Of Iran's total area, 11% is cultivated, 27% consists of permanent pastures, and 7% is forest and woodland. The remaining 55% consists of wasteland, lakes, mountains, desert, and urban areas. About one-third of the labor force is employed in agriculture. In 2003, the total land area under cultivation was estimated at 18.2 million hectares (44.9 million acres).
Iranian agriculture was practically annihilated by the land reform of 1962–63; and with a rapidly increasing population, Iran was no longer self-sufficient in its agricultural production, and food imports have risen steadily.
In 2004, Iranian agricultural production (in thousands of tons) included wheat, 14,000; sugar beets, 6,050; barley, 2,700; rice, 3,400; grapes, 2,800; apples, 2,400; oranges, 1,900; dates, 880; cotton, 105; tea, 52; and tobacco, 21. Almonds and pistachios are grown primarily for export. In 2004, Iran was the largest producer of pistachios in the world (275,000 tons, or 50% of global production), and the fifth-largest producer of almonds (after the United States, Syria, Spain, and Italy), at 80,000 tons. As of 2003, some 7.65 million hectares (18.9 million acres) were under irrigation.
Under the revolutionary government's first five-year plan (1983–88), agriculture was to receive 15.5% of total allocations, with food self-sufficiency the primary objective. However, because of the war with Iraq, planned expenditures were never attained. In post-war period there has been times of self-sufficiency, and times of imports of agricultural products, depending on the types of decisions made by the officials and the foreign events.
The Iranian fiscal year begins on 21 March. Before the modern era in Iranian banking, which dates to the opening of a branch of a British bank in 1888, credit was available only at high rates from non-institutional lenders such as relatives, friends, wealthy land-owners, and bazaar money lenders. As recently as 1988 these non-institutional sources of credit were still available.
The Central Bank of Iran-Bank Markazi, established by the Monetary and Banking Law of 1960, issues notes, controls foreign exchange, and supervises the banking sector.
The government nationalized all commercial banks shortly after taking office in 1979 and announced that banking practices would be brought in line with Islamic principles, which include a ban on interest payments. By 1993 there were five Islamic banks. Instead of paying interest, the new banks give "guaranteed returns" or commissions on loans. The commissions, which equal 4% of the loan's total, were introduced in 1984, and were known as "profit sharing." In Islamic terms, this meant that profit (interest) was acceptable only if a lender's money was "not at risk."
In 1994 Bank Markazi introduced reforms allowing private banking operations to register officially and offer most services in competition with the public sector. Now, we have some governmental and many private banks in Iran.
There is a big problem with the fluctuations in the foreign currencies. And many informal banking operations are run from the bazaars.
The Tehrān Stock Exchange, locally known as the Bourse, was created in 1968. Three years later, the National Bank of Iran and the Industrial and Mining Development Bank of Iran joined with the US firm of Merrill Lynch, Pierce, Fenner and Smith to begin international brokerage activities in Iran. The exchange has stayed open since the revolution but did not play a significant role in the nation's business until the 1990s. Since 1989, the stock exchange has expanded continuously.
The official currency of Iran is “Rial”.
But, in practice, the people use the unit called “Tuman”.
1 Tuman = 10 Rials.
Our currencies rates fluctuates intensely.
Governmental Rate = 42’000 Rials for one dollar
Preferential Rate = 80’000 Rials
Free (black) Market Rate = 120’000 Rials
-USD, Euros, GBP and other currencies can be exchanged for rial throughout Iran.
Most goods entering Iran are subject to customs duties, the majority of which are on the CIF (cost, insurance, and freight) value. A number of government organizations and charitable institutions are permitted to import goods free of duty. The average tariff was 4% in 2005, down from 18.9% in 2000.
GDP/PPP (2013 est.): $987.1 billion; per capita $12,800.
Real growth rate: -1.5%. Inflation: 42.3%.
Unemployment: 16%.
Arable land: 10.05%.
Agriculture: wheat, rice, other grains, sugar beets, fruits, nuts, cotton; dairy products, wool; caviar. Labor force: 27.72 million; note: shortage of skilled labor; agriculture 16.9%, industry 34.4%, services 48.7% (2012 est.).
Industries: petroleum, petrochemicals, textiles, cement and other construction materials, food processing (particularly sugar refining and vegetable oil production), metal fabrication, armaments.
Natural resources: petroleum, natural gas, coal, chromium, copper, iron ore, lead, manganese, zinc, sulfur.
Exports: $61.22 billion (2013 est.): petroleum 80%, chemical and petrochemical products, fruits and nuts, carpets.
