Head of Tehran Chamber of Commerce: $90 Billion in Capital Fled the Country

Masoud Khansari, head of Tehran Chamber of Commerce, stated that during the years 2011 to 2019, approximately $90 billion in capital left the country, and over the past 10 years, 35 percent of the country’s population has been pushed below the poverty line.

Masoud Khansari, head of Tehran Chamber of Commerce and vice president of Iran’s Chamber of Commerce, in a meeting attended by Mohammad Baqer Qalibaf, speaker of parliament, referred to rising inflation and stated that Iran, along with eight other countries, stands among the nine countries in the world with double-digit inflation.

The head of Tehran Chamber of Commerce, in describing the current state of the economy, said that Iran’s economy has shrunk, poverty has increased, investment has reached its lowest level, capital outflow from the country has increased, and engagement with the global economy has also reached a minimum.

The head of Tehran Chamber of Commerce further emphasized that Iran’s economy has only shrunk by 12 percent in the past two years and has only experienced negative growth over the past 10 years, and this trend continues.

Khansari further stated that $90 billion in capital left the country over an eight-year period between the years 2011 and 2019.

According to the head of Tehran Chamber of Commerce, the Islamic Republic of Iran has not been successful in attracting foreign investment, and based on statistics, during 2019, the lowest level of direct foreign investment inflow to Iran was recorded.

The vice president of Iran’s Chamber of Commerce further referred to how the country’s gas reserves are being used and said: “In 2019, approximately $86 billion was paid as energy subsidies, and under these circumstances, Iran pays the highest level of energy subsidies in the world. If we continue in this manner, the situation of the country’s gas will be like the depletion of water reserves.”

Khansari further pointed out that to exit the dire economic situation, “transparent and open dialogue between the government and sovereignty with the people must be implemented” and “to avoid the murky horizon ahead, courageous measures must be taken.”

The head of Tehran Chamber of Commerce did not provide explanation regarding the main destination of capital that left Iran in previous years, but considered currency price fluctuations, declining economic growth, and lack of investor security as the main factors of “capital flight” from Iran.

Source: DW