Economic Security and Stability Tied to Structural Reforms

TEHRAN (Iran News) Speaking during a meeting with the Secretary of Iran’s Supreme National Security Council (SNSC), Samad Hassanzadeh highlighted the challenges businesses are facing and called for immediate action to address them.

Hassanzadeh urged Ali Larijani, the newly appointed SNSC Secretary, to use his position to safeguard national authority, resolve issues undermining economic security, and restore confidence in the country’s economic landscape.

“Security in all its dimensions is important, but economic security has a special place,” Hassanzadeh said. “Unfortunately, in recent years this has been neglected, leading to instability and a loss of trust.”

The ICCIMA president underlined the need to amend certain economic laws and regulations, noting that exporters have been discouraged by restrictive policies. “If these laws are reformed, exports will increase and more foreign currency will enter the country,” he added.

Hassanzadeh also pointed to capital flight driven by high inflation, multiple exchange rates, and unfavorable policies toward exporters. Since 2018, he said, regulations on foreign exchange commitments have created further challenges, despite the Chamber submitting proposals to resolve them—proposals that have largely been ignored.

He warned that export obstacles have encouraged illegal practices, including the misuse of rented export licenses, which deprive the government of rightful revenues.

On international cooperation, Hassanzadeh expressed readiness to expand economic and trade relations with all countries, particularly neighbors, emphasizing that the private sector stands beside the government and state institutions in carrying out reforms.

“The private sector’s proposals are based on genuine concern for the country’s prosperity and dignity,” he said, highlighting the Chamber’s wide network and experience. He recalled that during the 12-day war, Iranian industries continued production without interruption, ensuring stability in domestic markets.

Referring to disruptions in the banking system during that period, Hassanzadeh noted that despite the inability to transfer funds, the distribution of strategic goods such as wheat and flour was carried out even faster. “This commitment by economic actors reflects their integrity and resilience,” he concluded.

Meanwhile in the meeting, Peyman Bagheri, Vice President of the Iran Chamber of Commerce, Industries, Mines and Agriculture, saidt hat the country is at one of the most critical junctures since the Revolution and called for economic decisions that differ from past approaches.

Bagheri described Larijani’s image among private-sector representatives as “positive and constructive.” He stressed that the most serious problem facing the national economy is the government’s heavy-handed intervention.

“Despite development plans requiring the state to become smaller and more efficient, the government grows larger and costlier every day,” Bagheri said.

Highlighting the country’s entrenched budget deficit, he noted that government expenditures have expanded so much that virtually all available resources are consumed by day-to-day administration.

Bagheri argued that strong resistance within the bureaucracy prevents the transfer of state-owned enterprises to the private sector. “Wherever the bureaucracy’s engine shuts down, the country is managed more efficiently,” he said, recalling the rapid release of goods from customs during a 12-day war when simple directives enabled private-sector capacity to surface.

He emphasized the need to create a more competitive business environment, warning that semi-state-owned companies (“quasi-privates”) dominate the market and obstruct private-sector activity.

On financing and investment, Bagheri said the oil-driven economy has long injected petroleum revenues into infrastructure and operations, leaving little room for private-sector growth and competitiveness. He called for a reassessment of both domestic and foreign investment structures.

“Iran is rich in underground resources, but due to insufficient investment, these capacities are underutilized,” he said, adding that liquidity often flows into non-productive markets instead.

Turning to the power industry, Bagheri noted that private investment in building new power plants has been absent for over two decades. “The sector is entirely non-competitive and non-transparent, with the government competing against the private sector,” he said.

He underscored the importance of foreign capital and exports: “Attracting foreign investment is essential. International engagement ensures economic security. Without integrating into global trade and value chains, achieving 8% economic growth is impossible. Such growth requires relying on the private sector.”

Bagheri described the Chamber’s provincial branches, joint chambers, specialized commissions, and associations as vital assets for the nation. He urged policymakers to draw lessons from past crises and entrust more responsibility to the private sector.

He also criticized the country’s anti-smuggling law, warning against turning the economy into a security-driven environment. “When the market feels securitized, entrepreneurs are pushed toward unproductive sectors,” he said, calling for revisions to the legislation.

In closing, Bagheri proposed that the Secretariat of the Supreme National Security Council establish mechanisms to strengthen economic security oversight and coordination.