Imports: $64.42 billion (2013 est.): industrial raw materials and intermediate goods, capital goods, foodstuffs and other consumer goods, technical services, military supplies.
Major trading partners: Japan, China, Italy, South Korea, Turkey, Germany, UAE, India (2012).
The Caspian Sea provides a seemingly inexhaustible source of sturgeon, salmon, and other species of fish, some of which spawn in the chilly streams that flow into this sea from the high Elburz Mountains. In 2003, the total fish catch was 440,835 tons.
Caviar of unrivaled quality is produced by the Iranian Fisheries Co., formerly a joint Russo-Iranian venture but now wholly owned by the government of Iran. About 200,000 kg (440,000 lbs) of caviar are sold per year, most of which is exported, providing a substantial share of the world's supply. Officially, all caviar is for export and it is illegal to exchange it among the people.
Exports of fish products in 2003 amounted to nearly $80.5 million.
The fishing grounds of the Persian Gulf were long neglected, but during the 1970s new fishing fleets and packing and conserving facilities were established.
The Iran-Iraq war and consequent environmental damage retarded the development of fisheries in this region. Total marine catch has more than doubled from 1982–84 levels.
In 2005, major imports included machinery, military supplies, metal works, food, pharmaceuticals, technical services, and refined oil products.
Iran's most expensive export is crude petroleum, which accounts for the majority of its commodity exports revenues (80%). Petrochemicals made up 4.1% of merchandise exports in 2004. Other exports included floor coverings and fruits and nuts, with pistachios accounting for 2.4% of merchandise exports in 2004. Iran accounts for 10% of the world's carpet exports.
Iran's leading markets in 2004 were Japan (18.5% of total exports); China (9.6%); and Italy (6%).
Iran's leading suppliers in 2004 were Germany (12.3% of total imports); France (8.4%); and China (7.5%).
About 7.3 million hectares (18 million acres) were covered by forest in 2000. An estimated 844,000 cu m (30 million cu ft) of roundwood were produced in 2003; about 29% was used for fuel.
Along the northern slopes of the Elburz Mountains from near sea level to an altitude of about 2,100 m (7,000 ft) are dense stands of oak, ash, elm, beech, ironwood, cypress, walnut, and a number of other varieties.
The high plateau forests of Fars, Kurdistan, Luristan, and Khorasan comprise sparse stands of scrub oak, ash, maple, cedar, wild almond, and pistachio.
Date palms, acacias, and tamarisks grow in the Persian Gulf area. The deciduous forests on the Caspian littoral are among the best in the world.
The timber industry is controlled by the government; its potential annual capacity is 3 million cu m (106 million cu ft). In 2000, forest plantations covered 2,284,000 hectares (5,643,000 acres).
Imports of forest products totaled $615.7 million in 2004.
A forest ranger school was started in 1957 as an extension of the government's forest service. In 1963, a forestry college was established at Karaj, west of Tehrān, to train forestry engineers.
The US Central Intelligence Agency (CIA) reported that in 2001 Iran's gross domestic product (GDP) was estimated at $456 billion. The per capita GDP was estimated at $7,000. The annual growth rate of GDP was estimated at 5%. The average inflation rate in 2005 was 17.3%. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange. It was estimated that agriculture accounted for 19% of GDP, industry 26%, and services 55%.
According to the United Nations, in 2000 remittances from citizens working abroad totaled $320 million. Worker remittances in 2001 totaled $326.4 million. Foreign aid receipts amounted to about $2 per capita.
The World Bank reported that in 2001 per capita household consumption (in constant 1995 US dollars) was $964. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the same period private consumption grew at an annual rate of 5%. Approximately 20% of household consumption was spent on food, 32% on fuel, 12% on health care, and 8% on education. It was estimated that in 1996 about 53% of the population had incomes below the poverty line.
Under tax laws written in May of 1992, individual income is taxed at rates varying from 12–54%. Capital gains and investment income are also taxable and employees pay a 7% social security contribution. As of 2005, corporate profits were taxed at 25%.
Companies listed on the Tehrān Stock Exchange were taxed at a 22.5% rate. Income derived from outbound international transport was taxed at 5%. Capital gains resulting from the transfer of real property were taxed at 5% of the value of the property according to regional value tables. Capital gains resulting from the sale of securities listed on the Tehran Stock Exchange were taxed on 0.5% of the sales value. Also levied are real estate taxes, municipal taxes, and a levy on expatriate salaries. A value-added tax (VAT) or sales tax of 9% is applied to products considered final. Another tax is a public education cost levy to be paid by manufacturing and service companies.
