Economist: Iraq has the potential alternatives and to cross the crisis

8/26/2015 0:00

BAGHDAD - Shaima Rashid
spite of austerity followed the government's policy to avoid financial crisis experienced by the country, but that did not prevent the parliamentary Economic Committee from expressing fear of the situation because of the sharp decline in oil prices, which recently fell to less than $ 40 per barrel, while reduced economic expert of the matter, stressing that Iraq is still in control of the economy from collapse.

Brent crude last Saturday (August 22, 2015) on the lower of $ 1.16 or 2.5 percent to $ 45.46 a barrel, while US crude fell through transactions to $ 45.07 for approaching the landing for $ 45 for the first time since March 2009.

Economic Commission called on the government to find a quick and radical solutions to avoid the decline in oil prices and to avoid their influence in the development of the country which is witnessing turn demonstrations calling for reform and the development of a security exceptional.

Member Nora Albjara Economic Commission described the subject of falling oil prices too as dangerous especially that Iraq's budget was built on the basis of $ 56 a barrel.

She Albjara in a statement »Sabah»: The price of oil has reached less than $ 40 per barrel and up according to international experts to $ 25, which is a big difference and lead to a clear reduction in imports of the country especially that there is a daily loss is estimated at 450 million Dolar.oadavc: on the government to find a quick and radical solutions quick and plans or the formation of a crisis committee to avoid the collapse of the country's economy, warning of the presence of fear that the government is unable to pay the salaries of staff, indicating that there are alternatives, including domestic borrowing and not outside which cost the state a lot of debt, try to move on the central bank to eliminate the corruption that exists within it in line with the reform plans of the government.

It called Albjara government to carry out reforms, wider by increasing austerity and the reduction of officials and expenses of salaries and activation of the tax and customs tariff system to include all ports, also called the ministries concerned to move and coordination with the Organization of Petroleum Exporting Countries members to work to avoid falling oil prices.

Finance Committee of the House of Representatives earlier warned of the consequences of the collapse of the national economy as a result of the possibility of declining world oil prices, indicating that Iraq's sales of oil amounted to six hundred and twenty-four billion dollars during the period of two thousand and three and even two thousand and fifteen Alhala.bdorh year, reduced the economist and former MP Abdul Abbas estrus of damage to the Iraqi economy in light of the decline in oil prices, saying in a statement »Sabah»: The economies rentier be fragile and vibrating with the first emergency change It is what is happening in Iraq in spite of stockpiling strategic oil which nearly 150 billion barrels but it has other alternatives to make the economy strong.

He added: It was supposed to, but the state depends on oil only when the high prices, but it was in the construction industry, tourism, agriculture, pointing out the existence of steps currently being implemented towards the activation of these sectors.

He ruled estrus a collapse in the Iraqi economy with the collapse of oil prices, because it has alternatives and ways other being able to survive the crisis, noting the existence of the case of waste and slouch in state institutions, but he also said, but reforms issued by the government, which intends to be issued will contribute greatly to reduce state spending, and continued: Even in the event of rising prices should move in the direction of reforms and reduce waste and maintenance of public money.

He estrus that Iraq has more than $ 60 billion as a cash reserve and tons of gold that have not driven despite the crisis and maintained a price exchange, stressing that Iraq is in front of one option is irreplaceable resort to the private sector and investment and to alternative revenue.