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Mazhar Saleh: Stabilizing inflation is one of the most notable successes of Iraq’s economic policy.

The Prime Minister’s economic advisor, Mazhar Mohammed Salih, confirmed that one of the most significant successes of Iraq’s economic policy this year has been the stability of the general price level, or inflation, growth rate. He noted that the annual inflation rate is approaching, for the first time in many years, the natural break in price growth, which amounts to about 3% or less, according to statistical inflation indicators.
Saleh explained in an interview with Al Furat News Agency that “this significant price stability is due to the combination of economic policy objectives to maintain the purchasing power of citizens’ cash income and overall macroeconomic indicators, which represents an addition to real income for citizens and a good indicator of the investment and business climate.”

He pointed out that “among the factors that contributed to achieving these successes is the general budget’s allocation of price support within fiscal policy, which constitutes more than 13% of GDP. This is a high and significant percentage, and goes towards subsidizing the prices of government services, in addition to fuel and food basket subsidies, farmer support, and other types of support.”

Alforatnews.iq

Preparations for the 4th meeting to join the World Trade Organization

The Ministry of Trade intends to hold the fourth meeting of the Iraq Task Force as part of preparations for Iraq’s accession to the World Trade Organization.

Ministry spokesman Mohammed Hanoun told Al-Sabah: “The Ministry of Commerce activated the accession process through several axes, the most important of which was holding the third meeting of the Iraq task force, which was held in July of last year, 16 years after the second meeting.” He noted that “preparations are underway to hold the fourth meeting this year.”

He added, “The Ministry has prepared a focus area for updating files on goods, services, intellectual property, and agriculture, which have been completed in accordance with WTO standards, and sending them for negotiation.”

Hanoun explained that “technical work is underway with ministries and the Kurdistan Region to update the coordinated customs system from 2017 to 2022 and update the legislative plan for the laws.”

For his part, economic expert Nabil Jabbar Al-Tamimi said, “There are benefits that Iraq will gain by joining the World Trade Organization, in addition to the obligations that it will face.”

Al-Tamimi told Al-Sabah: “Iraq could gain benefits by joining the organization, most notably economic integration with member states, participation in reducing taxes and fees, and easing restrictions on exported goods, in addition to trade disputes that the organization could intervene to resolve.”

He continued: “Legislation and laws must be passed that are consistent with the goals of the World Trade Organization, and there must be a suitable environment for foreign investment and freedom.” He explained that “one of the obligations that Iraq could impose is opening local markets to imported goods and lifting restrictions on them,” noting that “such an obligation would restrict Iraq’s attempts to restore Iraqi industry to its former glory,” as he put it.

Al-Tamimi stressed that “it is better for Iraq to be an observer in the organization than to join it, because the obligations it would entail are very harsh.”

Minister of Trade Athir Al-Ghurairi said in a press statement last week that “Iraq has made significant progress in its accession process to the World Trade Organization,” stressing that “the national team responsible for completing accession requirements has completed responses to more than 450 technical questions submitted by WTO members, reflecting Iraq’s serious commitment and transparency in addressing the requirements of this important international process.”

He added, “The national team is fully prepared for the next round of meetings with the organization’s General Secretariat and working group members, and will represent Iraq with a unified position based on a national economic vision that seeks disciplined integration into the global economy.”

He pointed out that “joining the World Trade Organization constitutes a strategic step to support the business environment, stimulate investment, and develop productive sectors, particularly industrial and agricultural sectors, thus enhancing Iraq’s economic standing regionally and internationally.”

He continued, “The Ministry, in coordination with relevant ministries and institutions, will continue its technical and diplomatic efforts to ensure the best results in the service of the supreme national interest.”

Alsabaah.iq

Washington Post: America’s debt reaches $36 trillion, and the war in Iraq is a major reason.

The United States’ debt is heading toward its highest levels since World War II, reaching $36 trillion, a figure that is expected to continue rising, as the U.S. government spends approximately $2 trillion more than its annual revenues.

This chronic financial deficit is one of the most prominent indicators of the country’s financial deterioration, a deterioration caused by eight major events and decisions, most notably the Iraq War, according to a report by the Washington Post, translated by Shafaq News Agency.

According to the report, the US Treasury is forced to borrow annually to cover this huge gap between revenues and expenditures, meaning that the national debt will continue to rise and may soon exceed its peak as a percentage of GDP reached at the end of World War II unless fundamental reforms are undertaken.

