Frank26
Nothing is logical at 1310. That's why to me it is such powerful evidence when we don't see the salaries...HCL...budget tables...lower notes because everything on that list is simply waiting for the new exchange rate...Everything is at a standstill.
Everything is frozen. It's like somebody clicked the stopwatch and it stopped time in Iraq until a new exchange rate is brought forth.
Al-Sudani acknowledges the "actual" realization of the budget deficit
4/21/2025
Iraqi Prime Minister Mohammed Shia al-Sudani acknowledged on Monday that the federal budget deficit has been realized.
In his speech during a meeting with the head and members of the Dhi Qar Provincial Council, as reported by Shafaq News Agency, Al-Sudani said, "In our government, the budget deficit has actually appeared to achieve accomplishments, and there is efficiency in spending, performance, and work, while the previous deficit was planning."
He added, "Our government has arranged the spending mechanism according to the principle of the most important, then the important, and we have worked in many sectors and achieved positive results," indicating, "In the 2024 budget, (156) trillion dinars were spent out of (213) trillion planned, including (90) trillion for salaries, (40) trillion for operational, and (13) trillion for ministries and governorates' projects."
Last year's budget amounted to 211 trillion dinars, with revenues estimated at 144 trillion and 336 billion dinars, while expenditures amounted to 210 trillion and 936 billion dinars, and the deficit was 63 trillion and 599 billion dinars. LINK
CRYPTO TRADER
MP: The budget cannot be delayed and Parliament will discuss it next week
-----
Corruption, Mismanagement, Unemployment, and Poverty in Iraq: A Comprehensive Economic Analysis and Path Forward
BY: Shatha Kalel
Introduction
Over two decades after the 2003 U.S.-led invasion, Iraq continues to face a series of interconnected structural challenges that hinder its economic and social development. These include widespread financial and administrative corruption, chronic mismanagement, high unemployment, and alarming poverty rates. Despite possessing abundant natural resources, particularly oil, Iraq has struggled to transform this wealth into sustainable growth and social prosperity.
The following analysis examines these crises through a comprehensive economic lens, shedding light on their root causes and interconnectedness. It also presents targeted policy recommendations for addressing Iraq’s socio-economic vulnerabilities and fostering long-term stability.
I. Financial and Administrative Corruption: A Systemic Threat
Corruption in Iraq is not merely a peripheral issue—it is a systemic crisis deeply embedded in public administration and economic policy. According to estimates, hundreds of billions of dollars have been lost to corruption over the past two decades, placing Iraq consistently among the most corrupt nations globally, according to Transparency International’s Corruption Perceptions Index.
This rampant corruption has depleted the state treasury and crippled the government’s ability to finance public goods and services. Key sectors—including healthcare, education, infrastructure, and industrial production—have deteriorated due to embezzlement, inflated contracts, and ghost employees. Corruption networks, often linked to political factions and militias, exert significant influence over state institutions, undermining regulatory oversight and the rule of law.
II. Mismanagement and the Fragility of the Oil Rentier Economy
Iraq’s economy remains overwhelmingly dependent on oil, which accounts for over 95% of government revenue. This “rentier state” model exposes Iraq to volatile global oil markets, leading to alternating periods of boom and bust. For example, the 2020 collapse in oil prices resulted in an 11% contraction in GDP, while a rebound in prices in 2022 temporarily boosted growth to 9.3%.
Such volatility hinders medium- and long-term economic planning. The absence of economic diversification leaves Iraq vulnerable to external shocks, exacerbates fiscal imbalances, and limits job creation. Successive governments have failed to develop productive sectors such as agriculture, manufacturing, and technology, thereby deepening the country’s structural dependence on oil.
Furthermore, the management of Iraq’s oil revenues is complicated by international arrangements. Under U.S. Executive Order 13303, Iraqi oil funds are held in the “Iraq-2” account at the U.S. Federal Reserve, allegedly to protect assets from international claims. While this framework offers a degree of legal protection, many Iraqis perceive it as a restriction on national sovereignty. Recent moves to replace the Central Bank’s currency auction with direct international transfers may signify a step toward financial autonomy.
III. Unemployment and Poverty: A Social Time Bomb
The social repercussions of corruption and mismanagement are dire. Iraq’s unemployment rate reached 16.5% by early 2024, while the poverty rate stands at approximately 22%, affecting more than 10 million Iraqis. This economic insecurity is compounded by years of war and displacement, which have created approximately 6 million orphans and 2 million widows.
An estimated 4 million Iraqis live in informal settlements or slum areas, lacking access to clean water, healthcare, education, and other basic services. These conditions not only erode human capital but also fuel resentment, instability, and migration.
Public sector employment remains the largest source of jobs, yet it is bloated, inefficient, and unsustainable. The private sector is underdeveloped, constrained by poor infrastructure, corruption, and lack of access to finance. Young Iraqis entering the labor market face limited prospects, which contributes to social unrest and brain drain.
IV. Policy Recommendations: Toward a Resilient and Inclusive Economy
To address these structural challenges, Iraq must adopt a comprehensive national reform agenda that targets both economic diversification and institutional rebuilding.
