Unprecedented Renaissance.. Iraq’s Economy Recovers And Its Debts Fall To “Lowest Levels”
Money and business Economy News – Baghdad The country has witnessed an unprecedented economic renaissance, as ambitious government plans have achieved remarkable successes, most notably food security, achieving self-sufficiency in grains, stimulating markets and creating competition between them, in addition to economic growth and reducing foreign debt to its lowest levels.
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, said: “The government has worked to establish a solid food security system based on the successful integration of agricultural and financial policies,” indicating that “government support for grain producers has been a safety valve in encouraging agricultural production of grain crops,’
which in turn has encouraged farmers to provide nearly 6 million tons of grains during the year 2024, which is the quantity that matches the country’s need for grains, and is considered one of the gateways to self-reliant food security,” according to the official agency.
He explained that “these measures were accompanied by providing the food basket with types and quantities that affect the lives of 40 million citizens, in addition to the move to revive the markets, which is a type of competitive commercial investment.”
He pointed out that “the General Company for Central Markets is one of the formations of the Ministry of Trade, as it announced its new policy last March, that it will continue to refer its sites and markets to investment in accordance with the requirements of Investment Law No. 13 of 2006, as amended, in order to achieve economic balance and support the Iraqi consumer.”
He added that “the marketing policy of the General Company for Central Markets, through the strategy of partnership between the state and the private sector, has undertaken to activate a pattern of market stability by providing competitive marketing outlets that meet the needs of the poor and low-income classes, through the best consumer products in terms of quality assurance and price stability,”
stressing that “this issue is consistent with the pivotal role played by the Competition and Anti-Monopoly Council issued under Law 14 of 2010, which aims to protect purchasing rights from monopoly and manipulation.”
He added, “The supervisory and regulatory role of the Ministry of Commerce in regulating central markets comes within the framework of what can be called (competitive central consumer markets), which are markets that witness strong competition between companies and sellers to provide consumer products and services, as companies compete to offer the best prices, and ensure product quality and quality services to attract consumers, which leads to improving the overall consumer experience.”
He added, “Competitive central markets that operate on the basis of investment by the private sector are characterised by the following:
1- Diversification of products, by providing a wide range of products and services from different brands.
2- Creating a sustainable climate of competitive prices and suppressing monopoly, as sellers will seek to offer price promotions and discounts to encourage customers to buy.
3- Providing logistical services to consumers, which are added services such as delivery services, loyalty programs, or after-sales services that increase the attractiveness of the market.
He added, “Companies displaying their products in competitive central markets will practice ‘innovation’ by offering new or innovative solutions to their products or how they are presented, to remain attractive in a new climate of competition in organised markets.”
He noted that “competitive central markets will rely on strong distribution systems to provide access to them, enabling consumers to easily access the products offered by central markets.”
He added, “Competitive investment-based central markets will enable companies with solid brands to benefit from the capacity and role of central markets throughout the country to always offer something distinctive that suits the lifestyle and ways of life by improving their products using the best technologies to increase their market share.”
As for indicators of stability and economic growth, Saleh stated that “growth in the non-oil GDP has reached 6 percent, in light of the very moderate price growth rate, and according to the latest figures, it has only exceeded 3.7 percent annually, which means that the country is witnessing high price stability and development.”
He pointed out that “Iraq’s external debts have fallen to their lowest level in the last forty years, not exceeding $10 billion, and the government is following a precise program to settle the external debt, which constitutes less than 9 percent of the country’s total foreign exchange reserves, which are close to $108 billion, and are the highest foreign reserves in the country’s monetary and financial history.”
For his part, researcher and specialist in financial and banking affairs, Mustafa Hantoush, confirmed that “the Iraqi economy during the past three years has witnessed a number of correct trends, including:
1- Supporting the private sector with Law No. 18 of 2023 (Workers’ Retirement), which will guarantee retirement rights for all workers in Iraq.
2- Supporting the culture of electronic payment that would provide high-level financial and banking services to the citizen, as well as determining the liquidity position and having a financial reading of the market.
3- Work seriously to complete the designs and requirements for starting the (Development Road) project, which is considered the basis for opening the transportation economy to Iraq, and which is a complementary project to the Faw Port.
4- Establishing the (Service Effort) Committee, which provided tangible services in the capital, Baghdad, after long years of neglect, which would stimulate the labor and construction market in the capital and reduce transportation costs and time.