The report added that the bulk of this debt has accumulated over the past two decades, noting that in 2001, the state was recording a financial surplus as a result of tax collection, with a total that exceeded spending on government services.

However, the report explains that “since that time, four US presidents, ten terms of Congress, and two major wars, including the invasion of Iraq, have contributed to the accumulation of this debt, along with domestic political decisions, the rising costs of Social Security and health care programs, repeated tax cuts, bipartisan spending agreements, and massive expenditures allocated to deal with the COVID-19 pandemic.”

The report lists eight key moments that contributed to the United States’ arrival at this point, most notably its wars in Iraq and Afghanistan. Following the September 11, 2001, attacks, the United States launched its invasion of Iraq, with a national debt of $6.5 trillion at the time. It continued to wage wars in the Middle East for nearly two decades, leading to significant increases in military spending and veterans’ expenses.

The report is based on a Harvard University study, which indicated that “the wars in Iraq and Afghanistan cost the United States between $4 and $6 trillion.”

The report also explained that US President George W. Bush signed the first two major tax cuts into law, reducing tax rates on income, capital gains, and stock dividends.

The Congressional Budget Office estimated in 2012 that these cuts added about $1.5 trillion to the national debt, which was then at $5.7 trillion.

The report also highlighted Medicare Part D, a major expansion of health coverage for seniors to include prescription drugs, which was passed when the debt stood at $8.4 trillion.

In 2008, with debt reaching $10.1 trillion, the financial market crisis deepened the Great Recession, the worst economic downturn since the Great Depression. According to economist Brian Riedel, the Bush and Obama administrations together enacted emergency measures worth nearly $2 trillion to address the effects of the crisis.

In 2013, when the debt reached $16.8 trillion, the Obama administration extended tax breaks for all but the wealthy, while Republicans agreed to extend some economic stimulus measures, as part of a deal estimated to cost a total of $4 trillion.

During President Donald Trump’s first term, a comprehensive tax cut bill was passed, focusing on reducing the corporate tax rate from 35% to 21%, and also included tax cuts for the majority of individual taxpayers.

The cost of this measure was estimated at approximately $1.5 trillion, while its cumulative impact was estimated at approximately $2.9 trillion, at a time when the public debt stood at $20.5 trillion.

In 2020, the United States faced the COVID-19 pandemic, with Trump signing the first and largest of three relief packages passed by Congress.

The first bipartisan package was worth approximately $3.4 trillion, followed by a second package worth $900 billion.

In 2021, Democrats, led by President Joe Biden, passed a third package worth $1.9 trillion, at a time when the debt had reached $27.7 trillion.

The report continues by noting that Biden succeeded in 2022 in pushing Congress to approve increased spending in the areas of health care for veterans, infrastructure, and a number of government agencies, which contributed to the debt rising to $30.9 trillion.

The report concluded by noting that Republicans in Congress and the Trump administration are moving this year to implement a plan that would increase the federal budget deficit by more than $2 trillion over the next ten years, and possibly by more than $5 trillion, unless comprehensive reform measures are taken to rein in the US public debt.

Shafaq.com

The Central Bank of Iraq announces the latest statistics on its foreign exchange reserves.

The Central Bank of Iraq announced, on Wednesday, an increase in its foreign currency reserves during May 2025.

The bank stated in official statistics, reviewed by Shafaq News Agency, that “the Central Bank’s foreign reserves as of May 22 of this year amounted to $98.83 billion, equivalent to 128.479 trillion Iraqi dinars, an increase from May 1, when reserves amounted to $97.943 billion, or the equivalent of 127.326 trillion dinars.”

He added, “These reserves also increased from April, when they reached $98.089 billion, equivalent to 127.516 trillion dinars.”

The bank indicated that “reserves decreased from last year’s 2024 figure of $100.276 billion, or the equivalent of 130.347 trillion dinars, and are also lower than the 2023 figure of $111.736 billion, or the equivalent of 145.257 trillion dinars.”

Shafaq.com

To end the “nuclear deal” dispute, Russia: We are ready to receive enriched uranium from Iran.

Russia expressed its willingness on Wednesday to receive highly enriched uranium from Iran and convert it into fuel for civilian nuclear reactors.

This move comes as a potential means of helping to narrow the gap between the United States and Iran over Iran’s nuclear program.

Iran asserts its right to use nuclear energy for peaceful purposes, but its rapidly advancing uranium enrichment program raises concerns in the West and the Gulf states that it seeks to manufacture a nuclear weapon .

