Iran Economy NewsIran Faces Severe Medicine Shortage and Lack of Government...

Iran Faces Severe Medicine Shortage and Lack of Government Funding

-

The Health and Treatment Commission of Iranian regime’s Majlis (parliament) recently released a report highlighting the dire situation of medicine availability in the country. According to the report presented on April 23, nearly 150 essential drugs are facing shortages and severe limitations, with approximately 65 of them experiencing acute scarcity.

The commission urged for legal action to address its findings, but members of the regime’s Majlis opposed referring the matter to the judiciary, with the majority preferring to keep it within the legislative branch.

Another aspect of the report addresses the failure of the Organization of Planning and Budget to reconcile the preferential exchange rate (42,000 rials) with the NIMA system rate (the currency allocated for managing and promoting the country’s imports and exports) over the past two years, resulting in a staggering debt of 840 trillion rials (approximately $1.3125 billion) to the Central Bank. Currently, the exchange rate for the dollar in Iranian markets stands at 640,000 rials.

Furthermore, the report states, “The Central Bank, under the pretext of effective cooperation in allocating foreign currency and providing the necessary liquidity for the pharmaceutical industry through facilities, has avoided such cooperation.”

Nevertheless, with 67 votes in favor, 137 against, and 8 abstentions out of 225 representatives present, the regime’s parliament rejected the application of Article 234 (referring government violations to the judiciary).

Over the past two years, numerous reports have highlighted the challenges in securing foreign currency for importing raw materials for medicine production or medicine itself. On April 22, a member of the Tehran Chamber of Commerce stated that economic actors have been awaiting currency allocations for over five months, but the Central Bank has not provided them.

The Central Bank’s refusal to provide foreign currency for importing medicine comes at a time when, despite promises from the regime’s President Ebrahim Raisi to halt borrowing from the Central Bank, official statistics show that the government’s debt to this institution increased by approximately 27% in 2022 and surged again by 56% in 2023.

Kaveh Zargaran, a member of the Tehran Chamber of Commerce’s representatives, stated on Monday, April 22, that economic actors have been waiting for currency allocations for over five months, yet the Central Bank has not granted them.”

The Iranian regime has often attributed the country’s medicine crisis to U.S. sanctions, claiming that the sanctions target “ordinary people.” However, imports of humanitarian items, including medicine, are exempt from sanctions.

Trading and smuggling pharmaceutical and medical items remain highly profitable, with regime-linked entities selling drugs at exorbitant prices in the free market while medicines are scarce in pharmacies, leaving people struggling to access essential medication.

Latest news

Iran: At Least 26 Prisoners Executed in One Week

The National Council of Resistance of Iran (NCRI) announced that between July 28 and August 3, at least 26...

The 132nd Week of the ‘No to Execution Tuesdays’ Campaign Across 59 Prisons

In the 132nd week of the "No to Execution Tuesdays" campaign, political prisoners in 59 prisons across Iran launched...

Iraq: Iranian Regime Violated Commitments Regarding Strait of Hormuz

As tensions over maritime security in the Persian Gulf and the Red Sea continue, Iraqi officials said negotiations with...

The Value of the Rial on a Downward Slope: Direct Consequences of Pre-Crisis Policy Failures

Economic experts always emphasize the key role of smart governance in maintaining financial stability and preserving the value of...

Continued Labor Protests: Telecommunications Retirees Rally in Various Iranian Cities

As labor protests continued across different parts of Iran, on Monday, August 3, telecommunications retirees in Bijar County and...

Iran’s Economy in Critical Condition, Insider Warns

Hossein Raghfar, an economist close to the Iranian regime, described Iran's economic situation as "very unfavorable" and warned that...

Must read

Iranian opposition leader condemns abduction of French journalists

Iran Focus: The leader of an umbrella coalition of...

HQ ‘is attempt to keep out British forces’

Press Association: The Iranian Revolutionary Guards have established a...

You might also likeRELATED
Recommended to you