Sunday Afternoon Iraq Economic News Highlights 9-4-22
Inflation At Its Highest Level In Iraq In 10 Years
Posted On2022-09-03 By Sotaliraq The annual inflation level in Iraq for the month of July increased by 12.3% compared to the same period in 2019, bringing the record in July 2022 to 117.8, which is the highest inflation rate recorded in the country in more than ten years.
The economic and financial expert, Manar Al-Obaidi, explained that “the inflation level in food prices rose by 11.2%, while the inflation level in housing, water, electricity and gas prices rose to 10.1%.”
At the level of transportation prices, the inflation rate in Iraq increased by 16.8%, and the most inflated rate was the prices of health and medical services, which rose by 27.8% compared to July 2019, and the general index of the Health Department reached 149.9, an increase of 50% compared to the measurement year. Which is considered the year 2012, according to Al-Obeidi.
The Iraqi economic expert attributed the reasons for the high rates of inflation to many factors, including “the rise in oil prices, which reflects its shadow on all goods and services, in addition to the change in the exchange rate of the dinar against the dollar,” and these two reasons are enough to raise inflation rates to reach these record levels.
According to data from the Iraqi Ministry of Planning, the number of citizens below the poverty line has reached 9 million, and with the high rates of inflation, this percentage is expected to rise in the future, according to Al-Obeidi.
Al-Obaidi pointed out that «the Iraqi government does not take any actual measures that would reduce the rates of inflation eligible to rise as a result of the lack of approval of the budget and the absence of programs that limit the impact of the level of inflation on the Iraqi citizen».
He pointed out that «the local products that would reduce inflation rates are still below the level and unable to cover the need for imported products». LINK
Al-Halbousi Calls For The Adoption Of The General Budget Law
Parliament Speaker Mohammed Al-Halbousi
Money and business Economy News – Baghdad Parliament Speaker, Muhammad al-Halbousi, called for the formation of the next government, in order to approve the federal budget law for the current year.
Al-Halbousi said in a press statement received by “Al-Iqtisad News”, “The agenda of the upcoming national dialogue sessions must include a number of issues that the political process cannot proceed without agreement on them, namely setting a date for early parliamentary elections and provincial elections no later than the end of next year and the election of The President of the Republic and the selection of a government with full authority, agreed upon, trusted and reassured by the people and their political forces.
He continued, “The adoption of the Federal General Budget Law and the regulation of the relationship between the federal government and the Kurdistan Regional Government with a public agreement for the people until the adoption of the oil and gas law.” 54 views Added 09/04/2022 – 9:52 AM Update 09/04/2022 – 1:11 PM https://economy-news.net/content.php?id=29547
Iraq Exported More Than 112.6 Million Barrels During The Month Of August
Energy Economy News – Baghdad Iraqi oil exports amounted to more than 112.6 million barrels during the month of August, of oil controlled by the federal government and the Kurdistan Regional Government.
The regional government exported 11.5 million barrels during the month of August, while the Baghdad government exported 101.1 million barrels, at a total rate of 3.63 million barrels per day. The region’s exports constituted 10.2% of the total exported oil.
China ranked first in oil exports from the federal government with 33.6 million barrels, followed by India with 26.3 million barrels and America with 6.8 million barrels.
While Greece ranked first in the region’s oil exports, followed by Italy with 2.29 million barrels and the UAE with 748,000 barrels. Views 66 Added 09/04/2022 – 10:13 AM Update 09/04/2022 – 1:14 PM
https://economy-news.net/content.php?id=29548
Oil: Promising Plans To Develop The National Pipeline Network
Energy Economy News – Baghdad On Saturday, the Undersecretary of the Ministry of Oil for Liquidation and Distribution Affairs Hamid Younis affirmed the ministry’s keenness to develop and modernize the national pipeline network and infrastructure for the oil sector due to its importance in enhancing and sustaining storage capacities and to achieve high flow in the mechanisms and operations of pumping and distributing oil and its derivatives through its specified paths.
According to a statement by the Ministry of Oil, this came during Yunus presiding over the 31st meeting of the company’s board of directors, and Younis stressed “the importance of the promising plans for the oil pipelines sector to sustain production, liquidation and feeding other sectors with crude oil or petroleum products,” praising “the national experiences that the company possesses in developing Infrastructure of the oil pipelines network and warehouses and moving forward to improve the reality of its work and implement the tasks entrusted to it to support the national economy and the service sector.
The Deputy Director General in charge of managing the company, Majed Abdel Reda, said, “The national staff is working according to pre-prepared plans to develop pipeline networks, rehabilitate those affected by them, lay new pipes, and increase storage capacities in their warehouses spread throughout the country to secure fuel for consumers, electric power production stations and vital sectors in the service of the public interest. “.
According to the statement, “during the meeting, the agenda for developing plans and studies for the development of the long-distance pipeline network in the country and the problems, obstacles and challenges facing the work to provide effective solutions to them were discussed.”
