Privatization is one of the most important issues which has been trending upward in Iran’s economy. Regulations and approaches for privatization of government’s companies has declared in 44th principle of Iran’s constitutional law. The idea for privatization in Iran has been expressed in 1983 because of significant difference between governmental companies’ real operation and forecasted operation but mentioned idea didn’t come to reality since 1989 because of Iran-Iraq war and tightening the sanctions. So, the first step for privatization has taken place according to Iran’s first economic development plan officially but the government couldn’t achieve its goals because of some challenges such as acquiring inappropriate approaches for privatization, transferring companies to quasi-governmental groups, transmutation stock supplier government into a stock purchaser government, lack of foresight about judicial proceedings and etc.
The failure of Iran’s first economic development plan in privatization lead to consider better approach in second economic development plan during 1995 until 1999. The 4th remark of second plan has stated approaches according to 44th principle of Iran’s constitutional law so the government wanted to transfer its assets to private sector in order to increase efficiency in economy. When it comes to reality, the second plan doesn’t work appropriately same as first plan. Performance of Iranian government during the implementation of 3rd economic development plan from 2000 to 2004 was like both previous plans. Establishing private banks, forming registered agents and organizing them and transferring some of the governmental companies had done during the 3rd plan. However, this plan was much successful than others but statistics show that government proceedings weren’t sufficient and there were many unsolved problems in privatization.
80 percent of the 4th economic development plan didn’t execute actually because this plan had been codified by 8th government after revolution but the next government didn’t believe in this plan. The 4th plan of economic development had been codified in 643 clauses but the government executed only 123 clauses of them. During the fifth economic development plan from 2011 until now privatization trend haven’t changed significantly and it is obvious privatization’s problems are in infrastructure. It is easy to guess the government’s share of economy is high and this important issue makes government buckling with a financial hardship.
The 5th economic development plan deadline were March 2016 but because of government’s delay in propounding this plan to the parliament and time-consuming investigation process, it hasn’t been executed on planned time. Economic researchers are optimistic about revision of government’s privatization approaches in 6th plan and they hope the government involve private sector in economy more than previous years.