Economist: Borrowing from Gulf states threatens financial and political decision-making in Iraq

Economist – Borrowing from Gulf states threatens financial and political decision-making in IraqThe economic expert, Faleh al-Zubaidi, warned on Tuesday of the dangers of Iraq continuing to borrow from countries he said interfere in its internal affairs, explaining that this could affect the country’s financial and political decisions.

Al-Zubaidi told the Information Agency that “Iraq suffers from the absence of an independent monetary policy, which makes its economy vulnerable to external influences,” adding that “the United States has a clear influence on the management of the Iraqi economic file.”

He added that “borrowing from other countries may be accompanied by the imposition of undisclosed conditions that allow those countries to interfere in financial and even political matters,” noting that “monetary decision-making in Iraq has become devoid of independence and is affected by external factors.”

He stressed that “rebuilding an independent monetary policy is essential to protect the Iraqi economy from any potential foreign interference.”

Earlier, former MP Raed al-Maliki warned of the repercussions of the government’s efforts to establish an Iraqi sovereign wealth fund with potential funding from some Gulf states, considering this step a reflection of the magnitude of the financial crisis facing Iraq and one that could restrict its sovereign decision-making.

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The cabinet formation process: Bloc disagreements hinder political resolution and exacerbate crises.

The Iraqi public is going through a critical phase, awaiting concrete government steps to rescue it from the accumulated service and economic crises. However, the system of partisan and sectarian quotas and points is hindering any real progress.

This system perpetuates disputes behind closed doors, leaving executive performance hostage to complex political compromises and making the struggle for gains and positions a heavy and bitter burden on the citizen.

In this context, the failure to resolve the issue of completing the cabinet negatively impacts the overall performance of the state and society, deepening the crisis of distrust in political parties and forces.

This impasse was clearly evident in the recent meeting of the leaders of the Coordination Framework, held at the home of former Prime Minister Haider al-Abadi on Monday, in the presence of Prime Minister Ali al-Zubaidi. The attendees discussed several issues, most notably completing the government formation, but failed to reach a final agreement on the distribution of vacant ministerial portfolios due to ongoing disagreements over quotas and nominated candidates. This comes despite the approaching parliamentary recess at the end of this week.

The lack of a final decision does not necessarily mean postponing the matter to the next parliamentary session. Aqeel al-Rudaini, spokesperson for the Victory Coalition, confirmed to the Al-Maalomah news agency that “those present did not reach a final agreement regarding the distribution of the vacant ministerial portfolios.” He explained that “the reason is the continued political disagreements over quotas and the names nominated to fill those positions.”

He added that “the lack of a decision in yesterday’s meeting does not necessarily mean postponing the completion of the cabinet to the next legislative session, even though the parliamentary recess begins at the end of this week.” He clarified that “Parliament may resort to holding an extraordinary session dedicated to voting on the new ministers if the political forces reach a final agreement in the coming days.”

Conversely, political observers believe that the continued use of the “points system” undermines the concept of reform, as the paralysis extends beyond the executive branch to the parliament. This is due to political blocs making the passage of vital legislation contingent on the government’s responsiveness to their demands regarding appointments and special grades. There are serious warnings that prioritizing partisan interests over the public good will soon lead the government to face a new wave of public discontent.

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Zarkoushi denies proposing new names for the position of Minister of the Interior

On Tuesday, Abdul Samad al-Zarkoushi, a member of the Coordination Framework, denied that any new names had been put forward for the position of Minister of the Interior. Speaking to Al-Maalouma, al-Zarkoushi said, “Until this moment, no new names have been proposed for the position of Minister of the Interior,” noting that “the coming days will determine the options available in this regard.”

He added that “the Coordination Framework, in general, supports finalizing the cabinet of Ali al-Zaidi’s government,” expressing his hope that “a decisive decision will be reached within the next two weeks.”

He indicated that “the process of proposing and agreeing upon names will become clearer in the coming days,” emphasizing that “all political forces agree on the necessity of finalizing the remaining ministerial portfolios, especially those related to security, given the exceptional circumstances the region is currently experiencing.”

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Nechirvan Barzani congratulates Barack on his appointment as Special Presidential Envoy to Iraq

Kurdistan Region President Nechirvan Barzani congratulated US Ambassador Tom Barrack on Tuesday on his appointment as Special Presidential Envoy to Iraq.

Barzani said in a tweet followed by Shafaq News Agency: “We congratulate Ambassador Tom Barrack on his appointment as Special Presidential Envoy to Iraq, and we look forward to his leadership in strengthening relations between Iraq, Kurdistan and the United States, and helping to address the challenges facing the country.”

Barzani continued: “We wish him every success in this important role, and we are confident that his efforts will contribute to achieving greater stability and cooperation.”

On Sunday, US President Donald Trump announced the appointment of US Ambassador to Turkey Tom Barrack as Special Presidential Envoy to Iraq and Syria, while retaining his position as ambassador in Ankara, stressing that the new mission comes within the framework of strengthening strategic cooperation with the governments of Baghdad and Damascus.

