BondLady’s Corner

  In Bondlady’s Corner 

More Iraqi News Saturday PM 1-2-20

TLM724 Administrator BondLady’s Corner

Will The Devaluation Of The Dinar Contribute To Reviving The Local Industry?

Reports  Economy News – Baghdad  The depreciation of the Iraqi dinar against the dollar caused disruption in local markets and a significant increase in prices, as most of the goods are imported and linked to the US currency .

This matter brought the Iraqi industry file back and activated it to the fore again, after decades of extinction and destruction that affected the industrial sector, amid demands to work to mitigate the damage resulting from the deterioration of the Iraqi dinar, by adopting the national industry that the country lacks .

Reducing the salaries of employees and the rise in the value of the dollar against the Iraqi dinar (1 dollar equivalent to 1450 dinars) caused great resentment in the country, according to a member of the Economy and Investment Committee in Parliament, Nada Shaker Jawdat .

Jawdat stresses that this decision is not a parliament’s decision and it is far from it, and the government is the one who took it and implemented it, without holding a parliamentary session to audit accounts, as it is not a law .

Jawdat warned of the repercussions of the decision to reduce the value of the Iraqi dinar, which led to an increase in the prices of goods and services, and all harm to the simple Iraqi citizen, due to corruption and mismanagement, as she put it .

And considered that the decision to reduce the value of the dinar came a devastating blow to the Iraqi people, due to the lack of control over the markets, which began to manipulate the situation of the simple citizen and worsen his livelihood .

In the same context, the Director of Information of the Ministry of Industry Mortada Al-Safi said that imported materials will be very expensive, as a result of the high price of the dollar as well as customs duties, while the national product is exempt from customs tariffs and taxes, and this difference will be an incentive to operate Iraqi factories, whether in the public or private sector .

Economic expert Hammam Al-Shamaa believes that the recession will increase in the Iraqi market, due to the decline in the purchasing power of the mass of employees after the decrease in the value of their salaries .

Al-Shamaa suggested that purchasing power will decline by 20%, due to the rise in prices, and thus will be reflected in the private sector, and this will lead to an further decline in GDP .

He pointed out that the activities of the real sector, such as agriculture and industry, do not depend on the exchange rate except in a very simple way, and this means that lowering the exchange rate of the Iraqi dinar gives the local product an opportunity to compete with imported products, meaning that Iranian, Turkish and other imported goods in the Iraqi market, It will be more expensive than before, according to Al Shamaa .

He added, “However, Turkish and Iranian commodities will remain at lower prices than the local ones, due to the devaluation of the Turkish lira and the Iranian riyal to very low levels, and thus their competitiveness remains higher than that of Iraqi goods .”

Also, the local product cannot produce all kinds of commodities required by the Iraqi market, there may be agricultural production of vegetables and some fruits, but it does not completely fill the market’s need – according to Shamaa – and therefore there remains a need for import .

For his part, the President of the Federation of Iraqi Industries, Ali Al-Saadi, welcomed the government’s decision to reduce import and help the local product to compete, and called on government agencies to support the fragile and vulnerable classes by supporting imported products that relate to the life of the citizen, as well as providing Iraqi manufacturers with subsidized raw materials to compensate for the shortage. , Leaving the luxuries, consumables and unnecessary items unsupported .

Al-Saadi revealed that there are 54 thousand registered projects in the union, as well as 21 thousand projects with the Industrial Development Directorate, and confirmed that about 90% of these vital projects have stopped due to the inability to compete, the lack of a safe business environment, and ideal infrastructure such as industrial cities .

The President of the Federation of Iraqi Industries noted that there is no real government support for the local industry, while imported materials are supported in their countries by export support funds .

And he indicated that the fees that the Iraqi manufacturer pays to state departments amount to more than 30 fees, and the cost of fuel and electricity is high and unsupported, and most national products are not protected by the product protection law, in addition to that there is intentional commodity dumping and suspicions of money laundering, according to Al-Saadi .

On government factories, Al-Safi explains that the number of factories and laboratories belonging to public companies is about 285, of which 83 are suspended .

Regarding the reasons for stopping factories, the Ministry of Industry Information Director mentions many reasons, including the old of these equipment; Because most of them have been used since 1960, and were subjected to consumption during the siege of the 1990s, due to continuous work and a lack of maintenance equipment at that time, as well as wars, and what they were exposed to at the hands of ISIS militants .

