EghtesadOnline: The Iranian government plans to sell off its share in the two major automotive companies: Iran Khodro (IKCO) and SAIPA.
Industries Minister Reza Rahmani said, “The government’s share in IKCO and SAIPA will be sold before March 2021,” Asbe Bokhar reported.
Such assertions are often made at a time to deflect attention from the government’s failure in tackling the numerous automotive challenges.
According to official reports, the government has a 14.04% share in IKCO and a 23% stake in SAIPA. However, independent observers say the government’s share in the two firms is bigger since state agencies through their subsidiaries and front companies also own stakes in the two entities, Financial Tribune reported.
The privatization of key industries has long been promised by Iranian politicians, but the process of privatizing major state-owned companies has often been tainted by accusations of corruption and favoritism.
However, market analysts assure the public that the pledge to privatize IKCO and SAIPA would not be fulfilled anytime soon.