Iran’s pharmaceutical industry grapples with currency, electricity crises

Mahmoud Najafi Arab, head of Tehran Chamber of Commerce for Industries, Mines and Agriculture (TCCIMA) stated that Iran’s pharmaceutical and medical equipment sectors are struggling to secure both foreign currency and local rials, in an interview with state-affiliated ILNA News agency on Saturday.

"There is a problem of foreign currency supply in all industries, and the pharmaceutical and medical equipment industries are no exception," he stated. This financial strain hinders the companies' ability to obtain the necessary working capital and import essential medicines.

Iran's export revenues have drastically declined because of US oil and banking sanctions. The stringent government control over imports and the private-sector also exacerbates these difficulties, making it increasingly challenging for the industry to operate smoothly.

Adding to the financial woes, power outages have become a regular occurrence, affecting drug production units across the country. "This industry, like other industries in the country, is affected by power shortages, and spends these hot days of the year with power outages," Najafi Arab said. These blackouts, occurring twice a week, disrupt manufacturing processes and contribute to the industry's ongoing struggles.

Persistent power cuts due to aging infrastructure and natural gas shortages have caused significant disruptions in Tehran's industrial hub. Each outage severely impacts industries, taking about 24 hours to restart operations, thereby increasing losses.