TEHRAN, Sept. 8 (Xinhua) -- Iran's Ministry of Economic Affairs and Finance recently announced the establishment of an "economic war headquarters" to improve coordination and expedite efforts to address economic challenges arising from wartime conditions.
Why has Iran established the headquarters at this time? What are its main functions? What implications could its establishment have for the Iranian economy?
WHAT'S BEHIND THE ESTABLISHMENT?
The measure comes as Iran, in addition to facing decades-long sanctions, sustained considerable economic damage in the U.S. and Israeli strikes that started on Feb. 28. The country has also been under a U.S.-imposed naval blockade for the past few months and recently faced intensified economic pressure from Washington.
Last month, U.S. President Donald Trump announced "the most crushing economic operation ever taken" against any country providing a lifeline to Iran, stressing, "This will be Economic Warfare and Isolation on an unprecedented scale."
Iran's Deputy Economy Minister for Economic Policymaking and Strategy Morteza Zamanian said the headquarters' primary focus is on the economy ministry's responsibilities and authorities. It seeks to accelerate efforts to resolve wartime problems facing Iranian businesses, trade, financing operations and other economic sectors, he said.
He noted that some of the issues are beyond the ministry's authority, requiring coordination among various government bodies and follow-ups at the highest levels.
Asgar Qahremanpour, a Tehran-based international relations researcher, told Xinhua that the move is mainly aimed at countering foreign pressure. He said Iran's economy is simultaneously facing sanctions, war, disruptions in trade and transportation, foreign currency pressures and inflation.
Managing domestic economic vulnerabilities is another reason behind the headquarters' establishment, Qahremanpour said. Even before the war, Iran's economy faced inflation, depreciation of the rial, unemployment, financial imbalances and weak management. "The authorities have repeatedly emphasized the need for implementing internal reforms," he said.
WHAT ARE THE FUNCTIONS?
The Iranian deputy economy minister said the headquarters' main function is to identify problems and disruptions resulting from wartime conditions and find practical solutions.
Zamanian said when an issue requires cooperation among multiple government bodies, the headquarters will coordinate their efforts to prevent unnecessary bureaucracy. Supporting the domestic economic entities damaged during the war is among its other objectives, he added.
According to the semi-official Tasnim news agency, ensuring the continuity of supply chains and services and minimizing the impact of disruptions are also of particular importance under wartime conditions.
Qahremanpour listed some of the headquarters' possible responsibilities as the swift identification of disruptions caused by the war and the coordination of the government's economic responses, especially in the areas of trade and financing.
He said possible outcomes include preventing shocks to the country's foreign currency market, ensuring the supply of essential goods, medicines and raw materials, maintaining exports and imports, and supporting manufacturing enterprises.
WHAT DOES IT MEAN FOR IRAN'S ECONOMY?
Mokhtar Ghobashy, secretary general of the Al-Farabi Center for Political Studies in Egypt, said the headquarters' establishment confirms that Iran is preparing for a prolonged confrontation with the United States.
Ghobashy added that although the latest U.S. sanctions have contributed to higher inflation in the Iranian market and a partial depreciation of the rial, Iran has adapted to such conditions to a significant extent, relying heavily on domestic production and maintaining overland trade with neighbors.
Echoing similar views, Sabah al-Sheikh, a professor of political science at the University of Baghdad, said the headquarters' establishment is just part of Iran's broader strategy to confront the intensified U.S. sanctions, stressing that Tehran is employing every available means to undermine the U.S. strategy and mitigate the impact of its economic pressure.
After more than four decades under sanctions, parts of Iran's economy have developed the capacity to adapt to external restrictions, according to Qahremanpour. Faster and more coordinated decisions by the headquarters could help prevent supply-chain disruptions in the short term, he added.
Qahremanpour said the headquarters could also provide an opportunity to carry out economic reforms, including reforms to the foreign currency system and national budget, strengthening the domestic private sector, eliminating economic rents and normalizing foreign economic relations.
To overcome crises, Iran also needs a more predictable and productive economy, Qahremanpour added, stressing that curbing inflation and resolving people's economic problems are among the desired outcomes to be achieved by the headquarters. Enditem
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