Iran's Doing Business Ranking Expected to Drop Further

EghtesadOnline: Iran's global ranking in terms of ease of doing business declined in the latest 2019 report published by the World Bank.

News ID: ۷۴۶۱۹۶

06 November 2018

A prominent Iranian business representative says it will drop further next year.

The international financial institution published its Ease of Doing Business Report 2019 on Wednesday. It showed that even as Iran's overall score improved by 2.34 percentage points to reach 56.98, its ranking among 190 economies fell by four places to 128th.

According to Pedram Soltani, deputy head of Iran Chamber of Commerce, Industries, Mines and Agriculture, the World Bank numbers do not hold out much hope for Iran in the near future, despite the fact that its score has improved, Financial Tribune reported.

For one, he said, the report used data pertaining to when Iran faced many of the challenges it is currently grappling with.

The new "World Bank’s Ease of Doing Business Report 2019" has drawn on data from 10 areas of the life of a business in Iran measured between June 2017 and May 2018.

"During the current year, especially during the first six months of 1397 [March 21-Sept. 22], businesses have been facing many challenges due to the issuance of a multitude of government directives," he was quoted as saying by the official ICCIMA website.

Due to this one-sided and misguided approach, he said, "Iran's ease of doing business index, and its overall global ranking, will surely decline in 2020."

After US President Donald Trump unilaterally withdrew from Iran's nuclear deal with world powers in May, the psychological effects of returning economic sanctions sent Iran's national currency in a tailspin. Costs have significantly increased for consumer and essential goods in recent months.

But the private sector is also very unhappy with many of the domestic decisions–especially concerning currency policies and business–made by the government in the face of the economic pressures.

Private sector representatives have been vocal about their criticism of not being included in making decisions that directly impact their operations.