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May 12, 2026 May 12, 2026 12 min read 📰 Radio Farda
📋 Key Takeaway

A study by six economists reveals that the targeted subsidies plan in Iran has led to increased poverty and fear among the population. Mohammad Javad Zarif's recent statements in the Assembly highlighted the government's stance against hardliners and emphasized the need for a unified foreign policy. This situation reflects ongoing economic struggles and political tensions within Iran.

🔍 Quick Context Guide
💡 Bottom Line: The Iranian government's subsidy plan has failed to alleviate poverty, worsening the economic situation.

👥 Key Players

Mohammad Javad Zarif (محمدجواد ظریف) QUOTED
Foreign Minister
""I defend the interests of all people, not just one faction.""
Hossein Raghfar QUOTED
Economic Expert
""significant double-digit inflation and recession have quickly negated the effect of receiving cash subsidies.""
Gholamali Haddad Adel (غلامعلی حداد عادل) QUOTED
Assembly Member
"Tense conversation with Zarif."
Jawad Karimi Qodosi QUOTED
Assembly Member
"Asked questions to Zarif."
Ali Maziki QUOTED
Economic Expert
"Participated in the study on subsidies."
Ebrahim Raisi (ابراهیم رئیسی) AFFECTED
President of Iran
"Involved in the government policies discussed."

⚡ Actions

six economic experts ANNOUNCE Iranian people
""the state of Iran's economy has not improved after the targeted subsidies and the lives of people have not only not improved but have also experienced a decline in some areas.""
Confidence: 90%
Shahrvand REPORT Iranian government
""the shrinking food basket of the poor and the reduction of essential goods consumption by them""
Confidence: 90%
newspapers REPORT Mohammad Javad Zarif
""I defend the interests of all people, not just one faction.""
Confidence: 90%

📰 What Happened

Economic experts criticize Iran's subsidy plan for worsening poverty among citizens.

  • six economic experts announce Iranian people
  • Shahrvand report Iranian government
  • newspapers report Mohammad Javad Zarif

💡 Why It Matters

🇮🇷 For Iran: Because the targeted subsidies plan has led to increased poverty and economic decline.
🌍 Regional: Because economic instability in Iran can affect regional security and trade.
🌐 International: Because worsening economic conditions may lead to increased tensions with Western nations.

📚 Background

The Iranian government's subsidy plan has failed to alleviate poverty, worsening the economic situation.

📝 Key Evidence

""poverty and fear of the future""
→ Evidence of the negative impact of the subsidy plan.
📡 Source: INDEPENDENT
📊 Confidence: 80%
Radio Farda is generally considered reliable for reporting on Iranian issues.

