The administration continues to follow the market reform plans of the previous one, and indicates that it will diversify Iran’s oil-reliant economy. Iran has also developed a biotechnology, nanotechnology, and pharmaceutical industry. However, nationalized industries such as the bonyads have often been managed badly, making them ineffective and uncompetitive with years. Currently, the government is trying to privatize these industries, and, despite successes, there are still several problems to be overcome, such as the lagging corruption in the public sector and lack of competitiveness.
Iran has leading manufacturing industries in the fields of automobile manufacture, transportation, construction materials, home appliances, food and agricultural goods, armaments, pharmaceuticals, information technology, and petrochemicals in the Middle East. According to the 2012 data from the Food and Agriculture Organization, Iran has been among the world’s top five producers of apricots, cherries, sour cherries, cucumbers and gherkins, dates, eggplants, figs, pistachios, quinces, walnuts, and watermelons.
Economic sanctions against Iran, such as the embargo against Iranian crude oil, have affected the economy. Sanctions have led to a steep fall in the value of the rial, and as of April 2013, one US dollar is worth 36,000 rial, compared with 16,000 in early 2012. In 2018, after the withdrawal of the US from the JCPOA, the price of dollar hit an all-time high at just over 190,000 rials, which halted the market from trades and stores from selling goods, particularly in the consumer electronics sector until the prices were stable. In 2015, Iran and the P5+1 reached a deal on the nuclear program that removed the main sanctions pertaining to Iran’s nuclear program by 2016.
Iran has a long paved road system linking most of its towns and all of its cities. In 2011 the country had 173,000 kilometres (107,000 mi) of roads, of which 73% were paved. In 2008 there were nearly 100 passenger cars for every 1,000 inhabitants.
Trains operate on 11,106 km (6,942 mi) of railway track. The country’s major port of entry is Bandar-Abbas on the Strait of Hormuz. After arriving in Iran, imported goods are distributed throughout the country by trucks and freight trains. The Tehran–Bandar-Abbas railway, opened in 1995, connects Bandar-Abbas to the railway system of Central Asia via Tehran and Mashhad. Other major ports include Bandar e-Anzali and Bandar e-Torkeman on the Caspian Sea and Khorramshahr and Bandar-e Emam Khomeyni on the Persian Gulf.
Dozens of cities have airports that serve passenger and cargo planes. Iran Air, the national airline, was founded in 1962 and operates domestic and international flights. All large cities have mass transit systems using buses, and several private companies provide bus service between cities.
Transport in Iran is inexpensive because of the government’s subsidization of the price of gasoline. The downside is a huge draw on government coffers, economic inefficiency because of highly wasteful consumption patterns, contraband with neighboring countries and air pollution. In 2008, more than one million people worked in the transport sector, accounting for 9% of GDP.
Total: 11,106 km Plan to increase total railways length from 13,500 km in 2016 to 20,000 km by 2025.