MEK : Export Continues to Decline Another Sign of Iran’s Crumbling Economy
According to Mohammad Khansari, Chairman of the Tehran Chamber of Commerce, the total volume of technical and engineering product exports has decreased from $6 billion to $200 million in just a few years. Such exports replenish the country’s currency reserves and generate a monetary balance in a healthy economy. As a result, states strive to balance their foreign commerce by emphasizing exports over imports. For instance, China is attempting to keep the value of its national currency low in order to enhance its exports, which is a very unusual approach.
Even before the sanctions, the regime had little to offer
The Iranian economy, on the other hand, is devastated by government corruption and mismanagement. The clerical regime spent the majority of the money it received as a result of the 2015 nuclear deal on its harmful and destructive actions, while a significant chunk was embezzled by corrupt officials. In the end, none of the funds were used to help many ordinary people. The treasury is now depleted, and the effects of sanctions have been exacerbated by such heinous mismanagement and corruption, increasing the divide between rich and poor to unprecedented proportions.
Even before the sanctions, the regime had little to offer the people, and the country’s principal exports were oil and a few other basic commodities, mostly to neighboring countries. Khansari, criticizing regime President Ebrahim Raisi’s foreign exchange rate policies, noted that the Turkish government had previously experienced 20% inflation but had managed to grow exports to $220 billion, while the Iranian regime, on the other hand, is restricting exports.
Mullahs are squandering resources and people are so poor
This occurs at a time when the regime is grappling with difficulties such as a fast-expanding budget deficit, high inflation, a severe depreciation of the national currency, and widespread poverty. The unequal distribution of wealth is another major issue in the country’s economy. This has effectively denied many people and small enterprises the opportunity to contribute to the country’s exports. The Islamic Revolutionary Guard Corps (IRGC) and enterprises linked with the regime’s supreme leader’s office control what few export opportunities remain in Iran.
These are institutions that have produced a large capital outflow by investing their newly obtained capital in foreign firms. As a result, the regime’s already impoverished treasury is being significantly threatened by a mounting budget deficit.”We have always had a budget deficit, which is one of the most critical variables in the country’s economy,” Khansari continued, “meaning that income has been less than expenses over the last 40 years.” If this happened to a corporation or a family, the company would go bankrupt and the family would be homeless, yet governments are squandering resources, and people are becoming poorer by the day.”