On Wednesday, November 27, Masoud Pezeshkian, the president of Iran’s regime, acknowledged the dire state of the country’s economy. He admitted that his government lacks the economic power to improve conditions or halt the deepening poverty plaguing Iranian society. The Research Center of the Iranian Chamber of Commerce underscored this bleak outlook, announcing that the government’s ability to finance development projects has “essentially reached zero.”
In recent days, numerous senior officials from the regime have voiced urgent warnings about economic crises and severe shortages in electricity, gasoline, gas, and water supplies. Despite these warnings, the regime’s leadership remains resolute in pursuing its controversial regional policies and maintaining its confrontational stance toward the West.
Dire Warnings from Regime Officials
During a meeting with Basij and IRGC officials, Pezeshkian likened the current economic crisis to a “full-scale economic war,” even more devastating than the Iran-Iraq war. He remarked, “This war burdens our people and exerts immense pressure on the middle and lower classes. If you think the government has resources to improve people’s conditions, you are mistaken. Our failures and problems are escalating day by day.”
Meanwhile, Mohammadreza Aref, Pezeshkian’s deputy, took to his X (formerly Twitter) account, urging critics to cease their attacks on the government. He hinted at the dismal state of the ministries inherited by the administration, warning, “If the criticism persists, we will have to reveal the conditions we faced when taking over. We prefer not to alarm the public.”
Adding to these grim revelations, Mohammad Bagher Ghalibaf, Speaker of the regime’s parliament, issued a rare public acknowledgment of widespread dissatisfaction and the regime’s budget deficit. He pointed to a significant energy shortfall last winter, stating, “There was a time when we threatened to cut off oil to our enemies as leverage. Today, what oil are we cutting? Even without sanctions, our future in this field is bleak.”
Financial Strains and Policy Failures
Hojatollah Mirzaei, head of the Research Center of the Iranian Chamber of Commerce, provided a sobering analysis of the regime’s financial strategies. Speaking at a review of the 2025 budget, he revealed that government bonds have skyrocketed from 255 trillion tomans to 1,380 trillion tomans to address previous debts of 550 trillion tomans. This heavy reliance on bond issuance, he warned, has severely constrained both the capital and money markets, rendering financing for private sector or developmental projects virtually impossible.
Mirzaei also projected that inflation would surpass the 40% forecast in the budget bill for the coming year. He predicted that the government would be forced to raise energy prices, including gasoline, further exacerbating inflationary pressures.
The Human Cost of Economic Mismanagement
Despite these alarming economic indicators and official statistics showing that at least 70% of Iranians live below the poverty line, the regime’s supreme leader, Ali Khamenei, and his advisors continue to prioritize regional conflicts over domestic stability. Their “warmongering policies” in the Middle East risk plunging ordinary Iranians into even deeper hardship, further deteriorating living conditions.
Conclusion
Iran’s regime faces an escalating economic crisis, marked by internal dissent, financial mismanagement, and crippling shortages. While regime officials acknowledge the severity of the situation, their policies and priorities offer little hope of alleviating the suffering of millions. As the leadership doubles down on its regional ambitions, the burden on Iranian society is set to grow heavier, with no clear path to recovery in sight.
