Babak Negahdari, head of the Research Center of the Parliament, recently criticized the management of public companies in the petrochemical and oil refining industries, stating that the current situation is unsatisfactory. He emphasized that the problem is not limited to the profitability or loss of a few companies, but is related to a set of structural issues.
Structural and Managerial Issues
Negahdari referred to weak investment, fragmented ownership and management, managerial instability, weak performance evaluation systems, and in some cases, a lack of alignment between investment decisions and the macroeconomic needs. According to him, these issues have led public companies in various industries to face serious challenges.
Public Sector Control in Various Industries
While in the telecommunications industry nearly the entire sector is under public control, in oil refining this situation encompasses almost the entire industry. Additionally, in the petrochemical industry, over 90 percent and in the cement industry about 70 percent is under public control. These statistics indicate the dominance of the public sector over these industries, which can exacerbate managerial and structural problems.
Negahdari pointed out that public companies, due to inefficiency and structural weaknesses, are unable to adequately respond to the economic needs of the country, stressing the necessity for serious reforms in these sectors. He stated that more attention should be paid to improving the performance of these companies and increasing coordination between investment decisions and the economic needs of the country.
Ultimately, the head of the Research Center of the Parliament highlighted the necessity of creating an effective evaluation system for public companies, stating that this system could help improve transparency and performance of these companies. He urged the relevant authorities to make the necessary reforms to improve the conditions of public companies in the petrochemical and oil refining industries.