The newspaper Shahrvand published the results of a study by six economic experts regarding the effects of targeted subsidies on the lives of the Iranian people, emphasizing that these studies show that "poverty and fear of the future" have been the outcomes of the four-year implementation of the "targeted subsidies plan." Among the points mentioned in these studies are "the shrinking food basket of the poor and the reduction of essential goods consumption by them," "the fall of Qom and its placement alongside Sistan and Baluchestan in the index of 'absolute poverty'," and "a 17% decrease in the willingness of Iranian families to use personal vehicles, with no change in behavior among low-income households in this regard." The presence of Mohammad Javad Zarif in the Islamic Consultative Assembly to answer questions from Jawad Karimi Qodosi, a representative close to the Stability Front, received widespread coverage in Wednesday's newspapers. Newspapers such as Ebtekar, Afkar, Etemad, Donya-e-Eqtesad, Resalat, Shahrvand, and Qanoon dedicated their front page headlines or photos to Mohammad Javad Zarif and his statements in the open session of the Assembly. The newspaper Etemad also published a photo of a somewhat tense conversation between Mohammad Javad Zarif and Gholamali Haddad Adel, quoting the Foreign Minister of Hassan Rouhani's government as saying: "I defend the interests of all people, not just one faction." The newspaper Shargh described the result of the Foreign Minister's statements as a resounding "no" from Baharestan to the hardliners, while the newspaper Iran described the representatives' positive vote on Mohammad Javad Zarif's explanations as a "green card from the Assembly to the nuclear team." The newspaper Jahane San'at characterized Mohammad Javad Zarif's statements as a "full defense of his 16-month performance," and the newspaper Jam-e-Jam also dedicated its photo to Mohammad Javad Zarif's presence in the Assembly, stating: "The Assembly was convinced by Zarif's explanations." The newspaper Jahane San'at reported on the drop in oil prices to "below $50," while Shargh noted that with oil prices reaching $48.50, Iraq and Russia have increased their production. The newspaper Javan quoted the Minister of Cooperatives, Labor, and Social Welfare about the "completion of the database for low-income and high-income individuals," announcing the preparation of a "list of 10 million high-income individuals," stating: "The wealthy have been identified based on criteria such as foreign trips and 700 million toman houses." The newspaper Resalat published on its front page a "letter from 230 members of the Assembly" to the head of the judiciary regarding the house arrest of Mir Hossein Mousavi, Mehdi Karroubi, and Zahra Rahnavard, emphasizing that "we consider the house arrest of the leaders to be legal," but after the end of the house arrest, "the judiciary should decisively make decisions regarding the leaders of the sedition." The outcomes of the targeted subsidies plan, as narrated by six experts; the shrinking food basket of the poor, increasing fear of the future. The newspaper Shahrvand published the results of a study by six economic experts on the consequences and effects of targeted subsidies on the lives of the Iranian people in its Wednesday issue, emphasizing that the research of these experts shows that "poverty and fear of the future" have been the outcomes of the four-year implementation of the "targeted subsidies plan." According to Maryam Shakirani, the reporter for Shahrvand, during a side meeting of the Iranian Economy Conference, six economic experts, including Hossein Raghfar, Javad Salehi-Isfahani, Zeynab Gol Mohammadian, Ali Maziki, Meysam Hashemkhani, and Ismail Gorji Pour, presented their research findings on "targeted subsidies and household economy" to show that "the state of Iran's economy has not improved after the targeted subsidies and the lives of people have not only not improved but have also experienced a decline in some areas." The newspaper Shahrvand quoted Hossein Raghfar, an economic expert and member of the board of specialized sessions of the first Iranian Economy Conference, as saying that "significant double-digit inflation and recession have quickly negated the effect of receiving cash subsidies, and a 100% increase in the price of the dollar and production costs has created a kind of uncertainty about the future among the people, making them hesitant to leave their jobs despite economic theories regarding the impact of receiving cash subsidies on the willingness to work." Hossein Raghfar pointed out that "more than 10 to 15 members of the Assembly have referred to the worsening employment situation in recent years," stating that "this effect is absolutely not due to receiving subsidies but relates to other factors," including "the deplorable working conditions" that have caused individuals to leave their jobs, not the original income from cash subsidies. He also referred to statistics provided by the Minister of Industry, Mine, and Trade about the complete closure of "14,000 production units" in recent years, stating: "All these factors have led to an increase in the number of unemployed individuals, not just the receipt of cash subsidies." Javad Salehi-Isfahani, an economist who examined the "impact of receiving cash subsidies on employment," stated in this meeting that "although economic theories emphasize that receiving cash subsidies affects the willingness of poor individuals to work, studies conducted show that in Iranian society, receiving cash subsidies has not significantly reduced individuals' willingness to work. This may indicate that the pressure and impact of double-digit inflation on Iranian families have been so significant that the receipt of 45,500 tomans in subsidies has not changed their willingness to work." This economic expert's research shows that "about 20% of the income of poor Iranian families comes from receiving cash subsidies," but "receiving cash subsidies has not reduced the number of employed individuals in an Iranian family." According to the newspaper Shahrvand, Zeynab Gol Mohammadian, an economic researcher at the University of Santa Cruz in California, was another speaker at this meeting who evaluated the consumption behavior of Iranian families after the targeted subsidies, stating that based on her studies, the implementation of the targeted subsidies plan and "the increase in fuel and energy prices" have led to a "17% decrease in Iranian families' willingness to use personal vehicles," and this plan has "pushed wealthy families towards a more frugal behavior in fuel consumption." According to Zeynab Gol Mohammadian, wealthy families, who "usually have 2 or 3 family cars, have reduced their use of personal vehicles and replaced it with public transportation," while "poorer families, due to minimal and need-based use of personal vehicles, have not shown a noticeable behavioral change after the implementation of the targeted subsidies plan." The newspaper Shahrvand also reported that according to Zeynab Gol Mohammadian's research, "targeted subsidies have shrunk the food baskets of the poor," and "the implementation of the targeted subsidies plan has inflicted the most damage on the poor in terms of essential goods consumption." In Zeynab Gol Mohammadian's research, "seven models of essential goods including rice, meat, bread, dairy, fruits, clothing, and tobacco were examined, and after studying the consumption situation of rural and urban families, it was concluded that the poor have suffered the most in terms of essential goods