Iraq Economic News and Points To Ponder Tuesday Afternoon 11-5-24
Al-Sudani Directs Quickly To Abandon Paper Transactions At Customs And Adopt Electronic Transformation
Politics | Yesterday, | Baghdad Today – Baghdad Today, Monday (November 4, 2024), Prime Minister Muhammad Shiaa Al-Sudani directed the immediate departure of paper transactions at customs and the adoption of electronic transformation.
The Prime Minister's Media Office said in a statement received by "Baghdad Today", "Al-Sudani chaired a meeting to follow up on the procedures for automating work in customs, during which the detailed plan for implementing the second phase of the automation process was reviewed."
He added, "The meeting witnessed a discussion of the mechanisms by which the process of transformation and automation takes place at border ports and crossings, where 11 crossings were completed, targeting the ports with the highest revenues and the most prepared to switch from paper to electronic transactions."
Al-Sudani directed, according to the statement, “to complete the laying of the optical cable and deliver it to all remaining crossings, in a way that contributes to the transfer of information and its availability at all ports,”
reiterating his “emphasis on the importance of abandoning paper transactions at customs, and adopting automated electronic dealings, for the success of this program, which The government adopted it, as
it is one of the most important axes of economic and administrative reform, and achieves efficiency, transparency, and simplification of procedures, as well as maximizing the state’s financial revenues.”
The Council Of Ministers Decides To Compensate The Region For The Costs Of Producing And Transporting Oil, With Immediate Delivery To SOMO
Politics | Baghdad Today – Baghdad Today, Tuesday (November 5, 2024), the Council of Ministers approved a proposal to amend Article (12/Second/C) of the Tripartite Budget Law No. (13 of 2023) regarding the oil of the Kurdistan Region.
The amendment to the proposal, according to what was stated in the Council’s decision, according to a statement from the Prime Minister’s Office, received by “Baghdad Today”, included the following:
1- The Federal Ministry of Finance undertakes to compensate the Iraqi Kurdistan Regional Government from sovereign expenditures for production and transportation costs, for the quantities of oil produced in the region that are received by the Oil Marketing Company (SOMO), or the Federal Ministry of Oil in accordance with paragraphs (a) and (b). of this clause, provided that the fair estimated costs of production and transportation for each field are calculated separately, by a specialized international technical advisory body, determined by the Federal Ministry of Oil in agreement with the Ministry of Natural Resources in the region, within (60) days from the entry into force of this law, and in the event of disagreement During the aforementioned period, the Federal Council of Ministers shall determine the aforementioned advisory body.
2- The consultant mentioned in the previous paragraph submits the estimated production and transportation cost to the Ministries of Oil, the Federal Ministry of Finance, and the Kurdistan Regional Government of Iraq, and
it is approved for the purposes of this law, and the calculation of the aforementioned compensation is based on the mentioned cost per barrel multiplied by the number of barrels received in accordance with paragraphs (a) and (B), of this clause, and the Federal Ministry of Finance shall pay the amounts to the regional government.
3- Immediately proceed to deliver the oil produced in the region to the Oil Marketing Company (SOMO), or the Federal Ministry of Oil in accordance with paragraphs (a) and (b) of this clause, and the costs of production and transportation will be compensated by the Federal Ministry of Finance as an advance, at a rate of (16) Dollars per barrel, to be settled later after the completion of the specialized technical consultant mentioned above, and retroactively from the date of commencement of delivery in accordance with this amendment. https://baghdadtoday.news/261494-مجلس-الوزراء-يقرر-تعويض-الإقليم-من-كلف-انتاج-ونقل-النفط-مع-تسليمه-فوراً-لسومو.html
Hawraa Al-Qassab: Sovereign Guarantees Boost The Iraqi Labor Market
November 3, 2024 Last updated: November 3, 2024 Independent/- The economic affairs specialist, Hawraa Nouri Al-Qassab, confirmed that the
sovereign guarantees that the government announced to provide to the private sector will work to activate the reality of work within the Iraqi economy. Al-Qassab said:
The sectors of the Iraqi economy are thirsty for work and to revive their joints through major projects implemented in all of Iraq. She added that
sovereign guarantees will provide capital and advanced technology that will facilitate the reality of business in Iraq and reduce time and effort. She indicated that
this step is the most important at the present time, as it will reduce the burden on the federal budget and the Ministry of Finance. https://mustaqila.com/حوراء-القصاب-الضمانات-السيادية-تنهض-ي/
Sovereign Guarantees...A Trend That Promotes National Industries
Economical 11/04/2024 Baghdad: Hussein Thaghab Economic circles described the provision of sovereign guarantees, which was presented during the Iraq Economic Forum, and was held under the patronage of the Prime Minister, as an important and necessary matter in attracting major investments to Iraq with its capital and advanced technology.
