Top general calls for privatization to solve Iran's economic crisis
Iran's highest-ranking military officer has publicly advocated for privatization as the nation faces chronic energy shortages and rampant inflation.
Iran's highest-ranking military officer has publicly advocated for privatization as the nation faces chronic energy shortages and rampant inflation.
“The model for the country's salvation is to turn to the people. If we want to solve the economy, the solution is to turn to the private sector and entrust work to the people," Major General Mohammad Bagheri said.
Iran's armed forces, the Islamic Revolution Guard Corps (IRGC) in particular, have benefited from previous waves of privatisation, taking over fully or in part the companies and businesses that the government puts up for sale.
Bagheri's call comes amid reports that the Iranian Armed Forces, including the IRGC, will receive a substantial 51% (approximately €12 billion) of the government's €24 billion oil and gas export revenues in the upcoming budget.
The budget bill for the next Iranian year (starting March 21) details that while 37.5% of oil and gas revenue goes to the government, over half of that portion funds the military.
Last year, a Reuters report indicated that the IRGC already controls up to half of Iran's oil exports, funding military operations and allies.
Recent Central Bank statistics also show a significant decline in private sector involvement in foreign trade, replaced by government entities that receive the majority of foreign currency.
Customs data further shows that government-controlled petrochemical, steel, oil, and gas products dominate exports.
The country’s new budget allows the Oil Ministry to contract with third parties for oil and gas field operations to settle debts, raising fears that these contracts will fall into the hands of the so-called "Khosoulati" entities—quasi-state organizations controlled by insiders of the ruling system, rather than genuine private sector businesses.
HamMihan newspaper warned last year that such a policy risks transferring national resources to entities lacking the necessary capacity and resources, further entrenching government-linked organizations in the economy.
