The International Monetary Fund (IMF) called on Iran for structural economic reforms for enabling the private sector to grow and to create the jobs required to address youth unemployment and raise incomes.
The remarks were made in an IMF report concluding the 2018 Article IV consultation with the Islamic Republic of Iran which was held on March 22.
In the two-part report, IMF also urged the country to take necessary action to address risks, redefine the role of the state, stamp out corruption, improve the business environment and employ more of Iran’s highly educated women which would help the economy diversify and lift productivity.
IMF directors underscored reforming financial sector as a priority, in particular recapitalization and restructuring of viable banks, and resolution of non-viable ones.
They highlighted that state-controlled banks should start preparing and implementing recovery plans as soon as possible even as they await the initiation of the planned Asset Quality Review.
In another part of the report, IMF emphasized efforts for unifying the dual exchange rate, together with a clear communication strategy and tighter monetary conditions, which could support the transition to a market-based monetary policy framework.