A member of Tehran Chamber of Commerce, Industries, Mines and Agriculture examines policies that have undermined the Iranian economy over the past many years.
Mehrad Ebad also puts forward proposals to keep hopes alive in the society in a write-up for the chamber’s news portal. A translation of the text follows:
The government’s forex and mandatory pricing policies have led to the devaluation of the national currency and inflation. Mandatory pricing prevents the formation of competition to increase the quality of goods and services, and reduces exports. These two misguided policies, as well as international conflicts, have influenced Iran’s economy over the past many years.
The belated overhaul of forex policies has started. However, we have yet to see the implementation of a plan approved by most economists. Under the circumstances, the only thing that can propel Iran’s economy to some extent in the short run would be the revival of the Joint Comprehensive Plan of Action.
The private sector has remained involved in the country’s economic system despite all the upheavals of recent decades, including the eight-year-long Iraq-imposed war (1980-88), primary and secondary sanctions and domestic economic woes.
Some people have become disappointed and emigrated from Iran. The private sector was hopeful that the new government would introduce economic reforms in the best way possible. But, unfortunately, entrepreneurs are still not optimistic about the country’s situation; procrastination in decision-making, weak management team, uninformed decisions, lack of courage in carrying out policies, having double standards, sloganeering and failure to reach a durable nuclear agreement with the world are just the tip of the iceberg.
All our decisions in the past years have undermined the productivity of factories. Our industries are suffering from technological obsolescence. This is also the case with foreign trade and banking.
Iran’s banking system is lagging behind other nations as a result of protracted sanctions. Despite having a competitive advantage, Iran’s oil and gas industry is also grappling with recession.
Even economic players who used to see light at the end of the tunnel are gradually losing their hope.
First, the government needs to make every effort to revive JCPOA as soon as possible to keep hopes alive.
Second, the counsel of all Iranian economic experts, at home and abroad, should be sought by a taskforce to improve the current situation, instead of establishing inefficient headquarters, committees and commissions.
