Falling oil income disrupts Iran’s vital imports, MP says
An Iranian lawmaker says a sharp fall in the country’s oil revenue has disrupted imports of essential goods and created new pressure on the economy.
An Iranian lawmaker says a sharp fall in the country’s oil revenue has disrupted imports of essential goods and created new pressure on the economy.
Jabbar Kouchakinejad, a member of parliament’s budget and planning committee, said Iran has been unable to secure enough foreign exchange for key imports.
“Because of reduced oil income, we cannot provide the required foreign currency for basic goods,” he told ILNA news agency. He said allocations for essential imports fell from 18 billion dollars last year to about 11 billion dollars this year.
Kouchakinejad said much of Iran’s oil sold to China has not been converted into usable currency, while sanctions have forced Tehran to offer heavy discounts.
“Although the oil minister says sales are good, the revenue is not returning to the country,” he said, adding that this has led to import restrictions and shortages in several sectors.
Structural problems worsen fiscal gaps
Economists say the country’s chronic budget deficit, high inflation and weak productivity stem from a large, costly bureaucracy and overlapping agencies. They warn that without reform, Iran’s economy will remain vulnerable to external shocks and sanctions.
Economist Mehdi Pazouki said the unchecked expansion of the administrative system has fueled inflation and wasted public resources. “Without discipline in spending, it will be very difficult to stabilize the economy,” he said.
Analysts warn of harder year ahead
Experts say Iran’s economic outlook may worsen next year when renewed UN sanctions triggered by European powers take full effect. Economist Morteza Afghah said growth targets of eight percent are unrealistic under current conditions, noting that “even without war and sanctions, such goals would be unattainable.”
Kouchakinejad said the monthly treasury reports confirm a decline in oil income, though the exact figures remain classified. “The fall in revenue has made it difficult to forecast foreign currency inflows and fund imports,” he said.
