Government Has Become a Rival to the Private Sector; Development Cannot Be Achieved Through State Management

According to SAMA, Mahmoud Mostafazadeh, Secretary of the Syndicate of Iranian Construction Companies, criticized the government’s approach to the construction economy, emphasizing that sustainable development is only possible when affairs are handed over to the private sector. He stated that the government, instead of playing a supervisory role, has become a rival to the private sector.

Mostafazadeh, referring to the challenges facing the country’s development projects, said that the most important problem is the shortage of government development credits, which has caused many projects to be left half-finished or to proceed slowly.

He noted that this situation is gradually adding development projects to the list of unfinished schemes. However, he pointed out that in the building construction sector, especially in housing investment, this problem is less visible, and many colleagues continue their activities despite the difficult economic conditions.

The Government’s Supervisory Role, Not State Management

Mostafazadeh further emphasized the need for a change in the government’s approach, stating that real development is achieved when affairs are delegated to the private sector. The government must abandon its role as an operator and return to its supervisory duties.

He added: “Unfortunately, our government, rather than giving importance to the private sector, has entered the field as a rival and has practically created a serious challenge for the private sector.”

Outlook for Compensating Shortcomings

At the end of his remarks, this construction sector activist expressed hope that the establishment and the government would come to the conclusion that operation and development must be entrusted to the private sector, so that the shortcomings of past years can be compensated within a ten-year horizon.