Iraq Economic News And Points To Ponder Tuesday Morning 4-7-26
Muzhir Muhammad Salih: The Informal Economy Hides 67% Of The Market In Iraq.
Time: 2026/04/06 {Economic: Al-Furat News} Mazhar Muhammad Saleh confirmed today, Monday, that the informal economy in Baghdad and the rest of Iraq’s cities represents a source of livelihood for millions of citizens, but at the same time it hides 67% of the market economy, deprives the state of important resources, and leaves those working in it without legal protection.
Saleh explained in his interview with Al-Furat News Agency that "this economic, social and legal paradox cannot be addressed through imposing taxes or prosecution, but rather through simplifying the procedures adopted by the government program, such as registration, reducing fees, and providing real incentives such as loans and insurance."
He pointed out that "the adoption of electronic payment through digital payment applications, with its current resurgence, can enhance transparency and facilitate the integration of this sector into the regulated market economy."
He explained that "when the formal economy becomes more accessible and beneficial, the informal market will become a supporting force for the economy instead of remaining outside the organized market and the legal framework that protects market activity, including the social protection system and the workers' pension fund."
He added that "the entire informal economy can then be transformed into a supporting force for the economy, based on governance and transparency, instead of remaining outside the legal framework and social protection."
https://alforatnews.iq/news/مظهر-محمد-صالح-الاقتصاد-غير-الرسمي-يخفي-67-من-السوق-في-العراق
Expert Warns: The Informal Economy Is Expanding Beyond State Control
Time: 2026/04/06 {Economic: Al-Furat News} Economic expert, Salah Nouri, confirmed that the informal economy in Iraq represents a wide segment of activities that operate outside the control and management of the state.
Nouri told Al-Furat News Agency that: “The informal economy includes workshops, small projects, shops, and street vendors, and is often not registered with official authorities and is not subject to the tax system.”
He explained that "Western countries adopt high regulatory systems for professions and small projects, where licenses are granted easily and without bureaucratic complications, in exchange for subjecting these activities to taxes and including workers in them in social security systems, which enhances the stability of this sector and its integration into the formal economy."
Nouri added that "the responsibility for regulating this sector in Iraq lies with the Ministry of Labor and Social Affairs in coordination with the Ministry of Trade through granting licenses and activating social security in exchange for tax compliance," noting that "the recent Ministry of Labor law included encouraging benefits, including voluntary social security."
He explained that "the weak demand for these privileges is due to the limited awareness among small business owners and shops, as well as the weak conviction in the feasibility of engaging in the formal economy."
Nouri pointed to the "possibility of supporting this sector by promoting small and medium enterprises," explaining that "the Central Bank of Iraq has previously launched financing initiatives to support these projects through loans based on economic feasibility studies and in coordination with specialized civil society organizations, which contributes to stimulating the economy and reducing the size of the informal sector." https://alforatnews.iq/news/خبير-يحذر-الاقتصاد-غير-الرسمي-يتمدد-خارج-سيطرة-الدولة
An Economist Proposes Practical Solutions For Transitioning From An Oil-Based Economy To A Diversified One
Baghdad Today – Baghdad On Monday, April 6, 2026, economist Dhurgham Muhammad presented a number of solutions to change the pattern of the Iraqi economy, which is largely based on oil exports as a main source of revenue, calling for a shift towards a diversified economy capable of facing shocks, especially in the energy market and the disturbances that directly affect the state’s general budget.
Mohammed told Baghdad Today, “The main problem in Iraq is that every government operates according to a vision that extends for only four years, i.e., the duration of its term, without any continuity or unified programs between successive governments, as each government sets its own program, and the programs of the previous government are often canceled or marginalized.”
He added that "the large expansion in operational spending has narrowed the space for investment spending, which has negatively affected the activation of investment and development sectors, which requires rearranging economic priorities."
He pointed out that “Iraq is in dire need of establishing a Supreme Council for Strategic Policies, whose mission would be to develop economic reform programs and long-term development plans that extend over several years, provided that this council transcends governments and is not linked to a specific governmental formation, and is subject to judicial supervision that gives it the status of being binding on all successive governments.”
Mohammed added that "it is necessary to reconsider all development sectors and work to move them forward by preparing specialized programs, whether relying on local or international expertise, to revitalize sectors not directly related to the government, including the tourism, agricultural and industrial sectors."
He explained that "among the proposed solutions is the establishment of green investment zones similar to free zones, whose lands are serviced and ready to receive agricultural, industrial and residential investment opportunities, with the adoption of the one-stop shop principle, which contributes to reducing government bureaucracy and creating an attractive environment for investment and revitalizing the Iraqi economy." https://baghdadtoday.news/296663-.html
Exclusive: Iraq Could Restore Oil Exports To Pre-War Level Within A Week If Hormuz Reopens, Basra Oil Chief Says
By Aref Mohammed April 6, 2026 BASRA, Iraq, April 6 - Iraq could restore crude oil exports to around 3.4 million barrels per day within a week provided the Iran war ends and the Strait of Hormuz reopens, the head of the country’s state-run Basra Oil Company said.
Among Gulf oil producers, Iraq has suffered the biggest drop in oil revenue as a result of the effective closure of the Strait, a Reuters analysis has found, because it lacks alternative shipment routes.
