Sunday Morning Iraq Economic News Highlights 7-23-23

An Economist Rules Out Approving The Oil And Gas Law.. And The Region Accuses Baghdad Of Trying To Impose Centralization

Oil expert Mazen Al-Aboudi confirmed that the oil and gas law is one of the most controversial laws and is the backbone of all disputes between the region and the federal government, ruling out the possibility of passing it soon, ruling out the possibility of its approval soon.  Al-Aboudi said in a press interview seen by Taqaddam that “there is difficulty in passing the law, and it is not as some imagine,” noting that “the real dilemma behind the delay in its approval is who has the right to invest, revenues, and management.”

He added, "The investment law in the Kurdistan region differs from the federal law, and the licensing rounds are also different," ruling out "the possibility of its approval simply and easily."

The Oil, Gas and Natural Resources Committee pledged passing the oil law to achieving consensus and removing many obstacles, and urged seeking to create the appropriate environment to solve some of the accumulated problems to advance the legislation of the law during the current parliamentary session.

And the Kurdistan Regional Government returned to accuse the federal government of trying to impose centralization through its insistence on managing the region's oil.

“The Iraqi government claims that the Kurdistan region does not know how to control the oil file and spend its financial revenues,” said the Minister of Awqaf and Religious Affairs in the Kurdistan Region, Peshtuan Sadiq, in a speech he delivered among crowds of clerics in the administration of the Soran region.  The Kurdish minister regrets that “federalism has not been achieved in any way.”

https://takadum-news.com/archives/175000

Iraq Reduces Its Holdings Of US Bonds To More Than $8 Billion

2023-07-23 Shafaq News / The US Treasury announced, on Sunday, that Iraq has reduced its holdings of US bonds to more than $8 billion during the first five months of 2023.

The treasury said in its latest table seen by Shafaq News Agency, "Iraq reduced its holdings of bonds during the first five months of this year, starting from January to May, by $8.5 billion, to reach the 36th rank among the countries with the largest holdings of US treasury bonds, of the 38 countries listed in the table of countries."

And she added, "Iraq's possession of US bonds in January amounted to 41.2 billion dollars, to decrease to 40.7 billion dollars in February, and to decrease to 39.3 billion dollars in March, after which it decreased again in April to 34.8 billion dollars, and decreased in May to 32.7 billion dollars," noting that "Iraq's possession of US bonds in January of the year 2022 amounted to 40.8 billion dollars."

She pointed out that "Iraq was the fourth largest Arab country in the largest possession of US bonds, after Saudi Arabia, the UAE and Kuwait."   LINK

Oil Sets The Year 2030 As The Date For Ending The Associated Gas File

Money  and business  Economy News – Baghdad   Yesterday, Saturday, the Ministry of Oil set the date for ending the associated gas burning file and achieving self-sufficiency, while indicating the desire of Arab and foreign companies to invest in the associated gas file.

The Undersecretary of the Ministry of Oil for Extraction Affairs, Bassem Muhammad Khudair, told the Iraqi News Agency (INA), followed by "Al-Iqtisad News", that "the contracts are continuing, as the fifth round and its appendix and the sixth round were announced, and there are plans to fully exploit and develop the fields in order to increase oil and gas production capacity."

He added, "American, Arab, Saudi and Qatari international companies have made technical and commercial offers and wish to participate in gas investment in Iraq," noting that "there are ongoing discussions with Aramco regarding the Crutch field."

He pointed out, "The ministry is working within successive steps to end the associated gas flaring file and achieve self-sufficiency in gas, and it is hoped to complete the file in 2030."

Views 12   07/23/2023 -  https://economy-news.net/content.php?id=35266

Exchange Rates Rise Again Above 150 Thousand Dinars Per 100 Dollars

2023-07-23 | 2,601 views   Economy   Alsumaria News publishes the exchange rates of the dollar against the Iraqi dinar in the Iraqi local markets for Sunday, July 23, 2023.

In Baghdad:   the purchase price of the dollar is 152,500 for every 100 dollars, an increase of 500 dinars from yesterday.  The selling price of the dollar is 150,500 per 100 dollars

in the north:   the buying price of the dollar is 152,750 per 100 dollars, an increase of 750 dinars from yesterday.   The selling price of the dollar is 150,750 per 100 dollars

in the south:   the buying price of the dollar is 152,500 per 100 dollars, an increase of 500 dinars from yesterday.   The selling price of the dollar is 150,500 per 100 dollars LINK

Retirement Authority: 820 Billion Dinars Were Spent To Non-Eligible Persons In Anbar Governorate

SUNDAY, 07-23-2023, TAYSEER AL-ASADI  The National Retirement Authority addressed the competent official authorities to recover 820 billion dinars that were spent as pension salaries and differences for people who are not eligible for inclusion in Anbar Governorate.

