Economic Achievements of Prime Minister Mohammed Al-Sudani: An Analysis of Non-Oil Revenue Growth in Iraq (2022-2024)

Under the leadership of Prime Minister Mohammed Al-Sudani, Iraq has achieved significant growth in its non-oil revenues, rising from seven trillion Iraqi dinars to twenty-seven trillion dinars in two years. This remarkable increase indicates a strategic shift towards diversifying the economy and enhancing its stability.

This growth is attributed to several targeted economic reforms and initiatives:
Income and wealth tax revenues: Income tax revenues increased by 118%, reflecting the successful implementation of tax reforms and improved taxpayer compliance. This significant increase indicates an effective restructuring of the tax system and enhanced financial oversight.

Commodity tax revenues: Revenues from commodities increased significantly by 285%. This growth can be attributed to improved production techniques, expanded export markets, and strategic investment in the commodities sector.
Fee revenues doubled: Fees collected by the government increased by 50%, indicating enhanced organizational efficiency and better management of administrative processes. This growth underscores the government’s ability to improve revenue generation from various sectors.

Industrial and Agricultural Developments To sustain and support this revenue growth, the Iraqi government has focused on strategic investments and sectoral advancements:
Industrial expansion: Significant investments have been made in key industrial sectors, including fertilizer production, chemical manufacturing, and military equipment. These investments have not only expanded industrial capacity, but have also increased the sector’s contribution to GDP.

Agricultural progress: The government has expanded agricultural land from 5 million to 7 million acres. This expansion aims to boost local food production, enhance food security, reduce dependence on agricultural imports, and thus enhance the role of the agricultural sector in the economy.

Policy objectives and strategic directions

The federal budget reflects a strategic realignment to reduce the budget’s dependence on oil revenues from 95% to 80% of total revenues, and highlights a focus on balanced economic development and sustainability. Key policy thrusts include:
Promoting local industries: Efforts are underway to promote local pharmaceutical and iron and steel industries. By reducing reliance on imports and boosting domestic production, these initiatives aim to build a more self-reliant industrial base.
Developing the private sector: The government is working to promote private sector growth by establishing new manufacturing plants and supporting existing companies. This approach seeks to stimulate economic activity, create jobs, and foster innovation.
The administration of Prime Minister Mohammed al-Sudani has demonstrated a clear commitment to diversifying Iraq’s economic base and building a strong fiscal future. The significant increase in non-oil revenues reflects the success of these strategic initiatives and positions Iraq to promote economic stability and growth.

Economic Studies Unit / North America Office
Links Center for Research and Strategic Studies

Rawabetcenter.com

Iraqi Foreign Ministry announces postponement of announcement of end of international coalition military mission in Iraq due to recent developments

The Iraqi Ministry of Foreign Affairs responded on Thursday to statements made by the official spokesman for the US State Department. While announcing the postponement of the announcement of the end of the military mission of the international coalition in Iraq due to recent developments, it confirmed that there are no US forces in Iraq except for the advisors under the umbrella of the international coalition.

The ministry said in a statement received by Shafaq News Agency, “These advisors are included in the outcomes of the Supreme Military Committee’s work, and both parties are committed to the mechanisms followed and their outcomes.”

She explained that “the work of the Supreme Military Committee has focused over the past months on assessing the threat of ISIS with the aim of reaching a final date for ending the military mission of Operation Inherent Resolve. On this basis, the presence of international coalition advisors of all nationalities on Iraqi soil will be ended. These discussions included details that included the order of withdrawal of advisors from the sites, and all that remains is to agree on the details and date of the announcement and some other logistical aspects. We were very close to announcing this agreement, but due to recent developments, the announcement of the end of the international coalition’s military mission in Iraq was postponed.”

The Iraqi Foreign Ministry indicated that “the bilateral relationship with the United States in all areas, including the security relationship, is completely separate from the course of the relationship with the international coalition forces,” stressing that “this relationship existed before the coalition and will continue after it.”

