The Iranian government has allocated at least $67.6 million in foreign exchange subsidies for pilgrims attending the upcoming Arbaeen religious procession while the country faces its worst economic crisis since the founding of the Islamic Republic.
According to the Central Bank, each pilgrim traveling to Iraq for the annual ceremony may receive up to 200,000 Iraqi dinars at a subsidized rate, priced roughly $18 below Tehran’s open market exchange.
The Arbaeen ceremony marks the end of the 40-day mourning period following Ashura, the religious ritual commemorating the death of the third Shia Imam, Hussain ibn Ali.
With officials projecting that 3.7 million people will cross the border, the total state subsidy amounts to nearly 62,900 billion rials or $67.6 million.
Shia Muslims walk vast distances, even hundreds of kilometers, to reach the shrine and other nearby sites.
Although small groups of Iranians had made the pilgrimage in the years after Saddam Hussein’s fall in 2003, the numbers surged after 2010, when official data first recorded 40,000 pilgrims.
By 2019, participation reached three million, before declining sharply during the pandemic. The growth has been fueled by active promotion by the government and large-scale government investment in roads, healthcare services, and logistical support for pilgrims.
In addition to currency subsidies, state-affiliated charities, municipalities, city councils, and various government bodies allocate dedicated budgets each year to organize the event and provide services along the route.
These include free meals, subsidized transport, and free Wi-Fi access along the main routes and within Karbala.
Roundtrip tickets from Tehran to Najaf—where many pilgrims begin the walk—range between 130 and 150 million rials (approximately $138 to $159), Adel Nourali of Iran’s Airlines Association said this week.
The large portion of each fare allocated to Iraqi airport fees has intensified concerns over concealed state subsidies.
1,550 tons of subsidised food including lamb, chicken, sugar, and rice will be distributed to religious camp organizers at massively reduced rates, Jebreil Baradari, head of Tehran’s Agricultural Jihad Organization said this week.
The offer comes as the cost of meat in Iran has soared and per capita meat consumption has fallen as over one third of the country is now living below the poverty line.
