Finance: The first phase of the program budget includes electricity and two governorates

Iraqi Finance Minister Faleh Sari confirmed on Tuesday that the first phase of the program and performance budget will include the electricity sector and the governorates of Diwaniyah and Salah al-Din, with a gradual expansion to include all state institutions over the next three years. Arabs& Middle Easterners

According to a statement from the Ministry of Finance, which was followed by Shafaq News Agency, this came during a meeting held by the Minister with the Parliamentary Finance Committee today, within the framework of early coordination to prepare the next draft budget in cooperation with the House of Representatives and the World Bank.

Sari explained that “the Ministry of Electricity was chosen because this sector has spent large sums of money over the past years without achieving the desired results, which requires adopting a program budget to ensure that spending is directed towards sustainable solutions and measurable results.”

He added that “the selection of the governorates of Diwaniyah and Salah al-Din comes in light of their need to accelerate the pace of service and development projects, which allows for directing resources according to actual priorities and achieving the best benefit from financial allocations.”

Sari explained to the members of the parliamentary committee the picture of the current financial situation, the measures taken by the ministry to meet financial obligations, in addition to its efforts to maximize non-oil revenues, in order to ensure the continued funding of projects and basic services for citizens.

It is worth noting that the Cabinet approved last June, under the direction of Prime Minister Ali Faleh Al-Zaidi, the formulation of a “program budget” in coordination and joint cooperation with the World Bank and the Parliamentary Finance Committee, to advance the economic reform process in the country.

On Monday, Mazhar Muhammad Salih, advisor to the Iraqi Prime Minister for Financial Affairs, revealed that the Ministry of Finance had begun preparing the draft federal general budget law for 2027, in the first new budget that Iraq has begun preparing after two years of not approving a federal budget.

The government’s commencement of preparing the 2027 budget comes after two years of the absence of an effective federal budget with approved schedules, as the 2025 budget schedules were not approved, nor was a budget law for 2026 approved, despite the House of Representatives, during the government of former Prime Minister Mohammed Shia Al-Sudani, approving the three-year budget law for the years 2023, 2024 and 2025.

The 2025 budget, in its updated form, could not be implemented after its schedules were not approved within the House of Representatives and the fiscal year ended, which prompted the Ministry of Finance to adopt a temporary disbursement mechanism at a rate of 1/12, based on the Financial Management Law, to secure salaries, governing expenses and basic obligations.

The 2026 budget was also not approved, due to political complexities and economic pressures resulting from regional tensions and energy market volatility, so Iraq continues to manage its spending according to the temporary spending mechanism, pending a new federal budget.

Shafaq.com

The Central Bank of Iraq reduces the dollar quota for travelers to $2,000.

An informed source revealed on Tuesday morning that the Central Bank of Iraq has issued new directives to reduce the share of foreign currency (dollars) for travelers to $2,000 instead of $3,000, as part of the approved mechanism to meet travel requests.

The source told Shafaq News Agency that the decision will include Iraqi citizens departing through all airports and border crossings, whether they are heading for tourism, medical treatment, study, performing Hajj and Umrah rituals, as well as business trips.

He explained that the mechanism for delivering the funds will remain unchanged, through government and private banks and approved exchange companies, where the traveler receives his share after his passport is stamped and before the flight’s departure time.

The source added that the new instructions included travelers whose circumstances require additional amounts (for exceptional medical or commercial reasons) relying on electronic payment cards and loading them with additional balance, stressing that spending outside Iraq through these cards will be done according to the official exchange rate of 1320 dinars per dollar. Arabs& Middle Easterners

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Araghchi: US threats are hindering the final agreement with Washington

Iranian Foreign Minister Abbas Araqchi asserted on Tuesday that negotiations to reach a final agreement between Tehran and Washington will not commence if American threats persist, in response to statements by US President Donald Trump.

Araghchi said in a post on the “X” platform that “negotiations on the final agreement will not begin if the threats continue. Respect your signature,” referring to the interim agreement signed by Iran and the United States last month, which stipulates that both parties refrain from threatening or resorting to the use of force.

The Iranian minister’s remarks come after the conclusion of a round of indirect talks between the two sides last week, without any announcement of progress towards a permanent agreement, despite the implementation of a 60-day ceasefire that was agreed upon to allow for the diplomatic track following the latest military confrontation.

US President Donald Trump had previously stated that the United States “either reaches an agreement with Iran or ends the mission,” hinting at the possibility of resorting to the military option if negotiations faltered.

Trump added that his country is capable of “destroying bridges and cutting off energy supplies” to Iran, noting that Washington prefers to reach an agreement, but has other options in case the diplomatic track fails.

