An Iranian trade adviser has warned that lifting international sanctions alone will not be enough to revive Iran’s faltering economy, instead pointing out deeper structural issues, mismanagement, and policy failures which continue to imperil financial stability in Iran.
Dr. Reza Mokhtari, an economist and adviser to Iran’s Chamber of Commerce, told a roundtable discussion in Tehran on Monday that expectations regarding sanctions relief are “unrealistically high”, adding that external pressure cannot alone address inflation, unemployment and stagnating productivity issues.
“Lifting sanctions may seem like the answer, but that assumption can be misleading,” Mokhtari stated. While sanctions have had an adverse impact on our economy, internal inefficiencies, corruption and outdated economic models also contributed significantly.
Iran has experienced one of its worst economic downturns for years, due to Western sanctions limiting oil exports, foreign investment and banking access as well as domestic problems ranging from state-dominated industries and inconsistent trade regulations preventing private sector growth.
Official statistics reveal that inflation in Iran remains at above 45%; youth unemployment exceeds 27% and the national currency, the rial, continues to depreciate. While non-oil exports have seen modest increases over recent years, much of Iran’s economy remains burdened by bureaucracy, supply shortages and rising public debt levels.
Dr. Mokhtari noted that without comprehensive reform in fiscal policy, banking regulations, and governance structures in Iran’s economy will remain vulnerable – even after sanctions are eased– requiring sustainable development initiatives rather than just temporary relief measures. “What we require here is a roadmap towards sustainable development rather than short-term relief solutions.”
Iranian officials have shown cautious optimism regarding renewed talks between Tehran and Western powers regarding Iran’s nuclear program, with potential talks leading to partial sanctions relief. Meanwhile, others in its political establishment remain wary of U.S. intentions and warn that over reliance on diplomacy for economic gain can be risky.
Hardliners had previously relied on the prospect of sanctions removal to increase public support, yet dissatisfaction continues to mount as promised improvements have yet to materialize. Protests have emerged over high prices, delayed wages and worsening living conditions.
Ebrahim Raisi has pledged to restore economic growth in Iran through domestic production and regional trade agreements. Critics contend that without greater transparency and policy reform initiatives may fail.
Sanctions may be external injuries, but our economy is bleeding internally,” according to Maryam Nazari, an Iran-based financial analyst. If we want a future that’s economically secure, both wounds must be healed simultaneously.
As Iran faces mounting internal and external pressures, economists like Dr. Mokhtari are making one thing clearer than ever: sanctions relief may provide temporary respite, but true recovery requires profound, long-awaited reform.