“Growing economic concerns add to Tehran’s troubles”

“Growing economic concerns add to Tehran’s troubles”
January 13-17, 2009
     While the P5+1 continue early talks on sanctions against Iran, the Iranian government has approved President Ahmadinejad’s 5-year plan to cut energy and food subsidies worth an estimated $100 million per year. Critics fear the plan, which is set to begin in the next three months, will worsen Iran’s high inflation rate and fuel further social unrest (The National), but reductions in gasoline consumption could also dampen the effects of sanctions (Reuters). Despite Ahmadinejad’s pledge that the plan will eliminate unemployment and poverty in three years, Nader Uskowi calls the new law a “sharp turn to the right” for the populist president (Uskowi on Iran).
     Iran’s economy also saw a 96% decrease in annual foreign investments in the period from March 2008 to March 2009 (Tehran Times). The government has announced it has received $20-billion worth of proposals for investments in Iran’s oil and gas sectors, but Iranian officials believe the gas sector alone needs around $85 billion in investments over 10 years to maintain its export capacity (Press TV).
The National | Reuters | Uskowi on Iran | Tehran Times | Press TV

Related post:
“Tehran hopes risky subsidy cuts will target middle class, neutralize sanctions”

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