Iraq Economic News and Points to Ponder Tuesday AM 1-14-25
Foreign Workers And The Depletion Of The Dollar
Economical 01/13/2025 I have a happy gesture There is no country without foreign labor, because it needs labor in specific fields that were not available in its youth, or it is one of the professions that have been renewed in the country’s environment, especially large and arduous works, so it seeks the help of labor.
This is one of the advantages of attracting these workers to operate production or service activities or any profession or business in which the workforce is not available at home.
In Iraq, the matter appears different.
The doors are open, and with them other doors have been opened through which the worker can enter during certain occasions, or for the ease of obtaining a visa.
Therefore, we see this labor in every governorate, and even in every Iraqi city, and it has reached the villages and countrysides, and
it performs work that is not difficult or that does not exist with Iraqi hands, and it is also possible that the origin is to employ the Iraqi labor force and reduce unemployment rates, at least in the picture.
The phenomenon that anyone can think of is these numbers that entered Iraq.
According to the official statistics of the Ministry of Labor and Social Affairs, this employment is estimated to be (one of the hot issues in need of real treatments, and we are interested in this issue and are working on it diligently).
It, i.e. the ministry, says (we do not have official statistics for foreign workers in Iraq), but
it estimates it (at more than 800 thousand to one million foreign workers in the country, according to unofficial statistics, and only 43 thousand of them are registered with social security).
In fact, the number is more than that, because there are unregistered workers who are in violation of the law, especially since the Ministry says that it gives two reasons for the entry of workers:
The first, according to tourism and visit licenses, multiple visas, and others, which is a circumvention of the law. The second is that many Syrian workers work in restaurants, shops, and markets, and their residency is illegal, neither according to the labor law, nor the residency law in the Ministry of Interior.
In light of the saying that for every foreign worker there is an Iraqi worker, this number will increase.
For example, in a grocery store, as a herbal seller, or as a generator operator, and other simple jobs that the employer prefers to the Iraqi because it is cheaper, more secure, and he also works silently in the place, and is not required and has no problems.
But the matter has economic dimensions, if we exclude other problems and dimensions, including what affects the dollar through currency transfers to the countries of these workers.
If we take the reality of the number that the Ministry approximated, then if each worker transfers $400 per month on average, this means $400 million per month, which means billions of dollars annually.
This labor depletes the foreign currency that comes from the oil source and from US Treasury transfers, which alone also causes the price of the dollar to rise, even if the transfers are made through official transfer outlets. https://alsabaah.iq/108423-.html
Emiratisation...Signs Of Positive Development To Support The National Economy
Economical 01/13/2025 Baghdad: Hussein Thaghab Need is one of the basic drivers of creativity and innovation.
In the case of Iraq, the urgent need to provide medicines locally appears to have motivated the government and the private sector to invest in establishing local pharmaceutical factories.
This development is an important step towards reducing dependence on imports from abroad and achieving self-sufficiency in the field of medicines, especially in light of the current economic and health conditions.
The presence of 18 pharmaceutical factories under construction, with some of these projects progressing to advanced stages, reflects the serious trend towards building a strong infrastructure in the pharmaceutical industry sector.
This will contribute to providing necessary medicines at reasonable prices and with local quality in line with international standards, as well as creating job opportunities and strengthening the national economy.
International economic expert Dr. Saif Al-Halafi said:
The efforts of companies have begun to become clear by some investors in creating pharmaceutical generative factories in Iraqi startup companies that are coming par excellence to the competitive labor market, and here we must know the ability of the Iraqi Stock Exchange to absorb new ideas coming strongly through emerging Iraqi pharmaceutical generative companies.
And including all of them in its multiple platforms, whether traditional or non-traditional, or the important listing in the OTC platform, to enter the important investment by the investor public through the new upcoming investment giant, which is the pharmaceutical industries in Iraq and the great economic feasibility it achieves for the country.
