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Iran's Khatami to Head New Economic Reform Body

TEHRAN, Aug 6 (Reuters)- Iranian President Mohammad Khatami will head a new task force charged with reforming the country's economic structure, Tehran radio said on Tuesday.

The most important goals of the new body will be to reform Iran's foreign investment laws, tax collection system and national employment regulations, the radio said.

The emphasis on foreign investment reforms will come as a relief to businessmen struggling to understand Iran's foreign investment guidelines and worrying about the security of potential investments.

Economy and Finance Minister Hossein Namazi was quoted as saying the new group would work to coordinate the country's different ministries and economic bodies toward the common goal of economic restructuring.

Khatami, who was elected last year on a broad mandate for social and political reform, has found his time increasingly occupied with economic concerns.

Low oil prices, high inflation and high unemployment have battered the country's economy. Additionally, Khatami sees fundamental flaws in the country's "sick economic structure," as he routinely describes it.

In a long-awaited economic address to the nation earlier this month, Khatami pledged new guarantees for foreign and local investors, accelerated privatization and a reduction in red tape.

But his speech was short on details and offered little new in the way of immediate steps to boost the country from its economic doldrums.

In past speeches, he has often called for a reduction in Iran's dependence on oil exports, a boost to the country's production base, and an improved climate for foreign investors.

Income from oil exports make up 80 percent of hard currency earnings and 40 percent of national revenue.

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