She pointed out that “the Iraqi delegation discussed the future of the security relationship in the areas of training, armament, equipment and security cooperation, in light of what is permitted by the Iraqi constitution and the framework of the strategic agreement between Iraq and the United States.”

On Wednesday, July 31, 2024, the military spokesman for the Commander-in-Chief of the Iraqi Armed Forces, Mohammed Shia al-Sudani, reported on Wednesday that coalition forces had committed a “heinous crime and blatant attack” north of Babylon, pledging to take appropriate legal and diplomatic measures “to preserve rights.”

An American official said on Wednesday that his country’s forces targeted fighters in the Iraqi province of Babil with a defensive air strike who tried to launch drones that threatened American forces and the international coalition, resulting in the killing of four members of the Popular Mobilization Forces.

Negotiations between Baghdad and Washington resumed last February, with the adoption of a deliberate and gradual reduction, leading to the end of the mission of the international coalition forces to combat ISIS, according to official Iraqi statements, to be followed by two other rounds in March and April.

There are about 2,500 American soldiers in Iraq, as part of the international coalition led by Washington since September 2014. The soldiers are distributed across three main sites in Iraq: Ain al-Assad base in Anbar, Harir base in Erbil, and Camp Victoria adjacent to Baghdad International Airport. In addition to the American forces, there are French, Australian, and British forces operating within the coalition forces, and others within NATO in Iraq.

Shafaq.com

Al-Sudani’s advisor: Iraq’s external debt does not exceed $9 billion

The financial advisor to the Prime Minister, Mazhar Mohammed Salih, confirmed today, Thursday, that Iraq’s external debts do not exceed 9 billion dollars.

Saleh said in a statement to Al-Rabia that “Iraq’s external debts that must be paid during the current decade do not exceed, in all cases, 9 billion dollars.”

He added that “the general budget provides sufficient annual allocations to service all debts, which means paying installments and interest, according to the nature of the debt, which is called debt amortization.”

Faceiraq.org

Al-Sudani announces from Karbala the readiness to launch the largest project to produce ten thousand megawatts of electricity

Prime Minister Mohammed Shia Al-Sudani announced the government’s readiness to launch the largest project to produce (10) thousand megawatts of electric power.

Al-Sudani said in a speech at the launch ceremony of three electricity production projects in Karbala Governorate: “It is a strategic project in electrical energy, which will be implemented according to a new economic model and a new vision that will be announced to the private sector, after it has been studied by a team of consultants specializing in electricity.”

A statement from his media office stated that Prime Minister Mohammed Shia Al-Sudani launched the implementation works of three power station projects in the holy Karbala Governorate, which he arrived at today, Thursday, namely; the combined cycle of the Karbala gas station with a capacity of (132 megawatts), the Karbala investment solar energy station with a capacity of (300 megawatts), and the Karbala secondary transformer station 400 KV, with a capacity of (1500 megawatts).

During the ceremony, Al-Sudani announced the government’s readiness to launch the largest project to produce (10) thousand megawatts of electric power. It is a strategic project in electric power, which will be implemented according to a new economic model and a new vision that will be announced to the private sector, after it has been studied by a team of consultants and specialists in electricity.

Al-Sudani stressed, according to the statement, that the stability of energy sources is an encouraging factor for investment and development, and pushes for the development of sources of income by activating all other economic sectors, in addition to the ongoing work to improve the transportation and distribution sector, to deliver electricity service in a sustainable manner to the citizen, without it being a burden on the state and its financial budget.

He pointed out that the combined cycle projects and solar energy projects are part of the government’s plans to reform the electricity system, indicating that the launch of the solar energy project in Karbala and Babylon will continue with the rest of the governorates, which is happening for the first time in Iraq, stressing the importance of supporting the private sector, which represents a support for the government in facing crises, and he also stressed the special nature of the holy Karbala governorate, which is visited by millions of visitors throughout the year from inside and outside Iraq.

