The government’s Task Force for Food Security and Livelihood Improvement has announced that $1 billion from the National Development Fund will be allocated to import basic goods such as sugar, rice, red meat and animal feed.
The move comes alongside a broader policy decision to continue subsidizing critical imports despite earlier plans to scale back such support. It marks the second time in two years that the fund has been tapped to finance basic imports.
With reserves estimated at around $40 billion, the fund is also expected to help rebuild war-damaged industries, particularly steel and petrochemicals, highlighting growing tension over how these resources are prioritized.
'Nothing left'
For many Iranians, the strain is already becoming unbearable.
Nader, a 42-year-old film industry worker, says he has had no income since January, when nationwide protests began, and is preparing to leave his rental home and move his family into his parents’ house in another city.
“My wife’s job depended on the internet, and she has also become unemployed,” he said. “We’ve been using our savings to pay rent, but if we continue, soon nothing will be left for food or unexpected medical costs.”
The move also marks a reversal of the government’s “economic surgery” policy introduced four months ago to reduce import subsidies.
Authorities are continuing to allocate foreign currency for essential imports, including medicine, at a fixed rate of 285,000 rials per dollar—far below the open market rate of around 1.5 million rials and the official budget rate of 1.23 million.
This subsidized rate, capped at $3.5 billion, applies to critical imports including wheat, medicine, pharmaceutical ingredients and infant formula. An additional $1 billion withdrawal from the sovereign fund is intended to help sustain the system.
Wheat and infant formula remain among the government’s highest priorities because shortages or price spikes could trigger social unrest.
Rising unemployment
To offset price hikes after January’s subsidy cuts on goods such as meat and cooking oil, the government reintroduced a coupon system. Around 87 million people receive monthly vouchers, initially worth 10 million rials per person.
But their value has eroded rapidly. Monthly inflation reached 7 percent and point-to-point inflation 67 percent, according to the Central Bank of Iran.
Consumers describe day-to-day increases in the price of basic goods and services, leaving many households unable to afford necessities.
At the same time, unemployment is rising sharply.
War-related damage to steel and petrochemical hubs has left large numbers of workers jobless and disrupted downstream industries reliant on their output.
'Hunger riots'
A prolonged internet shutdown—now entering its third month—has compounded the crisis, cutting off income for millions. Tourism has also collapsed, with airlines, hotels and local accommodations nearly inactive after the 12-day war.
Even those who remain employed are watching their purchasing power evaporate.
At a petrochemical terminals company in Bandar Mahshahr, representatives for more than 700 workers say their employer has eliminated overtime, holiday pay and welfare benefits.
In some cases, workers report wages have gone unpaid for months.
Political analyst Shahin Shahid-Saless warned that a naval blockade restricting oil exports and broader trade could accelerate the currency’s collapse.
“The national currency will collapse at an unbelievable speed, and hyperinflation will emerge,” he said. “The country may face … hunger riots whose intensity and violence would be entirely different from [recent] movements.”
