Iranian Labor Minister Addresses Subsidy Adjustments, Highlights Cooperative Sector Growth
In a detailed address, Iran’s Minister of Labor, Cooperation, and Social Welfare, Ahmad Meydari, provided insights into the government’s recent subsidy adjustments and outlined significant new initiatives within the national cooperative sector.
Minister Dismisses Widespread Subsidy Concerns
Speaking on the sidelines of a video conference inauguration for cooperative projects across several provinces, Minister Meydari directly addressed the removal of some low-income individuals from the cash subsidy roster. He stated that the rate of formal complaints regarding these removals has been minimal.
“The level of objection to removal from the subsidy system has been less than 5 percent, specifically only 4.8 percent,” Meydari stated. He emphasized that these low numbers indicate a high degree of accuracy in the targeting process. “Therefore, the possibility of a widespread error in the removal process is very unlikely.”
The Minister assured that the system has a straightforward process for registering any complaints. He explained that a precise income identification system is in place to review cases, and individuals who believe their income has been miscalculated can provide detailed information for reassessment.
Major Cooperative Projects Launched, Thousands of Jobs Created
Shifting focus to economic development, the Minister detailed the inauguration of 347 cooperative projects to mark Cooperative Week. He highlighted that these ventures represent a total investment of 15 hamats (a large unit of currency), with 73% of the funding coming from private sources and the remainder from banking facilities.
“These projects are set to create 18,000 new jobs,” Meydari announced. Among the most significant inaugurations were a housing sector project in East Azerbaijan and a 3-megawatt solar power plant in South Khorasan.
New Initiatives to Empower the Textile Industry
Minister Meydari also unveiled a new support scheme for Iran’s clothing and garment industry, a key sector of focus over the past year. In collaboration with Bank Tejarat and the Bank of Development of Cooperatives (Tose’e Ta’avon), a new program will be launched at the beginning of the Iranian month of Mehr (late September).
“This initiative will allow small and home-based clothing producers to purchase thread directly from factories,” he explained. The program includes a line of credit for each producer, backed by bank guarantees. “Each producer will receive a 500 million tomans credit line with the guarantee of the Bank of Development of Cooperatives. There is no need for an in-person visit; simply having an account at the bank is sufficient.”
The Minister stated that this direct approach is designed to reduce intermediaries and lower production costs. A subsequent phase of the plan will focus on facilitating the sale of the finished products, further supporting the domestic industry.