Iran's Economic Strategy: Addressing Challenges and Supporting Livelihoods

Tehran, Iran Aug 26, 2026 ALN: TEHRAN- The Minister of Economic Affairs and Finance stated that a significant portion of the current problems dates back to pre-war conditions, although today's economic issues cannot be oversimplified or analyzed with a "two-plus-two-equals-four" logic. He said: "For example, at one point they tried to prevent medicine from entering the country. We eventually found alternative routes, but naturally, during that period, medicine prices increased."

According to IRNA, Seyyed Ali Madani Zadeh emphasized that enemies are carrying out a terrorist operation against Iran, just as they previously conducted military terrorist operations and martyred our dear people and children. He added: "Now, in the economic and livelihood sphere, they are targeting patients, cancer patients, children, and even infant formula, and are trying to block the supply routes."

Stating that Iran supports its people domestically and will not allow these actions to succeed, he said: "However, one cannot deny that a terrorist operation is underway on the other side. The Islamic Republic of Iran is by no means seeking war, has not, and will not; but if attacked—whether militarily or economically—it will certainly confront."

He stated: "In the diplomatic arena, just as we endeavored during the war and afterward to secure the rights of the Iranian nation and were able to reclaim some of our rights through reaching agreements, we are moving with the same approach today. We stand firm in our positions and will vigorously defend the country's economy."

• Controlling inflation, preserving employment, securing basic goods are the country's top economic priorities.

The Minister of Economic Affairs and Finance emphasized that the government's economic team is tasked with managing the economic situation and improving the difficult conditions imposed on the people. He said: "In this regard, the government's first plan is to control inflation by halting the rising trend of prices caused by the current shock wave."

Madanizadeh, referring to the state of war (military war, siege, economic war), added: "In such an atmosphere, some information and tactics must not be disclosed, and some individuals in the media are exploiting the government's silence to undermine it."

Emphasizing that the government has not abandoned the economy and stands firmly behind the people and the economy, he added: "The main goal is to bring inflation down, with the hope that this will be achieved through divine will. Efforts have been made to prevent the negative impact of this crisis on trade and employment, and thus the Ministry of Economy is seeking to protect existing jobs by disbursing working capital facilities."

Madanizadeh stated that the government is trying to cover those who are laid off through unemployment insurance, and said: "The purpose of the commodity voucher (Kala Barq) is also to support people's livelihoods; the government's priority is people's livelihoods and preventing empty shelves so that people do not feel shortages, and therefore each minister has been tasked with taking necessary measures to address shortages in the market."

Elsewhere in his remarks, the Minister of Economy emphasized that there is complete coordination among members of the government's economic team and that they are all moving in the same direction, saying: "There is truly no disagreement among the members of this team. We face minimal challenges in reaching a consensus on any issue, and those challenges are sometimes merely implementation-related."

He added: "The country's issues are being identified one by one and referred to the government's economic headquarters. In the meetings of the economic headquarters, with the presence of the President and his First Vice President, we reach conclusions."

• Modernizing power plants, public participation: Two drivers for compensating energy imbalances.

The Minister of Economy said: "Developing combined-cycle power plants and modernizing existing plants are among the government's main plans to compensate for imbalances in the electricity industry. Simultaneously, by providing the economic groundwork for investment in power plant construction, efforts have been made to pursue the development of this industry through attracting capital and private sector participation, rather than relying on continuous state funding."

Madanizadeh added: "This approach has yielded significant results in the field of renewable energy, especially solar power plants. Instead of directly financing all resources, the government has created economic mechanisms and made investment attractive, thereby paving the way for new resources to enter this sector. Important measures have also been taken in the area of fuel supply for industries."

He continued: "On the other hand, public cooperation in energy consumption management has played a decisive role. While energy consumption in some sectors grew by 6 to 7 percent annually in previous years, this year not only has consumption growth stopped, but reductions have also been recorded in some areas—a result of public participation in conservation."

Stating that the government is pursuing a seven-axis plan to resolve accumulated imbalances in various economic and energy sectors, he added: "Some of these imbalances have roots in past years, and some have been exacerbated by recent damages."

Madanizadeh stated: "Now, just as the people have cooperated in energy consumption management, they are expected to play a role in investment and economic reconstruction so that, relying on domestic capacities, the process of compensating shortages and strengthening economic infrastructure can accelerate."

• A trade facilitation and production barrier removal package is awaiting approval.

The Minister of Economy also said: "The government's approach is to turn threats and unfavorable conditions into opportunities for economic reform and strengthening. Wherever a weakness or bottleneck has been identified, that very point has been placed at the center of reform programs."

Madanizadeh added: "One of the most important areas of reform is facilitating licensing, reducing production barriers, and streamlining trade. In this regard, a series of measures have been taken with the cooperation of the government's economic bodies, the Ministry of Transport and Urban Development, the Plan and Budget Organization, the Central Bank, the Ministry of Industry, Mining and Trade, and especially the Trade Development Organization."

He continued: "The trade facilitation and production barrier removal package has passed the expert review and pre-approval stages before being submitted to the Cabinet. With the government's final approval, it can create a major transformation in the country's trade and the operation of production enterprises."