Thursday, December 5, 2024
Al-Sudani in Parliament.. The economic file is on the agenda and the numbers "highlight" the reality, 5 DEC
Al-Sudani in Parliament.. The economic file is on the agenda and the numbers "highlight" the reality
Prime Minister Mohammed Shia al-Sudani will be a guest of Parliament today, Wednesday, at his request, for the first time in two years, as he will be under the dome of Parliament for only the second time as Prime Minister after the first time his government won confidence in October 2022, and while this hosting comes at the request of al-Sudani specifically, this means that he has a lot to show before the House of Representatives.
Although the talk about the situation in Syria and security in the region is the most prominent, as official statements say, the statements also indicated that the talk will include the economy, services, and the Sudanese government program.
It is well known that the space of "political bidding" in Iraq, especially in the past few years, is very profitable in the fields of economy and services, because it shows the political forces keen on the interests of citizens and some groups, so it is very expected that the parliament will witness talk and discussion about economic and service issues related to Al-Sudani's government.
It is well known that the space of "political bidding" in Iraq, especially in the past few years, is very profitable in the fields of economy and services, because it shows the political forces keen on the interests of citizens and some groups, so it is very expected that the parliament will witness talk and discussion about economic and service issues related to Al-Sudani's government.
Contrary to the sustainable crisis, non-oil revenues compete with oil revenues
When talking about the economy during Al-Sudani’s era, it witnessed many fundamental changes. In fact, some economic indicators were a “permanent blot” on the face of the Iraqi economy for 20 years, specifically non-oil revenues and the percentage they constitute of total revenues.
During the current year and until last September, non-oil revenues constituted 11% of total revenues and amounted to more than 12.4 trillion dinars, while oil revenues constituted 89%.
This percentage is absolutely unprecedented in the past years, when non-oil revenues did not exceed 5% of total revenues at best. In 2023, the percentage of non-oil revenues reached 7%, and in 2022 it reached 5%.
The second most persistent crisis is shaking up... Flared gas is declining
As for the flared gas, which is also one of the biggest economic crises in Iraq, the government has achieved an increase in the percentage of gas invested and stopped the flared gas.
Previously, Iraq was producing 2,700 cubic meters of associated gas per day, investing 1,500 cubic meters of it, and burning 1,200 cubic meters per day. Now, Iraq produces 3,000 cubic meters of gas per day, investing more than 2,000 cubic meters of it per day, and burning only 1,000 cubic meters, which means that the gas investment rate is 66%, while the burned rate is 34%, while in previous years the invested gas rate was between 50 and 55%, and the burned rate was between 50 and 45%.
Iraq exports derivatives, not imports them
In addition, the issue of exporting crude oil and returning to importing fuel and derivatives is one of the most problematic issues that were considered “shameful” for Iraq, as the second largest oil producer in OPEC imports oil derivatives, as Iraq used to import derivatives worth more than $3 billion annually.
Iraq was importing about 15 million liters of gasoline per day, 10 liters of kerosene per day, and about two million liters of kerosene per day.
But within less than two years, Iraq's import of kerosene and kerosene has stopped completely, and Iraq has even started exporting kerosene, while gasoline imports have decreased by about 70% from 15 to only 5 million, and it is hoped that gasoline imports will stop completely starting next year, with the completion of the opening of isomerization units in ongoing projects in some Iraqi refineries.
Years of debts... reduced by half in two years
One of the indicators that also worried Iraq was the debt file, but despite the fact that current and mandatory operating expenses increased significantly during the past two years to reach about 120 trillion dinars annually, and recording an actual deficit rate, the government balanced the borrowing story, so that external debts decreased by half within two years.
While external debt was about $20 billion in 2022, it decreased to about $16 billion in 2023, and recently decreased in 2024 to less than $9 billion.
Unemployment and employment crisis
The government has also taken pivotal steps regarding the unemployment crisis and the dual pressure on government employment. The legislation of the Social Security and Workers’ Retirement Law is one of the most important factors in the balance between the public and private sectors. From only 19,000 insured workers, the number of workers registered in Social Security and Workers’ Retirement has reached about half a million workers so far.
