Iraq Economic News and Points To Ponder Saturday Morning 7-4-26

Government Plans To Raise Non-Oil Revenues To 45% In 10 Years

Money and business    Economy News – Baghdad  The financial adviser to the Prime Minister, the appearance of Mohammed Saleh, on Friday, that the total public debt of Iraq is still within the limits that can be managed according to international standards, pointing out that the government plans aim to raise non-oil revenues to 45% within ten years.

Saleh said that "talk about the entry of the economy in the danger zone when public debt exceeds 40% of public revenues must be read within a set of financial indicators, and not in isolation from them, because international institutions do not adopt this indicator alone, but also look at the ratio of debt to GDP, the cost of debt service, and the ability of the state to generate and sustain revenues."

He added that "the bulk of the Iraqi debt is internal debt, while the decline in external debt in recent years, which makes the real challenge linked to the nature of public revenues, which depends heavily on oil, which makes public finances vulnerable to fluctuations in oil prices in global markets," noting that "any decline in oil prices raises the debt-to-revenue ratio and increases pressure on the general budget, even if the public debt did not witness a significant increase. "

He pointed out that "the external debt to be paid until 2028 does not exceed about $ 9 billion, and in addition to the internal debt, the total debt represents about 36% of GDP, which is still within the limits that can be managed according to international standards that speak of more than 60%."

He added that "this percentage may decrease further if the settlement of the outstanding amounts within the 2004 Paris Club Agreement, which has not been resolved so far, as these obligations belong to about eight countries, including Gulf countries, and it is expected that their deduction will lead to the write-off of at least 80% of those amounts, and perhaps more, in accordance with the terms of the standard agreement."

Saleh explained that "the internal debt exceeded 100 trillion dinars, equivalent to about 80 billion dollars when calculated in foreign currency, which represents the largest part of the total public debt," pointing out that "the impact of internal debt on the financial independence of Iraq remains limited as long as the external debt within the levels can be managed, especially that the external obligations due until 2028 remain relatively limited. "

He stressed that "the continuation of the fiscal deficit and dependence on borrowing, especially in the event of low oil prices, may reduce the flexibility of fiscal policy and increase the need for reform and financing measures," noting that "the International Monetary Fund confirms that the main challenge for Iraq is not the size of debt as much as it is to contain the fiscal deficit and diversify sources of public revenues."

"The current fiscal policy is working to gradually raise the contribution of non-oil revenues to about 45 percent of total public revenues over the next 10 years, compared to the current situation, in which non-oil revenues do not exceed 10% of total revenues," he said.

He explained that "this is achieved through improving tax and customs collection, automating financial systems, expanding the tax base, revitalizing the private sector and investment, and reforming the banking sector," noting that "these measures need time to be fully reflected on the financial reality, but they represent the most sustainable path to address the problem of liquidity, reduce dependence on oil, and enhance the ability of the Iraqi economy to cope with external shocks and achieve long-term financial stability. "

He pointed out that "there are arrears representing the benefits of the private sector of contractors, farmers and others equivalent to the internal debt, and called (arrears), and if it is not possible to pay it will enter into the internal debt category to be settled fundamentally https://www.economy-news.net/content.php?id=70942

Oil Products: No Manipulation Of The Quality Of Gas Oil (Kaz) Equipped For Residential Generators

Locals   Economy News – Baghdad    The Oil Products Distribution Company denied on Saturday the existence of any quality manipulation (Kaz) equipped for generators within the free quota.

The company said in a statement received by "Economy News" that it "categorically denies the existence of any manipulation of the quality of gas oil (Kaz) equipped for residential generators within the free quota for the months of July and August."

She added that "the inspections are continuing and that the quantities processed within the required specification."    

https://www.economy-news.net/content.php?id=70989

Europe Is Worried About The Development Of Artificial Intelligence

Arab and International    Economy News - Follow-up   Fears are mounting within Europe that the rapid development of artificial intelligence technologies is outpacing regulatory frameworks, at a time when warnings are mounting of the implications for the financial stability and competitiveness of the old continent.

While artificial intelligence is seen as a key driver for boosting productivity and boosting economic growth, regulators and central banks see its risks evolving faster than its rules and regulations, posing unprecedented challenges for policymakers.

Officials in European central banks and regulators said the legislative preparation cycle was no longer able to keep up with the speed of innovation, especially with the emergence of technologies such as proxy artificial intelligence, which open wide economic horizons, but at the same time raise growing concerns about the safety of markets and the financial system.

At the same time, the gap between Europe and the United States in the race for artificial intelligence is widening, as investors see Europe’s dependence on bank financing as limiting the flow of investment to this sector, compared to the United States, which benefits from capital markets in financing giant technology companies, threatening to reduce European competitiveness in one of the most important strategic sectors.

Financial regulation in Europe has struggled to keep pace with the rapid development of artificial intelligence, according to European policymakers, who are grappling with how to support adoption while containing risks to market integrity and stability.

Nikhil Rathi, Chief Executive of the Financial Conduct Authority of Britain, acknowledged that traditional regulatory tools are no longer enough to keep pace with successive developments, stressing that the pace of innovation in artificial intelligence requires regulators to reconsider the methods of setting rules and supervisory mechanisms.

European Central Bank President Christine Lagarde stressed that artificial intelligence represents a great opportunity to boost productivity and support economic growth, but at the same time warned that it carries risks that may be more complex than traditional cybersecurity threats.

Lagarde pointed out that the speed of development of these technologies exceeds the ability of existing protection tools to contain their risks.

Sarah Breden, deputy governor of the Bank of England, warned that the expansion of the use of proxy artificial intelligence technologies within financial markets may increase volatility during periods of crisis, calling for the development of stricter control mechanisms, including automatic stop-trading systems to reduce the risk of any mistakes that may be made by artificial intelligence models.

In parallel with regulatory concerns, investment concerns are also growing, with European officials seeing the continent as required to accelerate its investment in artificial intelligence, boost its own capabilities and maintain its technological sovereignty, without compromising the requirements of financial stability    https://www.economy-news.net/content.php?id=70986

Basrah Crudes Lose Up To 10% Weekly

2026-07-04 02:35    Shafaq News- Basrah    Iraq's Basrah crudes posted weekly losses of 1.57% and 10.42%, despite a modest rebound in global benchmark prices during the final trading session.

Basrah Heavy slipped 16 cents, or 0.27%, to close at $60.09 per barrel, bringing its weekly decline to 96 cents. Basrah Medium lost $5.16, or 8.28%, to settle at $57.19 per barrel, widening its weekly loss to $5.96.

International benchmark prices ended higher, with Brent gaining 32 cents, or 0.45%, to $72.12 per barrel, while US West Texas Intermediate advanced 9 cents, or 0.13%, to $68.78 per barrel.

https://www.shafaq.com/en/Economy/Basrah-crudes-lose-up-to-10-weekly

Dollar Falls Against Iraqi Dinar In Baghdad And Erbil

2026-07-04 04:10   Shafaq News- Baghdad/ Erbil  The US dollar opened Saturday’s trading lower in Iraq, hovering around 154,000 dinars per 100 dollars.

According to Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 154,250 dinars per 100 dollars, down from the previous session’s 154,750 dinars.

In the Iraqi capital, exchange shops sold the dollar at 154,750 dinars and bought it at 153,750 dinars, while in Erbil, selling prices stood at 154,100 dinars and buying prices at 154,000 dinars.

https://www.shafaq.com/en/Economy/Dollar-falls-against-Iraqi-dinar-in-Baghdad-and-Erbil