Civil and military conflicts in neighbouring countries have surrounded Iran ever since its own war with Iraq came to an end in the late 1980s. Although the resource-rich country was able to recover from the war with Iraq, the continuous influx of refugees, especially from Afghanistan and Iraq, required international assistance.
In 2002, a tripartite agreement was signed between the governments of the Islamic Republic of Iran and Afghanistan and the UN Refugee Agency (UNHCR), outlining a four-year repatriation programme for Afghan refugees. According to the latest UNHCR reports, since the beginning of the Joint Programme for Voluntary Repatriation of Afghan Refugees and Displaced Persons in April 2002, the total number of Afghans who returned from Iran with UNHCR assistance is about 900,000. Many Afghans remain in Iran due to lack of peace, stability and resources in their home country.
Today, 950,000 Afghans and 50,000 Iraqi refugees live in Iran representing a burden on the local economy. In line with repatriation policy, the government limited areas where refugees can reside to certain parts of the country. Meanwhile, heavy fines for employers have discouraged companies and individuals from hiring refugees as casual labourers.
Moreover, the Government of the Islamic Republic of Iran implemented in December 2010 its economic reform plan and lifted blanket subsidies for fuel, water, electricity and wheat flour, from which refugees used to benefit and replaced it with targeted cash assistance to vulnerable Iranians only. This inevitably increased the living costs for refugees making them more dependent on UN assistance until they are repatriated.
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