NADER FROM MID EAST: Passing the budget a couple of days

NADER FROM MID EAST: Passing the budget a couple of days

Summary

The Iraqi government is expected to soon submit the 2025 budget tables to the House of Representatives, although no official announcement has yet been made. Indications from government and parliamentary circles suggest that technical preparations and discussions are underway.

 The parliamentary finance committee expressed confidence that the budget tables for the current year could be approved within the next few days,

 contingent on their submission shortly after the legislative recess ends.

 Committee member Moen al-Cadimi emphasized that once the government sends the budget tables, the parliament is obligated to convene sessions until the tables are voted on. 

However, details regarding the spending items and financial allocations within the tables remain unknown at this stage.

Notably, Iraq approved a three-year budget covering 2023, 2024, and 2025—a pioneering approach since 2003—aimed at promoting financial planning stability and smoother implementation of medium-term projects. Despite this, the year-by-year execution mechanism, which requires detailed annual tables outlining financial distributions by ministries and governorates, has been delayed specifically for the 2025 budget. This delay violates established deadlines and impedes the progress of infrastructure projects and service plans that depend on the tables to guide their financial and developmental strategies. This issue is increasingly critical as the second half of the fiscal year approaches, leaving governorates without clarity about available funding.

• 🏛️ Iraqi government preparing to submit 2025 budget tables to Parliament soon.
• 📅 Parliamentary finance committee optimistic about budget approval within days.
• 🔍 Details of 2025 spending allocations remain undisclosed.
• 📊 Iraq adopted a three-year budget (2023-2025) to enhance financial stability.
• ⏳ Delay in submitting 2025 budget tables breaches deadlines.
• 🏗️ Budget delay hampers infrastructure and service project implementation.
• 📉 Governorates face uncertainty in financial planning for second half of fiscal year.

Key Insights

• 🕒 Urgency of Budget Submission: The looming submission deadline underscores the critical timing for Iraq’s budgetary process. Delays not only violate parliamentary deadlines but also stall essential government functions, highlighting the importance of timely fiscal governance. Effective budget submission is a prerequisite for parliamentary approval and subsequent fund disbursement, impacting nationwide projects.

• 🏛️ Role of Parliament in Budget Oversight: The parliamentary finance committee’s readiness to convene sessions once the budget tables are received illustrates the legislative body’s active role in ensuring government accountability. This dynamic underscores the balance of power in the budgetary process and the necessity of transparent government communication.

• 🔄 Transition to Multi-Year Budgeting: Iraq’s three-year budget for 2023-2025 represents a strategic shift towards medium-term financial planning. This approach aims to improve project implementation consistency, reduce annual budgeting volatility, and provide a structured outlook, which is crucial in a country prone to economic and political instability.

• 🔍 Importance of Detailed Budget Tables: While the three-year framework sets the broad parameters, the annual budget tables are essential for operationalizing the budget. They break down expenditures and revenues by ministry and governorate, which are vital for aligning local and sectoral plans with available resources. The absence of these details creates uncertainty at all administrative levels.

• 🚧 Impact on Infrastructure Development: The delay in submitting the detailed budget tables directly hinders the progress of infrastructure and service projects. These projects often depend on clear, reliable funding timelines to plan and execute operations effectively. The delay threatens to slow economic development and service delivery, especially in underserved regions.

• ⚖️ Financial Planning Challenges for Governorates: Without clarity on budget allocations, governorates face difficulties in crafting their financial and developmental plans. This funding ambiguity could exacerbate regional disparities and undermine efforts to address local needs, weakening the broader national development agenda.

• 📉 Risks of Fiscal Uncertainty: As the second half of the fiscal year approaches, the ongoing delay in the budget process fosters an environment of financial uncertainty. This may affect not only public investment but also discourage private sector participation, with broader implications for economic growth and stability.

In conclusion, while Iraq’s adoption of a three-year budget framework is a significant step forward, the pending submission and approval of the 2025 budget tables is critical to translating medium-term planning into actionable results. Addressing this delay is vital to ensuring continued infrastructure development, service provision, and effective governance in the months ahead.

FIREFLY: We are soon to hear that the official rate has matched that of the official CBI rate

 

Advisor To The Prime Minister: Providing Small Loans Provides Employment Opportunities Of No Less Than 60%

 Advisor To The Prime Minister: Providing Small Loans Provides Employment Opportunities Of No Less Than 60%

 
Economy     May 23, 2025, 11:39  Baghdad - INA - Amna Al-Salami  Advisor to the Prime Minister, Mazhar Mohammed Salih, confirmed today, Friday, that  providing small loans absorbs and provides employment opportunities of no less than 60%.

He explained that the loans expand the activity of small businesses and increase their contribution to the country's gross domestic product.
 
