Iranian Government Prepares Five Support Packages to Counter Sanctions

The head of the Management and Planning Organization announced the preparation of five packages to support five socio-economic groups against U.S. sanctions and currency market fluctuations. The packages include basic goods and support for low-income individuals, government employees, contractors, and producers. According to ISNA news agency, Mohammad Baqer Nobakht stated on Friday, September 7, that the government has allocated $13 billion for the procurement of 25 essential goods needed by the public by the end of the year, which will be purchased with state currency. He also mentioned that another package is being prepared for low-income individuals, the details of which are not yet specified. Mr. Nobakht noted that the government intends to support government employees and other institutions 'against currency rate fluctuations' in another package. He added that another package has been prepared to support contractors whose material prices have increased. Additionally, a package has been designed to support producers against currency fluctuations. He did not provide details on how the government will support these companies and groups. On Wednesday, Mr. Nobakht also announced the allocation of 30 trillion tomans for implementing programs and packages to navigate the current economic conditions, stating that the government has prepared five packages and 12 programs to overcome the country's economic situation. His remarks come as Iran's government plans to stabilize the currency market has not yielded results in recent weeks, and the rise in currency prices continues. The increase in currency prices has also affected other economic indicators in Iran, with the point-to-point inflation rate exceeding 24% in July this year, and monthly inflation reaching 5.5%, breaking a twenty-year record. The U.S. President announced on August 6 that part of the sanctions against Iran, which had been suspended after the nuclear agreement, would be re-implemented. The second round of these sanctions, which primarily targets Iran's oil industry, is set to take effect on November 4, with U.S. officials stating they are working to reduce Iran's oil exports to zero by that time.