Iraq News Posted by Tishwash at TNT 5-26-2026

TNT:

Tishwash:  Parliamentary committee: The 2026 budget will be based on a "hedging" oil price of around $60.

 The Oil, Gas and Natural Resources Committee of the House of Representatives identified 4 features of this year’s budget.

According to the official newspaper, committee member Hawraa Aziz Al-Moussawi said, "This year's budget will probably be based on adopting a lower (hedging) oil price in the 2026 budget, reaching about $60 per barrel, rationalizing spending, increasing non-oil revenues, and reducing complete dependence on oil."

She explained, "There are discussions related to trying to reduce the financial deficit with the decline in global oil price expectations, because any increase in the price of oil supplied to local refineries may gradually affect the citizen." link

Tishwash:  4 pillars for the 2026 budget

 The country's fiscal policy faces a critical test in maintaining economic stability, as the parliamentary committee on oil, gas, and natural resources has outlined four key pillars aimed at protecting the 2026 budget from external shocks. This legislative initiative comes amidst a complex regional and international environment, buffeted by oil market volatility and escalating geopolitical tensions in vital waterways, placing Iraq's financial security under exceptional challenges. 

Member of the Oil Committee, MP Hawraa Aziz Al-Moussawi, said that the (2026) budget will be based on four main pillars, foremost among them setting a hedge oil price of about (60) dollars per barrel, in addition to rationalizing public spending, increasing non-oil revenues, and reducing dependence on oil as a main source of budget financing.

In her interview with Al-Sabah, she indicated that there are discussions within the committee regarding ways to reduce the financial deficit in light of declining global expectations for oil prices, warning that any change in the prices of oil derivatives may gradually affect the living conditions of citizens.

In the same vein, Dr. Ali Al-Azirjawi, a member of the State of Law Coalition, called for the adoption of an emergency plan similar to the Food Security Law should the 2026 budget not be approved within the constitutional timeframe. He explained that the current circumstances necessitate exceptional measures to ensure the continued and organized functioning of state institutions. He added that Iraq faces economic challenges related to the size of its internal and external debt, in addition to regional tensions that further complicate the overall financial situation.

For his part, economic researcher Bassam Raad considered setting a hedging oil price of (60) dollars per barrel a proactive step aimed at controlling public spending and avoiding the exacerbation of internal debt, but he pointed out that these data may not be sufficient to bridge the gap between revenues and actual expenditures, in light of the continued pressures on the general budget.

For his part, economist Nabil Al-Marsoumi suggested the possibility of postponing the (2026) budget to the year (2027), attributing this to the lack of time, the turmoil in the oil markets, and the fluctuation in export quantities, especially in light of the repercussions of the Strait of Hormuz crisis. link

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Tishwash:  Government advisor: The dollar is the basis of Iraq's cash reserves.

 On Tuesday, Mazhar Mohammed Saleh, the financial advisor to the Iraqi Prime Minister, stated that diversifying Iraq's foreign reserves within a balanced investment portfolio represents a strategic monetary policy aimed at enhancing financial stability and reducing the risks associated with relying on a single asset or currency.

Saleh told Shafaq News Agency that the management of foreign reserves at the Central Bank of Iraq is based on liquidity, security and return standards, explaining that the philosophy of managing reserves is based on achieving a balance between protecting the value of the national currency and ensuring the ability to intervene in the exchange market and finance foreign trade, in addition to reducing sovereign and financial risks resulting from global market fluctuations and geopolitical tensions.

He explained that Iraq, as an economy heavily dependent on oil revenues and foreign imports, keeps the US dollar as a key component of its foreign reserves due to its direct link to foreign trade, noting that the diversification policy also includes other currencies and assets such as the euro, yuan, and gold to enhance flexibility and reduce the risks of monetary concentration.

He added that the distribution of reserves is not limited to foreign currencies, but includes multiple investment instruments such as treasury bonds and sovereign deposits, explaining that the goal is not to achieve high profits as much as it focuses on maintaining security and liquidity while achieving an acceptable return.

He explained that gold is an important component of reserves within global diversification standards, as it provides a safe cover in times of turmoil, but it is not a complete substitute for the rest of the foreign assets because it does not generate a direct return and the costs of storing and securing it are high.

He stressed that the sound management of foreign reserves aims to achieve a balance between exchange rate stability, protecting the national economy, and reducing exposure to international market fluctuations, through building a balanced investment portfolio that provides liquidity, security, and an appropriate return.  link

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Tishwash:  Ports: An integrated strategy to facilitate trade and protect the national economy

he head of the Border Ports Authority, Omar Al-Waeli, confirmed on Sunday that there has been a noticeable decline in smuggling operations through the ports as a result of tightening control procedures and strengthening field control, noting that these measures have contributed to achieving a clear increase in revenues, while pointing to the implementation of an integrated strategy to facilitate trade and protect the national economy.

Al-Waeli said, “The border crossings are subject to smuggling attempts in various forms, but the volume of these operations has witnessed a noticeable decline in recent years as a result of tightening control procedures and strengthening field control.”

He added that "the Ports Authority has adopted a number of mechanisms to reduce smuggling, most notably automating procedures, activating monitoring systems and cameras, intensifying auditing and detection work, as well as continuous coordination with security and regulatory bodies and activating the principle of the single window, which contributes to reducing cases of manipulation and corruption."

He pointed out that "the Authority adopts an integrated strategy aimed at achieving a balance between facilitating trade, enhancing oversight, and protecting the national economy, through digital transformation, standardization of procedures, raising the efficiency of employees, combating administrative and financial corruption, as well as developing infrastructure and using modern technologies in inspection and detection," explaining that "these measures have resulted in a clear increase in revenues, a reduction in waste and smuggling rates, and faster completion of transactions within the ports."

