Iraq Economic News and Points To Ponder Thursday Evening 8-20-26
Al-Hashemi: Iraq Is The Biggest Loser From The Tightening Of The US Blockade On Iran
Money and business Economy News – Baghdad Economist Ziad al-Hashemi warned on Thursday of the repercussions of any US tightening of the economic blockade on Iran, stressing that Iraq may be one of the most affected regionally because of its dependence on Iranian gas and commodities.
"The surrounding countries of Iran, led by Iraq, Turkey, Turkmenistan, Afghanistan, Pakistan and Armenia, will be under direct American pressure to review their trade and financial relations with Tehran and avoid collisions with the United States," he said.
He added that "Washington is expected to use a large part of its resources to make its plan to tighten the economic blockade on Iran successful," adding that "the task will not be easy or guaranteed results, with Tehran having long experience in dealing with sanctions and the search for alternative outlets."
"Iran has the ability to maneuver through a parallel economy and cross-border trade and smuggling networks, in addition to continuing to use the paper of the Strait of Hormuz to pressure the global economy," he said.
Al-Hashemi explained that "Iraq may be the most affected regionally in the event of the application of the blockade in a strict manner, because of its great link to Iranian gas and many goods and products," noting that "the cessation of Iranian imports, especially gas, will deprive Iraq of an important source of operation of power plants."
Regarding China, Hashemi said that it “will not easily accept the imposition of a tight economic blockade on Iran, and may resort to maneuvering to maintain its trade relations, especially in the oil sector, but it may have to respond if the US measures are characterized by a high degree of tightness.”
He stressed that "the region is on the verge of a new economic test after the stage of direct military confrontations," pointing out that "any broad siege on Iran may impose a new economic reality reflected on the movement of trade and oil prices and the nature of economic relations between the countries of the region."
https://www.economy-news.net/content.php?id=72830
The Government On Its Plan To Secure Salaries: Internal Borrowing Is A Legal Option When Needed
Money and business Economy News — Baghdad The Prime Minister’s Advisor for Financial and Economic Affairs, Mazhar Mohammed Saleh, explained the features of the government’s plan to manage liquidity and secure salaries and operational expenses.
Saleh revealed in an interview with the official newspaper the nature of the financial strategy adopted to deal with monthly obligations, pointing out that "the public financial management is moving within a solid legal umbrella to ensure the stability of public spending, regardless of the severity of external challenges."
He added that "the disruptions of navigation and trade in the Strait of Hormuz have cast a shadow over the regularity of Iraqi oil exports, which represent the main artery and the adoption of the basis of cash flows feeding the budget."
Despite these pressures, Saleh stressed that “the financial authorities are keen to employ all technical tools to prevent these disturbances from being reflected on social benefits, especially the bill of salaries, wages, retirees and care for vulnerable groups.”
In this context, Saleh said that "the Public Finance Department operates in accordance with the tracks and provisions specified in the Federal Financial Management Law No. 6 of 2019, as this law provides the legal frameworks and approved ceilings to regulate the exchange operations and manage liquidity during the fiscal year, and to protect the stability of state institutions and their service duties."
The financial adviser reviewed the size of the monetary responsibility of the public treasury monthly, noting that "the bill of salaries, wages, pensions and allocations of the social welfare network for the month of August is close to eight trillion dinars per month, while the total liabilities rise to about ten trillion dinars per month when adding the administrative operating expenses necessary for the management of basic facilities and the continued operation of state agencies."
He pointed out that "this high volume of liabilities makes securing liquidity a top priority, especially in light of the high sensitivity of the budget to the fluctuations in global oil prices and the risks of regular cash flows from oil revenues."
To ensure the fulfillment of financial dues, Saleh pointed out that "the federal finance depends on an integrated plan based on several tools, where the available data record a relative improvement in oil revenues compared to the previous two months, which gives the financial management a better margin to control flows and meet basic needs, in parallel with the continuous work to activate non-oil revenues and activate the collection tools to provide the treasury with additional resources."
