TEHRAN – Iran will continue its efforts to lift international sanctions, but the more critical goal is to “neutralize” their effects by strengthening domestic capabilities, Foreign Minister Abbas Araghchi said on Thursday.
Speaking on the sidelines of the closing ceremony of the second regional meeting on provincial diplomacy in Mashhad, Araghchi outlined a strategy for tackling Iran’s economic challenges amid continued U.S. and Western sanctions.
“The Ministry of Foreign Affairs will continue the mission of lifting sanctions with seriousness,” Araghchi said. “But alongside that, there is a more important mission, which is to ‘neutralize sanctions’ and ‘neutralize external pressures’ by activating domestic capacities.”
He emphasized that Iran’s economic difficulties are largely linked to underutilized domestic potential rather than sanctions themselves. “Sanctions have their costs and pressures,” Araghchi said. “But the reality is that we have not yet fully utilized our domestic capabilities and talents.”
The top diplomat outlined plans to leverage sectors including trade, tourism, and industry to mitigate the impact of sanctions, arguing that full use of domestic capacities would allow Iran to meet its economic needs without relying solely on international agreements.
Araghchi also promoted the concept of provincial diplomacy, highlighting the potential of Iran’s border provinces and neighboring countries. 
“We believe there are many capacities in neighboring countries and provinces, and we need provincial diplomacy to connect these capacities,” he said, citing Afghanistan, where official trade exceeds Iran’s total trade with Europe, as an example.
He stressed that transforming border areas from points of restriction into hubs for trade, transit, and tourism would support economic growth. Simplifying regulations, creating incentives for exporters and economic actors, and accelerating legal processes could boost employment, production, and exports, he added.
Linking national diplomacy with local and regional resources, Araghchi expressed confidence that these measures would soon yield tangible benefits in enhanced trade, transit, and international cooperation.