He pointed out that "there is ongoing coordination between the federal government and the Kurdistan Regional Government regarding the management of border crossings, information exchange, control procedures, and the activation of the ASYCUDA system, given that the border crossings represent a part of the state's economic sovereignty."

He noted that "the last phase witnessed progress in the levels of joint cooperation through the coordination committees, while efforts continue to reach a complete unification of customs and control procedures in all Iraqi ports."

Al-Waeli continued, “Smugglers are subject to penalties based on applicable laws, including financial fines, confiscation of goods and means of transport in some cases, as well as referral to the judiciary and taking the necessary penal measures against violators.” He pointed out that “tightening penalties and activating judicial follow-up has contributed to strengthening deterrence, reducing many smuggling attempts, and raising the level of compliance with laws within border crossings.”

He explained that “the smuggling of drugs, weapons and prohibited materials, as well as organized commercial smuggling that harms the national economy, are among the most dangerous types of smuggling that the state faces,” noting that “the Authority deals with these files as they directly affect national and economic security by strengthening intelligence work, using modern inspection devices, intensifying detection and auditing procedures, and carrying out joint operations with the competent security agencies to reduce these phenomena and prosecute those involved in them.” ink

Tishwash:  Iraq is moving towards a post-oil economy as part of its "2035 Plan".

The directives issued by the Prime Minister, Ali Faleh Al-Zaidi, during his recent visit to the Ministry of Finance, have garnered  widespread attention in economic and specialized circles, after they included clear indications of the need to reformulate Iraq’s financial policy, reduce dependence on oil, and expand the role of the private sector, in conjunction with the preparation of “Iraq Plan 2035,” which aims to establish a new economic contract that does not patch up the old one but builds a completely different model.

Experts believe that the Prime Minister’s speech revealed a new governmental direction based on moving from the traditional management of the economy to a model that relies on development, production and investment, with a focus on reforming the financial and customs system and stimulating non-oil sectors as a fundamental pillar of economic stability in the next stage .

New economy

Financial expert Dr. Nabil Al-Abadi said: The proposal presented by the Prime Minister reflects a fundamental shift in the state’s financial philosophy from a rentier, distributive mentality to a productive and sustainable economic mentality, explaining that the talk about Iraq’s 2035 plan confirms that we are facing an attempt to establish a new economic contract that does not patch up the old one but builds a completely different model.

economic model

Al-Abadi added to Al-Sabah: “The diagnosis of the budget’s 90 percent dependence on oil is not merely a description of an economic reality, but a clear declaration of the fragility of the existing economic model. The danger lies in the governing and operational expenses that consume the budget without producing a high GDP. The paradox pointed out by the Prime Minister is that the state has a huge budget but does not create a robust economy. The shift towards making the economy manage the state instead of the state managing the economy represents a redefinition of the government’s role to be an organizer and stimulator of the business and investment environment .”

Energies towards production

He pointed out that relying on the private sector is no longer an intellectual option but an economic necessity to stop the inflation of government employment and to redirect energies towards production, noting that the move towards automation and reforming the customs system reflects a deep understanding of the importance of closing the loopholes of financial waste and maximizing non-oil revenues, while he described linking the dues of farmers and contractors to the continuation of the economic cycle as an “advanced awareness” of the importance of liquidity in stimulating the productive sectors .

Formulating fiscal policy

For his part, Jassim Al-Aradi, a member of the Baghdad Economic Forum, believes that the contents of the Prime Minister’s speech reflect a serious governmental direction to reformulate fiscal policy in line with current economic challenges and the requirements of sustainable development in Iraq .

Al-Aradi said that the diagnosis of the budget’s almost total dependence on oil revenues represents a realistic reading of the nature of the Iraqi economy, noting that the next stage requires accelerating the procedures for diversifying national income sources by revitalizing the industrial, agricultural, commercial and service sectors and not being satisfied with traditional solutions related to oil prices .

Modern economies

The spokesperson added that transforming the role of the state from manager of the economy to regulator and supporter of economic activity is one of the most prominent positive indicators, because it gives the private sector a greater opportunity to participate in creating job opportunities and driving investment, stressing that modern economies are based on partnership between the state and the private sector to achieve growth and stability .

Al-Aradi explained that the Prime Minister’s directives regarding automation and control of customs ports represent an important step to address financial waste and reduce cases of revenue manipulation, as well as enhance financial transparency and raise the efficiency of government collection .

Financial challenges

For his part, economist Dr. Murtadha Al-Khafaji described the Prime Minister’s speech as representing an economic roadmap that reflects a clear understanding of the magnitude of the financial challenges facing Iraq in light of regional and international changes and their direct impact on oil prices and public revenues .

Al-Khafaji explained that the Prime Minister’s emphasis on diversifying the economy and reducing dependence on oil represents an important strategic direction, especially since the Iraqi economy still depends heavily on oil revenues, which makes public finances vulnerable to global fluctuations .

Stimulating the productive sectors

He added that the call to make the budget a roadmap for the future reflects a new understanding of the role of fiscal policy in stimulating development and driving productive sectors, noting that supporting the private sector and changing traditional economic concepts are a necessary step to build a more resilient and sustainable economy .

Al-Khafaji stated that investing in Iraq’s geographical location and developing the transport and trade sectors could provide important financial resources outside the oil framework, stressing the importance of automation in customs ports to eliminate manipulation and increase non-oil revenues  link