Iraq Economic News and Points To Ponder Monday Evening 8-25-25
Economist: Iraq Is Facing A Severe Financial Crisis Next Year
{Economic: Al Furat News} Economist Nabil Al Marsoumi warned that Iraq is facing a severe financial crisis next year, noting that the Ministry of Finance currently has no funds and relies on oil transfers.
Al Marsoumi said in a statement to {Al Furat News} that: "The delayed pension payments came after the transfer of oil revenues on the fourth of this month," noting that "this situation may continue for a long time during the current year due to the upcoming elections."
Al-Marsoumi pointed out that "next year may witness a financial crisis and difficult economic decisions that will directly impact fixed-income earners and the poor," warning of "coming economic challenges that require clear strategies to address them." https://alforatnews.iq/news/خبير-اقتصادي-العراق-مقبل-على-أزمة-مالية-حادة-في-العام-المقبل
Prime Minister's Advisor: Forming A Team To Improve Credit Ratings Is A Step Towards Comprehensive Economic Reform.
Today, 14:55Baghdad - WAA - Nassar Al-Hajj The Prime Minister's Financial Advisor, Mazhar Mohammed Salih, explained on Sunday the importance and tasks of the joint national team tasked with improving Iraq's sovereign credit rating. He noted that this step reflects the government's seriousness in implementing sustainable economic reforms and preparing the country for global financial integration.
Saleh told the Iraqi News Agency (INA):
"Prime Minister Mohammed Shia al-Sudani's directive to form a joint national team to improve Iraq's sovereign credit rating is not merely an administrative step, but rather a clear declaration that Iraq has entered a new phase of serious and systematic economic reform."
Saleh emphasized "the importance of the national team in strengthening governance, economic reform, improving transparency and accountability in financial institutions, and managing financial risks more professionally to mitigate economic fluctuations."
He added, "All these steps are aimed at developing the business environment, attracting foreign investment, and supporting financial stability by re-examining the country's monetary and fiscal policies on a sustainable basis."
He explained that "the team will work in accordance with the National Development Plan 2024-2028,
which aims to reduce dependence on oil as the primary source of income and diversify the national economy, as these are among the highest goals of sustainable development and stability."
He pointed out that "the national team's tasks will be at both the national and international levels, and will focus on strengthening international confidence in the Iraqi economy,
which will
open the door to financing and investment, and contribute to raising Iraq's credit rating, which means reducing the cost of borrowing and increasing opportunities for external financing.
It will also confirm the seriousness of the government and its economic program in adopting sustainable economic reforms and preparing Iraq for more effective global financial integration."
Earlier, Prime Minister Mohammed Shia al-Sudani directed the formation of a joint national team to improve Iraq's credit rating. https://ina.iq/ar/economie/241708-.html
Unlocking Iraq's Economic Potential: The Role Of Structural Reforms In Boosting Medium Term Non-Oil Growth
By Filippo Gori, Hela Mrabet June 10, 2025 Download PDF
https://www.elibrary.imf.org/downloadpdf/view/journals/018/2025/115/018.2025.issue-115-en.pdf
Summary
Iraq’s non-oil economic growth has been slow, constrained by low productivity, limited investment and an inefficient use of human capital. Against the background of an excessive dependency on oil, an outsized public sector footprint, a fragile political context, and lingering institutional and governance shortfalls, non-oil medium term growth is expected to remain subdued, at 3-4 percent – mostly driven by demographics.
To unlock its potential for sustained growth and prepare the country for growing social challenges in the next decade, Iraq should commit to and implement an ambitious structural reform agenda. Estimates suggest that a comprehensive reform package aimed at improving governance, intensifying the fight against corruption, streamlining labor market and business regulations, and strengthening the banking sector could improve growth by an additional 4 percent over the medium-term.
Subject: Commodities, Employment, Labor, Labor force participation, Labor market reforms, Labor markets, Labor productivity, Macrostructural analysis, Oil, Production, Productivity, Structural reforms, Total factor productivity
Keywords: Employment, Governance, Investment, Labor force participation, Labor Market, Labor market reforms, Labor market regulations, Labor markets, Labor productivity, Oil, Potential Growth, Productivity, Productivity, Structural reforms, Structural Reforms, Total factor productivity
Publication Details
Pages: 21 Volume: 2025
Issue: 115
Series: Selected Issues Paper No. 2025/115
Stock No: SIPEA2025115
ISBN: 9798229021685
ISSN: 2958-7875
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Government Advisor: Oil Will Soon Return To $75... Here's Why
Time: 2025/08/19 16:44:30 Reads: 1,110 Times {Economic: Al Furat News} The Prime Minister's economic advisor, Mazhar Muhammad Salih, confirmed that the need for petroleum energy will increase after each cycle of price decline.