5- Heading towards residential complexes (adjacent to cities) and renegotiating with the Korean Hano Company.
He pointed out that, “Despite these measures, the Iraqi economy still needs many steps, including:
1- Effective monetary policies (lending – attracting deposits – financing investment) that would create a cash cycle from surplus to deficit.
2- Building the private sector through an accelerated pace using models (private sector budget – loan budget) that will activate the infrastructure of the private sector (cities or industrial or agricultural or tourist areas – roads to serve investment – investment electricity) with an available and known loan budget with reasonable conditions.
3- Protecting the local product through (the state purchasing the local product – closing borders and unofficial outlets – industrial and agricultural dollars).
4- Effective international negotiation on files such as (producing 25 thousand megawatts of electricity on credit with Siemens – establishing the international company for the port of Faw – increasing Iraq’s share of oil production and export).
5- Establishing a sovereign investment fund (domestic) in dollars after negotiating with the American side, to which part of the oil revenues in dollars will go and which will be invested in safe local investments such as (real estate – oil and gas investments) and others.
6- Establishing a real estate policy consisting of (real estate reconciliation with agriculture – supporting economic construction complexes – distributing land to those entitled to it – launching funding for well-studied housing initiatives).
In turn, researcher and academic Haitham Al-Khazaali explained that “the political stability that resulted from the government’s balanced policy, avoiding crisis management and focusing on achieving economic progress is what affected the stability of the security situation and then achieved economic stability.” He added, “The economy is linked to security and reliance on political stability.” 33 views 2024/09/12 – https://economy-news.net/content.php?id=47513
Economist: The Interests Of Producers And Consumers Are Achieved Through A Fair Price For Oil
Baghdad Today – Baghdad Economic expert Nabil Al-Marsoumi confirmed, today, Wednesday (September 11, 2024), that the fair price of oil is the one that achieves the interests of producers and consumers together.
Al-Marsoumi said on his Facebook platform, which was followed by “Baghdad Today”, that “the fair price of oil is the one that achieves the interests of producers and consumers together, that is, the price that achieves good financial revenues for producers that enable them to return part of it to renewing and increasing oil production capacities.”
He added: “It also enables consumers to obtain oil at reasonable costs that facilitate economic growth in it,” explaining: “The price can be set in the seventies as a fair price for both parties, but when the price falls below $70, it achieves the interests of consumers because it enables them to obtain energy at a cheap cost and thus reduce the prices of production inputs and increase the competitiveness of their produced goods.”
He continued: “But on the other hand, it is harmful to the producing countries because it reduces their oil revenues and discourages investment in developing oil production. Conversely, when the price is $80 and up, this price is harmful to economic growth in the consuming countries and reduces the demand for oil in the long term, even though it achieves large revenues for the oil producing countries.”
Oil prices are witnessing a noticeable decline, especially in futures contracts, which experts believe may affect Iraq’s rentier economy and consequently the state and the citizen. LINK
Parliamentary Request To Host Al-Sudani Amid Threats To The Federal Court
Posted On 2024-09-12 By Sotaliraq MP Hadi Al-Salami revealed, on Thursday, that he had submitted a parliamentary request to the Acting Speaker of Parliament, Mohsen Al-Mandalawi, to host Prime Minister Mohammed Shia Al-Sudani.[/size]
Al-Salami said, “I submitted the request to host the Prime Minister in a special session to discuss the reasons for withdrawing the Federal Civil Service Bill from Parliament and not sending it back to the Council.”
He explained that “the Federal Civil Service Law is one of the important laws that serves employees and addresses the salary crisis, especially the salary scale for state employees. The government must send the law to Parliament for approval.”
[size=45]Al-Salami continued, “If the Presidency of the House of Representatives does not respond and does not agree to the request to host the Prime Minister, we will go to the Federal Court to file an appeal against the government regarding its failure to comply with the instructions of the budget law and its failure to send the civil service law to Parliament.”
Among the most prominent laws that were withdrawn by the government of Prime Minister Mohammed Shia al-Sudani, in addition to the Federal Civil Service Law, are the Compulsory Military Service Law, the Law on Addressing Residential Encroachments, the Reconstruction Council Law, the amendment to the Companies Law, the first amendment to the Iraqi National Oil Company Law, and the second amendment to the Public Roads Law. LINK
