Iraq News Posted by Tishwash at TNT 5-24-2026
TNT:
Tishwash: Al-Fayez: There is complete agreement to finalize Al-Zidi's cabinet after Eid in an emergency session.
The head of the parliamentary Design Alliance bloc and leader of the coordination framework, Amer Al-Fayez, revealed a complete agreement to finalize the appointment of the Ministers of Defense, Interior and the rest of the ministries that are run by acting ministers after the Eid al-Adha holiday.
Al-Fayez told Al-Furat News Agency: “There is a complete agreement to name the ministers after Eid; however, the House of Representatives will enter its legislative holiday after Eid, which necessitates holding an emergency session with a full quorum to name the ministers.”
He added, "If the session does not convene due to most MPs traveling or performing the Hajj pilgrimage, this matter will be resolved after the end of the legislative recess."
Al-Fayez added that "the management of the two ministries by an acting minister does not affect their essential work, as they are managed by the Prime Minister himself, with the support of advanced staff capable of managing the files until the ministers are officially appointed." link
Tishwash: Oil: Talks with foreign companies are ongoing to resume work in the fields.
The Ministry of Oil announced on Saturday that discussions are ongoing with foreign companies to resume operations in oil fields, confirming that oil exports via the Turkish port of Ceyhan are imminent.
Ministry spokesman Sahib Bazoun stated, according to the official news agency, that "Prime Minister Ali al-Zaidi is very interested in generating revenue for the Iraqi state, and Oil Minister Basim Mohammed Khudair has established operational mechanisms and future projects for the ministry, most importantly the project to maximize revenue through oil exports by activating export terminals and reaching agreements with the parties involved in disputes over Iraqi oil exports."
He noted that "most of the foreign companies operating under the licensing rounds have withdrawn, and some fields have ceased operations, but the oil sector has maintained its oil reserves and fields, and we have no significant problems with the fields or exports." He explained that "discussions are underway with the foreign companies operating to resume work."
He affirmed that "oil exports via the Turkish port of Ceyhan will begin in the coming days, and the ministry is prepared for export operations."Prime Minister Ali Falih al-Zaidi visited the Ministry of Oil last Wednesday and chaired a meeting with senior ministry officials.
According to a statement from the Prime Minister's Media Office, the Prime Minister listened to a briefing presented by the Minister of Oil on the progress of the ministry's projects, particularly those related to addressing the crisis caused by the closure of the Strait of Hormuz and the resulting halt in oil exports . The briefing also reviewed ongoing associated gas projects and the main challenges hindering their implementation.
The meeting addressed the issue of oil exports and finding diverse export outlets, the mechanism for implementing Cabinet decisions in this regard, and the Ministry of Foreign Affairs' procedures for following up on agreements concluded with several neighboring countries for overland oil exports.
Earlier, Oil Minister Basim Mohammed Khudair affirmed that the ministry's priorities for the coming period include increasing production capacity, resolving the issue of flared gas, and developing the oil sector's infrastructure. He noted that the current circumstances are difficult due to the war in the region and the resulting closure of the southern export route, indicating that Iraq exported only 10 million barrels through the Strait of Hormuz last April because of the war. link
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Tishwash: Why did the central bank governor fail to reassure the markets? Temporary painkillers for a weary body.
The Governor of the Central Bank of Iraq is once again offering a “dose of anesthesia” in an attempt to calm the panicked markets, but it has come across as fragile, ineffective, and lacking any real economic diagnosis of the suffocating crisis.
Markets are not run by intentions and catchy words, and here is a breakdown of these statements that hide real disasters:
The game of reserves and salaries... (secured) but for how long?
The reserves are in danger: To say that the dollar reserves are “secured” is a smokescreen. The problem is not the current figure, but the alarming rate at which they are being depleted, and the fragile state’s ability to replenish them in light of fluctuating oil prices and the frenzied domestic demand for hard currency.
Salaries: A Sustainability Crisis, Not a Cash Crisis: The phrase “salaries are guaranteed” is a short-term anesthetic. Guaranteed for a month? For six months? In a country entirely dependent on oil, borrowing, and bank liquidity, the problem isn't immediate payment, but the complete absence of any financial sustainability for the future.
Changing the exchange rate... doesn't happen by intentions!
The governor's denial of any intention to change the exchange rate is economically meaningless. Markets are unforgiving, and the exchange rate is not determined by government promises, but rather by the pressure of the budget deficit, declining oil revenues, and the rampant black market. Denial does not address the root causes; it merely postpones the inevitable explosion.
A stab in the back of monetary independence!
The governor's talk of involving the central bank in budget preparation is a major blunder. Transforming the central bank into a "partner" in budget drafting simply means destroying its monetary independence and turning it into a mere financial tool and ATM in the hands of the executive branch—a precedent the governor should never have proposed.
Dollar smuggling: A protocol denial and an incomplete admission
Escaping reality: Describing talk of dollar smuggling as “inaccurate” is a gross understatement. Even if traditional smuggling were to cease, the leakage of dollars through inflated import invoices, front companies, and fictitious demand continues unabated. Markets need rigorous oversight mechanisms, not mere platitudes.
