Parliamentary Finance Committee warns against not adjusting the price of a barrel of oil in the budget

Shafaq News / The Parliamentary Finance Committee warned on Wednesday against adjusting the price of a barrel of oil in the Iraqi federal general budget due to the decline in global oil prices.

Committee member Jamal Kocher told Shafaq News Agency, “The price of a barrel of oil was set in the general budget law at $70 per barrel. At the time, the price of a barrel of oil was more than $70. It is not yet known whether the government has adjusted the price of a barrel of oil in the budget or not.”

Kocher pointed out that “the Iraqi state’s operating budget is only 90 trillion dinars, and if the price of a barrel of oil falls below $60 and is not addressed, this will plunge the country into a financial crisis, and the government will spend oil revenues on employee salaries only.”

Regarding the fate of the budget tables, the MP explained that “the budget tables have been delayed in the Cabinet and a date for sending them to the House of Representatives has not yet been set.”

The Prime Minister’s financial and economic advisor, Mazhar Mohammed Salih, told Shafaq News Agency that the delay in submitting the 2025 budget schedules to the House of Representatives until now is due to “amendments related to the costs of extracting and transporting Kurdistan Region oil, which required restructuring the calculation methods.”

Saad al-Nubi, a member of the Parliamentary Finance Committee, told Shafaq News Agency on Tuesday that he was surprised by the government’s delay in sending the budget law tables to the House of Representatives. He explained that “the budget was supposed to reach Parliament before the end of last month,” noting that “the committee pressured the Minister of Planning and the Minister of Finance, asking them to explain the reason for the delay in sending it, but they have not received any response so far.”

Shafaq.com

Corruption, Mismanagement, Unemployment, and Poverty in Iraq: A Comprehensive Economic Analysis and a Path to Solution

Researcher Shaza Khalil*

More than two decades after the US invasion in 2003, Iraq continues to face a series of interconnected structural challenges that hinder its economic and social development. These challenges include widespread financial and administrative corruption, chronic mismanagement, high unemployment rates, and increasing poverty rates. Despite Iraq’s vast natural resources, particularly oil, transforming these resources into sustainable growth and social welfare remains elusive.

This analysis aims to shed light on the roots and intersectionality of these crises from a holistic economic perspective. It also proposes a set of policies and reforms to address structural weaknesses and achieve long-term stability and development.

First: Financial and Administrative Corruption – A Threat to the State

Corruption in Iraq is not merely an occasional phenomenon; it is a systemic crisis that pervades public administration and economic policies. It is estimated that hundreds of billions of dollars have been squandered due to corruption over the past two decades, placing Iraq at the top of the global corruption rankings, according to Transparency International’s Corruption Perceptions Index.

This rampant corruption has drained the state treasury and crippled the government’s ability to finance essential public services. Vital sectors, including health, education, infrastructure, and industry, have been harmed by corruption, sham deals, and ghost employees. Corrupt networks, often linked to political parties and militias, control state institutions, undermining the rule of law and hindering effective oversight.

Second: Mismanagement and the fragility of the oil-based rentier economy.

The Iraqi economy remains almost entirely dependent on oil, which accounts for more than 95% of state revenues. This rentier model makes Iraq vulnerable to fluctuations in global oil prices, leading to periods of financial abundance followed by severe economic crises. For example, the collapse in oil prices in 2020 led to an 11% contraction in GDP, while the economy experienced a temporary recovery in 2022 thanks to a 9.3% increase in prices.

This overreliance on oil hinders medium- and long-term economic planning and prevents the building of a stable economic environment. Successive governments have failed to diversify sources of income by developing productive sectors such as agriculture, industry, and technology.

