Iraq Charts New Course for Economic Development and Global Relations, 27 NOV

 Iraq Charts New Course for Economic Development and Global Relations

In a bold move to reorient Iraq’s economic trajectory, Prime Minister Mohammed Shia’ Al Sudani has pledged his government’s dedication to fostering a network of global economic ties. This was revealed during his address at the inaugural conference for the Five-Year National Development Plan, a collaborative effort between the Ministry of Planning and the United Nations Development Programme (UNDP).

Redirecting Development to the Right Path

Al Sudani acknowledged the developmental disruptions Iraq has faced since the 1980s, resulting from wars, sanctions, and counter-terrorism operations. He stressed the urgency of his government’s mission to guide development back on track, highlighting the need to expedite over 7,000 existing projects and initiate new ones with significant developmental and service potential. Key interests include infrastructure, clean energy, development roads, and the Al Faw Port.

Breaking Free from a Rentier Economy

Al Sudani outlined the government’s plans for economic diversification, including the establishment of the Iraqi Development Fund and the ‘Riyada’ initiative. The latter aims to empower youth to channel their ideas into productive sectors. The government is also offering sovereign guarantees to stimulate the private sector, with a goal to break away from the rentier economy model.

Iraqi Economy on the Global Stage

The Prime Minister announced a 2024 population census and enumerated steps taken towards achieving economic and developmental goals. These include reforming the banking sector, automating economic and service activities, endorsing electronic payments, and emphasizing digital transformation. Concurrently, Saudi Investment Minister, Khalid Al Falih, declared plans to fast-track the creation of a free economic zone with Iraq at the Arar border area. This tax-free zone aims to serve investors from both nations, potentially creating a myriad of investment opportunities.

Enriching Economic Relations

Meanwhile, China and Iraq have inaugurated the Iraqi-Chinese Business Council in Baghdad to bolster trade and investment, following a trade exchange worth approximately $53 billion in 2022. China has pledged support for Iraq’s Development Road project, further enhancing bilateral economic relations. Iran, too, sees potential for boosting annual trade with Iraq to $20 billion. Additionally, a financial delegation from Iraq is set to depart for Ankara to discuss and stabilize trade exchange between Iraq and Turkey.

Al Sudani’s announcement signifies a new chapter in Iraq’s economic journey as it seeks to strengthen international relations and accelerate domestic development, grappling with the remnants of its turbulent past.

https://bnn.network/world/iraq/iraq-charts-new-course-for-economic-development-and-global-relations/