The Consequences of Command Economy; Media: Automakers Exporting 'Bitumen and Dried Fruits' Instead of Cars!

Iranian media reports that domestic automakers have entered the export market for items such as petrochemical products and dried fruits following direct government intervention and the existence of a 'list of export products' for them. 45 days ago, the director general of the automotive industries office at the Ministry of Industry, Mine and Trade of the Islamic Republic sent a letter to 'vehicle manufacturers' under the title 'Review of Currency Supply Sources,' asking them to consider exporting to secure the necessary foreign currency. Now, the Tehran-based newspaper 'Donya-e-Eqtesad' has reported today, Sunday, October 1, that 'there are reports that a list of export products has been provided to automakers in line with this directive.' These 'command changes' in the Iranian market to facilitate domestic automakers occur at a time when their products, according to experts and some citizens on social media, suffer from very low quality, very high prices, and inadequate safety. Kamal Hadianfar, head of the traffic police, criticized the safety level of domestically produced vehicles on August 7, stating that '50 to 60 people' die daily in road accidents in Iran. On the other hand, in recent years, following the intensification of punitive sanctions against the Islamic Republic (due to controversial regional actions and unconventional nuclear activities) by the United States and the international community, Tehran has faced serious challenges in securing foreign currency. Accordingly, the announced list of export items by government agencies to domestic automakers includes goods such as 'petrochemical products, metals, bitumen, minerals, and dried fruits,' allowing automakers to export these items to secure 'part of the currency' needed for their imported parts or products. Thus, Iranian automakers must now become 'exporters of bitumen or petrochemical products and dried fruits' to secure parts or even import vehicles, while there is no independent body to oversee such transactions. Mohammad Ali Taimouri, CEO of Saipa, confirmed this news two days ago in an interview with ISNA, stating in response to a question about how the company secures currency: 'We obtain currency from two channels other than the Central Bank. The Central Bank has granted us permission to use export-origin currency, and we also have exports such as bitumen, iron ore, and copper cathodes.' Meanwhile, it was recently revealed through the financial statements of automakers that the three companies Iran Khodro, Saipa, and Pars Khodro have once again fallen under 'Article 141 of the Commercial Code' and are on the path to 'bankruptcy.' Due to the monopoly and state control over various decision-making processes in Iran's economy, there is practically no possibility for free economic circulation and securing appropriate currency from the free market for major industries and producers, who must rely on 'supportive currency' or other methods under the conditions set by the Islamic Republic government. These methods practically strengthen the grounds for rent-seeking and systemic corruption in Iran's economy.