Iranian President Masoud Pezeshkian, in his first televised interview since taking office, stressed the importance of foreign investment and international relations to achieve economic growth, IRIB reported on August 31.

Pezeshkian, who acknowledged Supreme Leader Ayatollah Ali Khamenei's role in his election, said Iran needs $200bn in investment to reach 8% economic growth, half of which must come from foreign sources, including Iranian expatriates based in the US.

“What experts and economists say is that to reach 8% economic growth, we need 200 to 250bn dollars in investment. Increasing investment within the country is possible with increased productivity, but the total money we have in the country is more than $100bn, meaning if we collect all the money available, we can only invest $100bn, so we need at least $100bn in foreign investment to achieve 8% economic growth,” he said

The president highlighted challenges in achieving the growth target, citing imbalances in the electricity sector and banking system.

"We must first resolve the energy imbalance. Achieving 8% growth is impossible with deficits in electricity or banking," he stated.

“Consulting experts is one of the points emphasised by the government, so we can derive models from different ideas and act to create the necessary stability in society,” he said.

Pezeshkian emphasised the link between economic progress and foreign relations, saying, "We must resolve domestic disputes and problems with neighbours and the world."

The World Bank forecasts Iran's GDP growth to decline from 5% last year to 3.2% this year, further dropping to 2.4% by 2026, as the country is starved of continued foreign direct investment and its backbone industry of oil and gas continues to suffer a lack of investment by international majors.

Iran last experienced growth above 8% in 2016, following the approval of the nuclear deal known as the JCPOA; however, that economic growth was cut short with the election of President Donald Trump, who placed fresh sanctions on the country, forcing international players to pull out.

The President pointed out that this issue is related to our foreign relations and Iranians abroad, stating, "Both our Ministry of Foreign Affairs must strive in this regard, and our outlook on various issues must be corrected, and that internal unity and cohesion must be created."

"First, we must assure investors that we will provide the environment for their flourishing and remove the legal obstacles from their path; this is what we are pursuing. We have unity with the Judiciary, Parliament, and the Supreme Leader. If we have the will and investors are assured that we will stand behind them, then instead of capital leaving the country, they will bring their money into the country themselves."

The president also said he would consult Ayatollah Khamenei regarding his potential trip to New York for the UN General Assembly which would be his first international test and potential discussions with Iranians based in the US.

It remains to be seen if he will meet with groups opposed to the Islamic Republic’s founding.  

Iran has been grappling with economic challenges exacerbated by US sanctions reimposed after Washington's 2018 withdrawal from the nuclear deal.

Pezeskhian’s discussions on television come hours ahead of a decision by the presidency and the supreme leader’s office to tap into the national wealth fund to use $100bn of its resources to fund the government.

The frequent tapping of the National Development Fund has raised concerns among some officials. Mehdi Ghazanfari, the fund's head, warned last December that the government had borrowed over $100bn from the fund in the past 12 years, expressing doubt about repayment prospects.