Iran Finalizes New Electronic Subsidy Card Scheme to Stabilize Prices
Tehran – In a significant move to ensure economic stability and protect consumer purchasing power, the Iranian government and parliament are finalizing a revised Electronic Subsidy Card (Kalaabarg) scheme. The initiative, a key priority for the administration, aims to deliver subsidies directly to citizens, thereby insulating them from price fluctuations.
Direct Support for Consumers
The decision, confirmed by Deputy Minister of Cooperatives, Labour, and Social Welfare Ali Mideri, aligns with the broader policy of redirecting subsidies from producers to end-users. Mideri, speaking to reporters, emphasized that both parliament and the President are united in this approach, which seeks to continue the path of the late President Ebrahim Raisi’s administration in maintaining stable prices for consumers.
“The current resolve of both the government and the parliament is to utilize past experiences, which were accompanied by some challenges, to transfer the subsidy to the consumer without creating price fluctuations or shocks,” Mideri stated.
Final Approval Imminent
Extensive joint meetings between government and parliamentary representatives have been held this week at the Planning and Budget Organization. While the final draft is not yet complete, officials are optimistic about a swift conclusion.
“We hope that next week, with a meeting chaired by the First Vice President Mohammad Reza Aref, a final decision will be made between the government and the parliament, and the method for implementing the Electronic Subsidy Card will be revised,” Mideri added.
Targeted Coverage and Implementation
The Minister clarified the scheme’s scope, noting that the previous version of the electronic card did not cover the top three income deciles. The new plan is expected to include the first seven deciles of society, though the final coverage is still under discussion.
Regarding the timeline, Mideri explained that while the plan will be finalized in the Iranian month of Aban (late October/November), its activation is contingent on securing agreements with the private sector. These contracts are essential for guaranteeing the supply and distribution of goods at fixed prices.
“Achieving price stability requires us to sign two to three-month contracts with suppliers so they can provide goods at a specified rate over a period of time,” Mideri elaborated. He stressed that a rushed implementation without these foundational agreements would not yield the desired price stability.
The successful execution of the Electronic Subsidy Card scheme is highlighted as being dependent on close cooperation with the private sector, coordination with executive bodies, and the continued collaborative decision-making between the government and parliament.