PHOTO: President Rouhani — “Today we need jihad in various economic, employment, and cultural fields”

Despite growing concerns over post-sanctions recovery, Iran’s President Rouhani has pledged 5% growth in the next year.

Rouhani told an audience in Kermanshah in western Iran on Sunday:

Today we need to use domestic resources and unity, integrity, security, and empathy among the three branches and the Supreme Leader’s guidance to progress the country towards growing development….

Today we need jihad in various economic, employment, and cultural fields. Employment is not possible through inflated government; but rather through economic boost.

As an example of success, he said the Government had reduced inflation to a “single-digit future”, having inherited a rate of more than 40% when it took office in August 2013.

The President’s words come amid difficulties with a projected boost in trade and investment, following January’s implementation of the July 2015 nuclear deal.

While oil exports have recovered 40% to almost 2 million barrels day, they face a ceiling because of foreign technology needed to develop oil and gas fields and revenues are constrained by low global prices.

Meanwhile, Iran has been frustrated by the lengthy process for the US to remove sanctions. Washington has blocked access to the American financial system, and Iranian banks are struggling to recover pre-sanctions links. European firms have been hesitant to renew trade and investment because of the fear of US penalties.

Washington has also imposed sanctions on Iranian individuals and companies over Tehran’s ballistic missile testing. The US Supreme Court has frozen $2 billion in Iranian assets, allowing families of victims of terrorism to sue for compensation.

The Supreme Leader has stepped up pressure on the President, ruling out any links with the “dishonest” US and questioning the push for foreign investment with areas like Europe. In late March, he cautioned that he could take over economic planning.

“US Did Not Abide by Its Obligations”

Rouhani said on Sunday that “the investment-technology-production-market chain should be completed”, but he asserted — without explaining how the approach will ensurce growth — that “government will not wait for foreign investment, and the banking system and their facility capacities will be reformed”.

Meanwhile, the Supreme Leader’s top aide, Ali Akbar Velayati, issued the latest criticism of the US:

The Americans did not abide by their obligations under the JCPOA [Joint Comprehensive Plan of Action]. Sanctions have not been lifted completely and certain conditions set by the [Supreme] Leader on the JCPOA have not been observed.”

Velayati said President Obama should pledge in writing that his administration will remove sanctions.