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The framework authorizes al-Zaydi to handle the weapons file and supports severing the Popular Mobilization Forces’ ties with political frameworks.

On Monday evening, the Coordination Framework authorized Prime Minister and Commander-in-Chief of the Armed Forces Ali al-Zaidi to take decisions and measures “that would preserve the country’s higher interests,” while announcing its support for the project to restrict weapons to the state and to separate the Popular Mobilization Forces from political, partisan, and social frameworks.

The framework stated in a statement received by Shafaq News, following its 279th regular meeting held at the office of former Prime Minister Haider al-Abadi, in the presence of Prime Minister Ali al-Zaidi, that the meeting discussed “a number of priority national and security files.”

He stressed that the choice of the political system and its representatives is “an exclusive right of the Iraqi people,” who, he said, have made “great sacrifices in defense of their state and democratic system,” emphasizing that the decision of war and peace is “a sovereign national decision that belongs to the Iraqi people through their constitutional institutions, represented exclusively by the House of Representatives and the elected government.”

The statement considered that “any action outside this framework is a violation of the law and the principles of the constitutional state.”

Regarding the Popular Mobilization Forces, the Coordination Framework affirmed that the organization is “an official security institution committed to the constitution, applicable laws, and the orders of the Commander-in-Chief of the Armed Forces, and carries out its duties in accordance with the approved legal frameworks.”

According to the statement, the leaders of the framework announced their support, “out of a sense of national responsibility, for the project of restricting weapons to the state and separating the Popular Mobilization Forces from all political, partisan, and social frameworks, based on the Iraqi constitution, the directives of the supreme religious authority, the Popular Mobilization Forces Law No. 40 of 2016, as well as the ministerial program that was voted on by the House of Representatives in the session to grant confidence.”

The statement also linked this step to the desire to continue cooperation between the Iraqi government and the international community, and to complete the process of ending the mission of the international coalition in Iraq.

The framework added that its forces authorized the Prime Minister, Commander-in-Chief of the Armed Forces, to “take the decisions and measures necessary to preserve the supreme interests of the country,” according to the statement.

The framework’s position comes days after the leader of the Shiite national movement, Muqtada al-Sadr, announced the disassociation from the “Peace Brigades” and their integration into the state, a move that was welcomed by the newly formed Iraqi government headed by al-Zaidi.

Most of the current armed factions trace their roots back to the period after 2003, when formations emerged linked to the security vacuum that followed the American invasion of Iraq, before expanding significantly after ISIS invaded large Iraqi cities in 2014.

On the international front, the United States is intensifying its pressure on Baghdad, as an informed political source revealed to Shafaq News Agency on Sunday that al-Zaidi received a message from the American side that included Washington’s categorical rejection of the participation of any armed faction in the new Iraqi government, even if those factions announce that they will give up their weapons or leave military action.

According to the source, the American message stressed that assigning any ministerial portfolio or high-ranking government position to an armed faction or to figures representing those factions would be met with an American and Western rejection, and could lead to a political and administrative break with the ministry concerned, which would affect Iraqi-American relations and cooperation with other Western countries.

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MSC Shipping Company: The ship “Sariska” was hit by two shells in the Iraqi port of Umm Qasr

Global shipping company MSC reported on Tuesday that its ship, the SARISKA, was hit by two shells while leaving the port of Umm Qasr in Iraq.

The company confirmed in a statement that all crew members were safe and unharmed as a result of the incident, stressing at the same time that it is a “neutral company” and has no ties or connections with the United States or Israel.

The shipping company’s statement came after the Iraqi Higher Maritime Authority announced earlier this morning that it had mobilized its staff and supporting bodies to investigate the circumstances of the incident involving the ship (MSC SARISKA) within Iraqi territorial waters.

This development is consistent with what a security source revealed to Shafaq News Agency on Monday evening, that the giant ship bearing the Panamanian flag was targeted by a drone that crashed inside it while it was in territorial waters at noon yesterday, which prompted the evacuation of 20 sailors from the crew and their transfer to the search and rescue center in the port of Faw, without any human injuries being recorded.

MP: The 2026 budget will be the most complex compared to previous years

MP Mohammed al-Bayati confirmed on Monday that there is still no set date for the 2026 budget to be presented, noting that it will be the most difficult and complex compared to previous budget cycles.

Al-Bayati told Al-Maalouma, “As of now, there is no specific date for the Council of Ministers to present the 2026 budget and send it to the Finance Committee in the House of Representatives for review before proceeding with the first and second readings and then voting on it.”

He added, “If presented, the budget will be the most difficult and complex compared to previous years, due to the financial and economic challenges, as well as the repercussions of what is currently happening in the Arabian Gulf.”

He pointed out that “Iraq has lost the ability to export more than 90% of its crude oil, which is the main source of revenue for the state treasury,” indicating that “the country’s financial situation is difficult by all measures.”

