Prime Minister’s Advisor: Tax Deposits Are Part Of The Budget And Are Dependent On Government Spending.
Economy | 10:56 – 02/05/2025 Mawazine News – Baghdad: The financial advisor to the Prime Minister, Mazhar Mohammed Salih, confirmed today, Friday, that tax deposits are part of the budget that can be relied upon to adjust government spending, while specifying the financial scope for government spending from tax deposits.
Salih stated that “the world is living in a state of anticipation for fear of entering a phase of economic contraction, and then a great economic depression. This phase takes six months during which growth and unemployment levels in the global economy are monitored.”
He pointed out that “Iraq is an important part of the world’s energy system, as a 1% decline in the global GDP will undoubtedly lead to a half-percent decline in oil demand, leading to a supply glut, which requires a cautious policy from OPEC+ to help the group’s countries protect their financial budgets for 2025 and the beginnings of the next fiscal year, 2026.”
He added, “There is a precise technical hedge to confront the oil asset cycle, which the legislator assumed when approving the three-year federal general budget (Law No. 13 of 2023, as amended), by adopting a conservative oil price of $70 per barrel of exported oil, with an export rate of 3.4 million barrels of oil per day.
” He explained that “this hedge is in two directions: the first is spending with a comfortable budget, but at the minimum possible limit of 160 trillion dinars annually instead of 200 trillion dinars annually, and the second direction: spending at the maximum limit while hedging with a maximum annual deficit of 64 trillion dinars.”
Saleh continued, “In the 2024 budget, spending was within the comfortable minimum of 156 trillion dinars, with an average oil price of around $75 per barrel. This spending covered the entire operating budget, including salaries, wages, pensions, social care, and support, in addition to spending on more than 8,000 suspended government investment and service projects.
” He pointed out that “government borrowing, most of which is from domestic borrowing sources, recorded a financing indicator in the budget deficit of 7.6% of GDP, compared to 1.3% in 2023.”
He pointed out that “if oil prices fall to an annual average of $60, which is the maximum possibility in the 2025 budget, there are two options: either spending around 130 trillion dinars and keeping the deficit financing ratio to GDP the same as in 2024, or spending up to a ceiling of 156 trillion dinars and accepting actual borrowing in bonds that rises to 9% of GDP in order to secure salaries, wages, pensions, social care, support and spending on service projects without interruption, taking into account the drop in oil prices and the contraction in GDP growth in a double manner.” https://www.mawazin.net/Details.aspx?jimare=261077
Revealing The Progress Rates Achieved In The Grand Faw Port
Money and Business Economy News – Baghdad The Ministry of Transport revealed on Friday the latest developments in the Strategic Development Road project, confirming its commitment to the set timetables. It also announced the progress achieved at the Grand Faw Port.
Ministry of Transport spokesperson, Maitham Al-Safi, said, “Work is currently underway to complete the preliminary designs, in preparation for moving to the detailed design phase, in cooperation with specialized consulting firms such as the Italian company (Betti B) for the engineering aspect, and the Oliver Wyman company for financial consulting,” stressing their “commitment to the specified timetables.”
He pointed out that “the Faw Port project, which is the largest component of the development road project, is witnessing remarkable progress, as five berths have been received, and the completion rate of the navigation channel has reached approximately 85%, while the line linking Faw Port and Umm Qasr City has reached 99%, and this line is scheduled to open and be received next May, and the completion rate of the container yard has reached approximately 90%.”
He continued: “Regarding the submerged tunnel in the Khor Al Zubair Canal, the third piece out of ten pieces has been registered, adhering to the timelines,” noting: “This tunnel is a unique engineering project in the Middle East.”
Al-Safi explained that “other components of the development road project include land and rail transport lines,” stressing that “the end of this year will witness the completion of the detailed designs, after which the project will be offered to international companies for implementation.” He noted that “the project will be divided into several sections to allow the largest possible number of companies to compete.”
He pointed out that “local committees have been formed in the governorates to assist in implementing the development road project. The most recent meeting was with Baghdad Governorate, which will be covered by the project over a distance of 23 kilometers. This region will have the opportunity to benefit from the project.”