Managing oil revenues is further complicated by international agreements after 2003. Under US Presidential Executive Order 13303, Iraqi oil revenues are deposited in a special account at the US Federal Reserve known as “Iraq-2,” pursuant to a 2015 US Presidential Resolution 13303, purportedly to protect Iraq’s assets from international lawsuits. Despite the legal protections this mechanism provides, many Iraqis view it as an infringement of national sovereignty. A recent agreement has been reached to gradually end the currency sales window and transition to direct transfers, which could pave the way for Iraq to regain its financial sovereignty.

Third: Unemployment and Poverty – A Social Time Bomb

The social impacts of corruption and mismanagement are having a serious impact on Iraqi society. The unemployment rate reached 16.5% at the beginning of 2024, while the poverty rate reached approximately 22%, with more than 10 million Iraqis living below the poverty line.

This crisis is exacerbated by the effects of war and displacement, with an estimated 6 million orphans and 2 million widows, in addition to more than 4 million people living in slums and marginalized areas, lacking basic services such as clean water, healthcare, and education.

The Iraqi labor market relies largely on employment in the public sector, which is bloated, unproductive, and plagued by waste and corruption. The private sector, meanwhile, is weak and limited due to poor infrastructure, administrative corruption, and difficulty accessing financing. Young people entering the labor market face an uncertain future, increasing the likelihood of migration, protests, and extremism.

Fourth: Recommendations – Towards a Resilient and Inclusive Economy

To address these intertwined crises, Iraq must adopt a comprehensive national reform plan that focuses on diversifying the economy and rebuilding institutions.

1. Combating Corruption: Establishing an independent anti-corruption commission with judicial authority.

Digitizing government services and public procurement to enhance transparency. Enforcing mandatory financial disclosure and auditing for officials.

2. Diversify the economy by investing in agriculture and food industries to create jobs and reduce imports. Support small and medium-sized enterprises through targeted financing programs.

Developing strategic industries such as renewable energy, technology, and construction.

3. Reform the labor market by updating vocational and technical education programs to meet market needs. Support public-private partnerships to provide job opportunities for youth.

Launching temporary employment programs in infrastructure and housing.

4. Social Protection: Expanding conditional cash assistance programs for the poorest families. Providing housing support and basic services to marginalized areas.

Supporting social and psychological rehabilitation programmes for orphans, widows and displaced persons.

5. Reform fiscal and monetary policies, restructure the general budget to focus on capital investment rather than operating expenditures, and enhance the independence and efficiency of the Central Bank of Iraq.

Reviewing the legal framework for managing oil revenues to enhance Iraq’s economic sovereignty.

In conclusion, Iraq today stands at a historic crossroads. Despite the enormous challenges related to corruption, unemployment, poverty, and mismanagement, overcoming them is not impossible. With genuine political will, comprehensive institutional reforms, and a comprehensive and just economic vision, Iraq can turn a new page toward stability and prosperity.

The path to recovery requires not only financial resources; it also requires courageous leadership, popular participation, and a firm belief in justice and fairness. Only then can Iraq regain its status as an independent, prosperous, and fully sovereign state.

Rawabetcenter.com

MP Mukhtar al-Moussawi: More than 50 MPs have been absent since the beginning of the session.

MP Mukhtar al-Moussawi issued a scathing warning on Tuesday (April 15, 2025) regarding the absence of more than 50 MPs from parliamentary sessions since the start of the current parliamentary session, referring to a phenomenon he described as “exceptional” and unprecedented, even in comparison to parliaments around the world.

Al-Moussawi said in a press statement that “a representative is only elected to be the voice of the people under the dome of parliament, and they are responsible for attending, interacting with legislative committees, and preparing reports.” He expressed surprise at the absence of such a large number of representatives “without attending even a single session.”

He added, wondering, “Do these representatives have convincing excuses? Are the salaries and benefits they receive permissible in light of this complete absence?” He warned that “the continuation of this situation sends negative messages to the public and undermines people’s confidence in the legislative institution.”

Al-Moussawi pointed out that “dividing the parliament’s presidency among the three components has weakened the mechanism for dealing with this phenomenon,” emphasizing that “the presence of these representatives in the sessions could have made a difference in passing dozens of important laws or bringing them up for discussion.”

