Prime Minister Mohammed Shia' Al-Sudani addressed the Conference on Reforming the Iraqi Banking Sector on Monday, outlining an ambitious agenda to modernise Iraq's financial infrastructure and promote sustainable economic development.
Key initiatives and achievements highlighted in the Prime Minister's address include:
Implementation of a three-year national budget, enabling long-term planning and strategic investment in health, education, and infrastructure.
Efforts to diversify revenue sources by automating customs with the Automated System for Customs Data (ASYCUDA) system and improving tax systems, resulting in a 128% increase in customs revenues and 22% rise in tax revenues.
Structural reforms of Rafidain, Rasheed, Industrial, and Agricultural Banks, supported by an international consultancy firm.
Enhancement of digital payments infrastructure and partnerships with leading fintech companies, facilitating broader access to financial services.
Expansion of financial inclusion, with rates rising from 10% to over 40% in two years-an achievement recognised by the World Bank and IMF.
Updated legislation on e-commerce and digital payments and nationwide campaigns to foster a digital payment culture.
Continued support for SMEs through financing and resource allocation, contributing to job creation and economic growth.
Al-Sudani reaffirmed that banking reform is a central pillar of his government's broader economic reform programme. He confirmed the launch of a comprehensive strategic initiative in collaboration with the Central Bank to align Iraq's banking system with international standards, strengthen global engagement, and attract new partnerships.
He concluded by reiterating the government's readiness to support both local and international stakeholders in transforming the banking sector to drive economic progress and financial stability.
Full statement from the Media Office of the Prime Minister:
Prime Minister Mohammed S. Al-Sudani attended the Conference on Reforming the Iraqi Banking Sector, held today, Monday.
His Excellency expressed appreciation for all efforts that contributed to organizing this conference, which presents visions and ideas aimed at developing Iraq's banking sector, promoting sustainable development, and enhancing Iraq's economic standing and its regional and international roles. He also commended the efforts of the Central Bank of Iraq, the banks, and the teams from international and local consulting firms for their ongoing work in strengthening and advancing Iraq's financial and banking sectors.
Prime Minister Al-Sudani noted that the government assumed responsibility during a complex economic period, which required decisive actions to achieve stability and ensure growth. He outlined the achievements realized in financial, banking, and economic fields as positive steps toward establishing solid foundations for development and capitalizing on prevailing stability.
Key highlights from the Prime Minister's speech include:
The government prepared a three-year budget that allocated resources to key sectors such as health, education, and infrastructure.
The three-year budget has enabled a long-term financial planning framework to help achieve the strategic and developmental objectives of the state.
The government worked to boost revenues by improving the taxation and customs systems and enhancing non-oil revenues, helping reduce dependence on oil exports.
Full automation of the customs system is underway through the implementation of the global ASYCUDA platform, developed under the United Nations.
Customs revenues increased by approximately 128%, while tax revenues rose by about 22%-both higher than previous years.
Ambitious projects have been launched to reform state-owned banks and improve their capacity to deliver financial services to individuals and businesses.
Over the past two years, the Cabinet issued several decisions to restructure the Rafidain, Rasheed, Industrial, and Agricultural Banks with the support of a reputable international consultancy.
The government enhanced the infrastructure for digital payments and transactions by strengthening protocols and systems to facilitate electronic payments across sectors.
Partnerships were established with leading fintech companies to offer innovative digital payment solutions, enhancing the efficiency of the financial system.
The financial inclusion rate rose to over 40%, up from just 10% two years ago-an achievement recognized by institutions like the World Bank and the International Monetary Fund.
E-commerce and digital payment legislation has been updated.
Awareness campaigns have been launched to promote digital payment culture among citizens.
Support was extended to small and medium enterprises through financing and resources, resulting in job creation and economic stimulation.
The initiatives proposed aim to address current challenges in the banking sector and enhance its international competitiveness.
Banking reform forms a vital part of the economic reform pillar in the government program.
The government, in cooperation with the Central Bank of Iraq, launched a comprehensive initiative for integrated strategic banking reforms.
These reforms aim to align with global developments, open new partnerships, and enhance engagement with the global financial system.
The government is fully prepared to support all local and international entities and institutions in efforts to develop the banking sector and promote economic growth and financial stability.
