NADER FROM MID EAST: All finance meet Iqd Iraq
Summary
On July 7th, 2025, the 21st session of the Ministerial Economic Council of Iraq was chaired by Deputy Prime Minister and Minister of Foreign Affairs Dr. Fouad Hussein in Baghdad.
The meeting brought together key government officials including ministers of planning, finance, trade, agriculture, labor, and social affairs, as well as the governor of the central bank and heads of relevant commissions and companies.
The council focused primarily on enhancing electronic payment systems, supporting the industrial sector, and addressing agricultural development.
Key decisions included reducing the issuance fee for electronic payment cards by 50% to a maximum of 5,000 dinars and lowering electronic payment commission fees to 5 per thousand. The Ministry of Oil’s Oil Products Distribution Company was mandated to increase electronic payment transactions to at least 50% within six months, with private sector compliance required by January 1st, 2026. These measures aim to promote digital transactions, especially in fuel stations.
To support brick factories, the council recommended setting the price of liquefied gas at 250,000 dinars per ton to facilitate workforce employment and improve working conditions, particularly in factories near residential areas. The council also approved exemptions and project adjustments related to gas compressors and power plant construction projects.
Additionally, the council reviewed a comprehensive agricultural report emphasizing the need to prioritize agricultural investments, especially in desert areas, improve water management, combat desertification, and enhance irrigation technologies. The report advocated for supporting the private agricultural sector and protecting local agricultural inputs and outputs from foreign competition.
Highlights
- 💳 Electronic payment card issuance fees reduced by 50%, capped at 5,000 dinars.
- 💸 Electronic payment commission fees cut to 5 per thousand to encourage digital transactions.
- ⛽ Ministry of Oil mandated that at least 50% of fuel station transactions use electronic payments within six months.
- 🧱 Liquefied gas price for brick factories set at 250,000 dinars per ton to support industry and labor conditions.
- ⚡ Approval of project adjustments in power plant construction and gas compressor installations.
- 🌾 Agricultural investments prioritized, especially in desert regions, with emphasis on water management and irrigation.
- 🚜 Strong support for the private agricultural sector and protection from imported agricultural products.
Key Insights
💳 Digital Payments as a Strategic Economic Driver: The council’s decision to reduce electronic payment fees and mandate increased usage reflects a strategic move to modernize Iraq’s payment infrastructure. By lowering costs and setting clear compliance deadlines, the government aims to facilitate broader adoption of digital payments, which can improve transparency, reduce cash handling risks, and boost economic efficiency.
⛽ Targeted Support for Key Industries: Setting the liquefied gas price specifically for brick factories demonstrates an understanding of the sector’s socio-economic importance. This targeted subsidy helps maintain employment and improves working conditions, particularly in environmentally sensitive areas. It highlights an approach that balances industrial growth with social welfare and environmental considerations.
⚡ Infrastructure Project Continuity: Approving the revocation of previous withdrawal decisions on power plant projects indicates a focus on maintaining momentum in critical infrastructure development. Stability in these projects is essential for meeting Iraq’s growing energy demands and supporting broader economic development plans.
🌾 Agricultural Development and Water Management: The emphasis on agricultural investment, particularly in desert areas, aligns with Iraq’s need to diversify its economy and enhance food security. The focus on rational water use and modern irrigation techniques addresses the critical challenge of water scarcity, which is pivotal for sustainable agriculture in arid regions.
🚜 Protecting Local Agriculture: The recommendation to protect domestic agricultural inputs and outputs from imports suggests a policy aimed at strengthening local farmers and agribusinesses. This protectionist stance may help build resilience in the agricultural sector while encouraging private sector participation.
💼 Cross-Ministerial Coordination: The participation of multiple ministries and commissions in the session illustrates a comprehensive, coordinated approach to economic governance. Such collaboration is vital for implementing multifaceted policies that span finance, agriculture, energy, and technology.
📊 Data-Driven Policy Making: The council’s reliance on detailed reports, such as the agricultural status report, underscores the importance of evidence-based decision-making. Utilizing data on water resources, plant and animal production, and economic activities enables more targeted and effective policy interventions.
In conclusion, the 21st session of Iraq’s Ministerial Economic Council demonstrates a multifaceted approach to economic reform, emphasizing digital transformation in payments, targeted industrial support, infrastructure continuity, and sustainable agricultural development. These measures collectively aim to foster economic growth, improve public services, and enhance social welfare in the country.