Shafaq.com

Tensions with Araqchi and restrictions on Khamenei’s funeral procession… Al-Zaydi is leading Iraq away from Iran

Paul Davis, an American academic and researcher in national security affairs, believes that the Iraqi government is sending clear political messages that reflect a gradual shift in its foreign policy, led by Prime Minister Ali Faleh al-Zaidi, with the aim of reducing Iranian influence and opening up more to the United States and Arab countries. GeographicReference

Davis, an assistant professor at the Institute for World Policy in Washington, told Shafaq News that limiting the funeral ceremonies for former Iranian Supreme Leader Ali Khamenei within Iraq to Najaf and Karbala, without organizing official ceremonies in Baghdad, “represents a striking indication of the nature of the new relationship that the Iraqi government is trying to forge with Tehran.”

He added that “it is natural, given the historical relations and sectarian ties, for Iraq to participate in this occasion, but the absence of the capital from the scene carries political implications that cannot be ignored.”

Davis believed that the reports circulating about restricting the participation of Quds Force commander Ismail Qaani, if true, would be a “very significant signal,” especially in light of the government’s efforts to confine weapons to the state, and the associated influence of armed factions supported by Iran.

He noted that the heated discussions between Prime Minister Ali Faleh al-Zaidi and Iranian Foreign Minister Abbas Araqchi reflect the growing divergence between Baghdad and Tehran, especially with al-Zaidi’s anticipated visit to Washington approaching.

He continued: “It appears that al-Zaidi is not only seeking to strengthen his relationship with the United States, but is also working to reposition Iraq regionally, by building closer relations with neighboring Arab countries, and reducing the extent of Iranian influence in Iraqi decision-making.”

The American researcher added that this path will not be easy, explaining that the Prime Minister will face pressure from political forces and influential factions within the ruling coalition, and that it is still too early to judge the success of this approach.

Davis’s remarks came after information revealed by Iraqi sources to Shafaq News Agency, which spoke of the Iraqi government imposing restrictions on Khamenei’s funeral ceremonies, limiting them to the governorates of Najaf and Karbala, based on security and political considerations, while avoiding holding any ceremonies in Baghdad.

The sources also reported that Baghdad informed the Iranian side of the need for Iranian military leaders, including Quds Force commander Ismail Qaani, not to participate in the ceremonies, for fear that the event would carry political and security messages that go beyond its religious character.

However, the head of the parliamentary Design Alliance bloc, Amer Al-Fayez, denied to Shafaq News Agency the validity of the reports that Tehran had been informed that Qaani was “persona non grata” inside Iraq, stressing that this information was “completely false” and that it aimed to harm relations between Baghdad and Tehran, especially since Qaani “did not issue anything that warranted taking such a position.”

These developments coincide with al-Zaidi’s preparations to visit Washington and meet with US President Donald Trump, in a visit seen as a pivotal moment in shaping the foreign policy of the new government, amid Iraqi attempts to manage the balance between partnership with the United States and maintaining its relations with Iran, at a stage that is witnessing a rearrangement of the equations of influence in the region.

Shafaq.com

Economic analysis: Reduction in the traveler’s dollar rate pushes Iraqis to the black market

Economic expert Mohammed Al-Hassani suggested on Tuesday that the decision by the Central Bank of Iraq to reduce the amount allocated for air travelers from $3,000 to $2,000 will lead to an increase in demand for dollars in the parallel market during the first phase, with some travelers resorting to buying the remaining amount from local markets.

Al-Hassani told Shafaq News Agency that reducing cash allowances will push a segment of travelers who need larger sums to cover travel expenses to compensate for the difference by buying dollars from the parallel market, which may increase the volume of demand and have an impact on the exchange rate if it is not met with an increase in supply.

He added that the impact will not necessarily be large or long-lasting, as it depends on the number of travelers and the actual size of demand, as well as the ability of bank cards to meet spending needs outside Iraq, which is what the Central Bank seeks to enhance within the policy of expanding electronic payment.

Al-Hassani pointed out that the Central Bank’s success in encouraging the use of bank cards outside Iraq may reduce pressure on the parallel market, noting that any rise in the dollar’s ​​price will be temporary if it is accompanied by regulatory and supervisory measures that ensure market stability and the availability of foreign currency.

An informed source reported earlier today that new directives were issued by the Central Bank of Iraq to reduce the share of foreign currency (dollars) for travelers to $2,000 instead of $3,000, as part of the approved mechanism to meet travel requests.

According to the source, who spoke to Shafaq News Agency, the decision will include Iraqi citizens departing through all airports and border crossings, whether they are heading for tourism, medical treatment, study, performing Hajj and Umrah rituals, as well as business trips.

The mechanism for delivering the funds will remain unchanged, through government and private banks and approved exchange companies, where the traveler receives his share after his passport is stamped and before the flight’s departure time.

