The financial bankruptcy of the Iranian government at the end of the reign of Moḥ ammad Shah Qajar (1808 – 1848 AD) is an undeniable fact, which its causes are still unclear. Most sources in the Nasserian era, as well as recent researches, have attributed this situation to the financial policies and activities of Ḥ ā jjī Mī rzā Ā qā sī , grand vizier of Moḥ ammad Shah. However, other structural and fundamental factors appear to have been involved in the formation of this crisis: besides the inherited financial problems, the unrest during the early years of the Moḥ ammad Shah's reign, the war in Herat, famine, and cholera also could be mentioned. The present study, based on official documents, examines the political and economic situation in Iran during this period and analyzes the essential factors related to this crisis. The result of the study shows that not even Ḥ ā jjī Mī rzā Ā qā sī 's financial policies were not responsible for the bankruptcy, but also his activities, at least in the short term, improved the national economy. The increasing unrest during the final years of Moḥ ammad Shah's reign, the central government's ineptitude in collecting taxes, the corrupted financial system, the coins transferring from the country, the increase in assignments of land (tū yū l) as a result of lack of liquidity, the reduce in treasury revenue and the fiscal imbalance were the situation at the end of Mī rzā Ā qā sī 's time.