“The financial authority maintains internal borrowing instruments as a legally available tactical option to be used when needed to fill any temporary liquidity gaps, and to ensure that salary financing or the basic operation of state institutions does not falter,” he said.
The Prime Minister’s Advisor for Financial and Economic Affairs concluded by saying that “the financial stability of the state depends not only on direct oil revenues, but also on a dynamic management of liquidity that anticipates geopolitical shocks and maintains the continuation of the economic and social cycle in the country.
https://www.economy-news.net/content.php?id=72823
Judge Zeidan And Qalibaf Discuss The Implementation Of Agreements And Memorandums Of Understanding Between Iraq And Iran
Money and business Economy News — Baghdad The President of the Supreme Judicial Council, Judge Faik Zeidan, on Thursday, with the President of the Iranian Shura Council, Mohammad Baqer Qalibaf, the implementation of agreements and memorandums of understanding between Iraq and Iran.
A statement by the Supreme Judicial Council received by "Economy News", that "the President of the Supreme Judicial Council received the President of the Iranian Shura Council Mohammad Baqer Qalibaf and his accompanying delegation."
During the meeting, the two sides discussed ways to enhance bilateral cooperation between the two brotherly countries in the judicial and legal fields, and the follow-up and implementation of the agreements and joint memorandums of understanding signed between the two sides. https://www.economy-news.net/content.php?id=72821
Barzani: Expanding Trade And Attracting US Companies Are Two Pillars Of The Growth Of The Kurdistan Economy
Money and business Economy News – Baghdad The President of the Kurdistan Regional Government, Masroor Barzani, said on Thursday that strengthening economic and trade relations is a key factor in consolidating the security and stability of the region, pointing out that his government is working to attract more American companies to invest in the sectors of energy, agriculture, infrastructure and technology.
"The economic strength will contribute to enhancing the security and stability of the region, and expanding trade and economic relations with neighboring countries and international companies will provide more stability and protection," Barzani said.
"The regional government has made efforts to increase the volume of trade with neighboring countries and attract American companies to Kurdistan, not only in the energy sector, but also in agriculture, infrastructure, technology and other sectors," he said.
He expressed the hope that "American companies will view Kurdistan as an attractive investment destination," noting that "strengthening the economic partnership with the United States can go beyond security relations and contribute in turn to support stability."
Barzani pointed out that "expanding trade with the countries surrounding the region would reduce tensions and promote peace and prosperity," pointing out that previous problems with the federal government led to the reduction of trade volume with Turkey.
"We hope to solve these problems and resume trade with Turkey and Syria, in light of great economic potential and opportunities," he said, adding that the development path had been hampered by drone and missile attacks, as well as decisions he said had limited the growth of the region's economy.
He stressed that "the development of the economy of Kurdistan can reflect positively on the economy of Iraq and the entire region," stressing the need to invest resources and opportunities to achieve more economic prosperity.
Regarding US investments, Barzani said that "American companies are always welcome," adding that the regional government has from the beginning encouraged the signing of contracts with it, which prompted Baghdad, he said, to go in the same direction.
“Attracting more U.S. companies is important for both sides, but at the same time it requires protecting investments, infrastructure, employees and economic interests and providing a safe environment for their continued operation.”
https://www.economy-news.net/content.php?id=72837
The Minister Of Finance Stresses The Budget Department To Adhere To The Timings To Complete And Succeed
Money and business Economy News – Baghdad The Minister of Finance, Faleh Sari, on Thursday, a visit to the Budget Department, during which he followed the progress of work in the preparation of the next draft budget in accordance with the methodology of programs and performance.
Sari stressed that the ministry is moving towards a gradual transition from budgeting items to budgeting programs and performance, linking the allocation of resources to goals, programs and results, and enhancing the efficiency of public spending management.
He stressed the need to complete the draft budget within the specified times, and to ensure the completion of its requirements in accordance with a precise methodology and realistic estimates.
He stressed the importance of the success of the program budgeting and performance experience, as an essential step in the development of public resource management and directing spending towards priorities and results