dear viewers, welcome to the economy table. today's topic of the economy table is the challenges facing the country's petrochemical industry, which we will discuss and examine in today's program with the guests of the program. see the economy on the news network. the petrochemical industry is one of the most important and main driving industries for the economy without oil, so that about 40% of non-oil industrial production and more than 30% of non-oil exports are related to this industry . allam national petrochemical company

registered 34 credit supply of petrochemical products in 3 months of this year which has increased by 64 percent compared to the same period of last year . of course, the existence of obstacles and problems in this profitable industry has made the path of progress somewhat uneven. in today's economics table , we will examine the ups and downs of the leading petrochemical industry, of course, first a report. the petrochemical industry is the most profitable part of the oil industry and alone can play a significant role in iran's economy, but some laws and regulations in this industry have slowed down its growth. we can deal with our competitors who are not sanctioned and us we are able to compete. the discussion

of mandated pricing in the utility sector is applied with a rate increase after sometimes two years, which makes the rights of the shareholders, in addition to being assessed, really unattractive for investment in the petrochemical industry. they discuss the orders and pricing of the competition council for abs products for car tires, for car dashboards, for the frame around lcd tvs. it happens like this that our colleagues who need the rubber are importing the rubber and this causes the spread of the problem if the gas industry does not develop, the country will leave the country, and in the next few years , the disharmony will reach the petrochemical industry, and this means falling behind the 7th plan, which is another problem that the petrochemical industry is really struggling with. we are aware that according to the 7th development plan, the production capacity of petrochemicals should be increased, of course

, in the deputy of the laws of the islamic council, the experts are reviewing the past laws and identifying part of the revised laws of the country in order to review and replace the new laws in the specialized commissions. wherever the laws and regulations are not in accordance with the country the interests of the people. it may not be for the benefit of producers and manufacturers, we have a preparation, finally , according to those frameworks that can be suitable, it will be effective, god willing, we will take action , we have this preparation and it must be done . i invite you to be our viewer until the end, because i want to introduce the guests of the program to you, mr. mohammad bahrami naibar.

chairman of the energy commission of the islamic council and mr. mohammad hashem najafi ardakani, a member of the board of directors of the petrochemical industry employers' association, today in the studio. you are our guests, mr. bahrami, at your service, god willing , i have the strength to be at your service forever, i want you to tell us, in fact , where the country's petrochemical industry is at the moment , where is its outlook, and according to the upper documents that we have, it is the 7th plan. in the name of allah, the most merciful, the most merciful, i offer my greetings, courtesy and respect to all dear viewers. i would like to express my gratitude to his highness and your good colleagues on the network. . we

have no problem with our program. yes, where are you now? we are, say that our problem is in the implementation of the program, now in the haft program itself. the duty of the gentlemen has been clarified, but it is not acceptable . the reality is that our petrochemical document has been working for many years , but for various reasons , what was predicted in the plans. how much is the failure to find the share of the petrochemical market in the energy economy of the country? i would like to say that in non -oil industrial areas it should be 40% and non-industrial areas should be 30%. now

, according to the 7th plan, where will it reach? according to the 7th plan, we must develop production capacity petrochemicals should reach 130 or 130 million tons from 96 million tons to 106 million tons . this program should reach

130,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000. what are the basic issues that we are facing today in the petrochemical industry as a challenge? the first area, i believe , is gas imbalance. there are about 70 petrochemical companies in the production circuit what are the development projects that want to be put into operation in the future? we will definitely face problems in the future of petrochemicals if we do not invest in the infrastructure of using our gas reserves. ton to 130 million million tons, but