In all its joints. Al-Halafi added to “Al-Sabah”:
Economic power
It must be known that the global pharmaceutical industry is an economic and health force as
it is considered one of the most important economic sectors in the world, as
it plays a pivotal role in improving public health and developing treatments and medicines that
contribute to saving lives first, and
achieving major economic benefits second, pointing out.
These industries rely heavily on advanced technology, research and development, and create job opportunities for a wide range of human development sectors, making them among the most profitable sectors in the world, according to estimates from previous years, as the global pharmaceutical industry achieved revenues exceeding 1.5 trillion. dollar. Al-Halafi pointed out that
Making profits
the new world expects to increase this number in the coming years due to the abundance of traditional or transmissible diseases or even an increase in the efficiency of vaccines for many diseases, pointing out that the
ability of pharmaceutical companies to achieve profits is based on several factors,
the most important of which is innovation, as companies spend Major companies invest huge amounts of money on research and development, which enables them to invent new medicines and improve existing medicines,
especially since medicines that treat chronic and rare diseases contribute greatly to increasing profits and increasing the domestic product of countries, and patents provide protection.
It has been legal for companies against competition for years, allowing them to set high prices for new medicines without interference from competitors.
The Iraqi government can also intervene in setting prices for local products to protect consumers. He stated that
Global demand
global demand increases with the increase in the population and their aging,
which raises the demand for pharmaceutical treatments in developing and developed countries alike, pointing out that the
pharmaceutical industries in the economies of countries contribute to strengthening the economies of countries, especially the Iraqi economy, through several ways, including
creating job opportunities in The pharmaceutical sector and
providing millions of job opportunities in research, development, production, and distribution. He pointed to the
development of scientific specializations that become an urgent need to teach and diversify them in Iraqi universities, such as departments of mathematics, chemistry, analytical chemistry, and biology departments, as well as departments of pharmacy and medicine. It also goes to increase government revenues through taxes imposed on major companies. He stressed that the
Domestic exports
pharmaceutical industries contribute significantly to supporting government budgets, as
they provide import hard currency for Iraq and will create export dollars in the event that the local product advances and is able to compete with foreign products in exports.
It also enhances local exports, as some countries such as the United States, Germany, rely on... India receives pharmaceutical exports as a major portion of its revenue. He explained that
in Iraq, the pharmaceutical industries face great challenges,
but with the government adopting a policy of localization of the industry, and the
continuous urging by the government and the Prime Minister, Mr. Muhammad Shiaa Al-Sudani, to develop these strategic industries, these industries began to show signs of positive development that could contribute to supporting the national economy. And improving the health system.
Advanced stages
He pointed to some current unaccredited approximate numbers about the pharmaceutical industries in Iraq, as there are 18 pharmaceutical factories under construction, some of which have reached advanced stages of up to 98 percent.
There are 76 new requests from the private sector to establish pharmaceutical factories using modern technology, and 24 factories.
Pharmaceuticals were present until the end of 2022, operating at low capacity to cover only 10 percent of Iraq’s need for medicines.
Localization of industry
In turn, the specialist in economic affairs, Aqeel Al Hamad, said:
The initial approximate figures for the pharmaceutical industry localization program achieve 35 percent of Iraq’s need for medicines, which is covered by local production, compared to only 10 percent when the localization program began, pointing to the production of new medicines, such as 28 medicines to treat the high Blood pressure, 28 medications for diabetes, and 18 medications to treat cancer, pointing out that
with the continuation of the localization program and increased government support for this industry, Iraq can turn into an exporter. for medicines and medical supplies in the near future.
Regarding the role of the pharmaceutical industry in the Iraqi economy, the specialist in economic affairs, Jassem Jaber, pointed out that
it contributes to reducing dependence on imports, which is necessary to ensure the sustainable provision of medicines in the country.
It contributes to enhancing public health and increasing the production of medicines locally, which means providing treatments at reasonable prices and reducing the deficit in the availability of medicines.
