20 reasons why
Raisi resuscitates Iran’s economy
The government of Iran’s late president Ebrahim Raisi kicked off on August 3, 2021, while facing wide-scale economic problems and dilemmas, which had carried over from its preceding government. Apart from dealing with debts and liquidity, there were also many small knots that were bogging down different departments. The government that was handed over to Raisi faced a tremendous budget deficit, and the country was in ruins with a myriad of problems, the most pressing of which was the COVID-19 pandemic. These issues fell squarely into Raisi and his new government’s laps. The following report outlines some of the actions and achievements of the previous government in overcoming these challenges. Despite all the perceived criticisms leveled at that government, it delivered tangible results, as the following report will show.
1. Economic growth after 10 years
President Raisi’s government successfully steered the country’s economy onto a positive growth trajectory after a decade-long recession characterized by stagnant zero percent yearly growth. They managed to bump it up to three percent initially and then to four percent. This achievement isn’t merely based on statistics issued by domestic institutions; it has been confirmed by international financial institutions, including the International Monetary Fund and the World Bank.
2. Jump in export of crude oil, gas condensate
The late president’s government successfully boosted oil sales to 3 million barrels per day, reclaiming the third spot among OPEC members. This feat was achieved despite the country not having seen such sales volumes since 2018, prior to the imposition of extensive sanctions.
The oil minister acknowledges that Iran’s oil industry currently finds itself on the front lines of an economic war, bearing the brunt of the most stringent sanctions.
3. Reducing liquidity growth
The 12-month growth trend of the monetary base saw a significant decline in the wake of the previous government’s disciplinarian approach and the central bank’s active monetary and supervisory policies. This downward trend was reflected in the figures, which showed a decrease from 42.8% as of late July 2021 to 39.6% by late October 2023.
4. Tripartite gas swap
The signing of Iran’s gas swap agreement with Turkmenistan and Azerbaijan is significant for the country across three fronts: economic, political, and transitional. It carries multiple advantages and underscores the success of the previous government’s policy in fostering enhanced collaboration with neighboring nations.
5. Permanent membership in SCO
The Shanghai Cooperation Organization (SCO) stands as one of the globe’s most expansive and influential regional entities, playing a pivotal role in international trade and security affairs.
Iran’s permanent membership in this organization unlocks a plethora of opportunities, particularly within the economic sphere, and has spurred the growth of the country’s exports to the member states within this organization.
6. Rise in wheat purchase from farmers
By the close of the Iranian calendar year 1401 (March 20, 2023), the volume of wheat procured from growers hit 7.2 million tons, marking a 60% uptick compared to the preceding year. All claims were settled by year-end. Projections indicate a continued ascent in these figures by the conclusion of the current calendar year.
7. Slashing unemployment rate
According to the announcement of the Statistical Center of Iran, the unemployment rate in summer 2023 ticked down to 7.9%, marking a year-on-year drop of 1.0%.
8. Launching North-South Corridor
The country has laid out plans to transit 20 million tons in the short term (targeting a one-year timeframe) and 50 million tons over the long term, eyeing earnings of $50 billion. Iran is strategizing to realize this income in the upcoming years through infrastructure development and the easing of laws.
9. Removing production obstacles
Characterized as economic rent, the distribution at the state-set exchange rate of 42,000 Rials had posed a significant obstacle for businesses lacking access to government-issued currency and the resultant rent creation before president Raisi took office. For this reason, the removal of the preferential exchange rate for importing basic goods can be deemed a positive step toward making the economy transparent and shifting towards competitive production. Additionally, this measure brought about a tenfold increase in subsidies after a 12-year hiatus.
10. Facilitating licensing of businesses
The activation of the National Licensing Portal stood as one of the previous government’s notable actions. According to Article 7 of the Law on the Implementation of Article 44 of the Constitution, the portal ought to have been activated as far back as 2007, but conflicting interests within governments prevented its realization. However, during the presidency of Ebrahim Raisi, the Ministry of Economy diligently pursued the matter, and the process of issuing licenses was for the most part improved. The development happened as a result of a modification in the aforementioned Article 7 by Ehsan Khandouzi as a member of the Economic Committee of the Iranian Parliament. He then carried the initiative forward on a larger scale during his tenure as the Minister of Economy.
11. Lifting the ban on car imports
In January of last year, Iran’s ban on car imports came to an end after a four-year hiatus as the first shipment arrived. Currently, steps are being taken to facilitate the import of electric and affordable cars, which are being introduced into the market owing to the adopted policies.
12. Disclosing names of big bank debtors
The previous government’s objective in disclosing the names of significant defaulters on bank loans was to raise public awareness and generate demand for action to recoup these debts. The public should be informed about individuals who, after several years, continue to refuse to repay their debts to the banks and exhibit no intention of doing so.
13. Fighting flour smuggling
The integrated flour management system records and oversees the purchase of flour by bakers, its sale by factories, and the transportation of flour within the country, effectively curbing widespread flour smuggling. The rollout of the government’s plan resulted in a significant decrease in the country’s flour consumption without causing any disruptions to the nation’s bread basket.
14. Rolling out electronic prescribing
The plan for electronic prescription implementation and the non-acceptance of paper prescriptions, in alignment with fulfilling the Iran Health Insurance Organization’s legal duties, came into effect at the beginning of December 2021 after a 16-year hiatus.
15. Implementing Nursing Services Tariff Law
The passing of the Nursing Services Tariff Law bestowed upon nurses a sense of identity and independence. Prior to any financial discussion, it is essential to acknowledge the significance of this law in terms of bestowing identity and autonomy upon the nursing profession. This autonomy encompasses various dimensions such as efficiency and income.
16. 90% coverage of infertility insurance
The government of president Raisi was committed to reducing out-of-pocket expenses for individuals facing infertility issues. To that end, services at infertility treatment centers, including specialized procedures such as in vitro fertilization (IVF), microinjection (ICSI), intrauterine fertilization, and embryo transfer, are now offered with 90% tariff coverage.
17. Unveiling electronic
check system
In November of this year, the Central Bank of Iran (CBI) introduced the electronic check system. An electronic check is a novel type of check that adheres to all the regulations governing traditional paper checks but is validated using an electronic signature and issued digitally. This digital innovation surpasses paper checks in terms of security and cashability, and with the goal of utilizing this advantage in mind, the CBI launched the Checkad system to offer a secure digital alternative to physical checks.
18. Ramping up power
production
The Raisi government achieved a record increment in electricity production capacity within a single year, successfully adding 6,000 megawatts to the national grid. This feat was accomplished despite the Rouhani government’s policy of not constructing new power plants, a decision that had previously led to significant challenges in the country’s power generation infrastructure.
19. Organizing property
warehouses
Resolving the issue of the stored away exported cars, which had languished for five years in warehouses, stood as one of the pivotal actions undertaken by the Ministry of Economy last year. This move generated an income of nearly 30,000 billion Rials ($54 billion) for the government.
20. Completing half-finished
projects
One of the previous government’s foremost priorities, as proclaimed by president Raisi from the outset, was the completion of unfinished projects. As a result, numerous long-awaited halted projects were finalized and inaugurated during the 30 months of Raisi’s presidency. Examples include the subway of Parand city, which opened after 18 years, the Saqqez airport that commenced operations after a 20-year wait, the Shiraz-Isfahan freeway completed after 13 years, and dozens of other endeavors, including solutions to water-related challenges.