Monday Afternoon Iraq Economic News Highlights 9-5-22

Carbon Tax” .. Will Iraq Pay Billions Of Dollars To The World Due To Its Harmful Emissions?

2022-09-05  Yes Iraq: Baghdad   In light of the world’s tendency to reduce harmful emissions, the concept of a “carbon tax” is presented as a “deterrent” option for pollution-producing countries, and perhaps Iraq will find itself obligated to pay taxes in exchange for the amounts of carbon dioxide that it puts into the atmosphere as a result of its oil industry.

The director of the South Gas Company, Hamza Abdel-Baqi, says that this tax has a special formula that calculates all the hydrocarbons that are released into the atmosphere as a result of burning gas or not investing it.

He pointed out that this tax will be imposed on Iraq and all international energy-producing countries, noting that this will affect the prices of a barrel of exported oil.

The EU's proposed "carbon tax", officially called the Adjustment of Carbon Limits Mechanism, was introduced by the European Commission in July 2021 as part of the "Green Deal" to reduce greenhouse gas emissions by 55 percent by 2030 from 1990 levels.

The concept of a "carbon tax" - charging a fee for every metric ton of carbon dioxide emitted by industry - is an integral part of climate and sustainability policies in many countries, but the EU's carbon limits adjustment mechanism, known as a carbon tax, is the first time. in which prices are applied equally to imports.

In general, Iraq's carbon emissions increased in 2021 by about 9%, as the carbon dioxide emissions of the Iraqi energy sector rose during the past year 2021 to 141 million tons, compared to 130 million tons during 2020.

With Iraq occupying the fourth place among the Arab countries that export harmful emissions, Iraq's emissions from incineration increased during the past year 2021 to 35.8 million tons, compared to 34.7 million tons during 2020.

According to the international pricing, the price of a ton of carbon dioxide exceeds $70, while Iraq can get 10 billion dollars by completely extinguishing its emissions of more than 140 million tons. At the same time, it is not known whether the carbon tax will lead to the deduction of billions of dollars from Iraq due to the high harmful emissions.   LINK

Planning: Inflation Indicators Are Fairly Stable

Economie| 11:51 - 05/09/2022  Baghdad - Mawazine News  The Ministry of Planning announced, on Monday, that inflation indicators in the country are "fairly stable and under control" despite their increase compared to previous years. 

The ministry's spokesman, Abdul-Zahra Al-Hindawi, said, "The rise in inflation is due to its association with imports, as the prices of many commodities and goods rose globally, and this was reflected on Iraq through the impact of its inflation indicators because it meets most of its needs," according to the official "Al-Sabah" newspaper.

He added, "Inflation began to rise since last year, compared to previous years," noting that "its rate during the past months is fairly stable, ranging monthly between 0'3 to 5'0", (that is, it is less than 1 percent, However, the cumulative increase rate reached about 6 percent during the past month, compared to the same month of the previous year.

Al-Hindawi explained, "There are a number of materials that are directly related to the rise and fall of inflation, including foodstuffs, non-alcoholic beverages, housing and other sections, as they are affected by all economic variables, whether they are at the level of the inside or the outside."

A spokesman for the Ministry of Planning added, "There is a large cash block circulating in the local market, which also has effects on the indicators."   https://www.mawazin.net/Details.aspx?jimare=204549

Al-Halbousi Calls For The Adoption Of The General Budget Law

Parliament Speaker Mohammed Al-Halbousi  Money and business  Economy News – Baghdad   Parliament Speaker, Muhammad al-Halbousi, called for the formation of the next government, in order to approve the federal budget law for the current year.

Al-Halbousi said in a press statement received by "Al-Iqtisad News", "The agenda of the upcoming national dialogue sessions must include a number of issues that the political process cannot proceed without agreement on them, namely setting a date for early parliamentary elections and provincial elections no later than the end of next year and the election of The President of the Republic and the selection of a government with full authority, agreed upon, trusted and reassured by the people and their political forces.

He continued, "The adoption of the Federal General Budget Law and the regulation of the relationship between the federal government and the Kurdistan Regional Government with a public agreement for the people until the adoption of the oil and gas law."   95 . views   Added 09/04/2022 - 9:52 AM  Update 09/05/2022 - 8:28 AM https://economy-news.net/content.php?id=29547

OPEC Plus Is Set To Reduce Production By 100,000 Barrels Per Day

OPEC logo.  Energy   Economy News – Baghdad Today, OPEC Plus meets to discuss the oil file over the next two months.   A source told "Economy News", "Today's meeting will discuss reducing production by 100,000 barrels due to the oil supply that exceeds demand by 900,000 barrels per day."

