The Cabinet approves {reducing expenditures and maximizing revenues}

The Cabinet yesterday approved the recommendations issued by the Ministerial Council for the Economy regarding reducing expenditures and maximizing revenues, as part of the economic and financial reform program. This comes at a time when the Prime Minister’s financial advisor, Dr. Mazhar Muhammad Salih, expects the state to achieve initial tax revenues of approximately 8 trillion dinars this year, representing about 50% of the total non-oil revenues estimated at between 16 and 17 trillion dinars, with the possibility of these revenues rising to 18 trillion dinars by the end of the year.

Saleh explained to Al-Sabah that these indicators reflect a gradual shift in the structure of public revenues away from total dependence on oil, as the government aims to raise the contribution of non-oil revenues to about (20%) of total public revenues, compared to less than (10%) in previous years.

The Ministerial Council for the Economy approved a package of decisions related to reducing spending and maximizing revenues, during an extraordinary meeting held on Monday, chaired by Prime Minister Mohammed Shia Al-Sudani.

The Council decided to equalize the salaries and allowances of all employees of the Presidency and the Parliament with those of the Prime Minister’s office. It also tasked the specialized committee within the Ministry of Planning with urgently updating the report on unifying the salary scale for employees, in accordance with the recommendations submitted on this matter. As part of the spending reduction measures, allowances for official travel for government employees were cut by 90%, and travel is now prohibited except in cases of necessity and with the approval of the relevant minister.

On the sidelines of the fifth regional conference of the Al Baraka Forum for Islamic Economics held in Cairo, the Governor of the Central Bank, Dr. Ali Al-Alaq, confirmed that Iraq has succeeded in reducing the inflation rate to about (1%), and increasing the size of foreign reserves, while maintaining the stability of the exchange rate, despite the fact that public finances depend on oil by more than (90%).

Alsabaah.iq

Al-Moussawi: Forming the new government may take a long time.

MP Mukhtar al-Moussawi affirmed on Wednesday that forming the new government in Iraq faces significant challenges and will not be achieved quickly without the consensus of all political factions, whether Shia, Sunni, or Kurdish.

Speaking to the Information Agency, al-Moussawi stated, “The continuation of the current situation without serious and urgent action to resolve the political disputes related to entitlements and the nomination of candidates will lead to a lengthy delay in the government formation process.”

He pointed out that “reaching an understanding on the presidency is the essential and necessary first step, followed by an agreement on the Speaker of Parliament, so that a date can be set for the opening of the new parliamentary session.”

He explained that “these steps are part of a political system followed in many countries to ensure the smooth and transparent progress of the constitutional process,” noting that “the continuation of the current stalemate and the failure to reach a swift agreement will cause the government formation process to take more than two months, negatively impacting political stability and hindering the implementation of the government plans and programs that the country is awaiting.”

Al-Moussawi called on “all political parties to expedite reaching an understanding and prioritize the national interest over partisan and factional interests, in order to overcome the current crisis and finalize the formation of the government as quickly as possible.”

Almaalomah.me

The Central Bank of Iraq acknowledges the crisis: Oil prices and liquidity withdrawals have affected “cash reserves”.

The Central Bank of Iraq confirmed on Wednesday that the decline in oil prices and the withdrawal of liquidity from the markets are two factors that negatively affect Iraq’s hard currency reserves.

The bank said in a report, which was received by Shafaq News Agency, that “Iraq’s reserves are closely linked to the size of oil revenues, which makes them vulnerable to fluctuations in global oil prices. Also, the monetary sterilization carried out by the Central Bank to withdraw liquidity from the market has a negative impact, due to the need to utilize foreign reserves.”

The bank added that “oil prices fell from $81 for the second quarter of 2024 to $69 for the same quarter of 2025, and consequently reserves decreased from 142.69 trillion dinars to 126.16 trillion dinars for the same period.”

He pointed out that “the Central Bank’s withdrawal of cash liquidity from the market in order to maintain monetary stability led to an increase in cash receipts (i.e., the bank’s acquisition of dinars in exchange for selling dollars), from 18.37 trillion dinars to 21.66 trillion dinars for the same period (i.e., an increase in dollar sales), in addition to the practice of the general budget deficit, which has an impact on net foreign reserves.”

Shafaq.com

Financial advisor: There is no liquidity crisis and the government is proceeding with preparing the 2026 budget.

