Iran is planning to invest $3.5 billion in rural industries as part of a master plan to create jobs and decentralise the industrial sector, revealed a senior Iranian official.

The funds will be made available in the form of low-interest loans (6 to 8 per cent) from the National Development Fund and a number of banks, Abolfazl Razavi, vice president for rural affairs, was quoted as saying in an Iran Daily News report, citing Trend News Agency.

Razavi said that they intend to invest in rural areas in order to turn them into hubs of production and employment.

He added that over 99 per cent of mines in Iran are situated in rural areas. Also, over 93 per cent of the wheat is produced in rural areas. Hence, making the aim of the plan to move industries to rural areas.

The vice president noted that there are around 2,600 counties in Iran, and that the plan envisages one industrial hub for each.

Interest rate of loans in Iran currently hovers around 20 per cent, whereas inflation is a little above 10 per cent, added the report.