More News, Rumors and Opinions Wednesday PM 5-21-2025
KTFA:
Clare: 2025 Budget: Government Advisor Outlines Spending Priorities and Plans to Address Trillion-Dollar Deficit
5/21/2025
The Prime Minister's financial and economic advisor, Mazhar Mohammed Salih, revealed important details related to the budget for the remainder of 2025 and the impact of global economic variables on the oil market.
In a press statement, Salih confirmed that "Iraq was able to sell its oil until the end of the first quarter of 2025 at an average price of $75 per barrel, which exceeds the price specified in the general budget law of $70."
He pointed to the paradox witnessed by the global oil market, as the OPEC+ group recently lifted its restrictions on member states' production, driven by a decline in global oil inventories. However, this increase coincided with the escalation of the trade war between the United States and China, and the subsequent imposition of customs tariffs, which produced signs of a recession in the global economy.
Salih explained that a 1% decline in economic growth leads to a half-percent decline in demand for crude oil and vice versa, noting that this has created a "downward oil asset cycle."
Regarding the Iraqi general budget for the rest of 2025, Salih indicated that it will operate according to the principle of "fiscal space," which is based on flexibility in controlling public expenditures. He emphasized that priority in spending will be given to government salaries and wages, pensions, and social welfare, which affect the lives of eight million Iraqis. He also stressed the need to continue Spending on infrastructure projects remains uninterrupted, as they are linked to the government's development and reform agenda.
Saleh noted that the budget includes a hypothetical maximum borrowing limit of 64 trillion Iraqi dinars (about $1.5 trillion) to cover the deficit gap, out of an upper ceiling of 200 trillion dinars. He emphasized that the Ministry of Finance will borrow to finance the project when needed. LINK
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Clare: Maximizing non-oil revenues by up to 60%... Expert identifies what Iraq needs
5/21/2025
Economic expert Safwan Qusay confirmed that the percentage of non-oil revenue maximization in Iraq has reached 60%, while pointing to the country's need to expand sources of income and achieve economic independence through long-term support for the agriculture, industry, and trade sectors.
During his appearance on the "Free Talk" program on Al Furat TV, Qusay said, "There are clear indicators of the success of the government program, especially in the field of localizing the pharmaceutical industry and the cement sector." He pointed out that "the government seeks, through achieving food security, to break the link with foreign imports and meet citizens' needs through local production."
He explained that "the ration card components represent a top priority in the government's program, and there is a move to strengthen them internally, especially after the agricultural plan helped identify the regions with the highest productivity, allowing the water file to be managed for the benefit of these regions."
Qusay pointed out that "Iraq has 26 million acres of arable land, but it lacks 50 billion cubic meters of water annually to cover these areas." He explained that "the amount of rainwater is currently wasted, as it goes directly to the Gulf without being utilized, while a $15 billion contract has been signed with the United States to manage the water issue."
He stressed that "Iraqi agricultural products are of a distinct nature," calling for "expanding exports, reducing imports, and increasing local production, with the need to involve farmers as shareholders in specialized agricultural companies to ensure better results and enter the global market with clear plans."
He added that "the Ministry of Trade must expand the economic sphere through long-term commercial contracts with specialized international companies, which will enhance Iraq's chances of building a sustainable economy."
On the financial front, the expert noted that "Iraq remains outside the World Trade Organization and imports the equivalent of $70 billion annually," stressing the "need to intensify investigations into new sources of income to protect the gross domestic product."
Qusay concluded his remarks by stating that "the government is serious about generating revenue from all sectors as part of a future development plan," noting that "financial reforms and Syria's exit from the black market have contributed to reducing pressure on the dollar," predicting that "its price will continue to decline to 132,000 dinars per $100."
Wafaa Al-Fatlawi LINK
Courtesy of Dinar Guru: https://www.dinarguru.com/
Frank26 Question: "Won't the black market get away when they raise the rate?" No! The black market will be annihilated. There won't be a need for the black market. The black market is there because they're trying to rip off the Iraqi citizens. Once you have an established exchange rate, no. 1310 is not established. It's a program rate.
Militia Man Article quote: "We are expecting a strong and robust economy with GDP growth of 5.3%...The giant strategic projects planned through 2028 confirm Iraq is on the verge of a major economic renaissance." That is a big increase...
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Good News Iraq's $87B Investment Boom
Edu Matrix: 5-20-2025
Iraq is experiencing a remarkable $87 billion surge in foreign investment, showcasing enhanced global confidence in its economy!
At the recent Tehran Dialogue Forum, Foreign Minister Fuad Hussein highlighted Iraq's commitment to being a regional peace mediator while supporting Syria's sovereignty. With ambitious plans in natural gas, petrochemicals, tourism, the Development Road Project, and agriculture, Iraq aims for full domestic gas production by 2028.
This investment boom not only strengthens Iraq's economy but also plays a crucial role in increasing the value of the Iraqi Dinar (IQD). Join us as we explore how Iraq is rising economically and diplomatically!