The United States is seeking an agreement that would curb Iran’s nuclear activities, but President Donald Trump said in an interview published Wednesday that he is less confident than he was two months ago that Iran will agree to halt enrichment .

The Kremlin said last week that Russian President Vladimir Putin told Trump in a phone call that he was willing to leverage his country’s close partnership with Iran to assist in negotiations over Iran’s nuclear program .

Russian Deputy Foreign Minister Sergei Ryabkov was quoted by Russian media on Wednesday as saying that efforts should be redoubled to reach a solution and that Moscow is ready to help with ideas and practical means .

“We are ready to provide assistance to Washington and Tehran, not only politically and in the form of ideas that can be used in the negotiation process, but also practically, by exporting excess nuclear material produced by Iran and subsequently modifying it to produce fuel for reactors, for example,” Ryabkov said.

He did not clarify whether the nuclear fuel would be returned to Iran for use in its peaceful nuclear energy program, which Moscow is helping to develop .

The United States wants to ship all highly enriched uranium out of Iran, which says it will only export quantities in excess of the ceiling agreed upon in the 2015 agreement and cannot abandon enrichment entirely .

Kremlin spokesman Dmitry Peskov stressed, “It is very important here to say that Russia will be ready to provide these services if required, and if the parties deem it necessary.”

Russia, the world’s largest nuclear power, does not want Iran to possess nuclear weapons, but it believes it has the right to develop its nuclear program for civilian purposes and that any use of military force against it would be illegal and unacceptable .

Russia has purchased weapons from Iran for use in the war with Ukraine and signed a 20-year strategic partnership agreement with Tehran earlier this year .

Shafaq.com

AUS report monitors Iraq’s “quiet return” to the global energy market.

The American website International Policy Digest reported that Iraq is making a “quiet return” to the global energy scene, questioning whether it can transform oil into sustainable economic influence while still facing “institutional fragility” and ongoing political volatility.

The report, translated by Shafaq News Agency, explained that Iraq is quietly recalibrating its energy diplomacy as the global oil market enters a new phase of volatility, shaped by shifting geopolitical alliances, demand trends, and the rapidly increasing priority of the transition to green energy.

The report noted that Iraq’s recent agreements with China, India, and France indicate a strategic effort to diversify trade partnerships, allowing Baghdad to balance its economic future between Eastern and Western powers. However, it added, these deals reflect a larger dilemma: how to transform oil diplomacy into sustainable economic influence in a country that continues to face “institutional fragility” and ongoing political volatility.

The report considered that Iraq’s heavy reliance on oil has made Baghdad vulnerable to global economic shocks, adding that Iraq’s energy strategy has traditionally focused on exports to Western markets, and that ongoing political instability has led many Western companies to hesitate to invest in the long term.

To address this, Iraq has increasingly turned to Asia, and to a lesser extent, Europe, in its quest for economic stability and geopolitical importance, the report noted. China has rapidly emerged as Iraq’s energy partner, importing 1.19 million barrels per day (bpd), representing a third of Iraq’s oil exports despite not being formally part of the Belt and Road Initiative. Chinese corporate investments are cementing Beijing’s role as another Asian power in energy diplomacy.

The agreement reflects a similar logic, demonstrating Chinese state-backed companies in Iraq’s reconstruction while gaining long-term access to strategic goods.

However, as China consolidates its position through large-scale investments and control of commodities, another Asian power is gaining ground through a more aggressive form of energy diplomacy. India, now the world’s third-largest oil consumer, is increasing its purchases of Iraqi oil, with its purchases from Iraq expected to exceed those from Saudi Arabia by 2024.

In addition to this Asian component, the report stated that Iraq’s oil diplomacy with France adds a key European layer to Baghdad’s diversification strategy, including through the agreement with TotalEnergies in 2023. It added that the two-year suspension of the agreement, followed by its resumption, confirms Baghdad’s willingness to pursue deeper engagement with European stakeholders.

The report continued, “Most importantly, this agreement with the French also includes solar infrastructure, signaling the reality that the dominance of fossil fuels has an expiration date.” Equally important, the French partnership demonstrates Iraq’s desire to keep diplomatic doors open with the West, even as it expands eastward.

However, the report stated that Iraq’s energy landscape continues to be shaped by powerful regional players, including Iran and Turkey. Turkey has leveraged its role in Iraq’s electricity supply to exert political influence, but Baghdad’s repeated failure to pay for Iranian energy has led to recurring power outages, giving Tehran significant leverage over Iraq’s domestic stability.