But the country, the second biggest producer in the Organization of the Petroleum Exporting Countries, can quickly restore output to levels before U.S.-Israeli attacks on Iran at the end of February led to the effective closure of the waterway. The Strait typically is the route for about a fifth of global oil and LNG flows.
Bassem Abdul Karim said Iran has so far provided only verbal guarantees that would allow Iraqi tankers permission to transit the Strait.
“We have not received any formal documents regarding permission for Iraqi tankers to pass,” he said in an interview with Reuters. He said production from Iraq's southern oilfields was around 900,000 barrels per day, but if the war ends and safe passage through the Strait is guaranteed exports could reach 3.4 million bpd within a week.
U.S. President Donald Trump has threatened to rain "xxxx" on Tehran unless it makes a deal by the end of Tuesday that would allow traffic to move through the Strait of Hormuz.
Last month, Iraq’s oil production dropped by about 80% to around 800,000 barrels per day, Iraqi energy officials told Reuters last month as the war meant Iraq could not export and storage tanks filled.
With limited outlets for Iraqi oil, production from the Rumaila field fell to around 400,000 bpd, down from about 1.35 million bpd before the conflict, and at the Zubair field the level was about 300,000 bpd, down 340,000 bpd before the war, Abdul Karim said.
Several smaller fields are being operated at limited levels to ensure continued production of associated gas, used in domestic power generation, while shutdowns at other sites have been used as an opportunity to carry out maintenance work, he added.
Production from Iraq's fields was around 4.3 million bpd before the war, which should leave enough leeway to export 3.4 million bpd even allowing for war-related damage.
Gas output from fields in Basra has dropped to around 700 million standard cubic feet per day, compared with about 1.1 billion standard cubic feet mscf per day before the war, largely because of the reduced oil production, Abdul Karim said.
To supply domestic demand, BOC is sending around 400,000 bpd of crude to northern Iraq. That includes about 150,000 bpd by truck and roughly 250,000 bpd via a domestic pipeline, to supply refineries that have demand of around 500,000 bpd.
Production from the northern Kirkuk fields is roughly 380,000 barrels per day, Abdul Karim said.
Asked about the impact of drone attacks, Abdul Karim said strikes on oil facilities had caused “major losses to the continuity of production and oil operations,” adding that both foreign and Iraqi service companies had been targeted.
A two‑drone attack that targeted the Rumaila oilfield on Saturday wounded three Iraqi workers, security and energy sources told Reuters.
Abdul Karim said the attack on the northern part of the Rumaila field hit sites used by U.S. oilfield services companies Schlumberger and Baker Hughes, causing a fire that was later brought under control.
Neither Schlumberger nor Baker Hughes immediately responded to requests for comment.
A Representative Of The Framework: The Session To Elect The President Will Proceed Without Postponement, And Salaries Are Secured For Two Months
Time: 2026/04/05 {Politics: Al-Furat News} MP Ahmed Al-Moussawi, from the Sadiqun bloc, confirmed that the session to elect the President of the Republic scheduled for next Saturday will proceed without postponement, while noting that salaries are secured for two months despite the financial challenges.
Al-Moussawi said, during his appearance on the “On the Ruler” program on Al-Furat satellite channel, that “the session to elect the President of the Republic next Saturday will definitely proceed and there will be no postponement,” indicating that “all factors point to the failure of the United States in its war on Iran.”
He added, "The cost of war is high for the Islamic Republic and the entire region; but it is a war that was imposed and must be fought," noting that "the United States does not respect the sovereignty of Iraq, and the Iraqi government is working with all its capabilities to prevent the targeting of diplomatic missions."
Al-Moussawi explained that "the United States, according to the strategic agreement, is obligated to protect Iraq's airspace; however, it violates sovereignty and targets security headquarters," noting that "the Iraqi government is in a very embarrassing position, as it wants to support the Islamic Republic."
He explained that “linking the Iraqi file and the formation of the government to the war on Iran is an unjustified position, and there must be a fully empowered government. What is happening in the region is a clear war, but it is an internal matter,” stressing that “Iraq must be its own master and the decision-maker.”
Al-Moussawi pointed out that “April 11 is the date of the session to elect the President of the Republic, and the quorum will be achieved according to the signatures of the deputies that were collected, which amounted to 230 signatures, with the possibility of the Democratic Party deputies not attending,” noting that “most of the forces of the framework are going to vote in favor of the Patriotic Union candidate.”
Regarding the premiership, Al-Moussawi said, “The coordination framework is not with Nouri al-Maliki or Mohammed Shia al-Sudani, but rather it has established mechanisms for selecting candidates based on national acceptance, non-controversial nature, and acceptance by the religious authority and the international community.
” He emphasized, “Our position is firm with the framework’s decision to proceed with voting on the prime minister candidate, regardless of whether or not we participate in the government.”
He added that "Iraq cannot afford to remain without a fully empowered government," explaining that "Sheikh Khazali did not attend the recent framework meetings due to security concerns."
Al-Moussawi concluded by saying that "the financial situation in Iraq is not easy, as it depends on oil, and there is a real crisis after the delay in oil exports for two weeks, and this requires decisions and powers," noting that "the government has reassured that salaries can be secured for two months, but amid difficulty in completing them and delivering them to employees." Wafaa Al-Fatlawi https://alforatnews.iq/news/