More than 85% of exports from Iran’s southeastern Kerman province are concentrated in a limited number of mostly raw commodities, highlighting weak diversification and low value addition, the head of the province’s chamber of commerce said.
Mehdi Tabibzadeh, chairman of the Kerman Chamber of Commerce, said an export-oriented approach must become a core principle in production to raise the province’s technological level and competitiveness.
He added that economies seeking sustainable growth need export-driven production, which implies higher technology, stronger competitiveness and a presence in global markets at lower production costs.
Tabibzadeh said Kerman’s export basket lacks high value-added, technology-based products, with more than 85% of the province’s roughly $3 billion in exports limited to a few goods and a narrow range of markets. He added that there is little diversity in products, export destinations or exporting companies.
He also pointed to a sharp imbalance between trade flows, saying the value of goods imported into Kerman is nearly ten times higher than the value of its exports, an indication that the province mainly exports raw or minimally processed materials.
To address the issue, Tabibzadeh said the chamber is focusing on diversifying exports and has designed several initiatives, including a so-called “10-40-50” plan aimed at lifting provincial exports to $10 billion, expanding the export basket to 40 products and reaching 50 export destinations, with an emphasis on knowledge-based, technology-driven goods with higher value added.