According to the source, the new instructions included travelers whose circumstances require additional funds (for exceptional medical or commercial reasons) relying on electronic payment cards and loading them with additional balance, stressing that spending outside Iraq through these cards will be done according to the official exchange rate of 1320 dinars per dollar.

Shafaq.com

During June, Iraq exported one-fifth of its pre-war oil volume.

Data from Vortexa showed that Iraq exported about 780,000 barrels per day of crude oil during June, which is only about 20% of the quantities it exported before the war, making it one of the Gulf countries that has not recovered its previous levels of production and export. Arabs& Middle Easterners

In contrast, the United Arab Emirates raised its crude oil production to more than 3.8 million barrels per day during June, the highest level approaching the record since April 2020, after withdrawing from OPEC and OPEC+ on May 1, which allowed it to increase production outside the quota system.

According to informed sources, the UAE was the fastest among Gulf producers to restore its production, while Saudi Arabia, Kuwait and Iraq remain below pre-war levels, despite the gradual improvement in exports with the resumption of navigation through the Strait of Hormuz.

Shafaq.com

Shafaq News deciphers the “code” of the biggest threat to the Iraqi dinar

The Iraqi citizen may not directly feel the rise or fall of the Central Bank’s foreign currency reserves, but he feels its effects in the dollar exchange rate, commodity prices, the purchasing power of the dinar, and even in the state’s ability to cope with economic crises. Arabs& Middle Easterners

Foreign reserves are considered the “first line of defense” for the Iraqi economy, as they give the central bank the ability to protect the dinar’s exchange rate, finance import operations, and maintain confidence in the financial sector, especially in a country that depends almost entirely on oil revenues.

In recent years, the reserve has recorded a gradual decline, as it decreased from $111.6 billion at the end of 2023 to $100.2 billion in 2024, then to $97.4 billion at the end of 2025, before settling at $97.8 billion at the end of April 2026. Despite this decline, experts confirm that the reserve is still at safe levels, but it remains dependent on oil prices and the state’s financial management.

In this regard, the Prime Minister’s financial advisor, Mazhar Muhammad Saleh, said that the Central Bank’s reserves are still within reassuring limits according to international standards, as they cover Iraq’s imports for about 12 months, while the global standard is only three months.

Saleh confirmed to Shafaq News Agency that these levels give the Central Bank significant ability to intervene in the exchange market and maintain the stability of the dinar, explaining that the size of the reserves is one of the most important indicators of the strength of monetary policy. He pointed out that exchange rate stability does not depend on reserves alone, but is also linked to oil prices, government revenues, the efficiency of the banking sector, and the level of confidence in the economy.

For his part, economist Mohammed Al-Hassani believes that the central bank’s reserves are primarily fueled by oil revenues, while non-oil revenues remain of limited impact.

Al-Hassani told Shafaq News Agency that the Central Bank does not use these funds to finance the budget, but rather to maintain monetary stability, support the dinar’s exchange rate, secure the necessary dollars for imports, and bolster investor confidence in the Iraqi economy. He noted that a portion of the reserves is invested in safe and highly liquid financial instruments with international institutions, thus preserving their value and ensuring their availability when needed.

Mahmoud Dagher, the former general manager of the Central Bank, believes that the impact of the reserve on the citizen is indirect, explaining that its real impact appears when speculation on the dollar increases or confidence in the market declines.

Dagher told Shafaq News Agency that news and rumors about the economy or oil exports are driving some citizens and merchants to buy dollars, increasing demand and driving up its price on the parallel market. Since Iraq relies heavily on imports, any rise in the dollar’s value inevitably leads to higher prices for imported goods and a decline in the dinar’s purchasing power, according to Dagher.

For his part, Najm Abdul Tarish, a professor of political science at Dhi Qar University, pointed out that the continued decline in oil prices to levels ranging between $55 and $60 per barrel may put pressure on reserves, if it coincides with continued high government spending.

Abdul Tarish explained that the reserves will not decline sharply in the near term, but they could gradually erode if oil revenues continue to fall without genuine economic reforms. He stated that protecting the reserves cannot be achieved by relying solely on oil, but rather through economic diversification, increasing non-oil revenues, and encouraging investment and domestic production.

What does this mean for the citizen?

According to experts, keeping the reserves at their current levels reassures the markets and strengthens the stability of the dinar’s exchange rate, while a prolonged decline in reserves could reduce the central bank’s ability to intervene, negatively impacting the prices of the dollar and imported goods.

Thus, the central bank’s reserves are not just a number in financial reports, but one of the most important guarantees for the stability of the Iraqi economy, and largely determine the state’s ability to protect the dinar, confront crises, and maintain the purchasing power of citizens.