He concluded by saying, “What is happening is painful for the legislative process and requires a serious stance from the presidency and political blocs to restore the prestige of Parliament.”

For years, the House of Representatives has witnessed widespread controversy regarding the performance of its members, particularly regarding attendance and actual participation in legislative sessions.

MP Mukhtar al-Moussawi’s remarks come at a time when Iraq is suffering from mounting political and legislative crises, requiring an active presence of parliamentarians to contribute to the passage of reform laws and monitor government performance.

Burathanews.com

Ports Director: We will adopt modern navigation equipment to operate the Grand Faw Port.

Director General of Iraqi Ports, Farhan Al-Fartousi, announced on Tuesday that the Grand Faw Port will be operational in the coming period after it has been equipped with modern navigation equipment. Al-Fartousi stated in a press conference that “the technical director of the International Academy for Maritime Aids (IALA), Julierdine Delano, is currently visiting Iraq to review the state of the maritime sector and its needs in terms of modern technology in the field of navigational aids, which includes the availability of buoys, lighthouses, and ship traffic signs.”

He added, “Iraq’s cooperation with international maritime organizations, such as the IALA International Academy, will enable the port sector to modernize its infrastructure, provide the port of Faw with the latest navigation equipment, and train the crews working at the port to use this technology.”

In contrast, the technical director of the Ayala Academy, Juliardine Delano, confirmed that “Iraqi ports are witnessing significant development in terms of performance and navigational equipment.”

She noted that she is currently visiting Iraq to review the state of the maritime sector and its needs, ensure Iraq’s commitment to implementing international requirements for maritime safety, and conduct a preliminary assessment of the Grand Faw Port’s need for such navigational aid, in preparation for its commencement of operations in the coming period.

She added, “Iraq’s compliance with international standards and its investment in safety measures will yield returns in the form of reduced prices for imported products, as well as insurance revenues paid by ships passing through ports.”

Burathanews.com

Banking sector update

Iraq has recently witnessed significant improvements on the political, economic, and security fronts, which has had a positive impact on attracting foreign and Arab investments, particularly in the banking sector.

The increasing presence of foreign and Arab banks in the country is evidence of a recovering investment environment and reflects government efforts to enhance economic stability.

Among the most notable positive indicators that have contributed to strengthening the investment environment are regional and international cooperation and Iraq’s openness to Arab and international countries. This has boosted investor confidence and encouraged Arab banks to expand their presence in Iraq, which is relied upon to provide advanced financial services, such as trade finance and Islamic banking, in addition to supporting the private sector and joint investments.

This step represents the optimal means for global integration through the entry of international banks, reflecting the return of investor confidence in the Iraqi economy.

Meanwhile, the Iraqi banking reform process, undertaken by the government to address the challenges facing the banking sector and keep pace with the digital age and international requirements, is proceeding along two parallel tracks. The first involves reforming private banks, led by the Central Bank, and ensuring compliance with international standards and the implementation of anti-money laundering and counter-terrorism financing requirements. This includes lifting the ban on dealing with Iraqi banks and cooperating with international companies to develop the technical infrastructure.

The second path is being adopted by the government to modernize state-owned banks, with support from the executive branch. This involves improving efficiency and adopting modern banking systems to reduce corruption, increase transparency, integrate with the private sector, and encourage partnerships between banks.

It’s worth noting that there are obstacles hindering banking development, including bureaucracy, legal complexities, weak digital infrastructure in some local banks, and the need for qualified human resources to manage modern financial systems. This goal aims to create a modern banking system that supports the national economy. However, complete success requires accelerating reforms to ensure compliance with international standards, transforming Iraq into an attractive financial center that contributes to economic diversification and the creation of new job opportunities, thus strengthening its regional and international standing.

