Iran’s Economists Urge Pezeshkian to Pursue Transparent and Fair Economic Reforms

180 of the country’s most prominent economists, academics, and social science researchers have issued an open letter to President Pezeshkian, urging the government to pursue deep economic reforms.

In a significant development within Iran’s economic policy landscape, 180 of the country’s most prominent economists, academics, and social science researchers have issued an open letter to President Masoud Pezeshkian, urging the government to pursue deep, transparent, and equitable economic reforms. Signed by leading figures such as Masoud Nili, Seyed Mohammad Tabibian, Mousse Ghaneinejad, Masoud Roghani Zanjani, Mohammad Satarifar, Tahmasb Mazaheri, Valiollah Seif, Hossein Abdeh-Tabrizi, Pirouz Hanachi, Abbas Akhoundi, Alinaghi Mashayekhi, Farhad Nili, and Akbar Komijani, the letter argues that Iran has reached a point where fiscal justice, budget transparency, and the elimination of inefficient expenditures are no longer optional but essential.

The signatories emphasize that price reforms—especially the adjustment of gasoline and energy prices—can only be considered just if they are accompanied by simultaneous cuts in wasteful state spending and a clear restructuring of government budget priorities. They warn that the burden of economic reforms must not fall solely on low-income households, insisting that support mechanisms and compensatory structures must be designed to minimize pressure on vulnerable groups without returning to costly and ineffective policies of the past.

In a pointed message to the administration, the letter states that the public has the right to know exactly how new revenues from price reforms will be spent. The authors argue that if citizens are expected to endure higher costs, then the government must demonstrate—clearly and transparently—which expenditures are being reduced, which budget lines are being eliminated, and how saved resources will be redirected toward essential public goods such as education, healthcare, and public transportation.

The economists also underscore that budget reform is not only an economic demand but a moral and national obligation, recalling the constitutional vision of the Iranian Constitutional Revolution, which sought fairness and rationality in public finance. They stress that Iran’s current budget structure is weighed down by non-essential institutions that consume public resources without providing meaningful services to society, and that eliminating these costs is both justified and necessary.

While the letter has sparked widespread discussion, some analysts argue that its focus on cultural and non-essential institutions addresses only a small share of public expenditures. Critics note that Iran’s main fiscal burdens lie in massive pension fund deficits, opaque quasi-state companies, and extensive tax exemptions—issues largely absent from the letter. According to recent parliamentary research, tax exemptions alone amount to nearly 2,200 trillion tomans, almost equaling the government’s total projected tax revenues for 2025. Additionally, around one-fifth of Iran’s public budget is absorbed by financially troubled pension funds, many of which rely heavily on state support due to decades of mismanagement and poor investment performance.

The report also highlights that more than 3,000 state-controlled or quasi-state companies operate with little transparency, contributing to structural imbalances in the economy. Despite their enormous financial footprint, the performance and efficiency of these companies remain largely unexamined, with many consistently reporting losses far beyond what is indicated in official budget drafts. Experts argue that the continued lack of oversight in these sectors significantly undermines fiscal stability, economic productivity, and public trust.

Nevertheless, the letter’s central message remains clear: Iran’s economic difficulties cannot be resolved through price hikes alone. The authors call on the government to demonstrate its commitment to fairness by cutting its own unnecessary costs before asking citizens to absorb more financial pressure. They frame this as a test of political will, stating that now is the moment for the state to prove that justice, efficiency, and transparency are not merely slogans but governing principles.

The open letter represents one of the most coordinated and high-profile interventions by Iranian economists in recent years, reflecting a broad professional consensus that the country stands at a critical juncture where structural reform is unavoidable. Whether the Pezeshkian administration will adopt these recommendations—and whether such reforms can overcome entrenched institutional resistance—remains to be seen. But the authors are unequivocal: Iran’s path out of its current economic crisis requires both courage and clarity, from the government as well as the public institutions that shape national policy.