The Prime Minister appreciated all the efforts made along the route of the visitors commemorating the Arbaeen, stressing that the government’s work continues through its ministerial team, local governments and advisors, and the support of the members of the House of Representatives for the service, urban and economic program in all fields, which is what we have planned for from the beginning in all fields.

It is worth noting that the three station projects will achieve an increase in the production of electrical energy, as the combined cycle of the Karbala gas station contributes to adding (132) megawatts to the currently operating station, with a total design capacity of (250) megawatts, while the Karbala solar energy investment station project is one of several important contracts concluded by the government in the field of renewable energy projects with a number of specialized international companies, including signing a contract to implement a solar energy station with a private sector company with a capacity of (300) megawatts.

As for the Karbala Banks Secondary Station 400 KV, with a capacity of (1500) megawatts, it is being implemented within the second phase of the electrical energy transmission projects, under the contract with the German company Siemens, and it is the first transformer station of its kind in Karbala, and it will contribute to relieving bottlenecks in the network, which will raise the level of stability and meet the needs of the various sectors in the Middle Euphrates region.

Burathanews.com

The Central Bank sponsors a meeting to establish a national company to manage electronic payment systems in Iraq

The Central Bank sponsored, today, Wednesday, a meeting to establish a national company to manage electronic payment systems in Iraq.

The Central Bank’s media office stated in a statement received by {Al Furat News} that “Central Bank Governor Ali Mohsen Al-Alaq chaired the first preparatory meeting to establish a national company to manage central electronic payment systems in Iraq, with the participation of a number of bank officials, bank managers, electronic payment service provider companies, and the Iraqi Private Banks Association.”

He added, “During the meeting, the importance of regulating electronic payment operations, keeping pace with rapid technological developments, and creating a competitive payment industry that provides secure, reliable, easy-to-access, widely interoperable payment services, rapid response, and high flexibility to technical and regulatory changes were discussed.”

The office stated that “the meeting reviewed the company’s basic objectives and the special requirements for starting the establishment, as it will undertake the tasks of managing some of the central and basic electronic payment systems at the national level, operating them and developing them,” noting that “this step came in line with the strategic plan of this bank, which goes hand in hand with the government program in the field of electronic payment and its development in Iraq.”

Alforatnews.iq

Parliamentary Wealth: Oil and Gas Law Stalled in Government Halls

Deputy Chairman of the Oil, Gas and Natural Resources Committee, Nehru Rawandozi, revealed today, Wednesday, the latest developments related to the legislation of the oil and gas law according to the political agreement between Baghdad and Erbil.
Rawandozi told / Al-Maalouma / agency, “The legislation of the law was part of the political agreement paper on the basis of which the current government was formed, but the issue of its legislation still faces many differences.”
He added that “the committees formed by the government have not completed their work in full, which hinders sending the draft of the oil and gas law to the Council of Representatives.”
He pointed out that “there are political differences over the draft of the oil and gas law between the center, the region and the oil-producing provinces, noting that there is a government committee formed by the Prime Minister consisting of representatives of the three main components in Iraq: Shiites, Sunnis and Kurds.”
He pointed out that “the committee tasked with preparing the draft law has not completed its work in full so far, which hinders sending the draft law to the Council of Representatives.”

Almaalomah.me

The Central Bank of Iraq creates an electronic platform to manage complaints from clients of financial institutions

The Central Bank of Iraq (Financial Inclusion Department) announced on Wednesday the establishment of an electronic platform to manage complaints from clients of financial institutions.

The bank stated in a statement received by Shafaq News Agency that it “seeks to automate the work of the financial sector to reduce reputational risks and enhance trust between all financial institutions and the public. In this regard, it has created an electronic platform for managing complaints, the work of which is summarized in automating the financial institutions’ receipt of public complaints via the complaint form link, and managing their processing under the supervision of the Central Bank.”

He explained that “the response period for a complaint filed against financial institutions on the platform takes between one and five working days, determined by the Central Bank of Iraq through the system for each complaint based on its nature and the importance of processing it. If financial institutions do not respond to the complaint directed to them through the system within the specified time, a fine of (100,000 Iraqi dinars) will be imposed for each complaint for each day of delay.”