The Prime Minister’s financial advisor, Mazhar Muhammad Salih, confirmed on Wednesday that there is no severe liquidity crisis in the short term, while indicating that the government is proceeding with the preparation of the 2026 budget within the medium-term framework of fiscal policy. The Prime Minister’s financial advisor, Mazhar Muhammad Salih, told the official agency that “governments usually resort to measures to reduce spending when facing pressures resulting from fluctuations in revenues or an increase in current obligations, especially in rentier economies that depend on a single resource such as oil.”

He also explained that “these measures come in light of fluctuating oil prices and increasing spending requirements, which necessitates discipline in managing liquidity.”

Regarding liquidity problems in the coming period, Saleh stressed that “the government is not expected to face a severe liquidity crisis in the short term, as long as oil revenues remain at their current levels and coordination between fiscal and monetary policies continues,” indicating that “continued pressure on operational spending may lead to a relative widening of the 2026 budget deficit, unless it is accompanied by controlling expenditures and strengthening non-oil revenues, especially tax and customs revenues.”

Regarding the preparation of the draft federal general budget law for 2026, he indicated that “the financial authority and the government have made significant progress in preparing it within the medium-term framework of fiscal policy,” expecting that “the draft will focus on achieving a balance between fiscal sustainability and development requirements.”

He added, “Initial indicators suggest that investment and service projects will remain at the forefront of priorities, especially those related to infrastructure, energy and basic services, which will enhance economic growth and alleviate social pressures, while simultaneously striving to rationalize operational spending and improve its efficiency.”

He also stressed that “the real challenge lies not in the size of the spending itself, but in its quality and efficiency, and in the ability of public finances to gradually move from the logic of crisis management to the logic of sustainable development planning.”

Burathanews.com

The central bank speaks of “intertwined pressures” on the economy… and expresses concern about the repercussions of “salary spending cuts”.

Bank Governor Ali Al-Alaq confirmed that the Iraqi economic scene is facing complex pressures, noting that salaries and subsidies pose an additional challenge, with the difficulty of reducing these expenditures due to the expected social repercussions.

Al-Alaq said on the sidelines of the Fifth Regional Conference of the Islamic Economic Forum in Cairo that “the Iraqi scene is facing complex pressures and accumulated infrastructure and development challenges, which require diversifying the economy and maximizing public revenues,” noting that “public finances in Iraq depend on oil exports by more than 90%, which is an unconventional source subject to fluctuations in global prices, leading to revenue volatility and weak financial stability, which necessitates finding structural solutions.”

He stressed that “the limited economic diversification and weak productive sectors have made Iraq a country that is primarily an importer, which puts continuous pressure on the dollar and the exchange rate, especially with the rise in purchasing power and the increase in daily demand for foreign currency, which is directly reflected in the monetary policy that has achieved great success in balancing the maintenance of price levels, managing liquidity and stimulating the economy.”

He pointed out that “public spending pressures, especially on salaries, subsidies and basic services, pose an additional challenge,” stressing “the difficulty of reducing these expenditures due to the social repercussions they may cause, at a time when the Central Bank is seeking to avoid inflation and maintain monetary stability to protect the social structure in the country,” according to the state-run Al-Sabah newspaper.

Al-Alaq explained that “Iraq has been able in recent years to finance part of the financial deficit through the development of non-oil revenues, while continuing to coordinate with the Prime Minister with the aim of maximizing these resources and reducing dependence on oil in an effort to break the ‘financial dominance’ of oil revenues over the general budget.”

The Central Bank Governor stressed that “the stability of the exchange rate is a pivotal goal, as it provides a safe cover for investors and citizens,” while pointing out that “international studies show that losses in the debt file may range between 20% and 25% as a result of ill-considered financing conditions or delays.”

Burathanews.com

The development path enters the implementation phase.

With the final designs completed (100%), the Development Road project enters a crucial phase that paves the way for its transformation from a strategic plan to an executive reality.

The Prime Minister’s Advisor for Transportation and the Development Road, Nasser al-Asadi, confirmed to Al-Sabah newspaper that the project has officially entered the marketing and international investment attraction phase. He explained that the completed designs are currently undergoing technical review before their launch. The Development Road is considered the largest economic project in modern Iraqi history, aiming to establish a land-rail corridor extending from the Grand Faw Port to the Turkish border, passing through several governorates.

