In recent years, the global market for inputs and international transactions has been plagued by numerous challenges, from sanctions and exchange rate fluctuations to restrictions on money transfers and hidden competition between Iran’s public and private sectors. One key issue that has always been the subject of debate is the role of state-owned companies in large international purchases and how they interact with private sector actors.
One of the common criticisms against state-owned companies is the claim that they purchase inputs at higher prices than the private sector; some say this difference is up to 20 percent. In response to this criticism, Abadi stated: Auctions and tenders for purchasing inputs are held transparently in practice, and private companies can participate in these processes. If the private sector has the ability to purchase at a lower price, it can play a role by participating in the tenders and making a formal offer.
Therefore, cooperation and overlap between the two sectors can strengthen the market and prevent unhealthy competition. If the private sector properly covers the country’s needs, the government will have no reason to enter the market directly.