Medicines, supporting the economy as local pharmaceutical industries provide job opportunities and stimulate investment in research, development and infrastructure. He stressed that
National revenues
the development of the pharmaceutical industry achieves an increase in national revenues, and
with the development of these industries, Iraq can become an exporter of medicines and medical supplies, especially after the completion of strategic projects such as Al-Faw Port and the Development Road and we have signs of the idea of an export dollar. https://alsabaah.iq/108422-.html
Parliamentary Finance: Bank Reform Strengthens Iraq's Financial Position Globally
Time: 01/13/2025 11:45:35 Read: 253 times {Economic: Al-Furat News} Member of the Parliamentary Finance Committee, Jamal Cougar, confirmed today, Monday, that the restructuring of the Rafidain and Al-Rashid banks is a decisive step to
improve the financial situation of Iraq and
enhance its position in the global financial system. Cougar told Al-Furat News Agency:
“Restructuring banks is a very important matter and has many positives, as
these banks have not been reviewed for many years.
These measures will contribute to strengthening the national economy and addressing some of the errors that may exist in the current financial system.”". He added:
"Reforming banks will lead to their development in line with the conditions of the US Federal Reserve and the SWIFT system, in addition to many international requirements that will contribute to improving the performance of the Iraqi financial sector at the global level."
It is noteworthy that Prime Minister Muhammad Shiaa Al-Sudani reviewed the plan for the restructuring project of Al-Rasheed and Al-Rafidain banks, and the technical and administrative procedures related to the project, which include a comprehensive review and structural administrative reforms with the aim of providing integrated banking services to citizens and companies. He explained that
the completion rate of the project to restructure Rafidain Bank has reached its final stages, confirming that
it will enter into implementation during the next few period, within the framework of a plan that has been studied and implemented in accordance with the set standards and specifications.
https://alforatnews.iq/news/المالية-النيابية-إصلاح-المصارف-يعزز-مكانة-العراق-المالية-عالميًا
To Withdraw Savings From Citizens... A Concerned Person Demands The Activation Of The Electronic Payment System In Iraq
January 13, 2025 Baghdad/Iraq Observer Mustafa Hantoush, a researcher in financial and banking affairs, confirmed that although Iraq issues approximately 102 trillion currency, there are several problems surrounding this process, while he called for the necessity of activating the electronic payment system to be able to withdraw citizens’ savings in the form of bank deposits.
Hantoush told the Iraq Observer, “Iraq issues a currency of approximately 102 trillion, and this currency is allocated to the Federal Reserve in a currency that has real reserves of
gold,
treasury bonds, and
foreign currencies such as the dollar, for example.
It is a currency that is issued and covered by 100%, while some countries cover their currency by 50%, and they are doing so.”
“It is a good step that is expected to create strength and stability for the Iraqi currency.” He added,
"The currency exported from Iraq is in front of real reserves, and
any dinar is printed in exchange for real reserves among international banks, and
they are of good types, but there is a problem related to the amount of 102 trillion, as
it does not appear and
is either in the market or part of it for home savers." Hantoush called for
the necessity of “activating an electronic payment system that pays for a banking system to bring in savings, because the
presence of currency among citizens and outside the banking systems could create problems that affect other non-banking sectors, such as the real estate sector, as happened with the rise in real estate prices in 2020, where the exchange rate was manipulated, which led to a rise.”
“The property prices increased by 100% at a time when the exchange rate reached about 123.” He continued,
“One of the determinants of printing currency is
monitoring savings in currency found in homes,
determining their location,
creating studies, and
operating banking systems to withdraw them.
Iraq needs a real banking system based on banking operations to bring in deposits that
attract this mass of savings and
pump them back into the Iraqi banking sector.”
https://observeriraq.net/لسحب-المدخرات-لدى-المواطنيين-معني-يطا/
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