1. Anti-Corruption Framework
Establish an independent anti-corruption commission with prosecutorial powers.
Digitize government services and public procurement to increase transparency.
Enforce asset declarations and auditing for public officials.
2. Economic Diversification
Invest in agriculture and agribusiness to reduce food imports and create rural jobs.
Promote small and medium enterprises (SMEs) through targeted credit programs.
Develop strategic industries, including renewable energy, construction, and information technology.
3. Labor Market Reform
Modernize vocational education and training
to align with market needs.
Facilitate public-private partnerships to absorb youth into the workforce.
Introduce labor-intensive public works programs in infrastructure and housing.
4. Social Safety Nets
Expand conditional cash transfers targeting vulnerable households.
Provide housing subsidies and basic services in marginalized areas.
Prioritize mental health and social reintegration programs for orphans, widows, and IDPs.
5. Fiscal and Monetary Reforms
Revise the budget structure to prioritize capital investment over operational spending.
Strengthen the independence and capacity of the Central Bank of Iraq.
Renegotiate the legal framework for managing oil revenues to restore financial sovereignty.
Conclusion
Iraq stands at a critical juncture. While the challenges of corruption, unemployment, poverty, and mismanagement are daunting, they are not insurmountable. With strong political will, institutional reforms, and an inclusive economic vision, Iraq can chart a new course toward prosperity and stability.
The road to recovery requires more than just financial resources—it demands courageous leadership, civic engagement, and an unwavering commitment to justice and equity. Only then can Iraq reclaim its rightful place as a stable, prosperous, and sovereign nation.
Economic Unit/North America Office
Al Rawabet Center for Research and Strategic Studies
APIKUR Pushes for Written Agreements in Ongoing Kurdistan Region Oil Export Negotiations
4/20/2025 ERBIL —
Member companies of the Association of the Petroleum Industry of Kurdistan (APIKUR) reiterated their call for formal written agreements during the latest round of discussions with Iraqi and Kurdistan Regional Government (KRG) officials over the resumption of oil exports via the Iraq-Turkey pipeline.
The meeting, held on April 20, focused on the necessary conditions to restart oil flows that have been suspended for over a year. While all sides presented their positions on a range of technical and legal matters, no final agreements were reached.
APIKUR member companies emphasized the need for fair implementation of Iraq’s federal budget law, especially regarding the role and responsibilities of an independent consultant tasked with overseeing oil production and exports. They also stressed that any future arrangements must not infringe on existing contracts with international oil companies (IOCs), which have been upheld by Iraqi courts.
Crucially, APIKUR is seeking written agreements that provide clear guarantees on payment terms and the settlement of outstanding arrears. According to a statement from the organization, the member companies "did not receive satisfactory assurances" on these key issues during Saturday's meeting.
In an effort to move the talks forward, several APIKUR members have submitted draft sales and lifting agreements, along with detailed recommendations for the independent consultant’s scope of work, to both KRG and federal Iraqi officials.
Despite the lack of immediate progress, APIKUR reaffirmed its readiness to resume exports—contingent on securing signed agreements that protect the fiscal and economic terms of their existing contracts.
The talks come amid growing pressure to resolve the impasse, which has had significant financial implications for both the federal and regional governments, as well as oil companies operating in the Kurdistan Region. LINK
MarkZ
I keep hearing there is a rate tucked into the budget tables…and they are doing their best to stall the budget until they get the clearance to “GO”…
That is the rumor I am getting out of Iraq from Iraqi sources.
“Why is it important for American companies to visit Iraq?”
For stability of course. There are a number of US and International companies that signed with the private sector. They need this for the reform process.
An expert identifies the missing link to diversifying sources of income and achieving economic reform
Economic expert Qusay Safwan identified the missing link in the path to diversifying sources of income and achieving economic reform in Iraq. He noted that controlling corruption begins with the banking sector and is linked to understanding revenue risks and the behavior of the Iraqi dinar at border crossings.
During his appearance on the "Free Talk" program on Al Furat TV channel this evening, Safwan explained that "economic diversification cannot be achieved without regulating these outlets, which are a tool for protecting local production and developing investment." He indicated that "reforming the financial sector requires rehabilitating banks through mergers, partnerships, and specialization."
He stressed that "these goals are still far off, and the real beginning lies in developing the human resources working in the banking sector, especially since most Iraqi banks focus their grants on the housing sector."
Safwan explained that "the Central Bank's policy is geared toward supporting financial inclusion, as 40% of individuals use electronic banks, a matter linked to suspicions of money laundering." He called for "providing incentives to credit card holders and motivating them through tax exemptions and import facilitation, which would enhance the conversion of the dinar into hard currency through the Central Bank."
He pointed out that "the Central Bank alone cannot reform the Iraqi economy in light of the lack of control over border crossings and the citizens' lack of trust in banks," emphasizing that "investing in technology is costly, but necessary and yields tangible benefits for shops and businesses."
Safwan revealed that "Iraq has $100 billion in the US Federal Reserve," emphasizing "the need to eliminate intermediaries and build a direct relationship between producers and consumers," warning that "corruption is greater than the support available at the outlets."
