Economic Recovery Hinges on Lifting Sanctions Through Successful Negotiations

TEHRAN (Iran News) Mojtaba Dastmalchian, head of the Yazd Chamber of Commerce, criticized the practice of issuing foreign currency loans. “These loans are problematic because with the annual rise in exchange rates, repayment becomes impossible and national resources are lost,” he stated. He also warned that when importing becomes more profitable than production, even textile producers shift toward import activities.

Dastmalchian further criticized the repetitive nature of chamber sessions and the dominance of the same speakers and representatives, saying, “Personal relationships have hindered the implementation of strategic decisions.”

Hossein Selahvarzi, President of the Iran-Japan Joint Chamber of Commerce, emphasized the importance of boosting economic ties with Japan. He noted that Yazd could leverage Japanese technology and investment to trigger a significant economic transformation. “Yazd and Japan have numerous fields for cooperation, and Yazd can become a pioneering province in this regard,” Selahvarzi said.

He proposed establishing sister-city relations between Yazd and a Japanese city, and supported the expansion of joint chamber activities to increase bilateral engagement.

Highlighting Yazd’s strengths in handicrafts, carpets, and tourism, Selahvarzi called for efforts to attract Japanese tourists, asserting that despite sanctions, Yazd maintains standards capable of supporting tourism development.

He described tourism as one of the few sectors capable of revitalizing Iran’s economy under current conditions, and stressed the need to support innovation centers. “Many knowledge-based and tech firms face serious financial constraints, and a technology export consortium could help resolve this,” he added.

Selahvarzi attributed Iran’s economic problems to international sanctions, flawed currency policies, and corruption in currency allocation. He stressed that “the resolution of these issues is contingent on lifting sanctions through successful negotiations.”

He warned that inflation is driven largely by sanctions, and limited foreign currency earnings have led to erratic currency policies that disrupt imports of essential raw materials.

Selahvarzi also criticized Iran’s decision-making systems: “Many of the problems stem from an inefficient decision-making structure that overlooks expert opinions.”

Beigi, Vice President of the Yazd Chamber, highlighted persistent obstacles to production: “We’re aware of the issues, but we remain active. For example, the textile industry has opposed the allocation of subsidized currency for fabric imports, which has led to a ban on such allocations.”

Ghazanfari Amirjalili, head of the Yazd Chamber’s APFN Commission, lamented the lack of market awareness among some entrepreneurs, leading to misplaced innovation efforts. “We are working on identifying high-tech projects tailored to Yazd’s climate and focusing on producing high value-added goods. Our youth and students have the potential to lead in this area.”

Motavaselian, a chamber board member, stated that businesses are overwhelmed by external challenges and cannot predict even the next month. “Producers need at least six months of planning capability, but they’re forced to navigate constant crises.”

Mohammad Sadegh Hosseini, another speaker, compared Iran’s economic decline to that of Turkey and Saudi Arabia. “In 2010, the GDPs of Iran, Turkey, and Saudi Arabia were nearly equal. Today, Iran’s economy is half the size of Turkey’s and 60% that of Saudi Arabia’s—due to sanctions compounded by poor policymaking.”

He also referenced the concept of a “dominant coalition” in global politics—a group of powerful elites including wealthy individuals, military leaders, bureaucrats, and influential intellectuals—who together shape a nation’s strategic direction through control over money, arms, and political power. “Such a coalition in Iran resists reform to protect its privileges,” he said.

The meeting also addressed key operational concerns including power shortages, delays in foreign currency allocation for importing machinery, lack of transparency in policymaking, and protracted licensing processes for power plants.

At the end of the session, a Memorandum of Understanding (MoU) was signed between the Yazd Chamber of Commerce and the Iran-Japan Joint Chamber. The agreement, signed by Mojtaba Dastmalchian and Hossein Selahvarzi, aims to foster mutual cooperation in scientific research, education, cultural exchange, and advisory services, leveraging each side’s capabilities to improve the business environment and enhance bilateral trade and innovation.