TNT:
Tishwash: The Iraqi government will hold an extraordinary session on Saturday to vote on the 2027 budget.
A government source reported on Tuesday that the Iraqi cabinet will hold an extraordinary session next Saturday, chaired by Prime Minister Ali al-Zaidi, to vote on the draft general budget law for 2027.
The source told Shafaq News Agency that the session will be dedicated to voting on the draft budget, in preparation for sending it to the House of Representatives for a vote before the end of this year.
The Ministry of Finance had referred the draft 2027 budget law to the Ministerial Council for the Economy on September 27, after completing its preparation stages, before the Council approved it and referred it to the Cabinet.
On October 4th, the parliamentary finance committee decided to host Finance Minister Faleh Sari to discuss budget priorities and the date for sending it to parliament, and expressed its displeasure at not having been informed in advance about the draft of the project and its articles.
The preparation of the 2027 budget comes after the failure to approve the 2025 budget schedules and the failure to approve a budget law for 2026, which kept government spending during the two years according to the temporary spending mechanism at a rate of 1/12, based on the Financial Management Law. link
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Tishwash: The 2027 budget: Financial resilience faces funding challenges
The oil revenue estimates in the draft budget for the year (2027), amounting to about (217) trillion dinars with a financial deficit of (42) trillion, are based on an export rate of (4) million barrels per day and an estimated price of (58) dollars per barrel, amidst governmental and parliamentary efforts to address the funding gap and achieve financial stability.
Riyadh Al-Tamimi, a member of the parliamentary finance committee, explained in an interview with Al-Sabah that the actual spending in the budget amounts to about (175) trillion dinars, noting that non-oil revenues should not be less than (28) trillion dinars, which can be maximized through taxes and border crossings.
He added that there are agreements with Chinese companies to increase refinery production from (100) thousand to (175) thousand barrels per day, indicating that the estimated oil quantities are distributed flexibly between export outlets via the port of Ceyhan, the Kurdistan Region, tanker transport, and production governorates.
Regarding addressing the deficit, Al-Tamimi warned against the burdens of internal and bank borrowing, suggesting that external borrowing under sound agreements would be less costly if directed towards investment projects that achieve real growth.
Regarding monetary stability, the indicators of the Central Bank of Iraq have demonstrated remarkable success in protecting the national currency through disciplined management of the money supply and the growth of foreign reserves. Dr. Mazhar Muhammad Salih, the financial advisor to the Prime Minister, explained to Al-Sabah newspaper that the bank's effectiveness was reflected in the efficient financing of foreign trade, the astute management of liquidity to curb inflation, and the growth of foreign reserves for asset management.
In a positive development, Iraqi oil exports rose by 9.5% to 3.35 million barrels per day, supported by increased shipments from the port of Basra and a doubling of exports via the northern route through Turkey. According to Bloomberg data, total exports from the four major oil-producing countries in the region (Iraq, Saudi Arabia, the UAE, and Kuwait) increased by 10% to 15.53 million barrels per day, with Iraq ranking second among these countries in terms of the size of the increase in revenue to compensate for shortfalls and meet global demand. link
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Tishwash: The inevitability of international investments
Dr. Salwan Al-Nouri
Attracting international investments has become an economic option that cannot be postponed, and has become a necessity imposed by Iraq’s need to diversify sources of income, revitalize the productive and service sectors, and reduce dependence on oil as the main source of public revenues.
An economy that possesses human and natural resources and an important geographical location needs to invest in these assets and transform them into real projects that provide job opportunities and support growth.
Iraq possesses vast opportunities in the industrial, agricultural, tourism, transportation, energy, and services sectors, and needs to develop its infrastructure and modernize its production technologies. These areas can be significant attractions for international investors, provided a suitable business environment is established and procedures are streamlined.
Governmental bodies are more flexible and transparent.
But opportunities alone are not enough. Investors seek legislative stability, ease of company registration, clear tax and customs regulations, and swift transaction processing, in addition to guarantees that protect their investments and give them the confidence to expand in the long term. Therefore, we emphasize that improving the business environment must go beyond simply announcing investment opportunities or holding conferences and economic meetings.
