Iran’s president enacts austerity measures amid economic crisis

TEHRAN: Iran’s President Masoud Pezeshkian announced a series of strict measures aimed at reducing government spending, a response to escalating economic pressures faced by the Middle Eastern nation.

The decision follows the dismissal of Shahram Daberi, the Special Assistant for Parliamentary Affairs, who was accused of taking an extravagant vacation to Antarctica. The trip sparked public outrage amid widespread economic hardship facing the Islamic Republic.

Read more: Iran ‘ready’ for direct talks with the US

In a public address, Pezeshkian stated “that people are suffering from economic pressure and are being crushed by inflation”, as the Iranian populace suffers from soaring prices and diminishing purchasing power in wake of crippling Western-imposed sanctions for the country’s pursuance of its nuclear programme.  

Iran’s economy has been significantly impacted by a combination of internal mismanagement and external pressures, particularly from US sanctions. The sanctions severely limited the country’s access to international markets and foreign investment.  

The country’s economy also suffered heavily during Covid-19 pandemic and the 2022 nation-wide protests triggered by the death of Mahsa Amini at the hands of Iranian authorities.  

According to the World Bank, Iran’s GDP contracted by almost 6 per cent in 2018 and 6.8 per cent in 2019 alone, with inflation soaring to over 40 per cent during the period.

The Iranian government has been facing mounting criticism regarding its spending priorities by a disgruntled public. Reports indicate that  a substantial portion of the national budget has been allocated to military expenditures, rather than pressing domestic economic challenges.

Transparency International’s Corruption Perceptions Index has consistently ranked Iran poorly, indicating a high level of perceive corruption within the public sector. In 2021 alone, Iran was ranked 150 out of 180 countries.

Growing public discontent was plain to witness in the general election last year when __ was elected with an extremely low voter turnout

Pezeshkian’s admiration has now to content with a monumental task of balancing of pursuing Iran’s nuclear programme while tackling growing public discontent and an increasingly aggressive Israel under Netanyahu emboldened by US President Donald Trump’s outright support.