In any case, there is no alternative but to integrate with the global financial and banking climate, after comprehensive reform is completed, with the aim of creating a unified national banking market, directing banking credit towards investment, driven by the promising economic stability our country enjoys.

Alsabaah.iq

Al-Sudani’s advisor: Annual returns from investing reserves are no less than $2 billion.

Shafaq News / The Prime Minister’s advisor for financial affairs, Mazhar Mohammed Salih, confirmed on Tuesday that the “annual returns” from investing foreign reserves are no less than two billion dollars, according to his estimates.

“These investments are often short-term and directed toward US, European, or British treasury bonds, with the aim of achieving appropriate returns,” Saleh told Shafaq News Agency.

He added, “These investments are characterized by low risk and generate appropriate returns, and the invested assets can be quickly converted into cash without incurring losses.”

Saleh pointed out that “profits generated from reserves are divided into two types: the first is realized, represented by direct interest, and the second is unrealized, resulting from diversifying the investment portfolio, in addition to realizing potential profits from exchange rate differences between currencies and gold.”

The Central Bank of Iraq previously revealed a decline in foreign reserves for 2024, reaching 130.81 trillion dinars, a 10.18% decrease compared to the same period in 2023, when these reserves reached 145.64 trillion dinars.

Shafaq.com

The American Chamber of Commerce told Shafaq News: We have huge opportunities in Iraq.

Shafaq News / Steve Lutes, Vice President of the U.S. Chamber of Commerce, who is currently visiting Iraq with the “largest economic delegation in history,” revealed on Wednesday that they are discussing the development of various sectors, including technology. While he announced that American companies in the energy and health sectors will visit Baghdad in the coming period, he emphasized the “huge” opportunities in the country.

Last Monday, a US delegation arrived in Iraq on the largest US trade mission, comprising representatives from 60 companies across various sectors.

“The American delegation was honored to meet with Iraqi Prime Minister Mohammed Shia al-Sudani and listened to his speech on relations between Iraq and the United States and ways to develop them,” Lutz told Shafaq News Agency.

The Vice President of the American Chamber of Commerce added, “The American economic delegation signed several important agreements with Iraq, some of which were attended by the Iraqi Prime Minister, and this was in coordination with the US Treasury Department.”

Lotts confirmed that “the US economic mission met with a number of ministers and will meet with others as well, and there is a discussion about developing the Iraqi technological and economic sector.”

The Vice President of the American Chamber of Commerce revealed that “the current delegation is the largest in history, and that American companies in the energy and healthcare sectors will be visiting Iraq in the coming period.”

Lutz noted that “this visit will be a new spark for developing relations between American economic and business companies and Iraq, especially given the many investment opportunities we seek to capitalize on in light of the long-term partnership with our Iraqi partners.”

The Vice President of the American Chamber of Commerce emphasized that “American companies have tremendous opportunities to develop various Iraqi sectors in the oil and gas sectors, and that the US Treasury Department believes that American companies are the strongest and most advanced, and therefore they can compete with and outperform other companies.”

Earlier today, during a press conference attended by a Shafaq News Agency correspondent, Lutz affirmed that the Treasury Department will play a role in developing the Iraqi economy. Meanwhile, the head of the Iraqi Economic Council, Ibrahim al-Baghdadi, stated that the country is faring better economically today than in previous years.

Al-Baghdadi stated, “Unfortunately, the recent years since the liberation have witnessed a significant decline in education in Iraq. However, I hope that it will develop again with the presence of the American University, which will save education and represent a lifeline for Iraq.”

He stressed that “we cannot forget the role of the United States in liberating Iraq from dictatorship. The United States is the world’s leading nation in various fields and is the one who has the credit for Iraq’s liberation.”

Al-Baghdadi pointed out that “the visit of the American delegation, consisting of more than 100 figures and more than 60 American companies, is evidence of the progress made in relations to develop the Iraqi economy,” adding that “two days ago, we launched the Private Sector Development Council, headed by Prime Minister Mohammed Shia al-Sudani, the First Vice President, the Minister of Planning, and the Second Vice President.”