He added, "Private banks were established as joint-stock companies, and their shares are now denominated below the dinar mark and are available to all." He called on the Central Bank to "address the dispute between it and the Companies Registrar regarding dividend distribution, which is prompting small shareholders to sell their shares to major investors."
Safwan concluded by saying, "Government banks need a comprehensive restructuring to drive development and create investment portfolios for agricultural, industrial, and commercial cities." He also highlighted the need to integrate the local market with global markets, similar to the Gulf banks, and attract $350 billion domestically. link
DINAR EXCHANGE
Federation of Chambers of Commerce: Visit of American companies resulted in a regulatory work agreement for the private sector
The Federation of Iraqi Chambers of Commerce affirmed on Monday that the visit of American companies is a message to the world that Iraq is a safe environment. It also explained that the visit resulted in an agreement on a regulatory framework for the private sector.
Abdul Razzaq Al-Zuhairi, head of the General Federation of Iraqi Chambers of Commerce, told the Iraqi News Agency (INA): “The visit of American companies to Iraq to invest and work with Iraqi businessmen is a positive and important step for Iraq.”
He explained that "Iraq is a fertile environment, and the visits of American companies to Iraq are a positive message to all countries of the world that Iraq is a safe environment."
He added, "American companies have signed numerous agreements with the Iraqi private sector in the fields of electric power and renewable energy. The most important memorandum is the signing of a regulatory framework between the Iraqi and American private sectors by the American Chamber of Commerce and the Iraqi Chamber of Commerce."
He pointed out that "a number of American companies have signed agreements with the private sector, most notably the global company Google, which is seeking to enter Iraq. Its representative came and wrote a positive message about Iraq, stating that Iraq is safe, which is an important message to the world link
Mnt Goat
...It took a business man like Donald Trump to see the potential in Iraq for American companies but also, which is most important, to take advantage of it.
But Trump knows that before he can convince American companies to come to Iraq, he must erase the stigma of Iranian influence in Iraq...today we get a really good clear look at where the Trump foreign policy towards Iraq is going and its all VERY GOOD!
The Central Bank renews its warning against trading in withdrawn banknotes.
In recent years, this bank has observed the circulation of foreign banknotes from various countries, some of which are genuine and in circulation, others withdrawn from circulation, and some counterfeit.
Such banknotes are used by unscrupulous outlaws to defraud citizens by luring them into exchanging them for Iraqi dinars at prices far exceeding their actual value.
They claim that exchanging them offers them significant profits and rare investment opportunities.
Therefore, the Central Bank of Iraq calls upon the public and the specialized security and regulatory agencies to monitor these matters and refrain from handling these banknotes.
They should focus on Iraqi banknotes and those handled by the Central Bank of Iraq and the banking system, to avoid falling prey to outlaws.
Fnu Lnu
Conducting domestic commerce is and will continue to work with the Dinar as it is.
There is no impetus for a RI/RV...Iraq has far to go and they are making progress on may fronts but the necessity for a change in the currency/economic policy is not a pressing issue and is not being discussed...
the RI/RV is likely going to take more time and a more pressing use case must be presented. Such a necessity is not now present and it is doubtful that we will see it this year.
KTFA
FRANK26: "KURDISTAN & BAGHDAD SUPPORT THE OIL FLOW... BECAUSE THEY SUPPORT THE NEW EXCHNAGE RATE".......F26
4/20/2025
Prime Minister Mohammed Shia al-Sudani directed, on Sunday, the need to re-evaluate the licensing rounds experience 15 years after their launch, stressing the need to work to remove obstacles facing investors in the oil and gas sector.
This came after he chaired a meeting with representatives of major foreign oil companies operating in Iraq, attended by the Minister of Oil, relevant authorities within the ministry, the Board of Supreme Audit, the General Tax Authority, and the Employment Department at the Ministry of Labor and Social Affairs, according to a statement issued by the Iraqi government.
The statement noted that the meeting, the second of its kind, discussed several issues, most notably the mechanism for stopping gas flaring and its investment, the water injection strategy, and the growth of investment in the oil sector, in addition to work permits and social security.
Al-Sudani directed the need to address the obstacles impeding project implementation, stressing that the partnership with companies in this regard is strategic and represents a government priority in maintaining and increasing production rates.
The Prime Minister emphasized the goal of developing production and raising the efficiency of oil reservoir management by introducing modern technology, improving facility performance, and ending the flaring of associated gas. He also emphasized the importance of achieving optimal utilization of this gas, whether in operating power plants or supporting vital industries such as petrochemicals, fertilizers, iron, and steel.
Al-Sudani also noted that the government is working to improve the operating environment for oil companies, enhance security at various sites and facilities, and develop infrastructure. He explained that the government is looking to enter into a long-term partnership with oil companies to ensure optimal use of oil and gas resources in a way that benefits the people and achieves development goals.
💥 💥 From Zeros to Value: How Iraq’s Currency Reform Could Transform the IQD 💥 ⭐ Introduction The term “Zero Game” is buzzing among Ir...
