ICCIMA head announces improvement in economic activities after war shock

TEHRAN- The head of Iran's Chamber of Commerce stated that Iran's economy, following the shock caused by the war, has moved past the stage of severe decline and the trend of economic activities is once again resuming.

He described this trend as a hopeful sign of the efforts and dedication of the private sector and business owners, adding that the temporary reduction in the intensity of shocks compared to the months of Esfand 1404 (February-March 2026) and Farvardin and Ordibehesht 1405 (March-May 2026) has also contributed to this relative improvement.

Samad Hassanzadeh also referred to the role of the government and the president in developing international interactions and stated that continuing this trend requires further movement in the field of foreign relations.

The head of Iran's Chamber of Commerce also appreciated the president's order to prevent power cuts to industries in Shahrivar (August-September), saying that the president has emphasized to the ministers of Industry, Mining and Trade and Energy that industries should not be prioritized for power cuts in order to prevent production stoppages, preserve employment, and prevent unemployment.

He added that based on the decisions made, efforts will be made to avoid cutting power to industrial towns and production units in Shahrivar as much as possible, and the necessary infrastructure for implementing this order will also be provided."

The 35th session of the 10th term of the Iran Chamber of Commerce Representatives Assembly convened to address two primary agendas: reviewing the business support package under war conditions and examining a Board of Directors resolution on increasing membership fees, entrance fees, and certificate of origin issuance costs. The session brought together private sector representatives to discuss the country's economic situation and chart a path forward.

Samad Hassanzadeh, Head of the Iran Chamber, opened the session by expressing hope for peace, security, and prosperity during the month of Rabi' al-Awwal. He extended gratitude to the Leader, the President, and government officials, emphasizing support for negotiations that preserve Iran's dignity and honor while enabling economic actors to fulfill their development duties.

Hassanzadeh delivered encouraging news about Iran's economic trajectory. The latest Purchasing Managers' Index (PMI) for Khordad 1405 (May-June 2026) indicates that Iran's economy has moved past the severe decline phase following the war shock. Economic activities are resuming, reflecting the dedicated efforts of the private sector and a temporary reduction in shock intensity compared to earlier months. He emphasized that sustaining this improvement requires greater international engagement and called for continued efforts in foreign relations.

In a significant development, Hassanzadeh praised the President's order to prevent power cuts to industries in Shahrivar (August-September). The President has instructed the Ministers of Industry and Energy that industries should not be prioritized for power cuts, aiming to protect production, employment, and prevent unemployment. Infrastructure for implementing this directive is being prepared.

-------------------Role of technology and innovation

Afshin Kolahi, Head of the New and Knowledge-Based Businesses Commission, highlighted modern technologies as critical for increasing enterprise resilience and competitiveness. He noted that SMEs constitute 94% of industrial enterprises, provide 44% of industrial employment, but contribute only 15% of industrial value-added—a sign that policymakers may have miscalculated by prioritizing large industries. He urged the Iran Chamber to move beyond advocacy and practically help companies adopt technology and innovation, citing international examples from Singapore, Finland, Denmark, and the Istanbul Chamber of Commerce's 40% stake in Istanbul Technology Park.

-------------------Government support and private sector resilience

Government Spokesperson Fatemeh Mohajerani praised the private sector for maintaining production and distribution during the Ramadan War and the Battle of Hormuz, preventing shortages. She affirmed the government's commitment to supporting the private sector as a strategic partner in policymaking and acknowledged existing obstacles, expressing confidence in overcoming them together.

Alireza Mohammadi Daniali presented a vision for economic growth, emphasizing that development requires two strong wings: a powerful, development-oriented government and a capable, organized private sector. He noted the stark economic reality: since 2018, the dollar rate has increased 50-fold while goods and services prices rose 19-fold. Though 400,000 people were added to the employed population, the industrial sector lost 630,000 jobs.

Arash Alavi delivered a powerful critique of the command economy, arguing that the Iran Chamber's primary role should be ending such policies. He highlighted how command pricing harms industries—forcing companies to buy raw materials at high prices while selling at controlled rates—and is often disguised in populist language like "fair profit" and "supporting domestic production," making it difficult to resist. He proposed creating an agile monitoring body to assess the damages of command pricing and raise public awareness.

-----------------Crisis management and support package implementation

Keyvan Kashfi reviewed the business support package under war conditions, identifying a paradox in crisis management. Effective crisis management requires speed in decision-making, coherence in implementation, and stability in rules—all areas where Iran has faced challenges. He noted incomplete implementation, coordination issues among institutions, and systemic limitations. The Chamber extracted 53 operational proposals covering tax and social security issues, but enacting all proved impractical in the short term. He emphasized that the emergency situation continues, so support policies should be extended. The package has been extended until the end of Shahrivar (September), while some import deadlines were extended to 180 days due to port closures.

Secretary General Abolfazl Roghani Golpayegani justified the proposed fee increases, citing cumulative inflation of about 300% over three years and a 4.6-fold increase in the exchange rate. The certificate of origin fee of 650,000 tomans, set in 2022, no longer covers printing costs. After debate, 62% of members approved the increases. Starting next year, the entrance fee will be 10 million tomans, annual membership for individuals 8 million tomans, and for legal entities 50 million tomans.

----------------Post-war reconstruction and modernization

Payam Bagheri presented a strategic vision for the post-war period, drawing on international experiences where major economic leaps followed crises—Germany, Japan, and South Korea. Iran faces two missions: reconstruction (rapid recovery) and modernization (redefining its role in the regional and global economy). Reconstruction takes priority and requires confidence-building through policy stabilization, speedy decision-making with private sector participation, bureaucracy reduction, monetary and banking reform, and fighting corruption. Livelihood and employment support, especially for lower-income groups, is essential.

Bagheri outlined six steps: stabilization and confidence-building, livelihood and employment support, effective labor market measures, strengthening SMEs, value-chain-based reconstruction, and increasing resilience. He emphasized that reconstruction is a prelude to modernization, and Iran must not stagnate. In the new global economy, power is shifting from natural resource ownership to networking. Iran must achieve a position in global value chains from which it cannot be easily excluded, leveraging its natural reserves, access to open waters, and human capital to build a competitive, supply-and-demand-driven economy connected to regional and global networks.

MA