unfortunately our capacity will also decrease in the coming years, i said that by the next years, we do not mean the next 10 years, the next 15 years, we are definitely in the next 34 years with the gas imbalance crisis in the country, especially in the petrochemical industry. we are facing this gas imbalance crisis in the industry petrochemical as an example, if possible , please tell me what will lead to the decrease in production of petrochemical companies. you can see that last year we consumed 700,000,000, and according to the statistics i have now , we consume 759,000,000,000 cubic meters. we had gas for 4 groups of consumers , the gas supply industry group, which also includes domestic consumption , consumed about 685 million cubic meters , and the petrochemical industry's share of this consumption

was about 72 million cubic meters per day. according to estimates, our daily consumption will reach 685 million cubic meters per day. next mr. bahrami, now that you said that there are laws, but the important thing is how to implement these laws , now this is what i realized in just a few minutes, as if the infrastructure of the development in the petrochemical industry is at least what was seen in the seventh plan. there is no explanation in this case. i would like to say that what you said is correct, first of all, we are talking about self-supply of gas every year in the winter , many sectors of our industry, whether petrochemical

or in different industries , are closed due to the shortage we have in this field because of lack of investment. he says that the first is self-sufficiency. in the field of supply, there is a need for investment now that we are really behind in this field, and our petrochemical industry is losing parallel players every year. in addition, in the discussion of productivity, as you have understood the sub-section, in the discussion of the productivity of this petrosh, they say that we have something to say, maybe many, many successful countries have higher productivity with this input, that is, the problem that we have in the discussion of technology, we have in the discussion of technical knowledge. we have mismanagement and some of our managers don't really have mastery over these things , because there are many of these obstacles, many of these

problems are solved by the managers themselves. can you solve how much is the productivity now and how much do you think it should be? mr. doctor, you have to answer because you are in this industry, but the statistics we have, because i have the statistics now, is that productivity in comparison with many countries. that we should have, we don't have , petrochemical companies should do more, right, well , today, many petrochemicals are dependent on the government , they are private, and in a way, division of work means that superior technology is in the hands of some, with minimum cost, minimum pollution, and highest efficiency. darren and our share in the petrochemical industry is this it is the highest cost. from the financial point of view, from the point of view of usage, from the point of view of pollution, the lowest return and the lowest

return, well, you explain in this regard , mr. rajafi, now you can't say that we had the lowest return, well, in any case, the petoshimon industry is our big industry today, despite the sanctions and the lack of it. owners of technology in the country, well , my colleagues in this industry are starting and moving forward with very big projects, but the point that is a correct point is that we are burdened with additional costs to the organization, such as burning flares, which these costs practically, the profit margin of the group and companies is under al shaa'a puts it and destroys the productivity that mr. dr. bahrami said. well , when will you actually increase the costs , who will come up with the technology and put it on the shoulders of

petrochemicals? it is not that khoroshimis are the offices of the national petrochemical industry company as the regulator of the petrochemical industry and upstream organizations such as the ministry of oil or shareholder groups that invest in this field. in any case, getting technology is your technology the conditions of the country are difficult, but as far as we know and we are persistent, our colleagues are trying to

be able to do this. receiving the same is very expensive, but the point that i think should be discussed is that we should firstly resolve this issue of energy imbalance and gas imbalance for the future and for investment in the petrochemical industry. now the rules were mentioned, mr. bahrami, we now have the seventh program and the rules the other thing that exists is actually how much these laws can help the development and progress of the petrochemical industry and what laws have been added to reduce some of these challenges of the industry. well, the laws are very effective. we , related institutions, all of us must act according to the framework of the laws

. outside of this framework, it is a violation to say that the laws that are in force this year are related to the previous year. this basis so far from the government or companies there is no request to be sent, sir , where is our problem, because they are involved now, they are involved now, they know where their problem is, where these laws do not help, where these laws themselves. there is an obstacle, so far nothing has been presented to the parliament, but we are ready, god willing. well, the parliament itself may now think that the parliament itself knows how to prevent it, what can be done, in any case, there is an energy commission in the parliament. please note that there are definitely problems in these laws. there are problems . they should be presented to the parliament. when should a decision be made?