Al-Baghdadi stated, “Iraq today is dozens of times better off than it was in the past, and we welcome any company that wants to work in Iraq to develop its industry and economy.”

Shafaq.com

Al-Sudani stresses the importance of expanding cooperation with JP Morgan

Prime Minister Mohammed Shia al-Sudani stressed on Tuesday the importance of expanding partnerships between Iraqi banks and JPMorgan Chase, noting the government’s readiness to provide all forms of support to strengthen this relationship.

A statement from the Prime Minister’s Media Office, received by Al-Sabah, stated that “Al-Sudani received a delegation from JPMorgan Chase, headed by the bank’s Deputy Director, Daniel Zelikow, on the sidelines of the Iraqi Banking Sector Reform Conference held in Baghdad.”

The statement added, “During the meeting, discussions focused on enhancing cooperation in the financial and banking fields, including the bank’s participation in financing various investment projects. Mechanisms for securing credits and financial transfers and ensuring their delivery to those entitled to them in Europe and the United States were also discussed, which will contribute to improving services provided to Iraqi traders and importers.”

Al-Sudani pointed to “the importance of expanding the scope of partnership between Iraqi banks and JP Morgan,” noting “the government’s readiness to provide all forms of support to strengthen this relationship.”

For its part, the JP Morgan delegation expressed its “willingness to increase cooperation with Iraq by expanding the number of correspondent accounts opened for Iraqi banks, and its willingness to finance a number of investment projects directly or through partner financial institutions.”

Alsabaah.iq

Al-Baldawi: The government still has the 2025 budget schedules, and delaying them violates the law.

Al-Maalouma / Baghdad…. Deputy Chairman of the Parliamentary Planning Committee, Mohammed Al-Baldawi, confirmed on Wednesday that the 2025 budget tables are still with the government and have not yet reached Parliament, noting that the government has not explained the reason for this delay.

Al-Baldawi said in a statement to Al-Maalouma Agency, “Amending Paragraph 12 of the Federal Budget Law was one of the reasons that led to the rearrangement of the tables.”
He pointed out that “they have not been completed by the government yet.” He also added that the Council of Ministers has not officially sent the tables to Parliament, expecting them to arrive soon.

Member of the Parliamentary Finance Committee, MP Hussein Mounes, confirmed in a previous statement to Al-Maalouma that the delay in sending the 2025 budget tables is a violation of the budget law itself as well as the Financial Management Law. It is an incorrect basis, considering that last year there was also a delay in the arrival of the tables, which creates confusion in the issue of monitoring and following up on budget implementation.

Almaalomah.me

Economist: Strengthening the private sector is key to stabilizing the labor market in Iraq.

Al-Maalouma / Baghdad… Researcher and expert in financial and banking affairs, Mustafa Hantoush, confirmed on Wednesday that the stability of the labor market in Iraq is closely linked to the development of the private sector and enabling it to perform its true role in supporting the national economy.

Hantoush said in a statement to Al-Maalouma Agency, “The Iraqi state does not face a problem in paying employee salaries, especially with the continued export of more than 3.3 million barrels of oil per day at prices exceeding $50 per barrel,” noting that “the real dilemma lies in the mismanagement of operating and investment expenses, which requires realistic and urgent solutions.”

He added that “the size of the domestic debt has reached about 83 trillion dinars, a number that calls for sounding the alarm bell and imposes the need for radical solutions, foremost among which is opening the way for the private sector to absorb the increasing numbers of graduates and young people seeking work.”

He explained that “stability of the labor market cannot be achieved through the government sector alone, especially with the high rates of retirement and the halt in new appointments.”

He warned that “continuing this approach will further complicate the crisis, making support for the private sector an inevitable strategic option for achieving sustainable economic development.”

Almaalomah.me