Retreat from Khamenei's Order; Government Newspaper Says Home Appliance Imports Will Be Allowed

After Ali Khamenei ordered a ban on home appliance imports to Iran, the government newspaper has now reported that this order, instead of supporting domestic production and preventing currency outflow, has turned into an opportunity for abuse, and starting next year, home appliance imports will be allowed. The government newspaper "Iran" reported today, Tuesday, March 21, that Khamenei's order caused foreign home appliances in the market or smuggled goods to lack warranties or to be 'substandard products from unknown and sometimes unregistered domestic factories.' The newspaper emphasized that an even more painful occurrence is happening in the market, where second-hand foreign appliances are being refurbished in workshops and sold to the public as foreign products, a fact confirmed by some members of the home appliance union. The report stated that in recent years, home appliance manufacturers have pressured policymakers, claiming that if imports are allowed, their industry will face a crisis. All these issues have ultimately harmed the people and caused significant losses, and now, after all these abuses, the government newspaper has reported on the Minister of Industry's decision to allow home appliance imports. Accordingly, Mohammad Mehdi Baradaran, the Deputy Minister of Industries, has stated that if home appliance imports are allowed starting in 1403 (2024), it will be limited. The state of the home appliance market in Iran has become so tragic that a government-affiliated newspaper linked to the Revolutionary Guards reported on January 1, 2024, that the high prices and low quality of domestic products were a result of the home appliance import ban, but did not mention Khamenei's direct role and order. The newspaper "Javan" wrote that support for home appliance production has led to monopoly and a repeat of the experience of the automotive industry. In October 2021, Ali Khamenei issued a ban on home appliance imports to prevent individual decisions from causing adverse collective consequences in the economy, crippling the people. This order was issued after, since 2018, following currency restrictions, the initial resolution of the 'Economic Coordination Council of the Heads of the Branches' had declared a ban on home appliance imports until the end of 2021. With the possibility of unblocking Iran's frozen funds in South Korea, a group of home appliance manufacturers requested the Supreme Leader to support them against the potential 'opening of imports' of products from some South Korean companies. Following this request, Khamenei wrote in a letter to Ebrahim Raisi: 'If this news - the opening of imports from two South Korean companies - is true, it means breaking the backs of domestic home appliance companies that have just managed to stand on their feet. Please seriously prevent this problem.' In justifying this order, the Fars news agency reviewed the restrictions and supports for domestic industries in European and American countries. This comparison was made without considering the political, economic, social conditions, individual and economic freedoms, and important development indicators to provide a 'scientific and rational' basis for Khamenei's order. From 2018, home appliance imports were banned until the end of 2021. After the expiration of this resolution, it was expected that, given market needs, imports of this product would be allowed; however, the Ministry of Industry announced that manufacturers, numbering over 1,500 small and large units, could meet market demand and even have plans for exports. Therefore, the ban on home appliance imports was extended again. The dire living conditions of the people; the newspaper Shargh: We are not far from receiving 'loans for buying bananas, flour, and milk.' The heart of the market has stopped with the increase in the dollar price; buying and selling goods has ceased. Khamenei's order has caused problems for the people; the Revolutionary Guards' newspaper: If home appliance imports were allowed, prices would not be like this. A member of parliament: Inflation control has failed; people do not believe in the reduction of inflation. A trade official: The price of home appliances will be 'liberalized.' An economist: 70% inflation is on the way; the statistics center: inflation has decreased.