Iraq Economic News and Points To Ponder Tuesday Afternoon 5-12-26
Iran Sets Five Conditions For Entering The Second Round Of Negotiations With America
Arabic and international Iran has set five conditions as guarantees for entering a second round of negotiations with the United States, the Fars News Agency reported on Tuesday.
The agency quoted an informed source as saying, "Iran has set five conditions that represent the minimum guarantees for building trust before any negotiations with the United States can begin."
The report added that "Iran stipulates an end to the war on all fronts, including Lebanon, the lifting of sanctions, and the release of its frozen assets." It further explained that "Iran's conditions include compensation for war damages and recognition of Iranian sovereignty over the Strait of Hormuz."
The report continued, stating that "Iran informed Pakistan that the continued US naval blockade has reinforced distrust in negotiations with Washington."
It noted that "Tehran believes that without the fulfillment of its five conditions, there will be no possibility of entering into new negotiations," clarifying that "the American proposals were formulated entirely unilaterally and in a manner that serves Washington's interests."https://www.economy-news.net/content.php?id=69014
China Affirms Its Companies' Keenness To Expand Their Activities And Investments In The Iraqi Market.
Money and Business Economy News – Baghdad The Ambassador of the People's Republic of China to Iraq, Cui Wei, affirmed on Tuesday the keenness of Chinese companies to expand their activities and investments in the Iraqi market.
The Ministry of Foreign Affairs stated in a statement received by “Al-Eqtisad News” that “Deputy Prime Minister and Minister of Foreign Affairs Fuad Hussein received, on Tuesday, May 12, 2026, the Ambassador of the People’s Republic of China to Iraq, on the occasion of the end of his diplomatic duties in Baghdad.”
She added that "during the meeting, the course of bilateral relations between Iraq and China was reviewed, as well as ways to enhance joint cooperation in various political, economic and investment fields, in a manner that serves the interests of the two friendly countries. The two sides also discussed a number of regional and international issues of common interest, stressing the importance of supporting stability efforts and strengthening international cooperation."
The minister praised the role played by the Chinese ambassador during his time in Iraq and his contribution to developing bilateral relations, particularly in the fields of economy, energy and infrastructure, wishing him success in his future endeavors.
For his part, the Chinese ambassador expressed his country's appreciation for the level of cooperation with Iraq, stressing the continued support of the People's Republic of China for the path of development and stability in Iraq, and the keenness of Chinese companies to expand their activities and investments in the Iraqi market.
https://www.economy-news.net/content.php?id=68996
A Review Of The Book Entitled (Iraq's Finances... From The Trap Of Deficit To Sustainable Reform)
Once again, the esteemed Professor and dear brother, His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Ismail Al-Alaq, presents us with a scientific and applied study analyzing the trends of public finance in Iraq, from the trap of financial deficit to paths of sustainable reform, in terms of causes and results.
This is the first study supported by the experience and practice of a specialized official in the government who worked for twenty years in the economic field and in the financial and monetary system.
Therefore, his analyses, visions, and ideas presented in the study are profound and consistent with the economic reality of Iraq over more than two decades, reaching the problems of the current situation, starting from a holistic view, not a partial view of a specific circle of activity, but rather studying the subject as a whole and its repercussions at the macroeconomic level.
Drawing on the realities of the structural and systemic flaws in the economy, the challenges facing the financial and monetary systems, and the negative impacts of unclear fiscal and other economic policies, this study examines the failure to achieve fiscal sustainability, leading to a cycle of budget deficits from which the government cannot escape.
On the contrary, the deficit continues to increase year after year, relying on monetary policy intervention to finance it. This has deprived successive governments of the ability to achieve investment and development.
A key and unique aspect of this study is that it was written in the spirit of scientific research, enriched by the scientific, financial, and monetary expertise of Professor Ali Al-Alaq.
This expertise stems from his direct experience with the challenges and causes that have trapped the economy in the fiscal deficit of the state's general budget, the instrument for managing public resources and achieving stability and economic growth.
This deficit has become a significant pressure on fiscal sustainability, a major problem plaguing the Iraqi economy. A growing problem that has been accumulating year after year and has turned into major problems in public finances, the reliance on oil as a single resource for the general budget, the failure to activate the real economy, and the continuation of other non-oil resources at the same rates, not exceeding 5% of total resources for 23 years.
This impacted the balance of payments and restricted the state's ability to achieve development and economic stability.
The study, through its scientific and applied analysis, as outlined by the author with the spirit of a scientific researcher and responsible expert, highlights the challenges facing the Iraqi economy.
The study focuses on the budget deficit, its extent and trends, and potential solutions. It also addresses the questions that must be answered to overcome this predicament, presenting the study's hypotheses based on a scientific and realistic perspective informed by practical experience (from 2004 to 2024).
The author, through his diagnostic vision, was able to clarify, in five chapters and through analytical and scientific observation, the problems of the Iraqi economy and the role of Iraqi finance in achieving the transition from the deficit trap to sustainable reform paths, according to the following:
Chapter One – The conceptual and methodological framework of the general budget and the fiscal deficit, explaining the concept of the general budget and its importance in macroeconomics, the best ways to prepare it, the concept of the fiscal deficit and its economic effects, the risks of changing the exchange rate, and the relationship between the deficit and monetary policy.
Chapter Two: Diagnosing the fiscal deficit in Iraq and its economic repercussions, deficit financing, internal debt and their risks in the case of the Iraqi economy, the fiscal sustainability gap in Iraq, the current financial reality and the challenges facing fiscal sustainability.
Chapter Three – Public Expenditures and Achieving Fiscal Discipline. He emphasized his vision regarding fiscal recklessness, fiscal discipline, and fiscal reform strategies aimed at avoiding negative public reactions. He also discussed reforming public expenditures as a cornerstone of fiscal sustainability, clearly indicating the contribution of government subsidies to external budget expenditures, the challenges facing government subsidies, and pathways for sustainable reform.
Chapter Four – Public Revenues and Maximizing Non-Oil Resources. He explained his strategic vision for the future and outlined the roadmap for sustainable reform.
Chapter Five – Restructuring the Public Budget within a Macroeconomic Framework. This chapter focuses on program-based rather than line-item budgeting, participatory budgeting, corporate governance, and risk assessment. It also examines the role of the central bank in achieving fiscal stability and economic stimulus.
Chapter Six – Diversifying the Iraqi Economy as an Approach to Financial Sustainability and Wealth Creation: The author presents his vision for economic diversification as a strategic option for maximizing revenues, achieving financial sustainability, and supporting innovation and the private sector.
He concludes his study with conclusions, recommendations, and proposed solutions that focus primarily on policies and solutions for escaping the deficit trap and achieving sustainable reform.
Although I haven't given the study presented by the esteemed Professor and colleague Ali Mohsen Al-Alaq the analysis it deserves due to the depth of its insightful visions and ideas, I am now fully convinced that this study is undoubtedly suitable as a doctoral dissertation for Iraqi universities and as a curriculum for postgraduate students in finance, accounting, and banking.
It is scientifically, academically, and research-wise sound.
I urge the Dean of the Higher Institute for Accounting and Financial Studies at the University of Baghdad and the administration of the Al-Nahrain Center for Strategic Studies to invite His Excellency the Governor of the Central Bank to present and discuss the study and to evaluate the scientific and intellectual effort invested in addressing a chronic economic problem plaguing our national economy.
I wish His Excellency continued success, good health, and well-being, and pray that God protects him and enables him to continue his fruitful contributions to serving Iraq and its economy. https://www.economy-news.net/content.php?id=68931