Iraqi News Tuesday AM 12-28-21
Iraqi News Tuesday AM 12-28-21
TLM724 Administrator BondLady’s Corner
The Fiery Statement Of The Minister Of Finance
Dr.. Bilal Khalifa
A few days ago, at a ministerial forum held by the Ministry of Oil, the Minister of Finance made a fiery statement, which is close to verification, that the government may abandon some employees after ten years if the situation continues as it is now.
There are several points that can be clarified first:
The points that are next to the validity of the statement
1 - The world is moving at a high pace towards clean, sustainable or green energy and other designations that mean the migration of fossil fuels, and we know that 95% of the federal budget’s revenues are Oil revenues and, consequently, the demand for energy will shrink, especially after the decisions of the last climate summit in Glasgow 2021, which is the COP26 summit, which was one of its decisions that the major countries had left the cars that run on fossil fuels.
2 - The size of the allocations for retirees, according to the minister’s statements, will reach 25 trillion dinars, and the size of the allocations for employees’ salaries will reach 70 trillion, and therefore 75% of the budget or more goes to the operating budget and therefore this means that the economy is going to deficit after several years.
3 - The population growth is 3%, and the approximate population now is about 40 million, and therefore the population will be 62 million after 10 years. The revenues will inevitably not be sufficient to cover salaries or the operating budget unless steps are taken from now on.
Second: As for the evidence that contradicts statement
1 - that the 2021 Glasgow Summit and its statement that means of transportation after 2030 in industrialized countries must be working with electricity and ban cars running on fossil fuels, this does not reduce oil consumption in the world because cars are in the rest of the world. The world is on the rise.
2 - Petrochemical and other plants that depend on fossil fuels are constantly increasing, and even one of those facilities is to extract hydrogen from natural gas or petroleum for use in transportation, and therefore production will continue at the same pace if it does not rise.
3 - OPEC expects its oil production to rise in the coming years to 100 million barrels per day, and it is now in the range of 72 million barrels per day.
4 - Fossil fuels are decreasing, and during the next ten years, many oil-producing countries will announce that their fields of oil or gas will run out, and many Iraqi oil fields will also lose their oil productivity. This means that the supply of crude oil will decrease and therefore demand will increase or will continue at the same pace, and this means that the price will rise a lot after ten years and may exceed $200 per barrel.
5 - The alternative to fossil oil is shale oil, which has a very high cost that may exceed 75 dollars, and therefore the future price of a barrel will be high in order to serve the producers.
5 - Iraq and the Middle East possess very large reserves, close to half of the world's reserves, and therefore the last barrel will come out of the Middle East region, and therefore Iraq and the region will continue to possess oil revenues for the last barrel produced.
6 - Iraq occupies the second place after Kuwait in the lowest extractive cost per barrel of oil, so even if prices decrease (and this is unlikely) after the drop in global demand, the art of Iraqi oil production will remain a feasible and profitable production for Iraq.
Third: Indicators of the statement
1 - The previous governments brought the economic situation to the bottom of a quagmire from which it is difficult to get out. It has failed to build an economy with sustainable revenues, as well as being characterized by diversification in its revenues to the federal public budget, not to depend on oil only. Thus, the reason for this miserable economic situation is the Iraqi governments that took control of Iraq.
2- Declaring a bleak outlook for the future that the current government and the upcoming governments will follow the same approach as the previous governments, and thus that the economy after ten years will collapse and consequently the government will be forced to lay off employees to maintain the government and keep the salaries of the corrupt.
3- The white paper has failed to provide anything more than a year after its adoption.
4 - In the statement, a warning to the coming governments that bankruptcy and economic collapse will inevitably come, and therefore precautions must be taken against that.
5 - The statement alerts the citizen to be aware of the extent of the economic problem and that the reason is the government elected by the citizen and the officials who support them.
6 - The government may be forced (and this is very likely) to raise the value of the dollar against the Iraqi dinar again to solve the government's deficit in paying the salaries of employees in the future, and thus inflation will rise in a very large way.
Fourth: Conclusion
1 - The statement of the Minister of Finance is a real reality that Iraq will witness soon, if the situation remains as it is, and it will inevitably remain. Kaffien just that they belonged to the parties that held power.
2 - must take the statement seriously and work from now to find alternatives to finance the federal budget substitute for crude oil as well as in the production of electric power by emerging clean energy and sustainable
3 - must develop a five - year and year plans and not to issue decisions that are unlike those plans, as happened with the paper The White Reformatory, which was subjected to many decisions and practices that contradict its recommendations. Views 255 Date Added 12/28/2021 https://economy-news.net/content.php?id=27026
An economic expert to / Nina /: The Statement Of The Minister Of Finance Is Exaggerated, And Iraqi Oil Cannot Be Depleted Within 10 Years
Tuesday 28 December 2021 11:08 | economic Number of readings: 160
Baghdad / NINA / - The economic expert, Hazem Hadi, confirmed that: The statement of the Minister of Finance is exaggerated, and Iraqi oil cannot be depleted within 10 years.
He told the National Iraqi News Agency ( NINA ) this statement is exaggerated because the oil reserves are very high and cannot be depleted during the ten years.
