Iran’s state-run daily, Sharq, has published a stark analysis titled “The Passage from Submission,” outlining what it describes as a critical juncture for the regime. The piece explores the government’s struggle under Masoud Pezeshkian, portraying a bleak scenario of mounting debt and dwindling resources, which Sharq argues leaves the administration with two stark options: surrender to economic pressures or face inevitable collapse.
Sharq cites Pezeshkian’s recent remarks at a gathering of top exporters, where he sharply criticized the unrealistic obligations imposed by Parliament. “They’ve created a government buried in debt, and now they expect us to fix the problem,” he stated, raising concerns about how these pressures align with the government’s ability to manage its resources. Pezeshkian’s frustration, according to Sharq, is a prelude to broader criticisms about the country’s spiraling budget deficit, which the Minister of Economy estimates at approximately 850 trillion tomans this year.
#Iran’s 1404 Budget Proposal: Fuel Price Hikes, Defense Spending Boost, and Increased #Taxation Amid Economic Strainhttps://t.co/VCpOvCO4YV
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The newspaper stresses that, without corrective measures, the budget shortfall could grow even larger next year, plunging Iran deeper into financial uncertainty. Sharq warns that the government’s options to bridge this deficit are limited. It could borrow from the Central Bank, risking a surge in inflation, or issue more bonds, essentially deferring debt into the future. Another potential solution would be to draw from the National Development Fund, which has been drained to just $15 billion out of an original $160 billion. Yet, Sharq notes, each of these options brings its own dangers, ranging from increased public dissent over inflation to long-term fiscal instability.
In a harsh critique, Sharq describes the regime as cornered, with no clear way out. “Iran’s rulers find themselves trapped between two paths: surrender to mounting economic pressures or face a slow but inevitable demise,” the report states. The outlet further argues that unless substantial changes are made—addressing not only economic mismanagement but also regional instability—Pezeshkian’s government and the ruling clerics are likely to remain locked in this precarious battle for survival.