The measures related to employment and facilitating project support caused poverty rates to drop from 23% to 17.6%, and the unemployment rate dropped from 16.5% to 14.4%, according to the latest survey conducted by the Ministry of Planning, which lasted from mid-2023 to mid-2024. link
TIDBITS FROM NADER FROM MID EAST & SANDY INGRAM, 5 DEC
Nader From The Mid East
I would not be flying to Iraq to make the exchange. I'll be flying out Iraq to make the change. I'll go there, pick up some money and come back [to U.S]. That's what I will do.
Sandy Ingram
For those of you who can travel to Iraq, it is best to deal with your money matters in Baghdad or Erbil...When the currency increases in value, some of you may decide you want to travel to Iraq and it's not a big deal.
Wrong! It is a big deal.
Yes, you see YouTubers traveling through Iraq but it's not that simple. The moment you enter the country with a U.S. passport your life can change instantly...
The threat of terrorism, armed conflict, kidnapping and violent crime - This is the State Department's Standard comment in travel warnings. What the State Department is really saying is if you get into trouble we do not have the resources or the network of people to get you out of trouble. This is why [we] recommend US citizens to not travel to Iraq.
Minister of Finance discusses joint cooperation with World Bank representative in Iraq, 5 DEC
Minister of Finance discusses joint cooperation with World Bank representative in Iraq
Tuesday 03 December 2024 | Economic Number of readings: 352 Baghdad / NINA / Minister of Finance Taif Sami Mohammed discussed today, Tuesday, with the World Bank Representative in Iraq, Jean-Christophe Carret, ways to enhance cooperation between Iraq and the World Bank to support development projects and economic reforms.
The Minister of Finance stressed to the Bank Representative: "The importance of partnership with the World Bank in financing programs aimed at achieving sustainable development, expressing at the same time her welcome to Emmanuel Salinas, who was appointed as the new representative of the Bank to Iraq instead of Richard Abdel Nour, whose duties in Iraq ended last November, wishing him success in his new tasks and supporting development relations between the two sides in a way that achieves the interests of Iraq and its people.
The Minister stressed: "The Iraqi government's keenness to implement financial and economic reforms to ensure the stability of the national economy. It is working to implement these reforms with the aim of enhancing sustainable growth, improving the management of financial resources, combating corruption, and strengthening transparency in government institutions.
For his part, the World Bank representative praised the Iraqi government's efforts to improve the economic environment and implement programs that enhance transparency and efficiency, expressing the bank's readiness to provide more technical and financial support in line with Iraq's development priorities.
The two sides agreed to continue coordination and joint work to achieve strategic goals and enhance economic stability in the country. / https://ninanews.com/Website/News/Details?key=1172536
REINALDO JC: The pressure & exposure is on the Kurdistan Govt to deliver what was promised, 5 DEC
REINALDO JC
Iraq
This is getting spicy & time is running out in Iraq to deliver what was promised to the Iraqi citizens!!!
Sudani exposed Kurdistan Regional Govt by not complying to the federal budget law/(HCL) & Iraq Govt will NOT send salaries to that region to pay their ppl, if it’s not signed & delivered to the State Organization for Marketing of Oil (SOMO).
PM Sudani also revealed to Iraqi lawmakers that the Kurdistan Region produces 270,000 barrels of oil daily, using part for domestic consumption and selling the rest on the black market to Iran. He added that Baghdad has warned Tehran that such transactions are ILLEGAL.
They wanted to keep this as a secret meeting today but…
The pressure & exposure is on the Kurdistan Govt to deliver what was promised. The ball is in your hand you thieves.
Iraq
This is getting spicy & time is running out in Iraq to deliver what was promised to the Iraqi citizens!!!
Sudani exposed Kurdistan Regional Govt by not complying to the federal budget law/(HCL) & Iraq Govt will NOT send salaries to that region to pay their ppl, if it’s not signed & delivered to the State Organization for Marketing of Oil (SOMO).
PM Sudani also revealed to Iraqi lawmakers that the Kurdistan Region produces 270,000 barrels of oil daily, using part for domestic consumption and selling the rest on the black market to Iran. He added that Baghdad has warned Tehran that such transactions are ILLEGAL.
They wanted to keep this as a secret meeting today but…
The pressure & exposure is on the Kurdistan Govt to deliver what was promised. The ball is in your hand you thieves.
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