The forum focused on the issue of providing sovereign guarantees to private sector companies, which aim to Obtaining financing from international institutions, knowledge of the Central Bank, and working to develop the industrial sector and reduce imports.
Head of the Sovereign Loans Initiative, Muhammad Sahib Al-Daraji, reviewed the reality of the Sovereign Guarantees Initiative, which was included in the three-year budget law, and includes selecting priorities through a specialized committee that determines the industries included in the initiative.
He focused on the mechanism for Iraqi businessmen to obtain financing for their industrial projects from foreign institutions, with a total value of the projects amounting to 750 million dollars annually, and 85% of the value of the project is financed through the initiative of international institutions from countries with which memorandums of understanding have been signed, including five European countries and Japan.
Provided that the Iraqi investor has 15% of the cost, has international trade relations, and guarantees 25% of the project facilities, and the Iraqi government is the guarantor of payment after two years of project implementation, at a rate of Reduced interest not exceeding 1.5% annually, and the amount is paid via TBI and in Iraqi dinars.
Head of the National Investment Authority, Haider Makiya, said:
Iraq is about to implement a large workload of projects, and this approach will ease the burden of the Ministry of Finance, and will provide financing for these projects with a mechanism that can be described as acceptable by international financial institutions known by the Central Bank of Iraq.
He pointed out that the large volume of work makes us welcome such funding, which brings great benefit to Iraq.
Member of the Iraqi Businessmen Union, Ahmed Maklaf, said:
The government issued, in accordance with the Federal Budget Law 2023-2024-2025, the sovereign guarantees initiative to support the private sector to finance industrial projects.
85% of the value of the equipment, which enters production factories, provided that this equipment is modern with international specifications, intentionally preserves the environment and increases local production to avoid imports and preserve hard currency, which leaves Iraq to import various consumer products and Iraq’s promises to self-sufficiency for all basic industries.
The government issued this important project, which industrialists consider to be a golden initiative that will develop the industrial field quickly and regularly.
Economist Dr. Salwan Al-Nouri described sovereign guarantees as an important factor in bringing quality investments to the national labor market. He added that
Iraq represents an important interface for specialized international companies, which have come to realize that the volume of work in Iraq is large and broad and accommodates major local and international efforts.
He pointed out that guarantees are one of the most important requirements that bring capital and advanced technology to the national labor market, which can achieve a major shift within the field of the national economy searching for real quality investments.
In turn, the specialist in economic affairs, Qasim Al-Maliki, stated:
Guarantees can achieve integration in the investment sector between the Iraqi field of work and the qualitative investment effort wishing to work in Iraq. He cautioned that
if guarantees are available for investments, we must choose companies that have
weight in the global economy,
have a name in the labor market, and most importantly, that they
specialize in the field of implementation, within which they intend to work. He stressed
the importance of organizing the investment process in the country, pointing to the importance of forming a specialized body that facilitates executive procedures and keeps them away from complexity.
In return, investment companies are required to implement them within the times specified in the referral decision and within the required specifications. https://alsabaah.iq/105286-.html
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