An aggressive state monopoly is responsible for the stagnant position of the Iranian textile industry, said an article in English language newspaper, Iran Daily.

The paper quotes economics expert Mohammad-Hassan Afshar who says the lack of competition in the industry is to blame for the continued use of out of date and inefficient tools and machinery, and lack of interest in attracting foreign investment.

He also attacked the labour laws, proposing that employers should be authorised to make workers redundant when they are not needed.

Tax was also a target. Ashfar said "Nowhere in the world are producers compelled to give away 55 of their profit as taxes. This makes production unprofitable. Hence, the need for the amendment of the law."

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