According to PGPIC’s public relations office, Mohammad Shariatmadari, speaking at the third meeting of CEOs of petrochemical production companies, praised the contributions of industry leaders since its inception and highlighted the key structural and operational challenges facing the sector.
He identified the absence of a comprehensive roadmap and foresight as the industry’s foremost strategic weakness. Reviewing past policies, he noted that although privatization was, in principle, a positive step, the lack of planning and prudence in execution had severe consequences.
“Privatization should have been conducted rationally and strategically,” Shariatmadari said. “Instead, it was akin to an ‘economic time bomb’ that dismantled the integrated petrochemical value chain. Parts of the industry were sold off in a fragmented manner, preventing any single entity from developing the full chain.”
As a result, he continued, Iran’s petrochemical sector now suffers from the absence of a reliable national research and foresight framework—a fundamental shortcoming at a time when the global economy is entering the so-called “fifth industrial wave.” If Iran does not adapt, he warned, much of its capacity could be left idle.
Shariatmadari stressed that “the only and final path forward for Iran’s petrochemical sector is true privatization”—but this time based on prudence, rationality, and a comprehensive plan. He called on petrochemical companies and their executives to take the lead in drafting a national strategic plan, pooling the capacities of more than 90 active firms in the sector, and presenting it to the government.
Turning to operational challenges, Shariatmadari warned of an impending feedstock crisis, which could undermine the sector’s profitability if long-term contracts and diversified supply sources are not secured. He also underlined the sector’s financial vulnerability, pointing out that previous efforts to leverage the National Development Fund or form large financial groups had fallen short. A robust and sustainable financing mechanism, he argued, is indispensable.
Highlighting international comparisons, he noted that countries like Egypt, despite having fewer resources, have achieved far higher levels of industrial value-added—up to four to five times Iran’s output in certain areas—through better efficiency and technology adoption. Iran, he insisted, must urgently pursue greater productivity, advanced technologies, and private-sector investment in the value chain.
Shariatmadari also underscored the need for modernization in aging plants, citing the decades-old Bandar Imam complex as an example. Without equipment renewal, advanced technologies, and financing for overhauls, Iran’s petrochemical industry cannot remain competitive.
Another core priority, he said, is digital transformation. “The world is rapidly moving toward AI and digitalization,” he stated. “From feedstock intake to final exports, our industry needs an integrated digital system providing real-time data. Without this, the gap with global rivals will only grow.”
He proposed establishing a Chemical Industries Development Fund, jointly owned by petrochemical companies, to ensure long-term project financing. This, he said, could be facilitated if Iran’s Petrochemical Employers Association took the initiative.
Shariatmadari further addressed external challenges, including sanctions, import restrictions, and customs delays that hold up vital equipment. He criticized current tax enforcement as excessively rigid and misaligned with industrial realities.
He also raised the chronic issue of winter gas supply disruptions, which significantly disrupt production and undermine investor confidence. “How can private investors commit capital with such uncertainty?” he asked, urging the government to prioritize energy reliability for the sector.
In conclusion, Shariatmadari emphasized that structural issues—taxation, import procedures, currency access, and above all, secure energy supply—cannot be resolved by industry executives alone. They require high-level government decisions and reforms. Only then, he said, can Iran ensure sustainable growth and attract reliable investment in its petrochemical industry.