After noting the often-complicated clash between Turkey’s ambitions to become a regional energy corridor and Iraq’s infrastructure constraints, the report explained that nowhere was this more evident than in the case of the Kirkuk-Ceyhan pipeline, a vital oil export artery that has been out of service since 2022. Legal disputes over Kurdish oil exports and revenues have complicated its re-operation, although bilateral negotiations may be making progress.

Thus, the report stated that within the broader context, Iraq’s energy diplomacy appears simultaneously expansive and restrictive. On the one hand, Baghdad is expanding its economic base and diversifying its international partners, but on the other, its ability to implement a long-term political vision remains at risk due to internal divisions and external dependencies.

The report went on to explain that the Iraqi government’s current five-year plan requires greater economic diversification, but without deeper structural reform, oil diplomacy risks becoming a short-term solution to governance failures.

However, the US report considered Iraq’s advanced strategy to have significant weight, explaining that with the shift in global demand for oil and the geopolitical transformation of energy toward a multipolar system, mid-level producers like Iraq can play a significant role in shaping future energy dynamics.

He added that Baghdad’s balancing policy of building relationships across Asia and Europe, while avoiding over-reliance on any one party, is part of a strategic hedging strategy. The success of this strategy hinges not only on its reliance on international engagement, but also on the country’s ability to rebuild local institutions and policy infrastructure.

The report concluded by stating that “energy diplomacy in Iraq is about more than just barrels and buyers,” explaining that it reflects a broader experience, and questioning whether the resource-rich but “politically fragile” country can turn economic need into geopolitical advantage.

He continued by saying that if Iraq succeeds, its emerging energy strategy could mark the beginning of a new chapter, one that relies not only on diversifying its buyers, but also on recalibrating its foreign policy. He explained that by courting both Eastern and Western powers, Baghdad is asserting itself not only as a passive source, but as an increasingly deliberate player in the future of global energy policy.

Shafaq.com

Aproposal to dissolve the Iraqi Ministry of Electricity: Annual spending of $8 billion remains unaddressed.

Iraqi economic expert, Munar Al-Obaidi, revealed on Monday that the annual spending on the electricity sector in the country has exceeded 10 trillion dinars, in light of the absence of radical solutions to address the chronic imbalance in this issue. He proposed dissolving the Federal Ministry of Electricity and that local governments in the governorates should manage the issue by contracting for generation in exchange for collection.

Al-Obaidi said in a statement received by Shafaq News Agency, “Data issued by the Ministry of Finance for 2024 indicate that total direct spending on the electricity sector, including operating and investment expenses, amounted to approximately 10.45 trillion Iraqi dinars, equivalent to approximately 8 billion US dollars.”

He explained that “the distribution of these expenditures was as follows: electricity costs 3.39 trillion dinars, expenses for purchasing imported fuel to operate the stations 3.3 trillion dinars, expenses for the Ministry of Electricity’s investment budget 1.2 trillion dinars, other expenditures such as compensation, grants and salaries 2.3 trillion dinars, in addition to expenses for importing energy from abroad, which amounted to 238 billion dinars.”

Al-Abidi explained that “these figures represent direct expenditures only, and indirect expenditures related to the electricity sector, such as government subsidies and the costs of technical and commercial losses in the network, are added to them.”

He pointed out that “there are no accurate figures available to illustrate the annual volume of electricity sector collections, making it difficult to measure the financial gap between what is actually spent and what is collected from citizens.” He emphasized that “this gap represents annual losses borne by the state without any real solution.”

He stressed that “the electricity issue has become one of Iraq’s most complex challenges, and patchwork solutions are no longer viable,” emphasizing that “the radical solution lies in transferring the powers of electricity production, distribution, and collection from the central government to local governments.”

Al-Obaidi suggested that “provinces should contract to establish local electricity generation units based on diverse energy sources, in addition to directly managing collection operations, which would enhance efficiency and reduce waste and corruption.” He added that “the central government’s role could be limited to drafting general legislation and regulating the market, allowing governorates to operate flexibly according to their needs and creating a local market for exchanging electricity between governorates with abundant supplies and those suffering from scarce supplies.”

He pointed out that “over more than twenty years, Iraq has spent approximately $200 billion on electricity without achieving commensurate results due to centralized decision-making, weak management, and widespread corruption.” He explained that “abolishing the Ministry of Electricity entirely and transforming its departments and units into provincial directorates may be the only path to real reform.”

Al-Obaidi warned that “if this bold course is not taken, Iraq will continue to drain huge resources without achieving sustainable electricity security.”

