Iran taps sovereign wealth fund again to stabilise food supplies

Iran has once again turned to its sovereign wealth fund to finance essential imports, highlighting growing pressure on an economy strained by war, inflation, and a rapid weakening of the national currency.

A government task force on food security and living standards announced that $1 billion from the National Development Fund will be allocated to import basic goods, including sugar, rice, red meat, and animal feed, Caliber.Az reports, citing Iran International.

The move comes alongside a government decision to continue subsidising critical imports, despite earlier plans to scale back such support.

It marks the second time in two years that the fund has been used to finance essential purchases.

While the fund’s total reserves are estimated at around $40 billion, part of these resources are also expected to be directed toward rebuilding war-affected industrial sectors, particularly steel and petrochemicals.

This has fueled growing debate over how the funds should be allocated.

By Bakhtiyar Abbasov