Hadi added that the use of alternative energy will reduce the use of oil, which will lead to a reduction in imports of it, and this is a big problem for Iraq, which depends on 90% of it in the financing process.
He continued: We can say that the use of alternative energy is an alarm bell, which requires going to the process of non-oil agricultural and industrial development, Silk Roads and sustainable development to create other sources to compensate for the oil source in a percentage that reduces dependence on its revenues annually and raises the gross domestic product at a pace consistent with the decline in the energy source .
And Finance Minister Ali Allawi had said in a statement that oil will collapse forever after 10 years, and Iraq will lay off its employees, due to the continued dependence on oil, which constitutes more than 90% of state revenues./ End 3 https://ninanews.com/Website/News/Details?key=947315
After Reaching Dangerous Levels, Planning Reveals A New Strategy To Combat Poverty In The Country
local| 01:11 - 28/12/2021 Baghdad - Mawazine News, today, Tuesday, the Ministry of Planning revealed its sustainable plan until 2030, while it expected a decrease in population growth rates in the coming years.
Ministry spokesman Abdul-Zahra Al-Hindawi said in a statement to the official agency, "The sustainable development plan until 2030 includes working to achieve a set of goals, foremost of which is the fight against poverty, as well as a set of other goals for which policies and plans have been developed for each one of them." "The ministry is still working within the poverty reduction strategy for the period from 2018-2022, and preparations have been started to develop a new strategy to combat poverty in the country from 2023-2027, in addition to other policies in order to achieve sustainable development for 2030."
And he indicated that "the issue of birth control, there is still no direction to issue or legislate a law for birth control, but work is underway to spread social culture and awareness of the need to organize the family through spacing and organizing births in a way that leads to fewer births," noting that "the size of the family in Iraq has witnessed a decline during the last 10 years, and this is due to families' understanding of the necessity of family planning and reducing the number of births in general."
Al-Hindawi pointed out that "according to the current rates of population growth in Iraq, annually the population increases by nearly one million, by 10 million within 10 years and reaching 100 million after 6 decades," stressing that "the continuation of growth on the current situation at a rate of 6/ 2 It is expected that growth rates will decline in the coming years.
Regarding unemployment in the country, Al-Hindawi said, “The issue of unemployment is related to development and economic aspects, and according to statistics, the unemployment rate has reached 14 percent across the country,” noting that “the Ministry’s five-year development plan as well as Iraq’s plan for sustainable development for 2030, and the private sector development strategy All are outputs that lead to the creation of new job opportunities that absorb the population increase and graduates who enter the labor market. Ended 29/A 4 https://www.mawazin.net/Details.aspx?jimare=179895
Planning: 99% Of The Implementation Rate In The 2021 Budget
Political | 04:07 - 28/12/2021 Baghdad - Mawazine News, Minister of Planning Khaled Batal Al-Najm confirmed, on Tuesday, that the financial implementation rate of the current year's budget has reached 99 percent, which is the highest, compared to previous years.
The minister said during his presidency of the meeting of the opinion board in the ministry in its sixth and last session for this year, that the high rate of implementation in the budget is due to the increasing movement in the implementation of investment projects, and the launch of financial allocations for these projects in their three stages, praising the great efforts made by the employees of the Ministry of Planning in following up the implementation of plans Ministries, agencies not associated with a ministry, and governorates.
And she added, that work in the ministry was continually communicating, including public holidays, pointing out that the next four years will be pivotal in the Iraqi economy, after the great and dangerous repercussions that the country has faced during the past years.
He stressed that the next stage will be the stage of correcting development and economic paths, leading to improving the level of services provided to citizens in all fields.
In addition, the opinion panel discussed in its sixth session, which was attended by the two undersecretaries, heads of agencies and formations and general managers in the ministry, a number of issues and files related to the work of departments and formations, follow-up to the implementation of projects, and work towards improving the performance level of workers in the ministry.
During the meeting, they discussed a draft memorandum of understanding in the field of industrial property rights between the Central Agency for Standardization and Quality Control and the Syrian Commercial and Industrial Property Protection Directorate.
The meeting witnessed a discussion of prospects for joint cooperation between the Ministry of Planning and the American University in Baghdad, in the field of leadership programs, programs for statistical analysis, advisory services, and the development of the English language.
https://www.mawazin.net/Details.aspx?jimare=179919
Dollar Exchange Rates In Local Markets Today
Market EconomyNews_Baghdad Today, Tuesday, the dollar exchange rates remained stable in the local markets.
And the selling prices of the dollar were recorded at 148.250 dinars per 100 dollars, while the purchase prices of the dollar were recorded at 147.700 dinars per 100 dollars.
And the Central Bank of Iraq decided earlier to adjust the exchange rate of the dollar against the Iraqi dinar, as the purchase price of the dollar from the Ministry of Finance amounted to 1450 dinars, while the price of selling it to banks was set at 1460 dinars per dollar, while the selling price to the citizen is 1470 dinars per dollar. Views 175 Date Added 12/28/2021 https://economy-news.net/content.php?id=27029
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