TEHRAN – A senior official at the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) said manufacturers are being squeezed by stagflation and a tightening liquidity crunch, warning that the dual pressures threaten production capacity unless urgent corrective steps are taken.

Hossein Pirmozden, the chamber’s deputy head, told Iran Chamber Online that weak domestic demand has curbed sales and reduced cash flow across industrial units, leaving many producers struggling to maintain operations.

He said a recent Central Bank directive tying loan payments to firms’ internal resources had further restricted access to working capital, complicating purchases of raw materials and payment of wages.

The official added that currency constraints, limited access to trade finance instruments, banking sanctions and difficulties entering foreign markets have deepened financial stress for manufacturers. Burdensome regulations and opaque government service platforms, he said, have also made it difficult for businesses to receive reliable responses to operational issues.

Pirmozden said the pressures could be partly mitigated through five policy measures: reforming banking rules, expanding targeted government support packages, strengthening economic diplomacy to open markets, advancing regulatory and transparency reforms and improving firms’ own management of working capital.

EF/MA