consumption after the implementation of the targeted subsidies plan." Zeynab Gol Mohammadian emphasized that "the poor families surveyed reported that the pressure from rising inflation has been so significant that it has not only neutralized the impact of receiving cash subsidies but has also reduced their purchasing power," and this decrease in purchasing power has "led to a shrinking food basket for the poor and a reduction in their consumption of essential goods." Ali Maziki, another economic expert, presented the results of his study on "household welfare indicators in various provinces of Iran" at the side meeting of the Iranian Economy Conference, stating: "In my studies, I first examined absolute poverty in Iran, and contrary to what some officials say, absolute poverty in Iran cannot be denied," while examining "absolute poverty" based on "caloric intake per capita" among 31 provinces of Iran shows that "Qom has strangely fallen to the bottom of the table, and the households in this province, along with Sistan and Baluchestan, have been recognized as having the highest rate of absolute poverty, while households in Tehran and Alborz have the lowest rate of absolute poverty." Ali Maziki's research also shows that after the implementation of "targeted subsidies," the per capita access of Iranians to health facilities is "one-fourth of the world," and "in terms of health poverty and access of Iranian families to health indicators, the central provinces of the country have the best access to health facilities, while families in the southeastern and northeastern provinces of the country are evaluated as the least benefited from health facilities," while "30% of the country's population is without any insurance coverage, and free insurance is the most popular type of insurance coverage for providing health facilities in the country." The newspaper Shahrvand reported that according to Ali Maziki's research, "while the per capita access of the Iranian people to hospitals is 3 beds, the average access of the world's population to hospital services is 13 beds, and Iran ranks 122nd in this regard," and while "the minimum criteria for examining housing poverty in Iranian families include access to water, electricity, bathroom, kitchen, and adequate space," this research shows that "contrary to popular belief, families in Tehran are not in a very favorable situation regarding housing poverty, and most Tehranis suffer from a lack of adequate living space." Additionally, examining the welfare of Iranian families in terms of access to transportation systems shows that "while the per capita access to public transportation systems in developed countries is 40% of the population, in Iran this figure is at most 19%, which relates to the provinces of Tehran, Alborz, and Khorasan that have access to the metro," and "Kurdistan province is in the worst condition in this regard, with the public transportation system covering only 5% of the population of this province." Meysam Hashemkhani, a researcher who examined "the level of educational development in various provinces of Iran," was also present at the side meeting of the Iranian Economy Conference, criticizing "the lack of transparent statistics regarding educational development," stating: "None of the existing documents mention schools lacking sanitary facilities, while in my field studies, I encountered many schools whose access to educational facilities was even below the minimum, and these schools were even deprived of having sanitary facilities." The newspaper Shahrvand also quoted Meysam Hashemkhani regarding the ranking of schools in Iran concerning "access to educational technology," stating: "While Asian countries like Singapore and South Korea rank at the top of the world in terms of educational facilities, countries like the UAE and Qatar hold a significant rank in this regard, the situation of schools in Iran regarding access to educational technologies is not very commendable," and in addition, "the disparity in access of children from wealthy Iranian families to educational facilities is 17 times that of poor families, and family income has a significant impact on the educational poverty index. In other words, other criteria for individuals' access to education are imperceptible, and currently, family income plays a decisive role in the education and development of their children." Ismail Gorji Pour, a social insurance expert, also stated during the side meeting of the Iranian Economy Conference that research on "the level of access of Iranian workers to insurance and retirement benefits" shows that "5 million of Iranian workers are outside the coverage of retirement insurance. These individuals mainly consist of workers employed in small workshops." The narrative of Shargh regarding the "no" from the Assembly to the hardliners' questions for Mohammad Javad Zarif. The presence of Mohammad Javad Zarif in the Islamic Consultative Assembly to respond to questions from Jawad Karimi Qodosi, a representative close to the Stability Front, received widespread coverage in Wednesday's newspapers, and the newspaper Shargh described the result of the statements of the Foreign Minister of the eleventh government as a resounding "no" to the hardliners of Baharestan. Ameneh Shirafkan, a parliamentary reporter for the newspaper Shargh, likened the open session of the Assembly on Tuesday to a "ring," writing: "It resembles a boxing ring. Karimi Qodosi's supportive team surrounds him, constantly passing small papers under his hand, something akin to helping during an exam. Mohammad Javad Zarif is busy delivering a speech, and from [Hamid] Rasai to [Mahmoud] Nabavian and Aziz Akbarian, they have surrounded Karimi Qodosi. In the back row, Masoud Mir Kazemi is sitting and occasionally whispers to Hamid Rasai. The gathering of the hardliners in the Assembly is substantial." This newspaper noted that during the session, "the voice of [Mohammad Javad] Zarif rose as he spoke of positive global developments in Iran's diplomacy, mentioning that Netanyahu's sessions are emptier than ever and that the process of drafting resolutions and sanctions against Iran has stopped, and that Netanyahu's illustrations and the phenomenon of Iranophobia have no place in global politics anymore," and even "the Iranian Foreign Minister shouted from the Assembly podium that now no one dares to talk about the closure of Fordow or raise any objections regarding Iran's right to enrichment. No option of war against Iran is on the table, and the Zionist circles and American hardliners no longer have the maneuverability they once did, and beyond that, major economic powers and large international enterprises are now queuing up at the door of these people for interaction." According to the newspaper Shargh, one of the most important highlights of Mohammad Javad Zarif's speech in the Assembly session on Tuesday was when he said: "I firmly believe that factionalizing foreign policy is a point of no return for its failure, and spending national interests for factional and political goals is an unforgivable sin." According to this newspaper, Jawad Karimi Qodosi, during the speech of the Foreign Minister of the eleventh government, "interrupted Zarif's speech multiple times, attempting to challenge him with various questions and accusations, but Zarif maintained his composure and continued to defend his positions."

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Translated from the original and edited for English readers. View original source →

Translation confidence: 85%

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