Iraq Economic News and Points To Ponder Late Saturday Evening 8-1-26
Concerns About Passing The Borrowing Law... Hamdoun: It Will Raise The Debt To $150 Billion
Information/Special.. Former Member of Parliament, Mahasin Hamdoun, warned on Saturday against passing the 2026 External Borrowing and Grants Law to ensure the payment of salaries for employees in Parliament, stressing that passing this law will raise Iraq's external debts to more than one hundred and fifty billion dollars.
Hamdoun told Al-Maalouma Agency that “the volume of internal and external debts has reached more than one hundred billion dollars at the present time,” adding that “passing the external borrowing law within the House of Representatives requires more than a month, as it requires study and review by the Finance Committee and the competent authorities before voting on it.”
She added that "continuing with the current borrowing mechanism at this pace will raise the debt to more than $150 billion," noting that "new mechanisms must be explored to support the budget, moving away from borrowing which burdens the state, such as combating corruption, collecting outstanding debts owed by companies, and finding new outlets for oil exports." (End of 25 words)
In Preparation For Sending It To Parliament, Al-Zaydi Chairs A Meeting To Approve The Final Version Of The Government Program
latest newsSaturday,August 1, 2026Baghdad - One News - 8/01/2026 Prime Minister Ali Faleh al-Zaidi chaired a meeting on Saturday dedicated to reviewing and approving the final version of the government program, in the presence of the Secretary-General of the Cabinet and a number of relevant advisors.
The Prime Minister’s Media Office stated in a statement that the meeting witnessed a comprehensive review of the axes of the government program and its priorities, as well as a discussion of the final observations related to its objectives and implementation mechanisms.
The statement added that the meeting focused on ensuring the integration of government visions and the unification of priorities, in line with the government’s commitments to implement reforms, accelerate the pace of development, and improve the level of services provided to citizens.
He indicated that the government program will be submitted to the House of Representatives, after its final approval, to complete the constitutional and legal procedures related to it, in preparation for starting to implement its provisions according to the approved schedules and plans.
The approval of the government program comes as the executive framework that the government will adopt in managing its files during the next stage, and in determining its priorities in the service, economic and reform fields, in addition to establishing clear mechanisms to monitor progress rates and evaluate the performance of government institutions. https://1news-iq.net/تمهيداً-لإرساله-إلى-البرلمان-الزيدي-ي/
Escalating Tensions Between Saudi Arabia And The Factions Threaten Rapprochement Between Baghdad And Riyadh. The Washington Institute Warns That Failure To Contain The Factions' Activities Could Push The United States To Target Their Top Leadership
Baghdad - One News - 8/01/2026 A report issued by the Washington Institute for Near East Policy warned that the recent escalation between Saudi Arabia and Iranian-backed armed factions inside Iraq threatens the rapprochement between Baghdad and Riyadh, and puts the government of Iraqi Prime Minister Ali al-Zubaidi before a very complex security and political test, at a time when it seeks to implement its pledge to restrict weapons to the state before the end of next September.
The report explained that the strikes carried out by the United States and Saudi Arabia against sites in Iraq, which the US Central Command (CENTCOM) described as “logistical sites and weapons depots used by Iranian-backed factions,” came in response to repeated drone attacks launched from Iraqi territory targeting Saudi Arabia, including the attack on the Abqaiq oil facility, the world’s largest oil processing facility.
The report indicated that the exchange of blows led to the postponement of the visit that al-Zaidi was scheduled to make to Saudi Arabia, considering that this development serves the interests of Tehran, which, according to it, seeks to weaken the Iraqi-Gulf rapprochement and isolate Baghdad from its Arab surroundings by using armed factions to put pressure on Saudi Arabia and the Gulf states.
He explained that the Iranian-backed Iraqi factions had previously targeted oil facilities and infrastructure in Saudi Arabia and the UAE in recent years, and had intensified their attacks in recent months against US bases and sites in the Gulf, noting that Riyadh responded, in coordination with Washington, by carrying out strikes inside Iraq, after official warnings confirmed that it would not leave those attacks unanswered.
According to the report, the strikes targeted locations in the Nineveh Plain, Amerli, and Dibis in northern Iraq, as well as Camp Ashraf in Diyala, and sites in Karbala, south of Baghdad, and north of Basra. While the Popular Mobilization Forces announced the deaths of 20 members and injuries to 32 others, the report suggested that members of the Iranian Revolutionary Guard were among the dead, following the appearance of coffins draped in Iranian flags in Iranian media.
The report linked these developments to a broader regional escalation, which included attacks carried out by the Yemeni group against Saudi facilities, ports and oil tankers, as well as Iranian attacks targeting ships in the Strait of Hormuz and an American base in Jordan, considering that what is known as the “axis of resistance” has transferred part of its pressure to the Saudi arena with the aim of pushing the United States to ease its pressure on Iran.
The report stressed that the administration of US President Donald Trump finds itself facing a complex equation of maintaining its partnership with the new Iraqi government, while at the same time continuing to provide a security umbrella for its Gulf allies, noting that US officials warmly received al-Zaidi during his recent visit to Washington, but his government is now facing the repercussions of the return of US strikes to Iraqi territory.
The report suggested that Iran would likely continue to use Iraqi factions to target Saudi Arabia and the Gulf states in order to undermine the Arab support that the al-Zaidi government needs to complete its project of restricting weapons to the state by September 30, the same date expected for the completion of the withdrawal of US combat forces from Iraq.
The report called on the US administration to work on arranging an Iraqi-Saudi summit in the coming months, in parallel with launching a permanent security dialogue between the intelligence agencies in Baghdad and Riyadh, to prevent further escalation, stressing that the success of the relationship between the two countries is in the interest of regional stability and limits the opportunities for the expansion of Iranian influence.
He also recommended supporting the Iraqi government in carrying out precise operations targeting the storage, assembly, and maintenance sites of armed factions’ drones, based on US intelligence information, and taking advantage of the existing cooperation between Prime Minister Ali al-Zaidi and the head of the Supreme Judicial Council, Faiq Zaidan, with the aim of cutting off the supply chains for these drones.
He added that Baghdad’s failure to contain the activities of the factions may push Washington to target their top leaders, considering that past experiences have shown that targeting leaders is more effective in reducing attacks against American interests than targeting field operatives or weapons depots.
On the economic and security front, the report called for accelerating the provision of anti-drone defense systems to Western companies operating in Iraq, and facilitating their import to protect oil facilities and their workers, as well as giving the Iraqi government priority in obtaining these systems if it demonstrates actual cooperation in reducing the activity of armed factions.
The report concluded that the success of al-Zaidi's government in implementing its security program requires continued Arab and international support, warning that continued attacks could complicate Baghdad's efforts to impose state authority and give Iran a greater opportunity to derail the rapprochement between Iraq and the Gulf states.