Shafaq.com

The government’s financial advisor reveals the fate of funds recovered from corrupt individuals.

The Prime Minister’s financial advisor, Mazhar Muhammad Salih, confirmed on Tuesday that the funds recovered from corrupt individuals represent exceptional revenues that cannot be relied upon in preparing public budgets. He indicated that these funds will contribute to reducing the deficit gap and financing projects. Salih told the official news agency, “The funds recovered from corrupt individuals are important and non-recurring exceptional revenues, as they cannot necessarily and permanently be relied upon in preparing public budgets. However, they constitute an important source of revenue in financial planning.”

He continued, “These funds are often directed towards bridging the deficit gap or financing specific projects that directly affect people’s lives, or strengthening the country’s financial reserves, and not towards building the annual budget within a long-term financial policy, because that is linked to the ceilings and capabilities of financial policy within the framework of preparing and implementing public budgets.”

He also stressed that “recovering corruption funds is important because it reduces financial waste, supports the public treasury, and enhances the confidence of citizens, investors, and the international financial community in the country’s economic system,” noting that “funds recovered from corrupt individuals represent an important support tool for the national economy, but they are not necessarily a complete replacement for the general budget, as this depends on the size and ceilings of public spending.” Corporate& Financial Crime

Burathanews.com

A corruption deal in the Ministry of Defense has been uncovered, with victims amounting to 1.6 trillion dinars.

The head of the Victorious parliamentary bloc, Faleh al-Khazali, announced on Tuesday a corruption deal in the Ministry of Defense that cost 1.6 trillion dinars, and called on Prime Minister Ali al-Zidi to investigate the matter. Corporate& Financial Crime

Al-Khazali said in a press conference, “While we support the government’s measures to address and confront corruption, we submitted an official letter to Prime Minister Ali al-Zaidi regarding corruption in the Ministry of Defense within a deal to sell scrap metal,” indicating that “the quantity is no less than 4 million tons of iron and may increase.”

He added, “According to the appraisal committee and in accordance with the State Property Sale and Lease Law No. 21 of 2013, the approximate sale was at 600,000 dinars per ton, and therefore, when this number is added, the amount is 2 trillion and 400 billion Iraqi dinars,” explaining that “by skipping over the law and through exceptional procedures, the sale was made at a price of 200,000 dinars per ton, and therefore the waste in this file is 1 trillion and 600 billion Iraqi dinars.”

He stressed that “this is not imagination or analysis, but real information,” noting that “I am directing my words to the Prime Minister regarding the waste in this file amounting to no less than 1 trillion and 600 billion Iraqi dinars.”

He stressed the need to “address this issue and invest the funds correctly,” explaining, “In our letter to the Prime Minister, we requested that this amount be allocated to support air defenses.”

He explained that “according to our information, the Ministry of Defense has a contract with South Korea to arm it with air defense systems for $2.7 billion, and the Iraqi government paid $500 million with the expectation that the batteries would be delivered in 2025. However, the lack of funding and allocation to the Ministry of Defense has affected the arming, so South Korea notified Iraq that the weapons would be sold to one of the countries that had submitted an offer to import them.”

He stressed “the need to invest this money in supporting the Ministry of Defense with air defense systems instead of these sums going into the pockets of corrupt people.”

Burathanews.com

The Integrity Commission and the Central Bank agree to uncover corruption crime networks and eliminate money laundering channels.

The head of the Federal Integrity Commission, Mohammed Ali Al-Lami, agreed today, Thursday, with the governor of the Central Bank, Nizar Nasser Hussein, to dry up the avenues for smuggling money . Currencies& Foreign Exchange

The commission said in a statement received by Mail that “the head of the Federal Integrity Commission, Muhammad Ali Al-Lami, stressed during his meeting with the governor of the Central Bank, Nizar Nasser Hussein, the importance of adopting parallel financial investigations as an effective tool in tracking the proceeds of corruption crimes and revealing their paths.”

He added that “Al-Lami also discussed, during his meeting with the Governor of the Central Bank, ways to enhance cooperation and coordination between the two sides, in order to support national efforts aimed at protecting the financial system, consolidating the principles of transparency and integrity, and mutual support in implementing procedures that would reduce corruption, money laundering, and financial violations.”

Al-Lami stressed “the need to tighten control and regulate the channels through which money is smuggled, in order to protect public funds and enhance integrity, through the integration of the efforts of the relevant institutions.”

For his part, the Governor of the Central Bank, Nizar Nasser, stressed “the importance of strengthening cooperation with regulatory bodies, given its impact on protecting public funds, reducing corruption and financial violations, enhancing confidence in the financial system, and establishing standards of transparency and integrity in line with best institutional practices.”

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