Advisor to the Prime Minister, Mazhar Mohammed Salih, told the Iraqi News Agency (INA):
 
"Within the framework of administrative reform and combating bureaucracy, which are principles of the government's approach, the factor of
 
simplifying procedures is the first priority in maximizing resource management and economic activity to achieve promising sustainable development in accordance with our country's development goals." He added,
 
"Prime Minister Mohammed Shia al-Sudani's directive to simplify microfinance grants undoubtedly carries significant benefits at both the individual and economic levels, as
 
many microfinance programs target marginalized or emerging groups, such as women and housewives, contributing to their integration into the economy." Saleh explained that
 
"these loans are highly effective financial levers for employment and mobilizing labor market actors, as 

they facilitate the start-up of private projects for young people and skilled craftsmen and women, opening the door to entrepreneurship. "

 He noted that they "help generate a stable source of income for individuals and their families, and reduce poverty and unemployment rates by empowering individuals economically.
 
Therefore, these microfinance loans are a cornerstone of the financial inclusion policy and one of its goals of eliminating unemployment and achieving development and income equality as much as possible." 

He explained that "loans 

     play a significant role in employment policy and 

     affect the balance of the labor market, by 

     absorbing and providing employment opportunities that constitute no less than 60% of available job opportunities, not to mention their role in 

     raising growth rates in the gross domestic product," noting that
 
"they play a role in expanding the activity of small enterprises, which increases their contribution to the country's gross domestic product."      https://www.ina.iq/234862--60.html    

JON DOWLING UPDATE

 JON DOWLING 

The dollar is getting crushed, now at 98.75. 

The 10 year is also down significantly.

Gold and silver hanging in there.

This is positive for the RV, I would say, and should be a tailwind for the stock market if it holds. 

SANDY INGRAM: Here's the 3 ways the Development Road Project will increase the IQD's value #iqd

 

Joint Statement Of The Central Bank Of Iraq And The Central Bank Of Tunisia

 Joint Statement Of The Central Bank Of Iraq And The Central Bank Of Tunisia

 
May 25, 2025    In the context of strengthening bilateral relations and consolidating cooperation between the Republic of Iraq and the Republic of Tunisia,
 
His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq,
met in the Iraqi capital, Baghdad,with His Excellency the Governor of the Central Bank of Tunisia, Mr. Fathi Zuhair Al-Nouri,  on the sidelines of the conference:
 
    “Iraq’s National Strategy for Financial Inclusion 2025-2029: Vision and Diagnosis,” 
organized by the Central Bank of Iraq.

    During the meeting, a memorandum of cooperation and coordination was signed between the Central Bank of Iraq and the Central Bank of Tunisia,
 
expressing both sides' commitment to
 
     developing joint frameworks and
     consolidating the principles of banking integration,
 
in light of the development of economic relations between the two brotherly countries.
 
    The memorandum stipulates enhancing cooperation in several areas, most notably:
 
    • Banking supervision and risk management in line with international standards.
    • Enhancing and expanding the use of electronic payment systems with the aim of supporting financial inclusion.
    • Supervising payment systems and exchanging expertise on developing their technical infrastructure.
    • Exchange of information and expertise in the areas of financial innovation, cybersecurity, and combating money laundering and terrorist financing.
 
    This visit provided an opportunity for both parties to discuss financial issues of mutual interest and explore opportunities for joint cooperation in developing the banking sector's infrastructure,
 
particularly with regard to modernizing and developing electronic payment systems and financial services.
 
This reflects both sides' commitment to
strengthening channels of dialogue and
technical and regulatory cooperation with their counterparts
in the region, the Arab world, and internationally.
 
    Through this partnership, the two sides affirmed their continued efforts to
 
      keep pace with developments in international banking and
     build strategic cooperative relations that contribute to
     achieving financial stability and
     supporting economic growth between the two brotherly countries.    
https://cbi.iq/news/view/2900 

TIDBIT FROM SANDY INGRAM

 Sandy Ingram  

 Development Road Project...$17 billion project is an ongoing infrastructure development connecting Asia with Europe by establishing a network of railways, roads, ports and cities. 

 Iraq will be changed by the DRP in 3 major ways:

 1. Diversification of Revenue beyond oil... 2.  Job creation...this employment surge will increase household incomes and stimulate domestic consumption, all of which point to a higher IQD value. 

 3.  Transportation infrastructure enhancement will reduce shipping times between Asia and Europe making Iraq a competitive alternative to traditional routes like the Suez Canal .

Here's the 3 ways the Development Road Project will increase the IQD's value. 

 1. Higher  fees from transit fees and trade will help to increase Iraq's foreign currency reserves.  This will provide a substantial foundation for the IQD.

 2. Economic diversification and infrastructure improvements can attract foreign investments increasing demand for the IQD and potentially leading to currency appreciation.  

3. A more balanced economy with multiple revenue streams can stabilize prices, contributing to a stronger and more stable currency. 

 It will also satisfy the IMF's recommendations for diversified revenue for a stronger Iraqi economy.