He added that the options are still under discussion, especially with Russia's refusal to reduce production and maintain current production.

He pointed out that most of the OPEC Plus countries are afraid that production will remain the same, because it will increase the possibility of lowering prices.  33 . views   Added 09/05/2022 - 11:51 AM   Update 09/05/2022 - 1:07 PM      https://economy-news.net/content.php?id=29572

Parliamentary Finance: 22 Million Citizens Were Affected By The Lack Of Approval Of The Budget

Posted On2022-09-05 By Sotaliraq   Baghdad/ Firas Adnan   The Parliamentary Finance Committee reported that about 22 million Iraqis were affected by the delay in the federal budget law, noting that the holders of the job grades listed in the Emergency Support Law for Food Security and Development will face problems in securing salaries three months after joining their work, but it indicated that the salaries of the rest of the employees The state is insured, and there is no legal provision preventing its disbursement.

Committee member Jamal Cougar said, "The economic situation in Iraq is very similar to a patient who cannot take medicine despite its presence in abundance in local markets."

Cougar added, "Iraq has abundant financial resources, but it cannot benefit from it in the absence of the budget law for the current year, and the matter may extend to the next year."

He pointed out, "The data of the Ministry of Finance and the Central Bank indicate a surplus of $22 billion during the first half of this year."

Cougar warned, that "these amounts will not benefit the citizen, as they will not be converted into projects and job opportunities in the absence of the budget law."

He stressed, "Iraq is facing a real crisis that has more than one face. The most important aspect is that Iraq is going through a government that carries out daily tasks that does not have the authority to exchange a dinar added to last year's expenses."

Cougar stated, "The government cannot proceed with action plans or strategic projects, support for the private sector, and other aspects, all of which are completely suspended."

He pointed out, "Those who receive salaries from the state do not exceed 3 million and 270 thousand people," noting that "these salaries, if we say that each salary is shared by 6 people who make up one family, the beneficiaries of them do not exceed 20 million people." .

Cougar explained, "There are 22 million others who are deprived of the financial management of the state in the absence of a budget," noting that "when the government does not have a budget, this means that it does not have anything new."

He stated, "The government that does not have anything new, it means that it is suspended and in a state of decline," stressing that "what is in the ministries will be exposed to extinction; Due to the inability to provide funds for maintenance and maintenance.”

Cougar spoke about “there is a difference between the salaries that are granted to employees and retirees and between projects,” stressing that “the salaries are part of the operating budget, which is secured by the amended Financial Management Law No. 6 of 2019.”

He stated, "Iraq has not witnessed, since the beginning of the formation of the modern state in 1923 until the present time, that the government will not be able to pay salaries, whether there is a budget or not."

Cougar stated, "There is a problem that will occur in part of the salaries, through the Emergency Food Security Support Law No. 2 of 2022, which included providing job opportunities for 15,000 distributed among the governorates."

He stressed, "The law provided salaries for these degrees for a period of three months, and what is more than that, the Ministry of Finance needs another legal cover similar to the food security or budget law."

Cougar added, "This category will face financial problems after receiving three months' salaries," explaining that "the salaries of the rest of the employees are secured, and there is no text that prevents the government from paying them."

For his part, the economic expert, Amer Al-Jawahiri, stated that "the political blockage delayed the formation of the government, and this in turn was the first reason for not approving the budget law for the current year."

Al-Jawahiri added, "Observers are beginning to live in a state of concern about the state's ability to prepare and pass the next year's budget in light of this complex political situation."

He stressed, "The importance of the budget, especially if it involves programs and aims to develop and improve the economic situation of Iraq by diversifying its sources, which has not happened until the present time."

Al-Jawahiri agrees with Cougar, that “the rise in oil prices has brought Iraq an important financial abundance, which has led to a rise in the cash reserves of the Central Bank, which exceeded $80 billion.”

He believed, "This rise does not mean an improvement in the economic situation unless those funds are harnessed to develop the country's economy and diversify its sources."

Al-Jawahiri went on to say that "Iraq, despite the improvement in the level of revenues, is witnessing an increase in unemployment and poverty rates and a high rate of inflation compared to last year."

He promised, "The financial situation of Iraq is an additional allocation that was made in the Emergency Support Law for Food Security and Development," noting that "these amounts are the ones that can be used by the government."

Al-Jawahiri concluded, “The exit from the economic crisis will be by forming a government with full powers that can present the draft budget to the House of Representatives for the purpose of approval, provided that this project includes programs that serve the national economy.”

It has become virtually impossible to pass the federal budget law for the current year, while the government is seeking to develop the main features of the next year's budget with great fears that it will not be approved also in light of the continuing political crisis. LINK