Tangible results have already been achieved, with successful expansions and advancements in Iraq's banking industry.
SANDY INGRAM: How BP is affecting investment in IQD #iqd
Despite facing political upheavals and temporary exits from Iraq, BP returned in 2009 with a renewed commitment to help rebuild the country’s oil industry.
The focus of BP’s investment goes beyond mere extraction; it includes infrastructure development, employee training, and fostering local partnerships to ensure positive, sustainable economic impacts. Central to this effort is the enormous Rumila oil field, one of the largest in the world, containing an estimated 17 billion barrels of recoverable oil.
BP’s collaboration with various international firms and local businesses promotes efficient and environmentally responsible practices in oil extraction.
The economic implications of BP’s activities are profound. The revenue from oil production significantly contributes to public services and infrastructure development, improving the overall quality of life in Iraq.
Additionally, BP’s presence creates thousands of jobs and aids in modernizing Iraq’s refinement capacities, thus boosting the local economy and strengthening the Iraqi dinar. The video emphasizes that BP’s strategic investments and projects not only contribute to the company’s growth but also play a vital role in Iraq’s journey towards becoming a robust player in the global energy market.
Highlights
🌍 BP’s Historic Presence: BP has been engaged in the Iraqi oil industry since the 1920s, establishing a long-term partnership that shapes the country’s economy today.
🚀 Kirkuk Oil Field Discovery: The discovery of the Kirkuk oil field was pivotal, transforming Iraq into a notable player in the global oil market and significantly impacting its economic development.
🔄 BP’s Return Post-2009: After a hiatus, BP returned to Iraq in 2009 with advanced technology and expertise to rebuild its oil sector, committed to Iraq’s economic recovery.
🏗️ Rumila Oil Field Project: The Rumila oil field development is one of the largest oil operations globally, projected to have profound impacts on Iraq’s economy and the global oil supply.
Tariffs: PM Orders Review of US-Iraq Trade Relations
Prime Minister Mohammed S. Al-Sudani chaired a high-level meeting on Saturday to assess the economic and trade impact of the United States government's decision to raise customs tariffs on imports from multiple countries, including Iraq.
The discussion addressed potential effects on global markets, crude oil prices, and Iraq's domestic economy.
According to data from the Ministry of Trade, the US tariff increases on Iraqi goods are attributed to the trade balance disparity between the two nations, rather than any Iraqi-imposed duties on American imports. It was also noted that most US goods reach Iraq through third countries, due to specific commercial practices by
American companies.
To protect national economic interests, Prime Minister Al-Sudani issued the following directives:
Strengthen trade ties by opening channels for US distributors and activating Iraqi commercial agencies to enable direct sectoral trade.
Improve banking relations between Iraqi and US financial institutions to support shared economic goals.
Mandate the Iraqi negotiation team to re-evaluate the foundations of the trade relationship with the US, aiming for a balanced and mutually beneficial partnership.
Instruct the Ministries of Foreign Affairs, Finance, and Trade-along with relevant entities-to engage with US counterparts, monitor financial and consulting markets, and submit weekly updates to the Prime Minister's Office.
People have opined that Iraq cannot continue with the 1310 IQD to $1USD but that simply isn't true.
Here is a recent list of new projects to make my point. Iraq Signs Strategic Agreement with BP for Kirkuk Oil Fields...Chinese Firm Wins Iraqi Seawater Pipeline Contract...
Iraq Implements Global Transit System TIR from April. Iraq Approves New Renewable Energy Schemes. Industry Minister Reviews Fertilizer Production in Basra.
New Iraq-China Contracts for Sponge Iron Plant and $2bn Industrial City. $374m Chinese Investment in Iraqi Medical City. Iraq to Restart Nitrogen Fertilizer Production after 40 Yrs. Work Begins at Baghdad's new Waste-to-Energy Power Plant. £1.1m Contract for AI Video Analytics in Iraq.
Construction Starts on Iraq's Tallest Bridge. New Sustainable Residential Development in Najaf. Iraq's $17bn Trade Corridor to Bypass the Suez Canal. This is a short list for the current period. Understand, the 1310 value to the USD is no barrier to trade or anything else.
