On August 31, the President of the Iranian regime announced in an interview with state television that he had reached an agreement with Supreme Leader Ali Khamenei to address the government’s budget deficit by withdrawing 3.5 quadrillion rials from the National Development Fund and oil sales, and depositing it into the state treasury.
The following day, regime-affiliated websites touted this economic “victory” by the President with headlines such as “Supreme Leader Approves President’s Proposal to Reduce National Development Fund’s Share.” They reported that “following Masoud Pezeshkian’s proposal to reduce the National Development Fund’s share by 20% this year… 3.5 quadrillion rials were added to the government’s development budget as a loan. This adjustment addressed the debt repayment issues for wheat farmers, truck drivers, and the procurement of other items.” (Entekhab, September 1, 2024)
Pezeshkian’s action and Khamenei’s response were presented in the regime’s propaganda as if the newly installed government had created an initiative to solve the people’s problems in response to protests from various groups, including nurses, retirees, and oil workers. However, the reality of Iran’s unresolved economic crises is entirely disconnected from this media fabrication.
The National Development Fund and Its Goals
National development funds are established in many countries to create financial reserves from surplus revenues for future generations. Last year, the head of the Iranian regime’s fund highlighted that Iran’s fund, originally worth $150 billion, had been drained by various governments, leaving only $10 billion, while the rest had been squandered or given as loans (Entekhab, May 11, 2023).
Thus, while national funds in other countries are steadily growing, irrespective of political or ideological biases, under the clerical regime, not only are the current population’s resources being exploited, but future generations are also subjected to the regime’s looting and corruption.
It is also worth noting that Pezeshkian is not the first president to tap into this fund. All three of his predecessors (Mahmoud Ahmadinejad, Hassan Rouhani, and Ebrahim Raisi) have been looting the National Development Fund since its inception in 2010: “In various years, funds have been withdrawn or funds that should have been deposited were not and instead went into the government’s accounts. In the 12 years of the National Development Fund’s operation, the total outstanding claims now exceed $100 billion” (Fars, January 4, 2024).
Pezeshkian’s Economic Deadlock
Pezeshkian inherited a plundering and corrupt government that has no plan or solution for the country’s economic problems. He has repeatedly confessed his absolute loyalty to the Supreme Leader and that he has entered the political arena only because he saw the regime in danger of collapse. Therefore, it’s no surprise that he follows in the footsteps of previous presidents. For example, while Raisi used “lies and promises therapy” to buy time, Pezeshkian merely resorts to “rhetoric therapy” with contradictory and empty statements to pass the days.
At one point, he claims that the solution to economic problems is raising fuel prices, saying “it’s not logical” for the government to buy expensive and sell cheap. Then he backtracks, stating, “economic reform is impossible without public consent.” At times, he strikes a populist pose, admitting, “the people are upset with us, and we are to blame.” At other times, he denies any responsibility, portraying himself as a victim of the regime, saying, “we are not at fault; we have inherited this situation.”
It’s clear that the 13th administration has no mission other than self-preservation. To achieve this, it intensifies repression, arrests, and executions, all while constantly juggling various economic and social crises, desperately and drop by drop, trying to pour water on the volcano of discontent to, in its view, prevent a spark of public outrage.
Withdrawing 3.5 quadrillion rials from the National Development Fund will not solve any of the regime’s chronic and endless problems. Even in the best-case scenario, assuming it escapes massive embezzlements along the way, the amount would only cover about three months of government employees’ salaries and would fall far short of meeting the demands of nurses, truck drivers, wheat farmers (which range between 1.5 and 2 quadrillion rials) and others.
The regime president’s alternating tactics in the economic field—such as stealing from the National Development Fund and digging into the people’s pockets by raising the price of bread, food, and other necessities—are nothing more than a futile attempt to shift from one crisis to another in a society already roiling with unrest.