let the petrochemicals themselves say this . yes, the institutions that are in charge , the institutions that are directly related to these rules and regulations, must be persistent. of course, one of the problems we have when discussing laws or regulations is that sometimes some people decide that they may not be relevant. in this field, the petrochemical industry itself, those who are nobles in this field , the elites, should sit with the help of the parliament and make a suitable decision. now, for example, regarding the feed rate formula, which is now one of the challenges. it is the petrochemical industry, right , mr. najafi, for example, has the parliament done something or is going to do something in this regard? this is related to the previous year. we are a new parliament . my new parliament is still involved in the presidential election and the selection of the government cabinet, and now it is the government, and the government's duties were not clear

. that there is a stabilization, sit together and decide the obstacles and problems that exist. now , please explain about this feed rate challenge, mr. najafi, how is our engineer in the petrochemical industry, well, it is not today that we are making a decision. we have two challenges we have a big one in the field of laws regarding our feed and utility rates it is true that mandatory pricing has actually been done , instead of breaking the monopoly competition , it has created a monopoly for a few petrochemical companies that are owned by utilities. well, you look at it. the rate of feed and utility was 25% 17-18 every year, it comes to

253 in one year, the price increases, so this is the effect. in the profitability of the companies, in the productivity of the companies , to what extent has anyone really checked this, how much has the profitability decreased? they approve, well, where in the world do they invest and do business like this, so this will cause you two losses and one profit next year. the attractiveness of investing in your stock market will be lost for the people. practically, the development plans of eton can no longer move forward with a standard, a logic, and a clear ra, that is, whoever wants to invest in a petrochemical project, whether the investment is domestic or not. do it abroad. definitely, when

you see that the rules are so loose, the rules of the moment, the pricing is mandatory, you will definitely enter this direction. you can't and it loses its charm. you said two challenges this is the first challenge. the second challenge is that, well, we also impose a series of laws that are actually in conflict with the main interests of the company . for example, you said at the beginning of your report that 65 million tons of credit products were supposedly sold last year. if i'm not mistaken, it means that credit sales have increased. yes, well, the friends in the upstream company in the regulator of the petushi industry passed a resolution that, sir, all companies must sell their products on the credit commodity exchange. first of all , the supply capacity has increased. a potashium company that has 1 million

and it produces 300,000 tons per year, and in previous years, it used to supply 300,000 tons domestically , and the rest was exported and supplied to the country . today, it is required that you supply 700,000 tomans in the stock market. we have no problem . with this increase in domestic production, we do not have the same ratio as you have. companies are increasing their supply . has the downstream industry increased? is this increase in supply not caused by smuggling? well, the product that i have in the 11 115 commodity exchange competes in cash, mr. mutoli why should i offer this credit? they also say that in order to support the stations that have less working capital, we accept this too

. tell me, friends, what standard do they have to determine that najafi who buys has less turnover, mr. dr. bahrami, who buys more, you have a process. if you have created the liquidity of your economic enterprises, it will face a challenge, again it will reduce profitability . again, this incident makes the petchon industry attractive for investment by its very nature. in fact, this is a credit line, but there are problems in its implementation. really, the industrial groups are still not convinced why they should do this, it is only mandatory and mandatory and if they don't do it, unfortunately , they will be introduced to punishment. well, now mr. bahrami

, they didn't have any restrictions on this matter because our country is one of the top countries in the world in terms of food supply. from the beginning, there was no proper foundation stone. later, when we returned to many of the problems that exist in society , many of the commercial relations that we have with the world, and especially that most of these companies are public and not private, we came to the conclusion that how is this energy rate in the world today finally determined and how much is the amount? later, until a long distance , he said once. it became 200 times or 400 times. they wanted to create a balance, a balance based on the pricing that, for example, the stock market

will come to determine today, or based on those global rates , once a shock came. it was the 1970s and the 1980s, once the rates of water, electricity and gas for houses and private individuals went up. it had bad effects in the society and directly and indirectly had a negative impact on all life issues and people's needs. now we have this problem. finally, it is a very severe surgery. this operation is definitely painful until it comes out of the mandatory mode. the criticism is correct. yes, it is mandatory for now . the market itself does not determine the price of our land. in some places, according to the needs of the country, in some areas, if for example we want to supply at the same global rate, it is not possible

