Economist Defends State Assets Liquidation Plan

EghtesadOnline: The government is suffering from severe budget deficit which has driven up inflation to an unprecedented level. Iran is likely to see higher inflation rates in the future.

News ID: ۷۵۲۲۲۵

06 February 2023

The heads of three branches of power (legislative, executive, judiciary) have recently appointed a team tasked with liquidating state assets. The details of this decision are not sufficiently specific and as the saying goes the devil is in the details. However, the outlines of the plan seem defensible, economist Ali Sarzaeem said in an article for Persian daily Donya-e Eqtesad. Below is a translation of the text.

For starters, the necessity of privatization should be underlined. The fact is that the government is suffering from severe budget deficit which has driven up inflation to an unprecedented level. Iran is likely to see higher inflation rates in the future. The most helpful step for the government to take is sell its surplus assets and meet its needs, instead of fueling the flames of inflation and further weakening the public’s purchasing power. One might argue that sales of state properties cannot finance government expenses in the long run. Cynics might say that the current government intends to leave a scorched earth for the future governments.