Shafaq.com

Iraq joins the club of advanced countries in electronic payments with 22 million bank cards.

Nabil Al Najjar, head of the electronic payments team, announced that Iraq has become one of the most advanced countries in this field, thanks to decisive government decisions and support from the Central Bank and the financial sector. He noted that the number of bank cards has exceeded 22 million, and that their usage is constantly increasing, with intensive efforts to deploy electronic payment devices throughout the country.
Al-Najjar said in a press statement, “The electronic payment project was not a spur-of-the-moment project. Rather, it was the result of prior preparations that paved the way for Iraq’s advancement in this field, despite its late entry, like the rest of the world. However, today we are among the advanced countries that use electronic payment tools.”

He explained that the success of this project depended on two key factors: desire and decision-making, adding, “The government’s desire came in 2023, specifically on January 18, with a decision to transform Iraq’s economic front from a paper-based cash system to an electronic payments system. Thus, we began gradually.”

He pointed out that the first experiment to impose the use of electronic payment was at gas stations, saying, “The first experiment was on a single day in June 2023, regarding the issue of forcing gas stations to use electronic payment tools. We certainly encountered problems at first. The project is new and faces many challenges.”

He pointed out that “the will was vested in the Central Bank of Iraq and the financial sector as a whole—banks and electronic payment companies, which have contributed significantly to shifting the economy from cash to cashless.”

He continued: “The number of cards, according to the statistics available to us, has exceeded 22 million, and thus this number is constantly increasing. The coming days will witness a higher rate of increase, given that on July 1, cash will no longer be accepted at all state institutions. While cash is currently available, it will be available in its entirety, including at gas stations.”

Regarding card usage, Al-Najjar explained that “the number of cards in use exceeds 17 to 18 million, and the situation is on the rise. We’re talking about more than 40% of citizens using electronic payment tools, and the coming days will witness further change.”

He added, “Most citizens own more than one card from more than one company and more than one bank. Their use is limited, and some only use them at government institutions. We need to educate more about the use of these cards in commercial markets and shops. This issue falls on us to raise awareness about the culture of electronic payment.”

In this context, Al-Najjar announced a new campaign to spread the culture of electronic payment, saying, “I announce that the “We Will Reach You” campaign, which was launched on January 11, 2025, will be available in the coming days, at the beginning of next month or the end of this month. We will be present in the Kurdistan Region to spread the culture of electronic payment widely.”

He explained that Iraq is striving to achieve global standards in this field, saying, “The global system speaks of one POS device for every 37 citizens. Today, in Iraq, we are striving to reach this point by deploying POS devices in shops, large and small markets, and even among kiosk owners.”

He pointed out that “electronic payment companies are trying to make these devices available and encourage their use by citizens through loyalty programs launched by companies and banking institutions.”

Regarding the situation in the Kurdistan Region, Al-Najjar said: “Today, the Kurdistan Region has entered the localization phase, so the POS deployment phases will be faster and more acceptable to the public, given that they have already gone through this experience in previous phases, but today it is becoming widespread.”

He explained that the devices are often distributed free of charge, and that sometimes a small insurance fee of no more than 200,000 to 300,000 dinars is imposed, which is refunded when the device is returned without defects.

Al-Najjar considered Halabja Governorate to represent a strategic launch for the “We Reach You” campaign, explaining: “Today, Halabja Governorate is a new Iraqi governorate. We used to have 18 governorates, now we have 19. Therefore, our people in the Kurdistan Region have a significant share of the electronic payment culture.”

He continued: “Choosing Halabja Governorate to launch the “We Will Reach You” campaign from this governorate is a move towards the Kurdistan Region, and also the northern regions of Iraq. I mean here the areas bordering the Kurdistan Region: Mosul, Kirkuk, Salah al-Din, and also the other governorates.”

Al-Najjar confirmed that this campaign is being directly sponsored by the Central Bank of Iraq and supported by several financial institutions, including the Bank of Baghdad, the Development Bank, Arab Bank, K-Card, Rafidain Bank, Al-Saqi Bank, Bank of the South, Amwal Bank, Al-Ahli Bank, and others.

He concluded his remarks by pointing out that “banking financial institutions and electronic payment companies are sparing no effort to motivate citizens through loyalty programs, under the direct supervision of the Central Bank of Iraq, the Payments Department, the Financial Inclusion Division, and other relevant departments, with the goal of delivering financial services directly to citizens.”

Alforatnews.iq

Iraq joins the international transit system, paving the way for a breakthrough on the path to development.