Al-Asadi revealed that Iraq has received investment offers from several countries, including Turkey, the UAE, Qatar, and Oman, with increasing interest from the Gulf region. He indicated that the final route, agreed upon between Baghdad and Erbil, will pass through Dohuk and reach Fishkhabur, as it is the least expensive and easiest to construct, according to studies by an international consultant.

The project aims to reduce trade time between Asia and Europe to 15 days. Al-Asadi also indicated that the expected revenues, whether from current or future investments, are estimated at billions of dollars, with financial and economic studies to be announced soon, stressing that the project will provide ample job opportunities and form a cornerstone for strengthening the economy.

Alsabaah.iq

The Sudanese official discusses with a SpaceX delegation the final stages of granting satellite internet licenses.

The policy of receiving the president cabinet, Mohammed Shia Al-Sudani On Thursday, a delegation from the company Space Starlink, the American company specializing in networking and communications technology, was present, along with the US Chargé d’Affaires. Iraq Joshua Harris.
During the meeting, the final stages of granting satellite internet licenses, including to the company, were discussed. SpaceX, and to enhance cooperation in the field of communications and services provided by the company and its coverage areas.

He pointed Sudanese Until that Iraq It achieved a significant shift in the path of attraction Global companies The various sectors, and securing all their requirements and needs, including satellite internet systems, to sustain their work and activities, emphasizing the government’s interest and keenness to keep pace with global developments. Communications technology Information and digital transformation through cooperation with SpaceX and its entry into the Iraqi market, which today offers many promising investment opportunities, according to a statement from his office.

The president confirmed cabinet The government prioritizes the telecommunications sector in Iraq, focusing on preserving Iraq’s information and technological sovereignty, investing in the capabilities of young specialists in this field, training them, and eventually entrusting them with operational responsibilities.

For their part, the SpaceX Starlink delegation expressed their keen interest in working, providing services, and collaborating in the information technology sector, emphasizing that their company is ready to operate and contribute to providing services. Internet service The alien will be available within a short period, after officially obtaining a work permit in Iraq.

Alsumaria.tv

Iraq receives a message from the US: Oil smuggling money is infiltrating Baghdad’s banks.

On Thursday, the “Eco Iraq” observatory revealed that the Central Bank of Iraq received an official email from the US Treasury Department, specifically from the Office of Foreign Assets Control (OFAC), inquiring about financial deposits related to Iraqi oil smuggling operations that were deposited in the “Bank of Baghdad”.

The observatory explained, in a statement received by Shafaq News Agency, that the OFAC letter indicated that individuals wanted on charges of oil smuggling had deposited sums of money in the bank, noting that the information contained in the letter confirms the involvement of parties within (Baghdad Bank) in facilitating deposit operations and money laundering.

According to the observatory, such cases usually require summoning the authorized manager of the bank in question, in the presence of the American company contracted to audit the movement of funds, in order to verify the paths of suspicious transfers and deposits.

“Eco Iraq” confirmed that the receipt of signals from the US Treasury Department regarding the involvement of employees or departments within the Bank of Baghdad in facilitating the deposit of funds related to oil smuggling represents a serious indication of the weakness of compliance and internal control systems.

He concluded that banking institutions operating within Iraq, particularly those dealing in dollars, are supposed to adhere to the highest standards of combating money laundering and the financing of illegal activities, including oil smuggling, noting the “sensitivity of such issues to the United States.”

Shafaq.com

“The US Defense Act 2026”: Strict conditions on Iraq and a firmer presence in Syria

The text of the National Defense Authorization Act for fiscal year 2026 reveals a package of strategic decisions that reshape the American military presence in the Middle East, and establish new parameters for the relationship with the Baghdad government, while extending operations against ISIS.

The US House of Representatives passed the bill by an overwhelming majority (312 votes to 112), and it now heads to the Senate for final ratification.

Officially ending the “state of war” with Iraq

In a long-awaited historic move, Congress formally repealed two key authorizations used to launch military operations in Iraq: the 1991 resolution concerning the First Gulf War (the liberation of Kuwait), and the 2002 resolution that paved the way for the invasion of Iraq and the overthrow of Saddam Hussein’s regime.

This repeal ends the legal basis that US presidents have relied on for decades to launch military operations in Iraq without consulting Congress, thus closing the chapter on “open-ended wars”.

Freezing funds for “security cooperation” and conditions for “disarming militias”

Despite the repeal of the war authorization, Congress tightened its grip on security assistance to Iraq, with legislation freezing 50% of the Office of Security Cooperation in Iraq (OSC-I) budget for 2026.

