Iran Economy NewsRouhani Admits Iran’s Dire Economic Situation

Rouhani Admits Iran’s Dire Economic Situation

-

Rouhani Admits Iran’s Dire Economic Situation

By Pooya Stone

Iranian President Hassan Rouhani admitted on Tuesday that Iran’s situation is more “difficult and complicated” today than it ever has been, with US sanctions on Iranian oil exports making it hard to run Iran’s affairs.

Rouhani, who was speaking in Kerman, said that the current situation “is not normal” and that “Iran is experiencing one of its hardest years since the 1979 Islamic revolution” when the current government stole power from the people and instituted a dictatorship. 

He said: “Without money, we cannot run the affairs of the state. Although we have some other incomes, the only revenue that can keep the country going is the oil money.” 

Rouhani explained that Iran needs $45 billion annually to continue running the government and that the oil revenues brought in $60 billion per year. 

He said: “We have never had so many problems in selling oil. We never had so many problems in keeping our oil tanker fleet sailing… It is difficult to reactivate oil wells when the extraction is suspended.”  

Rouhani then suggested that the oil revenue deficit could be made up by collecting full taxes, but did note that the government can only collect about a third of estimated taxes because some big companies that are run by religious foundations do not pay any tax. 

He said: “Individuals who are not familiar with economics and budgeting say oil can be sold later, but they are mindless of the fact that it is not prudent to close the oil tap and deprive the country of its wealth.” 

Rouhani then defended Iran’s 2015 nuclear deal with the West, known formally as the Joint Comprehensive Plan of Action (JCPOA), saying that if Iran leaves that deal they will face UN sanctions as well as American ones. Of course, it seems a little contradictory that he would say this at a time when Iran is openly violating the nuclear deal to extract concessions from the rest of the signatories. 

The previous day, Rouhani said that if Iran remains in the nuclear deal for just one more year, it can buy and sell weapons; something that critics say was designed to please the Islamic Revolutionary Guards Corps (IRGC). 

All in all, Tuesday’s speech was a massive departure from Rouhani’s previous statements, where he painted a rosy portrait of Iran’s economy, repeatedly claiming that it was growing, that the inflation rate was declining, and that non-oil exports were making up for lost oil sales.

 

Latest news

Iran: Countdown and Alarm of Youth and Hunger People’s Riots

“What the Ministry of Energy (i.e., Iran’s regime) has done to the people of my region, Genghis Khan did...

Poverty Level in Iran Is So Severe, It Has Encompassed the Middle Class

With the state of the economy in Iran, it is no wonder that more and more people have fallen...

500,000 Unemployed Engineers, While China Builds Housing in Iran

Since mid-2019 and especially since spring 2020, along with the increase in housing prices and building materials, Iran is...

Protests Held in Ahvaz and Isfahan by Frustrated Retirees and Pensioners

As the social and economic crises continue to ravage Iran, in the cities of Ahvaz and Isfahan groups of...

Children Fall Victim to Iran’s Middle Age Law

In the first half of this year, 791 babies were born in Iran to mothers who are themselves children...

Iran’s Government Unable To Compensate Investment Backwardness Even in Two Decades

What has been reported by the Iranian government’s statistical institutions speaks about the government’s failure to attract foreign countries...

Must read

Ahmadinejad sees “footprints of Iraq’s occupiers” in Iran blasts

Iran Focus: Tehran, Iran, Jan. 25 – Iran’s hard-line...

Iran Uses Yemeni Conflict to Advance With Europe

Iran Focus London, 31 May - Iran and Europe...

You might also likeRELATED
Recommended to you