Views 28 Added 09/03/2022 – 5:37 PM Update 09/04/2022 – 12:07 PM
https://economy-news.net/content.php?id=29543
General Secretariat Of The Council Of Ministers: Automation Of Outlets Has Raised The Value Of Revenues For Three Years
Iraq 14:44 – 09-04-2022 Today, Sunday, the General Secretariat of the Council of Ministers announced governmental coordination to address obstacles to e-governance, while it identified five positives for the port automation project, including the increase in annual revenues.
A spokesman for the General Secretariat, Haider Majid, said, “The General Secretariat of the Council of Ministers, in its capacity as the supreme committee for managing e-governance affairs in Iraq, continues under the direct supervision of the Secretary-General of the Council of Ministers to take all its technical and administrative measures in coordination with all official institutions to manage e-governance and establish special programs.” Which contribute to simplifying the administrative procedures taken by service institutions in particular and the rest of the services in general.”
He added, “There are several programs that the National Data Center is working on, the most important of which is the abolition of issuing paper-based health certificate books and transferring them electronically under the directive of the Prime Minister.
Introducing the cadres working on these programs in training courses and workshops, whether within the General Secretariat or in the relevant institutions,” stressing that “all these procedures aim to simplify and facilitate the procedures presented to citizens and reduce effort and time.”
He pointed out that “the General Secretariat of the Council of Ministers is the supreme body supervising the management of e-governance, and it is the coordinating body that manages all the programs implemented by the National Data Center,” noting that “there are many programs that will be presented to citizens, including simplifying the procedures for issuing authenticity of breasts, books and correspondence in what between the federal government and the Kurdistan Regional Government.
He pointed out that “this process was heavy on citizens due to the delay in completing transactions, but it entered the program and switched from paper to electronic, and a phone number (5599) was allocated to receive citizens’ inquiries on the issue of breast health, as well as to inquire about the mechanism of work of the Euro-electronic portal and services that she presents”.
He explained, “The issue of stopping services from time to time is subject to the quality of the Internet services provided (its weakness and strength), and certainly there are direct treatments and coordination between the Supreme Committee in the General Secretariat, the Ministry of Communications and the concerned authority.”
And on the automation of border crossings, the spokesman of the General Secretariat said, “There is a work team at the ports and customs working under the direct supervision and follow-up by the head of the Border Ports Authority, Major General Omar Adnan Al-Waeli, to automate the tax and customs receipt,”
noting that “this issue has several positives that are reflected On the work of border crossings, which is the judiciary, reducing cases of corruption, changing the gender of material, forging certificates of origin and import, in addition to increasing revenues to the Iraqi state, where the percentage of revenues in the years (2020 – 2021 – 2022) reached nearly one trillion and nine hundred billion dinars, which is a very large revenue achieved The authority during this period, and the issue of automation was the main factor in these procedures.” https://kirkuktv.net/AR/Details/8657
Transportation: More Than 800 Planes Cross Iraqi Airspace Daily
Money and business Economy News _ Baghdad The Ministry of Transport announced, on Saturday, a statistic of the number of planes crossing Iraqi airspace, after the file was seized by Iraqi experts.
Ministry spokesman Hussein Jalil said in a statement to the official news agency, “The General Company for Air Navigation Services is one of the formations of the Ministry of Transport, as it received great attention from Minister Nasser Hussein Al-Shibli, represented by multiple visits and field visits,” noting that “before 2021, the number of The planes crossing Iraqi airspace did not exceed 150 planes per day.”
He added, “After the Iraqi airspace became managed in Iraqi hands by qualified Iraqi air traffic controllers, there are approximately 300 air traffic controllers, and the number of aircraft transiting to Iraq has reached more than 800 aircraft daily.”
And he added, “This transiting aircraft is registered according to a system to achieve state revenue support, in addition to transit, which will be additional to the treasury.”
60 . views Added 09/03/2022 – 5:06 PM Update 09/04/2022 – 12:55 PM
https://economy-news.net/content.php?id=29542
Cabinet Secretariat: 1.9 Trillion Dinars Revenues From Border Crossings Within 3 Years
Economie| 02:42 – 04/09/2022 Baghdad – Mawazine News, the General Secretariat of the Council of Ministers announced, on Sunday, that the revenues of border crossings during three years amounted to about 1.9 trillion dinars.
The secretariat’s spokesman Haider Majid said on the automation of border crossings, that “there is a working team at the ports and customs working under the direct supervision and follow-up of the head of the Border Ports Authority, Major General Omar Adnan Al-Waeli, to automate the tax and customs receipt,” according to the official news agency.
He explained, “This issue has several positives that are reflected on the work of the border crossings, which is the judiciary, reducing corruption cases, changing the gender of the material, forging certificates of origin and import, in addition to increasing revenues to the Iraqi state, where the percentage of revenues in the years (2020 – 2021 – 2022) is approximately Of the trillion and nine hundred billion dinars, which is a very large revenue that the authority achieved during this period, and the issue of automation was the main factor in these procedures.” https://www.mawazin.net/Details.aspx?jimare=204453
Parliamentary Services Talk About The Food Security Law And The Mechanisms For Dividing Their Duties
Economie 12:55 – 09-04-2022 On Sunday, the Parliamentary Services Committee revealed that the committee has set up a mechanism to divide its duties in following up the service ministries in the country, stressing that all service projects included in the food security law’s allocations will be implemented according to priority to meet the needs of citizens.