For his part, Al-Shamaa estimates the total stalled economic projects, with more than 50 thousand small and medium industrial projects, and may reach 100,000 disabled projects .

And he indicated that industrial production used to constitute 12% of the GDP, but it became less than 1% at the present time .

While Jawdat spoke about the existence of some influential figures who have industries outside the country, and they do not allow the establishment of a new industry inside Iraq, because they want Iraq to remain a consumer market for their products .

It expressed its regret at the war, mismanagement and corruption that Iraq suffers, and regional and international conflict targeting Iraq, as some countries are working to dump Iraq with goods to deplete its budgets .

The Ministry of Industry and Minerals developed a plan to promote Iraqi industry and restore the “Made in Iraq” reputation again. The plan was divided into 3 sections, short, medium and long term, according to Al Safi .

Work is currently underway on the first short-term plan, which includes operating factories and factories with less than 30% stoppage. He confirmed that 12 factories and factories of the Ministry of Industry and Minerals had been opened, as part of the short-term plan .

Al-Safi explains that these factories and laboratories are spread across Baghdad and all governorates, and varied between medical oxygen laboratories, medicines and asphalt laboratories, pipes that serve the infrastructure, a brick factory, and a factory for the production of electrical transformers .

And stresses the need for the public or private sector to invest the opportunity of the high dollar against the Iraqi dinar, which will push the citizen to acquire the local product .

While Al-Shamaa believes that changing the exchange rate will not be a magic tool to develop industry and give it the opportunity, but the real requirements for the rise of industry require abundance of capital, the return of late industries abroad, achieving security and stability, and putting weapons in the hands of the state .

Al-Saadi believes that the industry needs security and services, especially electricity, as well as activating its laws, such as the law on consumer protection that is legislated in parliament and not activated, and also the commodity monopoly law .

And he confirms that restoring confidence in the local product needs a very long period, because the local industry has not had a chance to succeed, as Iraqi governments after 2003 opened the door to imported goods.Number of observations 158 Date added 01/01/2021

An Iraqi Economic Institution Confirms The Decline In Iraq’s Financial Oil Revenues In 2020

Saturday 02, January 2021 09:42 | Economical Views: 369  Baghdad / NINA / The Future Iraq Foundation for Economic Studies confirmed that Iraq’s oil financial revenues will decline in 2020.

Manar Al-Obaidi, director of the corporation, said in a statement today: Iraq exported during 2020 / 1.096 / billion barrels with revenues of $ 41.7 billion at an average general price of $ 38 per barrel compared to 2019, as the amount of exports amounted to 1.287 billion barrels with revenues of $ 78.55 billion at a general rate It reached 61 dollars per barrel. ”

Yesterday, the Ministry of Oil announced the total exports and revenues achieved for the month of December, according to the preliminary statistics issued by the Iraqi Oil Marketing Company (SOMO), as the amount of crude oil exports reached (88) million (211) thousand and (750) barrels, with financial revenues that witnessed a slight increase, amounting to nearly (4) billion and (213) million and (432) thousand dollars.++

Representative Economy: The Incorrect Calculation Of The Total Federal Expenditures Is Behind The Increase In The Region’s Percentage In The General Budget

Saturday 02, January 2021 16:22 | Economical  Views: 73  Baghdad / NINA / The Parliamentary Economic and Investment Committee said that one of the reasons for increasing the region’s share in the general budget is the incorrect calculation of the total federal expenditures, whose value is subtracted from the total expenditure and then the proportion of the region’s share is extracted from the remainder.

A member of the committee, MP Mazen Al-Faily, indicated to the group of expenditures of a federal nature that were not counted within the sovereign expenditures, which are supposed to include all the security and defense sector expenditures (27.6) trillion dinars in all its institutions within the federal expenditures (sovereign).

He added, “The energy sector, amounting to (33.3) trillion, did not classify its expenditures within the federal (sovereign) except for the costs of unfair licensing rounds contracts, and the rest of the Ministry of Oil’s expenditures were not considered within the sovereign. As the Oil Ministry was not mentioned in those headings.”

