Achieving an 8% economic growth rate would require 50-70 billion dollars in foreign direct investment (FDI).

Speaking to reporters, the government spokesman, Abdollah Ramezanzadeh, added that although total foreign exchange revenues of the country currently stood at about $30 billion per year, it could be increased to 50-70 billion dollars per annum.

"At present, foreign observers are more optimistic about economic developments of Iran than us and developments in part manufacturing and oil industry as well as the 11% added value of the agriculture sector indicate this," he said.

The spokesman expressed hope for reduction of Iran’s investment risk rate to 3% by the end of the current Iranian calendar year (ending March 19, 2004), adding, "This means that Iran’s insurance premium will decrease by $750 million and foreign investors would embark on investments in Iran with a lower risk index."

Ramezanzadeh mentioned the attraction of about $5.5 billion capital of the foreign private sector during the past few years as a major achievement of the government and noted that at present about $4.5 billion worth of requests for investment by the foreign private sector was being studied by the Ministry of Economic Affairs and Finance.

He said Forex Reserve Fund was a new source for private sector investment and added that during 23 years after the victory of the Islamic Revolution, the foreign exchange paid a maximum of $1 billion to the private sector for production while $5 billion of investment requests have been approved during the past two years, $2 billion of which has already been paid.

Ramezanzadeh mentioned amending the tax law from 67% to 24-25% as well as the law for attraction of private sector capitals and participation with foreign sides as brilliant features of domestic economy during past several years.

Referring to the development of the parts and automobile manufacturing industry during the recent year, the official noted, "If Engineering Design and Parts Supply Company of Iran Khodro is planning to capture 2% of the global market of automobile parts ($10 billion), this could be achieved in view of developments that have so far taken place."

Meanwhile, Saeed Shirakvand, economic deputy of Ministry of Economic Affairs and Finance said that the 8% economic growth had been projected on the basis of the country’s economic realities, capacities and capabilities and the government was determined to realize it.

"Achieving this growth figure needs prerequisites as well as the interaction of the executive, legislative and judiciary powers," he noted.

Shirakvand added that setting such a growth figure by the Fourth Economic Development Plan was not a result of carelessness, adding, "To realize such a growth, a share has been considered for foreign investment as well as the capitals of Iranian expatriates and the private sector."

The Deputy Minister stated that Iran achieved a 7.2% economic growth rate in 2002, ranking first among Middle East and North African states in terms of economic growth.