Vice President Mohammad Baqer Nobakht has apologized to Iran’s people for economic problems and the Government’s failure to deliver a promised “breakthrough”.
Nobakht, the chairman of the Planning and Budget Organization, said on State TV that the proposal to market oil on the Energy Exchange and to sell oil bonds to the public had not been launched.
Last week Parliament Speaker Mohammad Baqer Qalibaf and judiciary head Ebrahim Raisi wrote to the Supreme Leader to block the initiative, which would have covered part of the Government deficit of almost 50% of its budget.
Nobakht said Ayatollah Khamenei has approved the plan if the heads of the three Government branches reach agreement; however, “we have asked the members of the parliament not to express any views about the plan for the time being”.
He blamed comprehensive US sanctions for difficulties, “Previously, sanctions allowed trading oil for food, but the new round of sanctions even do not allow that. We have not been able to provide foodstuff for the nation.”
The official added, “The Coronavirus pandemic exerted new pressures on the government. Our resources have diminished and we need to do cost management through planning.”
Iran’s oil exports have declined up to 95% since April 2018. Economic activity with major partners has sharply fallen: exports to China, the Islamic Republic’s largest customer, is down by 53% and trade with neighboring Turkey has dropped by 70%.
Productivity is down, inflation is above 40%, unemployment is rising, and the historically-low currency has lost another 35% in value since March. The situation has sparked periodic protests, with more than 300 demonstrators killed by security forces last November.
But Nobakht insisted:
Oppressive colonial powers were planning to stop development and production in Iran, but luckily they have been defeated. You see the ongoing development efforts in the provinces. There are two million jobs available in the development projects and we are constantly inaugurating new projects.