He explained that “this came in order to develop the performance of institutional work and simplify government procedures by shifting to digital transactions, and for regulatory objectives that are consistent with the Central Bank of Iraq Law No. (56) of 2004, as the sectoral body supervising the work of all licensed financial institutions, and in view of the continuous development witnessed by the electronic financial industry, and its great importance in achieving economic growth, financial stability and enhancing levels of financial inclusion.”

shafaq.com

Economist warns of ‘danger’, takes aim at central bank: Banks are evaluated by 1970s standard

Economic expert Mustafa Hantoush warned today, Tuesday, of a danger to the Iraqi economy caused by foreign banks inside the country, while he pointed out that the Central Bank evaluates local banks according to the “seventies standard.”

Hantoush told Sumaria News, “Iraqi banks are evaluated by the Central Bank of Iraq according to the (camels) standard, which is the standard of the seventies of the last century, so we find weakness in the banking operations of the Iraqi banking sector because the Central Bank’s standard does not give it importance in the evaluation,” stressing the need to “adopt a modern standard that focuses on (deposits – loans – investments – electronic payment).”

He pointed out that “the Iraqi banking sector is almost at a standstill, and work and profits are confined to a number of banks (owned by foreign owners) supported by their countries and governors of their central banks,” considering that “these banks pose a threat to the Iraqi economy and their liquidity position is ambiguous.”

Alsumaria.tv

Returning one billion dinars to the Iraqi state treasury, seized by a private bank

Shafaq News / The Supreme Anti-Corruption Commission announced on Tuesday that it had recovered one billion dinars to the state treasury, explaining that the recovered amount represents part of the total amount in the case of violations committed by one of the departments of the Ministry of Commerce that opened an account in a private bank, in violation of the law.

The Government Media and Communications Office stated in a statement, speaking about the case that the Authority investigated and referred to the judiciary, that based on the directives of the Chairman of the Authority to continue following up to recover the full amount, the Authority was able to recover an amount of one billion dinars to the Ministry of Commerce – Export Support Fund, from the United Investment Bank, pursuant to the instrument numbered (0018732) issued by Rashid Bank on 7/11/2024, noting that the total amounts recovered in this case amounted to (22,000,000,000) twenty-two billion dinars.

He added, explaining that the Export Support Fund deposited an amount of (69,000,000,000) sixty-nine billion dinars in the United Investment Bank in violation of the controls and instructions of the Central Bank, and when the amounts were requested from the bank, it was found that they did not have any financial amounts; for the bank officials to invest in them, noting that the Authority’s procedures resulted in the arrest of the Director General of the Export Support Fund Department at the Ministry of Commerce previously and other accused.

Shafaq.com

Nearly 200 billion dinars in “fines” from the Central Bank of Iraq on banks and exchange companies

Shafaq News / The Central Bank of Iraq announced on Tuesday that fines imposed on banks and non-banking institutions (exchange companies) amounted to more than 181 billion Iraqi dinars during the past six months.

A table of the bank, which Shafaq News Agency has reviewed, showed that “the fines imposed on banks and financial companies during the past six months, starting from January until the end of last June, amounted to 181 billion, 842 million, 854 thousand, and 458 dinars,” indicating that “the fines also included 151 administrative penalties for these banks and non-banking institutions, distributed between warnings, alerts, and grace periods.”

The table showed that “January witnessed the highest fines on banks and non-financial institutions, as these fines reached 98 billion, 277 million, 722 thousand, and 62 dinars, with 17 administrative penalties, while June witnessed the lowest fines, reaching 2 billion, 829 million, 157 thousand, and 288 dinars, with 30 administrative penalties.”

The table did not show the names of the banks that were fined and subjected to administrative penalties.

The Iraqi Stock Exchange Investors Association had criticized the Central Bank of Iraq’s increase in fines on banks, noting that it would affect the profitability of investors in the shares of these banks.

Shafaq.com