Her release was contingent upon the Minister of Defense providing a “certification” that the Iraqi government had taken credible steps to “reduce the influence of pro-Iranian militias” through a public and verifiable Disarmament, Demobilization and Reintegration (DDR) process, and to enforce state sovereignty by strengthening the authority of the Prime Minister as Commander-in-Chief of the Armed Forces.

The US Secretary of Defense was given the authority to suspend this freeze for 180 days if national security interests so required.

Congress stressed the need to investigate and hold accountable security elements or “militias” operating outside the official chain of command and involved in attacks against U.S. or Iraqi forces.

Syria: Preventing withdrawal and securing detention camps

On the Syrian issue, Congress adopted a hardline stance against any sudden military withdrawal and prohibited the reduction of bases. The law also prohibited the use of any funds to reduce the number or merge US military bases in Syria unless the Secretary of Defense and CENTCOM provided certification confirming that the new situation would not affect the ability to combat terrorism, along with a plan to close any security gaps.

Securing the Al-Hol and Roj camps

The law (Section 1216) obliges the US Department of Defense to take urgent measures to support the protection of detention camps for ISIS members and their families (Al-Hol and Roj), and to support local partners (SDF) to prevent the escape of detainees or the return of extremism, while submitting a detailed annual report on plans to return detainees to their countries.

Extending counter-ISIS operations and supporting partners

The law affirmed the continuation of the war on terror by extending the following legal authorities until December 31, 2026: providing assistance to vetted Syrian groups and individuals, providing support for operations against ISIS, and compensating coalition countries that support U.S. military operations.

Shafaq.com

Today, Sunni forces are holding an “important” meeting to decide on the nomination of the Speaker of Parliament.

The “National Political” Council, which unites the Sunni forces that won the 2025 parliamentary elections, intends to hold an “important” meeting on Thursday to decide on the nomination of the Speaker of the Iraqi Parliament.

A senior official in the council told Shafaq News Agency that “the leaders of the National Political Council will hold an important meeting this evening, Thursday, at the home of the leader of the Azm Alliance, Muthanna al-Samarrai, in the presence of all the council’s leaders, to decide on the nomination of the next Speaker of Parliament in a consensual manner among all the Sunni political forces.”

The source, who asked not to be named, added that “the most prominent candidates for the presidency of the House of Representatives are (Mohammed al-Halbousi, Muthanna al-Samarrai, Thabit al-Abbasi) and perhaps new names will be put forward during today’s meeting, including (Haiba al-Halbousi, Mahmoud al-Qaisi).”

He pointed out that “the leaders of the council are in contact with the leaders of the Shiite Coordination Framework to coordinate positions and prevent any veto on the name of any figure that the Sunni political leaders may agree on, in order to prevent opposition to them and to ensure a vote in favor of whoever is chosen in the first session of the new parliament.”

On Wednesday, Azam Al-Hamdani, a leader in the Al-Azm Alliance, revealed that the date for the third session of the National Political Council had been set, and indicated that it would be dedicated to discussing the candidate for the presidency of the Iraqi parliament.

Al-Hamdani told Shafaq News Agency that “the National Political Council will resume its sessions that it held last week at the home of the head of the Progress Party, Muhammad al-Halbousi,” indicating that “the next session will be the third and will be held at the home of the head of the Azm Party, Muthanna al-Samarrai, and the meeting is expected to be held tomorrow, Thursday, or next Sunday.”

He explained that “the third session will be held to resolve the issue of entitlements within the Sunni bloc, and what is related to the presidency of the House of Representatives and the rest of the other positions within the government formation, in addition to completing the process of building the state through building the Iraqi government with the participation of everyone.”

Last month, the Sunni alliances and parties that won the elections announced the establishment of the “National Political Council”.

This came during an expanded meeting held at the initiative and invitation of the head of the Sovereignty Alliance, Khamis al-Khanjar, in Baghdad, with the aim of unifying visions and positions regarding major national issues and strengthening joint work between political leaders and blocs, according to a statement issued at the time.

According to the final election results, Sunni forces won 77 seats, making the reshaping of alliances a crucial factor in the negotiations to form the next government.

Last Monday, the Independent High Electoral Commission sent the final results of the sixth parliamentary elections to the Federal Supreme Court (the highest judicial authority in Iraq) for ratification.

Shafaq.com