A structural deficit, not just a number: Acknowledging the fiscal deficit is a good but incomplete step. The deficit is not merely a number in a budget; it is the product of a failed rentier model: inflated operating spending, a paralyzed private sector, and a suicidal reliance on oil without any structural reform.
Summary:
The central bank governor's statements might succeed in calming the markets for a few hours in the media, but they are economically unsound. They focus on false reassurance instead of transparency, and deny risks instead of addressing them with real measures.
In short: Economic rules don't favor anyone, and hiding the symptoms won't cure the disease. link
Tishwash: Government advisor: The Prime Minister has outlined a firm vision for building the future of public finances.
The Prime Minister’s Advisor for Financial Affairs, Mazhar Muhammad Salih, confirmed on Saturday that Prime Minister Ali Falih al-Zaidi has drawn up a firm vision for building the future of public finances. While he pointed out that the features of the Iraq Vision Plan aim to raise non-oil revenues to 45% of the budget, he noted at the same time that the lesson learned from the Strait of Hormuz shock imposes the adoption of economic diversification as a basic condition.
Saleh told the Iraqi News Agency (INA): "Prime Minister Ali al-Zubaidi outlined a firm vision for building the future of public finance in Iraq during the historic meeting with the Iraqi financial authority, held on May 23, 2026, based on a fundamental principle: announcing an alternative path for public finance and Iraqi fiscal policy."
He added that “diversifying public revenues and breaking dependence on a single resource, namely crude oil, and ending our country’s economy’s connection to the geopolitical risks of the energy market, is an approach that should be abandoned once and for all,” explaining that “the profound lesson learned from the Strait of Hormuz shock brings us back to the necessity of redrawing the maps of the future, by adopting economic diversification as a necessary condition that precedes financial diversification as a condition of sufficiency.”
He pointed out that “redesigning Iraq’s vision for the period 2020–2025 should be based on the principle of economic diversification, based on a genuine partnership between the state and the productive private sector, and launching a suitable climate for the activities of a productive social market economy,” explaining that “the features of the plan should indicate in its objectives raising the contribution of non-oil revenues to the general budget from its current levels, which are less than 10% due to weak economic diversification, to about 45% as an initial indicative stage.”
He added that "achieving this percentage in diversifying budget resources requires a fundamental shift in the philosophy of public finance, from merely distributing resources to operating and producing them, through establishing a strong link with the market economy based on institutions, efficiency and production."
He concluded by saying: “The future Iraq will be efficient in diversifying budget resources and efficient in diversifying sources of GDP, in line with the national strategy for developing market forces and the private sector.”
Prime Minister Ali Faleh al-Zaidi visited the Ministry of Finance on Saturday and directed that a comprehensive vision be developed.
The Prime Minister's Media Office stated in a statement received by the Iraqi News Agency (INA) that "Prime Minister Ali Faleh Al-Zaidi visited the Ministry of Finance as part of his follow-up on the work of ministries and their executive, service and economic programs," noting that "Al-Zaidi chaired a meeting of the ministry's senior staff and listened to reports concerning the ministry's work in all its departments, where he stressed that Iraq is going through a sensitive financial and economic situation imposed by regional and international developments and their repercussions on the global economy."
Al-Zaydi explained, according to the statement, that “these changes have affected Iraq’s export capacity and oil revenues,” clarifying that “90% of the budget depends on oil revenues, and work must be done to expand the non-oil economy, adopt alternatives that support diversification, and it is necessary to be frank with citizens about the financial challenges, without exaggeration or embellishment.”
The Prime Minister said: “We want the Ministry of Finance to draw up the financial policy for Iraq, and we are preparing the Iraq 2035 plan. The Ministry must have a clear vision, and the budget must be a roadmap for the future.” He explained that “the budget must maximize its resources, and we cannot continue to rely on oil alone. Iraq is a meeting point for the world, and we must invest in its geographical location to enhance its revenues.”
Al-Zaydi pointed out that “employees’ salaries must be released on time, so that there is no message of concern to the people, as well as the salaries of the social protection network. We have directed that a payment be prepared for the farmers’ dues, and the dues of contractors and investors, and their rights must not be delayed to ensure the continuation of work,” noting that “there is a concept that the state is the one that manages the economy, but we want the economy to manage the state, and if the change in concepts is achieved, we will not have to change the people.”
He continued, "The state is not just about budgets and allocations, but rather it seeks to achieve a high GDP, as there are governing and operational expenses that do not reflect positively on development. Therefore, we seek to change traditional financial concepts."
He added, "We do not want to replicate yesterday's experiences. The state's role is regulation and oversight, and we support the private sector, as it is the one that will drive development. It is our duty to look after the poor, but we must not continue to operate with a socialist mentality in the economy."
The Prime Minister explained, “We have directed the preparation of a report on the customs situation in terms of revenues during the last six months, especially for materials with high customs duties. We have also noticed that materials with high customs duties are being replaced with cheaper materials through devious means, and automation will put an end to this manipulation.”
He pointed out that “we have 5,000 doctors contracted with the Ministry of Health, and we have directed that their situations be resolved. We have also circulated a directive not to place pictures of the Prime Minister and ministers in all departments and institutions. We want people to see our work, not our pictures.” link