Iran will distribute purchasing credit vouchers to all citizens covering four months in a lump sum payment, as President Masoud Pezeshkian ordered the comprehensive subsidy programme to include all income groups in an apparent effort to calm nationwide protests over economic conditions.

Government spokeswoman Fatemeh Mohajerani said the cabinet approved measures on January 4 to improve living standards, with the programme aimed at preserving purchasing power, controlling inflation and ensuring food security without directly referencing the ongoing protests currently rocking the country. 

The announcement comes as Iran enters its eighth day of protests triggered by the collapse of the rial and inflation exceeding 40%, with at least 16 people killed and 582 arrested across 60 cities in 25 provinces. The government has imposed internet restrictions in areas with high levels of protest activity.

Citizens will receive credit for the months for three months of the current year plus the first month of the next Persian year starting on March 21, deposited to their accounts in one payment for purchasing specified goods to reduce economic pressure.

"With this shift, certain goods will naturally see price increases, but the government intends to provide goods at fixed prices to the people," Mohajerani said. She said approximately 11 items would be available at fixed prices, with details to be determined.

Implementation begins in the next few days, with people able to make monthly purchases using the deposited amount. "At today's cabinet meeting, it was decided by presidential order to pay this amount to all people," Mohajerani said.

First Vice President Mohammad Reza Aref told the Supreme Housing Council on January 5 that governors have been granted authority to resolve problems during implementation of the comprehensive livelihood support and food security plan. He called the initiative a "major plan" whilst acknowledging potential difficulties during rollout.

The government previously announced the first phase would allocate IRR1mn ($23) in purchasing credit to 80mn citizens for four months, totalling approximately IRR80 trillion.

In response to worsening rioting across the country, Pezeshkian called for "respectful treatment of protesters" and warned against forceful methods, saying direct engagement with citizens plays an effective role in reducing psychological and social pressures as nationwide demonstrations entered their eighth day.

"Direct interaction with the people, listening to their concerns, demands and criticisms, and striving to convince public opinion plays an effective role in reducing psychological and social pressures," Pezeshkian told the 142nd cabinet meeting on January 4.

"Society cannot be convinced or calmed with coercive actions and incorrect methods."

The president ordered the Interior Ministry to exercise full supervision over how authorities treat citizens, saying interactions "must be accompanied by respect, dialogue and tolerance", state news agency IMNA reported.

Pezeshkian said any problems or shortcomings in society are the direct result of performance, requiring stakeholders and implementers to participate in decision-making across all dimensions.

"We must not distance honest, caring and critical individuals from ourselves, because fair criticism is the capital of governance," the president said, calling for dialogue-focused meetings between university professors and students.

He said Supreme Leader Ali Khamenei has approved the provision of the necessary financial resources to implement livelihood support plans.