The Multitude of Trouble Stifled Economic Prospect and Social Wellbeing in Iran

Abstract

Islamic Republic of Iran is a natation with troubled history. It carries the legacy of ancient empire. It holds notable geopolitical significance in west Asian landscape. It is endowed with oil reserves and relies heavily on oil export. Iran’s economy faced stringiest of sanctions over the years. Western power had always been sceptical about Iran’s nuclear armament. So, the Islamic state was kept isolated from international community for long which hampered its progress to great extent. Iran’s economy went through tough time due to outbreak of pandemic. Iran's currency lost its value as a result of sanctions and four decades of economic indecision. Washington pulled out of Iran nuclear deal in May 2018 under the leadership of President Donald Trump and imposed heavier sanction to restrict its vital oil export. Fiscal deficit went high during COVID 19 inflicted hard time. Unemployment rate turned doble digit and went beyond 11 percent in 2021 and millions of people continued living below the poverty line. Draught affected farming severely caused by failure in resource usage, water guzzling crop cultivation and climate related uncertainty. IMF delayed to offer bailout package on the ground of opposition by USA and allies, shaky balance of payment situation, low repayment ability and questionable debt sustainability. Iran needs reform in financial sector, makeover of state-owned enterprises, private sector growth and normalization of trade links to salvage its battered economy.