Health minister blames currency collapse for soaring drug costs

“The developments in Syria, given their importance and sensitivity, will certainly be among the key items on the agenda during this visit,” Esmail Baghaei said Monday.

Baghaei also reiterated Iran's position on Syria, emphasizing the importance of respecting the Syrian people's decisions.

“Whatever the Syrian people decide must be respected by all countries in the region. Protecting Syria's territorial integrity, unity, and sovereignty is vital for us and the entire region,” he said.

Baghaei stressed that Syria's future must be determined without foreign interference and free from terrorism and violent extremism.

Ebrahim Sadeghifar said almost one in every four Iranians struggles to meet their basic essential needs.

"Today, poverty in Iran is not a marginal issue but has become an undeniable reality that affects a significant portion of society," he said.

On November 17, the Research Center of the Iranian Chamber of Commerce, in a report, warned that by the end of 2021, around 32 million people in the country were below the food poverty line. It further cautioned that this trend is rapidly expanding due to severe inflation in recent years.

On October 30, the Parliamentary Research Center also reported an increase in the poverty rate in 2023 to over 30 percent. It added, "Last year, at least one-third of the population could not meet their basic needs and lived below the poverty line."

In his Sunday remarks, the head of the Institute of Labor and Social Welfare which is affiliated with the Labor and Social Welfare Ministry called for examining and addressing the root causes of the expansion of poverty in political, social, and cultural issues.

Sadeghifar said statistics show an increase in school dropouts due to economic and social problems, adding that studies are needed to explain why poverty persists in Iran despite the country's oil resources.

Addressing the country’s persistent power and fuel shortages, Mohammad Bagher Ghalibaf said, “The real problem lies in management. One person blames another, and the cycle continues. Until we solve the management imbalance, we cannot resolve the energy imbalance.”

The rare remarks which contradict the official government line blaming the crisis on resource shortages, came as Energy Minister Abbas Aliabadi warned of a looming electricity deficit and unprecedented challenges in the coming summer, following a season of widespread blackouts and gas shortages.

With a projected shortfall of 25,000 megawatts of electricity next year, Aliabadi admitted that immediate solutions look bleak.

Ghalibaf spoke about institutional flaws in Iran’s energy sector, attributing inefficiencies to outdated governance structures. “There is an institutional flaw in the energy sector, both in production and consumption, leading to policy mistakes. Our energy governance is flawed,” he said.

Energy Minister Aliabadi acknowledged the gravity of the situation, apologizing for gas shortages and outlining the government’s inability to resolve them in the short term. He cited last summer’s 20,000-megawatt electricity shortfall and warned of worsening conditions.

“Winter’s cold can be endured with warm clothing, but navigating the challenges of summer is not as simple,” he said.

However, Ghalibaf proposed the establishment of an operational center to coordinate between the Oil Ministry, the Ministry of Energy, and Parliament. “To address the energy imbalance, supply and demand must align. While production must be a focus, consumption must also be controlled,” he said.

Gas shortages have also reached critical levels, with domestic consumption exceeding production capacity, resulting in rationing and significant strain on households and industries. Efforts to curb usage, such as a 2-degree reduction in heating temperatures, have saved 45 million cubic meters of gas daily, but structural issues persist, in spite of Iran owning one of the world's largest gas fields.

Widespread impact on citizens and economy

Massoud Pezeshkian, Iran’s President, has also raised concerns over systemic failures in energy management, saying “Iran is experiencing shortages in electricity, water, gas, the environment, and finances, with some of these shortages bringing the country to the brink of a precipice.”

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Power cuts in the summer of 2024 caused significant losses for industries, estimated at $11 billion, according to Ali Mahmoudian, head of the National Union of Alternative Fuels.

The closures of schools, universities, and government offices due to energy management have further strained Iran’s economy, costing an estimated $62.5 million per day.

As the country braces for a potentially devastating summer, officials are divided on how best to navigate the crisis. Ghalibaf’s comments that management reforms are key contrasts with the Ministry of Energy’s focus on immediate consumption reduction measures.

Iran now faces the dual challenge of overcoming internal inefficiencies and adapting to the growing energy demands of a population grappling with economic uncertainty and environmental degradation.

"Iran is fully prepared for the possibility of further Israeli attacks,” Foreign Minister Abbas Araghchi told China's CCTV.

“I hope Israel will refrain from taking such reckless action, as it could lead to a large-scale war," he said in his December interview which was aired on Saturday.

Israeli news outlet Walla reported on Sunday that the Jewish state's military is on high alert following a directive from IDF Chief of Staff Herzi Halevi, amid fears Iran may take extreme actions against Israel.

Security officials warn that changes in the regional strategic situation could push Iran to act against Israel.

Along with the decline in the rial exchange rate and internal protests, Walla wrote that the Revolutionary Guards are transferring funds to Hezbollah via civilian aircraft, leading to the Chief of Staff ordering heightened vigilance.

Israel and Hezbollah in Lebanon are in the midst of a 60-day ceasefire but both sides have reported dozens of breaches amid the US-brokered truce.

The report's sources also highlighted uncertainty over Iran's stance ahead of Donald Trump's return to the White House later this month.

Esmail Ghaani (Qaani) and a number of his advisers in the Quds Force arrived in Baghdad on Sunday morning to meet with the leaders of the Shia factions and the head of the Popular Mobilization Units (PMU), Falih al-Fayyadh, Erem News reported citing an Iranian source.

Iraq's Alsumaria TV says Ghaani will later meet with Prime Minister Mohammed Shia al-Sudani, who is expected to visit Tehran on Wednesday.

Iranian officials or state-run media have not yet confirmed reports about Ghaani's visit to the Iraqi capital.

In the meetings, Ghaani will discuss Washington's pressure on the Iraqi government to dissolve the PMU or integrate them into the Iraqi armed forces, the reports said.

The developments in Syria and the fall of Bashar al-Assad will also be a focus of the IRGC Quds Force chief's talks with Iraqi politicians.

The Popular Mobilization Units (PMU), also known as Popular Mobilization Forces (PMF) or Hashd al-Shaabi, was established in 2014 following a religious decree to combat ISIS, which at the time had taken control of four Iraqi governorates and threatened Baghdad.

Supported by the IRGC, these groups wield considerable power over Iraq’s governance, military operations, and energy infrastructure.

Despite their original mandate to combat ISIS, many of the militias have since expanded their activities, frequently targeting US forces and installations in Iraq with rockets and drones, and exacerbating tensions between Tehran and Washington.

While the Iraqi state-sponsored umbrella organization is largely composed of Shia Muslim groups, it also includes Sunni Muslim, Christian, and Yazidi factions with an estimated 128,000 fighters across 67 different armed factions.