Al-Bayati explained that “there is anticipation for a roadmap that the government is preparing in coordination with the Council of Representatives, in order to proceed with financial and economic reforms that will contribute to correcting many errors and formulating paths that ensure the securing of operational expenses, especially salaries, during the next phase.”

He concluded by saying that “despite the Ministry of Finance’s assurances that salaries are secured, the current phase requires real measures that contribute to creating a state of financial stability.”

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Abdul Hadi: The coordination framework is nearing completion of the cabinet formation process.

Member of the Coordination Framework, Uday Abdul-Hadi, confirmed on Monday that the Framework’s constituent forces will hold an important meeting in the coming hours to determine when to proceed with finalizing the remaining ministerial portfolios in Ali al-Zaidi’s government. Abdul-Hadi told Al-Maalouma, “The Coordination Framework forces will hold a meeting in the coming hours to discuss several issues, foremost among them proceeding with finalizing the remaining ministerial portfolios in Ali al-Zaidi’s government, after reaching an agreement on the candidates’ names.”

He added that “the coming days will be decisive,” noting that “the meeting may determine a date for an extraordinary session of Parliament to vote on the remaining ministerial portfolios.”

He explained that “Parliament has entered a one-month legislative recess from today until July 1st, which means that holding any session during this period requires a request from one of the presidencies or collecting signatures from a number of MPs, according to the constitutional procedures established for holding extraordinary sessions.”
He concluded by saying that “political consensus will remain the decisive factor in finalizing the remaining ministerial portfolios in Ali al-Zaidi’s government.”

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Al-Zaidi appoints the first female advisor in his government

An informed source reported on Monday that Azhar Hussein Saleh had been chosen as an advisor to the Prime Minister for administrative and technical affairs.

The source told Shafaq News Agency that “Azhar Hussein Saleh was chosen to assume the position of advisor to Prime Minister Ali al-Zaidi, in administrative and technical affairs.”

He added that “Saleh previously held the position of head of the Iraqi Engineers Syndicate, and also served as the former Undersecretary of the Ministry of Planning, and possesses extensive experience in administrative, technical and planning fields.”

Earlier today, an informed source revealed that the Prime Minister had assigned Haider al-Aboudi as the government spokesperson, Hassanein al-Sheikh as the director of the Prime Minister’s protocol, and Abdul Zahra al-Hindawi as the director of the media office.

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“Disarming the factions” is on Al-Zaydi’s agenda with the framework today

The tripartite committee concerned with restricting weapons to the state will hold an expanded meeting this evening, Monday, with the forces of the coordination framework to discuss mechanisms for implementing the project to disarm the armed factions and the plan to integrate their members into state institutions.

An informed source told Shafaq News Agency that “the tripartite committee consists of the Commander-in-Chief of the Armed Forces, Ali al-Zaidi, as chairman, and the membership of former Prime Minister Mohammed Shia al-Sudani and the leader of the Badr Organization, Hadi al-Amiri.”

He added that “the meeting will discuss mechanisms for restricting weapons to the state, in addition to discussing the distribution of faction members to ministries and security agencies after verifying their data and ensuring that their records are free of criminal restrictions, as well as taking stock of their actual numbers and setting a time limit for receiving weapons.”

According to the source, the attendees will also discuss ways to provide the necessary financial allocations for the implementation of the project, whether through internal borrowing or through some Gulf banks, with the aim of concluding this matter almost definitively.

He pointed out that “the agenda includes discussing a proposal to create a security ministry specifically for the Popular Mobilization Forces or to establish an independent security apparatus that integrates the factions covered by the plan, which would allow for the development of an internal system and a clear administrative structure, as well as addressing the issue of fictitious affiliates and ghost names.”

The source explained that “the tripartite committee will listen to the observations and proposals of the coordinating framework forces regarding the mechanisms for implementing the project to restrict weapons to the state, according to a vision aimed at strengthening security stability and distancing Iraq from the repercussions of the military conflicts taking place in the region.”

The source continued, saying that “the meeting will also address other political and economic issues, in addition to discussing the completion of the government cabinet and current regional challenges,” noting that “the meeting date is still in place until now, unless new developments arise that necessitate its postponement.”

It is worth noting that a government source had previously revealed to Shafaq News Agency that Prime Minister Ali al-Zaidi would hold an extensive meeting with security leaders and armed factions that had announced the handover of their weapons to the state, in order to establish mechanisms and a timeframe for integrating their members and dismantling their positions, in addition to discussing the “guarantees” that would be given to the factions.

On Wednesday, the leader of the Shiite national movement, Muqtada al-Sadr, announced the disassociation from the Peace Brigades and their integration into the state. The move was welcomed by the newly formed Iraqi government headed by Ali Faleh al-Zaidi.

Most of the current armed factions trace their roots back to after 2003, when armed formations emerged in connection with the security vacuum that followed the American invasion of Iraq, and then expanded significantly after ISIS invaded large Iraqi cities in 2014.

On the international front, the United States is intensifying its pressure on Baghdad, linking support for the Iraqi government to the removal of armed factions from state institutions.

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