He explained, “The expenditures of the Reconstruction Fund Program amounting to (195) billion dinars were not counted within the federal (sovereign) expenditures, and the military retirement salaries and bonuses amounting to (6.7) trillion dinars were not counted within the federal expenditures, despite the fact that the federal address applied to them, including affiliation and job Covered by this section. ”

He continued by saying, “The expenditures of the Ministry of Transport amounting to (626) billion dinars were not counted within the federal expenditures as well (sovereign) despite the clarity of the federal description of its functions and institutions, including the ports, and the expenditures of the Ministry of Water Resources were not counted despite the clarity of its federal function.”

Al-Faili stressed, “If these expenditures were calculated under the title of sovereignty (federalism), this would result in the region’s budget being reduced to what is clearly mentioned in the 2021 budget. Realism, which ranges between (85-90) trillion dinars, in the highest estimates. /

Parliamentary Committee: Questioning The Minister Of Finance And The Governor Of The Central Bank Has Become An Urgent Necessity

Editing date: 02/01/2021 13:46 • 66 read times  [Baghdad-Where]  The Parliamentary Finance Committee warned, on Saturday, of a future economic disaster in the country, in the event that the Minister of Finance and the Governor of the Central Bank remain in their posts, confirming that their questioning in Parliament has become a popular and political demand.

A member of the committee, MP Thamer Theban Al-Hamdani, stated in a press statement. “The questioning of the Minister of Finance and the Governor of the Central Bank has become a popular and political demand, due to the continuous failures in managing the financial crisis.”

He added, “The next sessions of Parliament will witness the questioning of Finance Minister Ali Abdul Amir Allawi, as a first reform step for the work of state institutions.”

Al-Hamdani pointed out, “The choice of the Minister of Finance and the Governor of the Central Bank was a wrong decision from the beginning, and it must be addressed before the situation deteriorates further.”

Surji: The Coming Days Will Witness The Return Of The Kurdish Delegation To Baghdad For This Matter

The Baghdad Post Saturday, January 02, 2021 10:42 AM   Ghayath Al-Surji   The leader of the Patriotic Union of Kurdistan, Ghayath Al-Surji, revealed the intention of the Kurdish delegation to visit Baghdad during the next few days, indicating that the delegation will end the agreement on the 2021 budget, and

Al- Surji said, “The Kurdish delegation returned from Baghdad after a series of very successful negotiations and spent the New Year’s holiday in Kurdistan. Then he will resume negotiations in the capital during the next few days.

Al- Surji added that “the delegation agreed on the budget of Erbil after its commitment to deliver 460 thousand barrels of oil from the region per day to Baghdad, as well as 50% of the imports of border outlets and others, in return for giving Baghdad 900 billion per month as dues for the region and salaries.”

He continued, “The upcoming talks will revolve around the dues of the oil companies operating in the region and the technical, executive and guarantor measures of the agreement.”   LINK

They Forgot The People’s Concerns And Praised Al-Kazemi .. Iraqi Citizens Criticize The Last Cabinet Session

Author: Ahad8 On 1/1/2021 – 11:35 PM 189  Iraqi citizens, on social media, criticized the last cabinet session, which was held under the chairmanship of Prime Minister Mustafa Al-Kazemi.

Citizens expressed “their anger at the many courtesies made by a number of ministers, while they praise Al-Kazemi and forget the people’s worries and their recent economic crisis due to the rise in the dollar and the spread of unemployment.”

As the Minister of Immigration and Displacement, Evan Faiq Yaqoub, said during his last cabinet session, praising Kazemi, “Oh Lord, it remains a tent for all Iraqis, especially the oppressed, especially the care category of our ministry.”

She described “the cabinet of the current Al-Kazemi government as (exceptional), and that the ministers, the director of Al-Kazemi’s office and the Secretary-General gave a beautiful impression and made everyone celebrate the Yazidis and Christians on the occasion of the New Year holidays.”

While the Minister of Culture, Hassan Nazim, believed that “there is a great harmony and I have touched it in the current cabinet in the work and cooperation is an exceptional thing.”

Nazem continued: “In my neck is a debt for you. Where did you go? You praise the Ministry of Culture and praise my personality because I am (an intellectual). For the second time the ministry is held by an educated person who knows the history and culture of Iraq. “.

To read more current and reliable Iraqi news please visit BondLady’s Corner: