbersome laws in the fields of foreign exchange and exports. According to him, these regulations not only do not help facilitate the activities of producers, but also create serious obstacles in the path of exports, making it difficult to return foreign exchange earned from exports.
Referring to the fact that “despite the current economic conditions in the country, the same regulations and procedures from normal circumstances are still being implemented in many sectors,” he said: Under the current conditions, a significant part of the laws and regulations should be temporarily suspended or reviewed with a more flexible approach so that, instead of creating obstacles, they can help ensure the continuation of production and preserve the country’s industrial capacities.
The head of the Iranian Steel Producers Association continued: “The steel industry, like other economic enterprises, is facing numerous issues, the most important of which is the multiplicity and diversity of regulations and rules issued by various agencies. According to him, the most problems are observed in the areas of foreign exchange, exports, and the return of foreign exchange earned from exports.”
Referring to the different treatment of manufacturing and non-manufacturing exporters, Sobhanian added: Steel-producing companies are required to offer a significant portion of their export earnings through designated systems, while some non-manufacturing exporters do not face such restrictions and can use their export earnings to import goods and sell them at free-market prices. This difference in procedures shifts export incentives away from genuine producers toward non-manufacturing legal entities.
The Head of the Iranian Steel Producers Association also emphasized: Steel exports are fully traceable, and producers are committed to returning their export earnings; however, in exports conducted through one-time commercial cards, there is no possibility of properly tracking and ensuring the return of foreign exchange.
Sobhanian identified the continuous changes in regulations related to the use of export earnings as another major challenge for the steel industry and said: One day, companies are required to offer 100 percent of their export currency through the banking network; another day, they are allowed to import part of their required goods; and then another directive is issued restricting the use of this currency solely to the relevant industry. These diverse and contradictory regulations have caused widespread confusion among production enterprises.
He emphasized: During times of war, all institutions and organizations must adopt a war-time approach; however, many sectors are still operating under the same regulations and procedures as normal conditions. Under the current circumstances, many regulations should either be temporarily suspended or amended in a way that supports the continuation of production.
The Head of the Iranian Steel Producers Association, referring to the liquidity problems faced by production units, said: Many companies, even if they have not been directly targeted, have experienced declining revenues due to disruptions in exports, imports, and production, while their labor costs and other obligations remain in place. According to him, banks, the Tax Administration, the Social Security Organization, as well as water, electricity, and gas service providers, should provide greater support and cooperation with industries under these conditions.
Referring to the damage suffered by some steel-producing units during the recent war, he said: The continuation of reconstruction efforts for damaged units, as well as strengthening the passive defense measures of these facilities, requires financial resources, financing facilities, and even grants.
