The tragic incident drew renewed attention to the unchecked smuggling activities and their dramatic repercussions on the country’s socio-economic landscape.
The following day, Mehr state news agency reported on the smuggling issue within Iran. An anonymous expert in battling economic corruption raised alarms about the poor performance of anti-trafficking institutions. The expert highlighted that the illegal trafficking industry in Iran amasses a staggering 1,000 trillion tomans in turnover. Smuggling, the expert warned, could control the Iranian market if not checked, causing an estimated economic impact of between 15 and 21 billion dollars annually.
This situation is far from new. A report by the ISNA news agency in 2012 highlighted the existence of numerous unregulated wharves. A mere 20% of 201 wharves across the country operate under customs oversight, leaving the majority to function outside legal parameters.
"Over the years, the #IRGC has expanded its #economic activities, establishing numerous semi-private companies to circumvent sanctions imposed on the regime ruling #Iran and engaging in large-scale smuggling operations," writes @shahriarkia https://t.co/genvxrs91b
— NCRI-FAC (@iran_policy) May 18, 2023
Further emphasizing the extensive smuggling problem, the Fars state news agency in 2019 disclosed the influx of smuggled goods through various official routes. These illicit activities severely affect employment and domestic production, undermining Iran’s economy. According to government experts, these activities are mostly controlled by entities referred to as the “smuggler brothers,” associated with the influential IRGC. They reportedly handle about one-sixth of the country’s total liquidity.
Mehdi Nasiri, a former editor-in-chief of the Kayhan newspaper, drew attention to these smugglers’ influence in April 2023. His commentary underscored the substantial benefits reaped by the “smuggler brothers,” and how their activities serve the interests of certain powerful individuals and their families.
Yaser Jebreili, a former state official, corroborated these findings in a recent conversation with the regime’s Aflak network. He disclosed the considerable profits accumulated by currency smuggling companies, with one company making a net profit of 108 trillion tomans within a single year.
Despite the regime’s leader, Khamenei, having admitted that smuggling accounted for 25 billion dollars, a recent claim of 20 billion dollars does not indicate a decline. According to Eqtesad News, Iran’s economy has significantly shrunk over the past five years, implying that the proportion of smuggling has effectively doubled.
This situation has exacerbated poverty and inequality, further highlighting the need for a comprehensive political solution to address systemic issues deeply ingrained within the regime. Overthrowing the corrupt rule is becoming increasingly necessary to protect the country’s future.