He added, “The largest industrial city will be built in the port of Faw, along with a tourist resort, a petrochemical plant, and water desalination plants. On both sides of the road, several factories and laboratories will be established to address a number of important issues, in line with the infrastructure needs, as well as the raw materials required for these governorates.”
He stressed that “the government has set coordinates for 15 industrial cities that will be linked to the development road project, in addition to a comprehensive plan to connect other governorates not directly covered by the road via internal lines.”
Al-Safi added, “As planned, the project includes 27 volumes covering all issues that would achieve local and global economic integration, as the project aims to connect East and West.” https://economy-news.net/content.php?id=55039
Oil Prices Fall To Around $62 A Barrel Ahead Of OPEC Meeting
economy | 09:20 – 02/05/2025 Mawazine News – Follow-up: Oil prices witnessed sharp fluctuations at the end of the week, as traders balanced the possibility of increased supplies from the OPEC+ alliance against the risks of the trade war on demand.
Brent crude fell to $62 a barrel, heading for a weekly loss of more than 7%, while West Texas Intermediate crude stabilized near $59.
The Saudi-led alliance is scheduled to meet next Monday to set supply policy for June, following a report that indicated the possibility of agreeing to a new production increase. https://www.mawazin.net/Details.aspx?jimare=261072
Prime Minister: Iraq Will Not Only Host The Arab Summit, But Will Also Provide Solutions To Various Crises
Friday, May 2, 2025 10:49 | PoliticsNumber of reads: 392 Baghdad / NINA / Prime Minister Mohammed Shia Al-Sudani stressed on Friday that Iraq will not only host the Arab Summit, but will also provide solutions to various crises.
The Prime Minister said in a television interview, according to the official agency: “Iraq will not only host the Arab Summit, but will also be an initiator, providing solutions to the various crises and challenges facing the region.
The presence of the Syrian President at the summit is important, regardless of the political process and the method of change, in order to clarify to the Arab countries a vision for the new Syria,” noting that “most Arab countries are keen for Syria to overcome its decades-long ordeal, and we will spare no effort in supporting Syria and respecting its choices.”
He added: “We have distinguished relations with Iran and the United States, and the dialogue between them is an important step.
The success of the negotiations between Iran and the United States will not only reflect on the countries of the region, but also on Iraq, which has faced challenges due to the tense relationship between the two countries.
” He pointed out that “we have a successful experience in the security file between Iraq and the United States in leading the international coalition to confront ISIS, and it is hoped that the third round between Iraq and the United States will be in Baghdad to mature a joint security working formula.”
He pointed out that “the Palestinian issue will remain the root of the problem in the Middle East, and it is time for a radical solution to it,” stressing that “Iraq cannot be subordinate to any country. Iraq is a meeting point, not an arena for conflict. The democratic model in Iraq is unique, with freedom, a constitution, and a peaceful transfer of power. Iraq is experiencing its best situation since the founding of the modern state, as the previous regime executed my father and five members of my family during the Iran-Iraq war.”
Al-Sudani explained that “Iraq imported cars from America worth 4.5 billion during 2024, and the volume of investments inside Iraq amounted to more than 88 billion dollars, while Iraq ranks first in the world in sulfur reserves, and second in the world in phosphate,” noting that “our projects are continuing in the field of completing the infrastructure, and we have started talking with all friendly and sisterly countries to recover the smuggled funds.” https://ninanews.com/Website/News/Details?Key=1224212
Gold Suffers Weekly Losses Of More Than 2%
Economy | 10:41 – 02/05/2025 Wazin News – Baghdad – Gold prices rose on Friday, but were on track for their worst weekly performance in more than two months amid easing trade tensions, as safe-haven demand dwindled.
Spot gold rose 0.3% to $3,252.02 per ounce, while US gold futures rose 1.2% to $3,261.00.
The yellow metal has fallen more than 2% since the beginning of the week, its biggest weekly decline since late February.
Investors in global markets are awaiting the release of the US non-farm payrolls report later in the day for further clues on the direction of the US Federal Reserve’s monetary policy.
Among other precious metals, silver rose 0.2% to $32.47 per ounce, platinum rose 0.8% to $966.08, and palladium rose 0.3% to $943.50. https://www.mawazin.net/Details.aspx?jimare=261076
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