He added that the Oil Ministry will utilize all legal capacities to remove obstacles facing the private sector.

Paknejad made the remarks during a meeting on Friday with representatives from oil industry equipment manufacturers' associations.

He highlighted the importance of the private sector’s role in advancing the country’s broader goals, stating that the Oil Ministry welcomes active private sector participation in various areas, including investment, operations, technical expertise, knowledge enhancement, and research.

Paknejad noted that the use of domestically manufactured equipment is a top priority for the Oil Ministry, adding that serious measures must be taken to strengthen domestic oil equipment producers so they can compete and expand their presence internationally.

Importance of effective collaboration

The minister stressed the importance of synergy and effective collaboration between the Oil Ministry and the private sector.

He reiterated the ministry’s support for private sector activities at all stages of oil projects, stating that the ministry is ready to provide comprehensive cooperation and support to enhance the country’s oil industry through private sector involvement.

After listening to private sector representatives, Paknejad welcomed the points raised during the meeting and emphasized the need to build trust with the private sector.

He said, “To attract public investment in projects, we must first earn their trust.”

Paknejad described the private sector as a complement to and supporter of the government, stating, “The private sector is the path to the country’s progress and salvation. We must all work together to elevate Iran’s standing. The Oil Ministry will use all legal capacities to remove obstacles facing this sector.”

Need to address FATF issues

Private sector representatives at the meeting raised their challenges and concerns, including issues related to liquidity, debt settlements, receivables, fair competition with semi-state-run entities, and the need to establish joint task forces between the Oil Ministry and the private sector.

Industry players clarified that supporting domestic production does not mean halting projects to wait for local manufacturing or banning imports. Instead, they called for creating conditions that allow fair competition with foreign producers.

Representatives from oil equipment manufacturers' associations highlighted the urgent need to resolve issues related to the Financial Action Task Force (FATF), stating that without addressing these challenges, the private sector will not be able to compete with foreign companies or enhance its capabilities.

Private sector representatives also criticized the increasing state control over new technology-based firms (NTBFs), the expansion of semi-state entities, and insufficient oversight of their financial activities.

They stressed the need for government agencies to coordinate in formulating laws, regulations, and guidelines to foster economic growth and support entrepreneurs.