He indicated that this increase will restore balance to the energy market, which will push the price of a barrel of oil to an average of no less than $75 higher.
Saleh said in a statement to Euphrates News, "The need for oil energy will increase after each price decline due to rising production costs in the world's major producing regions.
This will restore balance to the energy market and raise the price of a barrel of oil to an average of no less than $75 per barrel, especially after the market glut of cheap oil is eliminated due to geopolitical unrest around the world."
He added, "This is a temporary situation that does not represent a long-term investment strategy in oil energy markets, particularly the production market in the United States, which is the world's largest oil producer, but at high costs compared to the low-cost production costs of Middle Eastern and Gulf oil."
https://alforatnews.iq/news/مستشار-حكومي-النفط-سيعود-إلى-75-دولاراً-قريباً-لهذا-السبب
Iraq Will Be Without Imported Gasoline By The Beginning Of Next Year.
Economy 2025-08-20 | 11:51 776 views Alsumaria News – Local announced The Ministry of Oil on Wednesday that it is preparing a plan to end the import of petroleum products by the end of this year and the beginning of next year.
The Director General Distribution Company of the Oil Products, Hussein Talib, said in a statement to the official agency, followed by Sumaria News , that
"the Ministry of Oil has developed a plan to end the import of petroleum derivatives by the end of 2025 and the beginning of 2026, according to an advanced timetable prepared for this purpose."
He added, "Iraqi refineries have achieved a qualitative leap in the production of petroleum derivatives
under the current government since 2024," noting that
"at peak times, Iraq was importing about 16 million liters of gasoline, in addition to 7 million liters of diesel and kerosene, at an annual cost of $4.5 billion."
He continued, "The import of diesel and kerosene will be closed in 2024 after achieving self-sufficiency, while imports of high-octane gasoline decreased from 16 million liters to 6 million liters per day."
https://www.alsumaria.tv/news/economy/537836/العراق-بلا-بنزين-مستورد-مع-بداية-العام-المقبل
Iraq Announces Increase In Refining Capacity And Develops Plan To Export Kerosene And Jet Fuel
Time: 2025/08/24 13:02:30 Read: 750 Times {Economic: Al Furat News} The Iraqi government announced an increase in Iraq's oil refining capacity and a plan to export kerosene and jet fuel abroad after achieving self-sufficiency in both.
A statement from the Prime Minister's Media Office, a copy of which was received by {Euphrates News}, stated that "within the framework of the government's approach to strengthening national sovereignty in the energy sectors and providing petroleum derivatives, on the path to consolidating economic stability and confident national development,
Iraq has been able to raise its refining capacity to (1.3) million barrels per day,
becoming one of the Arab countries with the highest capacity in this field, and
to proceed with this growth and expansion in capacity, towards
achieving a refining capacity of (1.65) million barrels per day,
in accordance with the stated goal announced by
Prime Minister Mohammed Shia al-Sudani on March 30, 2025."
He explained that "this strategic development will contribute to covering the entire domestic consumption of petroleum products, which reached 1.1 million barrels per day in 2024, bringing Iraq very close to self-sufficiency in various petroleum products.
This will achieve a number of gains, most notably:
reducing the burden of importing petroleum products to the lowest level in decades,
saving billions in hard currency annually,
strengthening the trade balance,
enabling the export of surplus petroleum products in the near future,
creating new job opportunities in the energy sector and related sectors,
improving fuel quality in accordance with international standards, and
reducing carbon emissions and pollution levels." The statement continued,
"This transformation will reflect the government's success in implementing its strategy aimed at diversifying sources of income, strengthening the foundations of sustainable economic development, and achieving the interests of citizens by ensuring stable petroleum product prices in the local market.
The Ministry of Oil has also developed a plan to begin exporting gas oil and jet fuel, after achieving self-sufficiency in both." https://alforatnews.iq/news/العراق-يعلن-رفع-قدرته-التكريرية-ويضع-خطة-لتصدير-الكاز-ووقود-الطائرات
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