The influx of foreign capital into the productive sectors can contribute to the establishment of factories, the development of agricultural projects, the improvement of the quality of local products, and the transfer of technology and managerial expertise, thereby helping to reduce imports and increase the competitiveness of Iraqi products. In the service sectors, investment in transportation, storage, communications, tourism, and financial services opens new horizons for local companies, stimulates commercial activity, and provides broader opportunities for young people.
It must be emphasized here that international investment should be a partner to the Iraqi private sector, not a competitor that limits its role. Cooperation between local and foreign companies can create common interests, expand markets, and enhance the participation of Iraqi producers in supply and production chains.
The responsibility for attracting investments does not fall on the government alone, but requires genuine coordination with professional associations and the private sector to identify and address obstacles and promote available opportunities in a professional manner.
Investment successes are not measured by the number of agreements signed, but by what is achieved on the ground in terms of productive projects, job opportunities, revenues and new exports. Today Iraq needs investments that create sustainable economic value and give the economy greater ability to grow away from the fluctuations of oil markets. This is the most important step towards a diversified, stronger and more stable economy. link
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Tishwash: An economist says that the drop in the dollar's value will not solve the problem of high prices in the Iraqi market.
Economic expert Ziad Al-Hashemi criticized Deputy Prime Minister Mohammed Tamim's statements regarding the imminent decrease in the dollar exchange rate in the parallel market, considering that linking the decline in prices to the strength of the relationship with the United States and the increase in cash dollar shipments does not provide a real solution to the economic crisis.
Al-Hashemi said the government is repeating a speech that focuses on the dollar exchange rate, without clarifying the measures it intends to take to limit the continued rise in prices of goods and services, noting that prices will not automatically decrease even if the exchange rate declines.
He added that officials’ statements ignore the basic problems affecting citizens and do not include clear solutions to address the repercussions of rising prices, considering that this discourse contributes to weakening credibility and trust among the public.
Deputy Prime Minister Mohammed Tamim had predicted a decrease in the dollar exchange rate in the parallel market and its approach to the official rate, attributing this to the increased supply of cash dollars to Iraq, which rose to $3 billion within two months, with the arrival of new installments and the expectation of others exceeding $500 million per installment. link
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Tishwash: Al-Mandalawi emphasizes the activation of memoranda of understanding with two American companies in the energy sector.
Deputy Prime Minister for Energy Affairs, Mohsen Al-Mandalawi, stressed on Monday evening the need to finalize and activate the memoranda of understanding with the American companies “Chevron” and “Exxon Mobil” in the field of energy.
The media office of Al-Mandalawi stated in a statement received by Shafaq News Agency that the latter chaired an expanded meeting that included the Ministers of Oil and Electricity, the Director of the Iraqi Oil Marketing Company “SOMO”, senior staff in the Ministry of Oil, and a number of agents and general managers, to discuss plans and procedures to enhance the capabilities of the oil sector, increase Iraqi production and exports, and confront the challenges imposed by the Strait of Hormuz crisis on the movement of oil exports.
Al-Mandalawi stressed the need to finalize and activate the contracts and memoranda of understanding with the American companies “Chevron” and “Exxon Mobil” in order to contribute to raising the production capacity of crude oil and increasing daily export rates. The search for new export outlets and routes that would ensure Iraqi oil reaches global markets was also discussed.
The meeting discussed the needs for electrical energy and the technical requirements for developing distribution networks, as well as examining the agreements concluded to secure gas and future plans aimed at developing the electricity sector, in preparation for the coming summer, in line with the priorities of the government program, and the level of services provided to citizens.
The meeting emphasized the importance of revitalizing plans to rehabilitate and develop oil pipelines and infrastructure projects for oil fields.
Al-Mandalawi stressed the need to provide the requirements of oil companies operating in Iraqi fields and to remove the obstacles facing their work, in order to support raising production rates and achieving tangible increases in production capacity within short time periods, and in line with the requirements of the current challenges link