Iran's Vice President Criticises Continued Internet Restrictions Her Own Government Put in Place

Why It Matters

Restoring international internet access could unlock significant economic growth and empower the largely female‑run home‑based sector, a key driver of Iran’s GDP. The stance signals potential policy tension within the regime amid broader geopolitical pressures.

Key Takeaways

• Iran lost at least $8 billion in economic output since internet shutdowns
• Vice President Behrouz‑Azar urges “pro‑internet” policy to boost home‑based businesses
• Home‑based firms rely on platforms like Digikala, Basalam, Rubika for sales
• Women lead 90% of family businesses, contributing 70% of global GDP

Pulse Analysis

The Iranian government’s decision to curtail international internet connectivity after the February 28 conflict has had a cascading effect on the nation’s nascent digital economy. Independent monitoring groups such as NetBlocks confirm that large swaths of the country have been offline for weeks, disrupting e‑commerce, fintech, and remote‑work platforms that depend on global data flows. Analysts estimate the shutdowns have already erased roughly $8 billion in economic activity, a figure that likely understates the broader loss of productivity, foreign investment, and innovation potential.

Within this constrained environment, Vice President Zahra Behrouz‑Azar’s call for a “pro‑internet” policy marks a rare internal critique. Speaking at the National Home‑Based Businesses Day, she argued that limiting access to the global web undermines the very foundation of a digital marketplace. Her emphasis on opening channels for platforms like Digikala, Basalam, and Rubika reflects a strategic pivot toward supporting home‑based entrepreneurs, many of whom are women. The proposed “1,000 Squares, 1,000 Markets” initiative aims to create a data exchange hub, standardising product offerings and facilitating cross‑platform coordination.

If Iran eases its internet restrictions, the ripple effects could be substantial. Restored connectivity would enable Iranian startups to tap into international supply chains, attract diaspora investment, and integrate with global payment systems. Moreover, a more open digital environment could bolster the resilience of family‑run enterprises—90% of which are female‑led—potentially increasing their contribution to the national economy. For foreign firms eyeing the Middle East, a policy shift would signal a more predictable regulatory climate, encouraging partnerships and market entry strategies that have been on hold since the conflict began.