Speaking at the conference “Iranian Public Management Today: Challenges and Solutions,” Sepahdar Ansari-Nik paid tribute to those killed during the Iran-Iraq war and to martyrs of the industrial sector. He said Bandar Imam Petrochemical Complex sustained damage during the recent conflict, but restoration efforts are progressing rapidly.

“Reconstruction and modernization of the steam power plant are advancing at high speed, and the complex’s production units will soon rejoin the production cycle,” Ansari-Nik said, according to Bandar Imam Petrochemical Company.

He highlighted the company’s economic significance, noting that in the Iranian year 1404, the complex produced nearly 5 million metric tons of petrochemical products and generated about $1 billion in exports, making it one of the country’s key industrial and economic contributors.

“We hope that after overcoming the current circumstances, the complex will continue to play an effective role in national production and exports in the coming year,” he said.

Need for Greater Institutional Coordination

Ansari-Nik said institutional quality and effectiveness play a critical role in reducing transaction costs, facilitating contracts, improving supply chains and supporting industrial development.

He emphasized the petrochemical industry’s extensive interactions with government agencies, including the oil, industry and economy ministries, the Trade Promotion Organization, customs authorities, ports and special economic zones.

“Any lack of coordination or overlap in the responsibilities of these institutions can impose significant costs on production,” he said.

Ansari-Nik identified overlapping mandates, frequent regulatory changes, inadequate information infrastructure and the combination of policymaking and executive functions as examples of institutional shortcomings that increase production costs, weaken long-term planning capabilities and discourage industrial investment.

He also pointed to tensions between what he described as “instrumental rationality” and “value-based rationality” within the country’s governance structure, arguing that institutions often face multiple and sometimes conflicting mandates that divert them from their core functions and reduce their effectiveness.

Governance Reforms Needed for Sustainable Growth

Ansari-Nik said some redistributive policies implemented in recent years have shifted the priorities of development-oriented institutions.

He argued that excessive focus on securing resources for subsidy payments has diverted part of the strategic capacity of economic institutions away from investment, infrastructure development and long-term planning.

“Supporting vulnerable groups is an undeniable necessity, but redistributive policies should be designed in a way that does not hinder productive investment and the expansion of the country’s economic capacity,” he said.

The Bandar Imam Petrochemical CEO called for continuous evaluation of institutions involved in industrial development, the establishment of specialized commercial courts, greater use of independent assessments, adoption of best practices from industrialized countries and the creation of effective mechanisms to improve coordination among economic institutions.

He said achieving sustainable industrial development will require changes in some governance models, alongside stronger institutional performance, standardized governance processes and a broader culture of productivity.

According to Ansari-Nik, leveraging Iran’s national advantages — including oil and gas resources, mineral reserves, coastlines and transit corridors — could help drive industrial growth and strengthen the resilience of the national economy.