Iraq’s accession to the International Road Transport Association (TIR) ​​and the activation of international transport operations in cooperation with the International Road Transport Union (IRU) is a strategic step to support the country’s economy and enhance its commercial standing.

The measure aims to develop trade in the Middle East by activating the development road project, which will connect southern Iraq to northern Iraq and provide a vital trade corridor linking Asia and the Gulf Cooperation Council countries with Turkey and Europe.

Iraq’s accession to the international transit system will reduce transportation time by 80% and costs by 38%. Initial trials have shown that journeys can be completed in less than a week, compared to several weeks using alternative shipping methods. This could open new horizons for Iraq in the field of logistics and international trade.

Ihab Talib, transit official at the Iraqi General Authority of Customs, expects the international transit agreement to significantly enhance Iraq’s position in the trade and transport sectors, contribute to increased revenues, and facilitate customs procedures at all border crossings.

Following the agreement’s implementation, the authority recently received a transit flight from Poland bound for the UAE via Iraq, according to Taleb’s statement to Al Jazeera Net, pointing to effective coordination with the International Road Transport Union and government agencies.

Taleb added that pilot operations demonstrated the feasibility of completing the journey in less than a week, compared to a minimum of 14 days through the Red Sea, or 26 days if ships are forced to reroute around Africa (which has been occurring since November 2023 as Israel’s war on the Gaza Strip expanded and the Yemeni Houthi group threatened Israeli ships).

He pointed out that the International Transit Agreement operates under the auspices of the United Nations, and that Iraq has signed it with the International Road Transport Union. He noted that the Authority is currently working to implement its provisions, having previously conducted a successful trial run.

Talib said that Iraq’s strategic and vital location in the region makes it highly qualified to benefit from this agreement, which will play a significant role in strengthening its logistical position as a vital transportation route at both the regional and global levels. He emphasized that this agreement will represent a qualitative leap in Iraq’s international ranking in the fields of transportation and logistics.

Shipping procedures
Engineer Muhaimin Ammar Ibrahim, from the Transit Division of the Customs Authority, said that the entire process of receiving and processing a customs transit shipment was completed via the National Transit Platform, developed by the National Data Center at the Cabinet.

Ibrahim added to Al Jazeera Net, “We were able to accurately track the shipment’s path through the platform’s advanced tracking system from the moment it entered Iraqi territory until its exit, reflecting the platform’s efficiency and ability to provide a comprehensive view of the operations.”

He continued, “We are now looking forward to receiving more shipments that can be processed through this advanced platform, which will effectively contribute to accelerating the movement of goods and facilitating transit trade.” He expected that the activation of the international transit system in Iraq will reduce transportation time by 80% and costs by 38%, which will generate significant economic benefits and create new job opportunities.

Ibrahim pointed to the ongoing development plans and procedures the Authority is working on to enhance the monitoring system and ensure the success of the experiment. He emphasized that there are ongoing plans to ensure the success of this experiment and its completion in the simplest possible manner, as these shipments will continue, supporting Iraq’s efforts to become a regional transit hub.

strategic alternative
In turn, member of the Iraqi Parliament’s Finance Committee, Moein Al-Kadhimi, emphasized that Iraq’s accession to the International Transit Convention represents a crucial preliminary step toward the development road project.

The development road is a massive Iraqi project launched on May 27, 2023, at an estimated cost of $17 billion. It extends 1,200 kilometers, starting from the Grand Faw Port in southern Iraq, passing through several governorates, and ending at the Fish Khabur crossing in the north on the Turkish border. It includes a land route and a dual-track railway, and aims to connect Asia to Europe via Iraq.

Al-Kadhimi predicted to Al Jazeera Net that the development path would allow global trade to pass through the Grand Faw Port , then through the Fish Khabur crossing to Turkey, and on to the Port of Ceyhan and other ports in Bulgaria and European countries.

He added, “This road will be a strategic parallel to the Suez Canal, providing significant economic returns for Iraq and reducing its dependence on oil and the rentier economy.”

He pointed out that these roads and railways will provide an opportunity to establish factories in cooperation with China and other countries, enabling manufacturing within Iraq and the export of products to Europe. Population clusters will also be created along the development route.

On the other hand, Al-Kadhimi emphasized that this project “has strategic security implications at the global level. Iraq must remain stable, free from chaos and security threats, and the interests of the world’s countries will be linked to its stability. This is an important and fundamental goal that must be further strengthened.”

Aljazeera.net