Missile Cities at the Cost of Poverty for Millions Across Iran’s Geography

While millions of people across Iran’s geography live below the poverty line and the 2026 national budget deepens inflation and fiscal deficits, further shrinking household incomes, the Islamic Revolutionary Guard Corps (IRGC) continues to spend billions of dollars on building and expanding underground “missile cities.”

These massive projects, which began in 1984 and continue to this day, clearly reflect the priorities of the Tehran government: militarization over public welfare. According to multiple reports, IRGC missile cities have been constructed as deep as 500 meters underground, with extensive tunnel networks—sometimes stretching up to 8 kilometers—in provinces such as Yazd, Kerman, and other regions.

These facilities are designed for storing and launching ballistic and cruise missiles. In recent months, state media have even announced the unveiling of new missile sites. However, the actual costs of these projects have never been transparently disclosed, with independent sources referring to “billions in hidden expenditures”—funds drawn directly from public resources but diverted away from investment in production, employment, healthcare, and education.

A government-affiliated expert has acknowledged that the draft 2026 budget will make poverty affecting over 25 million people “deeper and more widespread,” calling the situation “shameful.” With inflation exceeding 40 percent, the national currency in decline, and between 25 percent to 50 percent of the population living below the poverty line, military and security spending has surged by up to 200 percent, with a significant share of oil and tax revenues allocated to missile programs.

IRGC commanders, including Rahim Nadali, have repeatedly described these missile cities as a “nightmare for enemies.” However, critics argue that such policies have fueled regional tensions and contributed directly to recent conflicts, including Israeli strikes targeting missile facilities, causing billions of dollars in direct and indirect damages.

The cost of each ballistic missile used in recent conflicts is estimated between 250,000 and 8 million US dollars. In a single round of escalation, hundreds of millions to billions of dollars of public wealth may have been spent.

Analysts consider this trajectory a clear example of systemic mismanagement under the leadership of Tehran’s ruling establishment, including Ali Khamenei and institutions affiliated with the IRGC. Instead of addressing urgent public needs such as controlling inflation, ensuring access to basic goods, healthcare, and employment, resources have been directed toward missile and nuclear programs that have intensified poverty while exposing the country to further sanctions and war-related losses.

The militarization of civilian areas, effectively turning them into “human shields,” alongside the erosion of livelihoods and the waste of national wealth on vulnerable military infrastructure, highlights the broader consequences of these policies.

Economic observers and opposition voices argue that this is not merely mismanagement but deliberate negligence. A government that has prioritized militarization for over four decades bears direct responsibility for the resulting war, inflation, unemployment, and widespread poverty.

Had these billions been invested in infrastructure, agriculture, and public welfare, millions across Iran would not be living in extreme poverty today.

Author: Saiedeh Bandar