Deputy Chairman of the Committee, Kazem Baqir al-Saadi, said, “The Parliamentary Services Committee has established a mechanism to supervise service projects throughout the country, including projects of the Baghdad Municipality and Baghdad Governorate.”
Al-Saadi added, “Based on exercising our legislative and oversight role and our keenness on the necessity of implementing real programs that would advance the service reality in all governorates of Iraq,” noting that “the Services Committee closely monitors the performance of service ministries in order to evaluate service work in proportion to the size of Baghdad Governorate.” .
He pointed out that “all service projects included in the allocations of the Food Security Law will be implemented according to priority to meet the needs of citizens.” https://kirkuktv.net/AR/Details/8653
Economists Expect The Surplus To Reach $20 Billion By The End Of 2022
Posted On2022-09-04 By Sotaliraq Baghdad/Bright news Economists expected that Iraq’s cash surplus would reach about $20 billion at the end of this year, pointing out that the central bank’s reserve has now reached $90 billion, while noting that the lack of approval of the budget law will prevent Iraq from investment spending.
Iraq currently relies on Federal Financial Management Law No. 6 of 2019 amended to conduct its financial affairs through the monthly allocation of public spending according to the same rates as last year due to the lack of approval of the budget.
The economic expert, Ahmed Saddam, said in an interview with Al-Mada that “the recent rise in oil prices gives rise to optimism and hope for achieving more financial revenues for the public treasury.”
Saddam added, “The relative stability will not last long, and what is required in the economic policy in Iraq is to have a sovereign fund, as is the case in other countries.”
He pointed out, “This fund is directed to large projects that can create added value and solve many economic problems in Iraq.”
Saddam pointed out that “the rise helped achieve a large reserve for the Central Bank of $90 billion,” noting that “official expectations indicate the possibility of achieving a surplus at the end of this year of up to $20 billion.”
He stressed, “The expected surplus, with the presence of political and economic stability, can be directed towards projects that contribute to improving the economic reality and reduce the severity of the shocks to which the Iraqi economy is exposed due to the heavy dependence on oil.”
Saddam stressed, “Prices will drop in the future, and these are well-known economic cycles, and therefore what is required is the existence of policies towards diversifying the economy, and they need pillars and legislation that stimulate foreign direct investment.”
And he continues, that “economic development in Iraq can be based on the oil sector itself, but through industries related to this sector.”
Saddam noted that “the establishment of petrochemical industries can stimulate other industries such as refining,” noting that “such projects can create a lot of income, generate a lot of job opportunities and preserve economic activities.”
He believed, “Such industries stimulate the level of economic growth dependent on oil, but this in itself is a great value. Instead of exporting all crude oil, there will be a large share of oil production that will be transformed into refined products and turned into petrochemical industries.”
Saddam went on to say that “the existence of such industries can stimulate other industries, such as plastics, and this is an important issue that many international experiences have persisted in so that it stems from the competitive advantage that characterizes the economy.”
For his part, the other economic expert, Safwan Qusay, stated that “the lack of political agreement significantly affected the economic situation, and this was evident through the failure to pass the budget law for the current year.”
Qusay added, “The delay contributed to the complexity of the current government’s business when it moved to the caretaker, as it could neither make transfers nor spend higher than the actual spending for 2021.”
He pointed out that “current spending last year was 90 trillion dinars, which means that spending will continue at the same level.”
Qusay stated, “Investment spending will be disrupted, although it is in line with the Iraqi economy, which suffers from desertification in the decrease of job opportunities and the migration of farmers as a result of the lack of water.”
He finds, “Iraq had to approve a budget that responds to these variables,” noting that “the law of emergency support for food security approved by the House of Representatives earlier contributed to supporting the Iraqi economy by launching 17 billion dollars at the level of achieving food security and settling energy dues with The Iranian side has allocated 8 trillion to the provinces to break the partial bottlenecks.”
Qusay stressed, “The country will enter 2023 in the shadow of this political conflict without an investment budget, and there is a problem that if projects are left without funding, the implementers will withdraw and consequently we will suffer losses as a result of this withdrawal.”
And he added, “Parliament has to think of a legal tool that accompanies the process of dissolving it if a solution is resorted to, so that the current government or others can continue with investment spending.”
Qusay went on to say that “there is one window to settle this issue through self-financing funds that have the possibility, through their boards of directors, to finance these projects, or have partners in implementation through the stock market.”
Qusay went on to say that “leaving the issue without thinking about the future, the level of danger will rise, and we do not know whether the next government after the elections can implement the program to address these errors.”
It is noteworthy that Iraq failed to approve the current year’s budget due to the many political differences, and had previously failed to approve the 2014 and 2020 budgets. LINK
