The imbalance of Iran’s resources and economy under the clerical regime ruling Iran is in a disastrous state, and the burden is bore by the people of Iran, who have to suffer the plunder, oppression, and injustice of rulers steeped in wealth, power, and deceit.
A country that houses one percent of the world’s population possesses significant natural resources such as oil and gas (17 percent of the world’s gas reserves and 13 percent of its oil reserves) and various metals. It also has water and fertile soil suitable for agriculture and holds 7 percent of the earth’s mineral reserves.
But the ruling mullahs and the IRGC have brought a disastrous calamity on Iran. The evidence of this is the astonishing imbalances in water, electricity, oil, gas, gasoline, and other energies, which can no longer be hidden.
Warning about a 250 quadrillion rial imbalance
The situation has reached a point where budget deficits of 3 quadrillion rials and massive banking imbalances are old news, and now the imbalances have extended to essential living necessities. Last year, economics professor Economist Vahid Shaqaqi reported quadrillion of rials in imbalances.
On January 14, Aftab News website quoted Shaqaqi as saying, “Our main issue is not the 3 quadrillion rial budget deficit and banking imbalances. Today, Iran’s economic issue is 500 billion dollars, equivalent to 250 quadrillion rials with an exchange rate of 50,000 rials per dollar, to cover and compensate for the imbalances in electricity, gas, water, gasoline, and land subsidence. After these, we face imbalances in pension funds.”
Shaqaqi added, “I believe we are still unaware of the depth of the disaster, and until we understand its depth, we cannot address the issue.”
It is said that 100 to 150 billion dollars are needed annually to cover the deficit imbalance. What budget can provide for this? But its necessity is undeniable, especially when the subsidence rate in Tehran alone is 100 times the global average.
Hyperinflation is on the way
Also, Shaqaqi by citing to the danger of simultaneous destruction of people’s livelihoods and the land of Iran said, “If we cannot cover this imbalance, Iran will enter the path of hyperinflation. It should be noted that hyperinflation does not mean an annual inflation growth of 40 percent but a monthly inflation growth of 50 percent. In this case, strange conditions will arise for Iran.”
Energy experts also paint a worrying picture.
On June 19, ISNA news agency wrote, “According to the latest estimates, the imbalance in gasoline production and consumption has reached about 15 million liters per day. These figures show that the Islamic Republic has made significant mistakes over the past four decades.”
Annual energy consumption in Iran is 180 billion dollars
It is not surprising that even Majlis (Parliament) Speaker Mohammad Bagher Ghalibaf admitted that “Over 100 billion dollars of energy is wasted annually in the country,” but the figure closer to reality is 180 billion dollars. “The energy consumption statistics in the country are unbelievable. We consume the equivalent of 5 million barrels of oil, natural gas, and 1.8 million barrels of oil daily, totaling 6.8 million barrels of oil. The value of this consumed energy is about 180 billion dollars annually” (Source: Mehr News agency, March 3, 2024).
Not to mention the environmental disaster this amount of resource waste creates.
On February 2, Jamaran website quoted Gholamhossein Hassan Tash, former head of the Institute of International Energy Studies, as saying, “The pollutants from Iran’s products are far above the global standard, about ten times higher. Unfortunately, the country is currently experiencing poor and weak governance in all sectors of the government.”
The plundering of energy
In the sham election that Khamenei orchestrated to gain non-existent legitimacy, the selected candidates provided such hollow solutions for the imbalances that even the regime’s media reacted.
On June 24, the state-run Ham-Mihan newspaper wrote, “How do presidential candidates present wrong addresses as strategies?”
Ham-Mihan added, by quoting the experts that, “A misunderstanding in policymaking has led to energy plundering, causing shortages in water, electricity, gas, and oil… Everyone knows that the world is no longer dependent on oil and oil products. The global economy has moved towards more technology-driven solutions, and the world is saturated with oil. This is the era of the metaverse and virtual realities, not the resource curse and Dutch disease, but the candidates’ playing field still follows the ‘shadow government’ programs.”