. accordingly, in some places, the government comes in , gives an order to control the market, and we hope we want one day to be decisive in all market conditions. one day there is a plan to reach that one day. so far, the plan tiny we all need to help, and if we are not successful in the field of development , it is mostly in soft areas and cultural areas, these are the places where , for example, what is the obstacle for this rate to come out of the mandatory mode, what is the biggest obstacle, now the sanctions themselves are very effective. in the provision of some issues, the price that is real does not reach us, maybe the countries that are competing with us

with a lower price, then our products should also be able to compete with each other, or there are obstacles and some of these companies themselves. they don't fulfill the financial obligations they have, maybe they won't be fulfilled on time this makes it more difficult for the government to meet the various needs that it has, many times its laws are stricter. well, in fact , please explain the supply of credit. do you agree with mr. najafi's words in this regard ? some abuse means, for example, the money they have to pay is owed to other places, for example, taking some , investing is to be forced to make some laws more difficult, but it needs to be revised

to support the producers where it is needed, that is how can it be checked? the basis of their need is more options , more time, lower interest rates, for example, to be able to help them. yes, well, in fact, in order for the downstream industry to grow, the growth of the downstream industry is actually one of the requirements to prevent the same raw sale that is said. one of the challenges of the petrochemical industry is now, in order for this industry to grow, what do you think has been done? you said that this growth is not balanced. well , you see, one of the reasons is that we can somehow prevent the sale of raw materials and prevent the import of products. that we do not produce complete our value chain we will do everything we can to complete

our value chain and increase our petroshim plan in the chain . we will definitely make this happen in some way. well, for this to happen, we need investment, that is , if we want to grow by 8% according to the seventh plan, we can develop the production capacity. to increase petrochemicals from 96 million tons to 130 million tons , we need an investment of 7 billion dollars annually. if i'm not mistaken , this will definitely not happen with this law and this problem of energy imbalance, with mandatory pricing, mr. dr. bahrami. saying yes, regarding food, we may accept that our price is low compared to the world, but we cannot consider the input based on today's global price, let's order the output. and let's be clear that

you sell with this dollar, behave in this style , well, these things will prevent the formation of the chain completion, that is, you will invest the money that the government can't get in this area, which means that the private sector should be attractive to it. let him invest in the petrochemical field as this money-making industry. you are the first document to invest and complete every ton of products. mr engineer , you spend 1,500 to 1,600 dollars for each import that you do. each ton of products that we export costs 600 dollars, which means that we can complete our product chain as much as we can and increase our downstream industries so that we can use these products in our country. a correct mechanism, definitely be sure that we

can help in the front, we can help in the development of employment , we can help in the profitability of our company , we can actually solve many of our lower problems with these events. well, this investment how can it be attractive, i said with these things that we know that investment has a specific path, not that we come today for the year 400 when companies close their financial statements and hold their assembly. let's say that the price of utilities and food in 1400 was 253 tomans, and it increased by 253. who will come in the capital market and say that this was the right thing? or 402 is the right thing and it will increase the investment , mr. mande, until we can

convince him with our own internal investment that in the field invest in the petrochemical industry, the downstream industry , foreign investors will definitely not enter, mr. bahrami, how can this attractiveness for investment be created? in the downstream, i will say that the things that dr. najafi said, we must accept that we are behind in terms of technical knowledge and technology. compared to the countries that have this industry and we want it to be effective, one of the policies is the discussion of finance, which is the worst way. sir, we have financed this equipment at last from your place