The head of the authority, Maher Hussein Rashid Al-Bayati, said in an interview with Al-Sabah newspaper, "The number of completed retirement transactions has reached 46,942, since Prime Minister Muhammad Shia'a Al-Sudani launched the support package for retirees in February of this year, which includes 13 points with the aim of removing injustice from them."

He added that "his department is communicating with the concerned authorities to retrieve more than 820 billion dinars that had been spent as pension salaries and financial differences for people whose inclusion in the law of the Martyrs and Prisoners Institutions was found to be incorrect," noting that "the canceled entries amounted to 16,717 entries as retirement files, and 22,910 as retirement records within the Martyrs' Foundation and the retirement of Anbar Governorate."

Al-Bayati revealed "the approach of the Supreme Judicial Council, the Presidency of the Public Prosecution Office, the Office of Financial Supervision and the Office of the Prime Minister, for joint cooperation on the issue of recovering the spent amounts, and taking all legal measures against all participants by promoting transactions in order to disburse their amounts."  http://non14.net/public/158705

Maabar Tweets In Defiance Of The Law.. Who Will Stop The Bleeding Of Industries In Kurdistan?

Localities / Economy |Baghdad today – Sulaymaniyah   The economic crisis in Kurdistan did not stop at the limits of cutting salaries and a decline in the standard of living only, but reached to include all sectors and chapters of life in the region, which remained dominant for several years over the security, political and financial scene in Iraq, until the industry in it became almost paralyzed a decade ago due to the accumulation of economic and political crises in it, and the flight of capital from it.

And with the region entering the gateway to crises in 2013, coinciding with the cutting of the budget for it following political differences with the federal government in Baghdad, the industrial sector in it became one of the most affected sectors by recording a significant decline in its activity and performance.

Like Iraq, the region relies heavily on imported goods, especially from Iran and Turkey, despite the presence of hundreds of small and large factories in the cities of Kurdistan.

Close And Lay Off

The head of the Statistics Authority in the region, Sirwan Muhammad, regrets the closure of hundreds of factories with the dismissal of dozens of workers from them with the emergence of the financial crisis and the decline in economic levels in it, in conjunction with the delay in the distribution of salaries.

In an exclusive interview with "Baghdad Today", the head of the region's census revealed that there are about 600 large and medium factories that are in service, "the majority of which are specialized in foodstuffs, plastics and building materials, and they have more than 12,000 workers."

He says, "The economic crisis and failure to distribute employees' salaries on time caused the layoffs of thousands of workers and the closure of hundreds of large and small factories, workshops and factories, pending an improvement in financial conditions."

Treatments

In turn, the economist Hiwa Rasheed reveals the closure of about 420 factories with the dismissal of more than 20 thousand workers in the industrial sector due to the economic crises that hit this sector in Kurdistan.

Here, he means that the region faces an opportunity that can be described as a "mission" to activate the industrial sector and reduce dependence on the importer, the most prominent of which the economist defines as "imposing high fees on the imported product, and preventing the import of materials in the region that have an abundance that meets the needs of all citizens, as well as the industrial sector by facilitating the license for the investor and obliging ministries and government institutions to buy the local product."

Unofficial Crossings

Based on the statistics published on the website of the Ministry of Industry and Trade in the Kurdistan Regional Government, the factories were classified into ten categories, which are "construction industries, food industries, spinning and weaving, metallurgical, chemical, plastic, cellulosic industries, equipment and tools factories, furniture and services."

The ministry's data indicates that the factories established in recent years were 74 for plastic industries, 66 for food industries, 60 for construction industries, 57 for metal industries, 50 for furniture, 44 for chemical industries, 39 service factories, 29 cellulosic industries, as well as three hardware and tools factories, and two spinning and weaving factories.

Specialists believe that the main reason for the inactivity of the industrial sector in Kurdistan is due to the existence of unofficial crossings that provide facilities for the entry of imported goods into the cities of Kurdistan.

And the Ministry of Industry and Trade in the regional government announced earlier in the day the start of establishing three advanced industrial zones in Kurdistan, while indicating that its "ambition" exceeds this number.

The ministry's advisor, Fathi Muhammad, said, "The region's plan includes the establishment of 11 advanced industrial zones in various regions of Kurdistan, but the costs of establishing these regions require huge budgets, and for this reason, three of them will be established this year."  LINK

90% Of The Displaced Homes Are Unfit For Living

The first  2023/07/23  The Parliamentary Committee for Migration, Displacement and Community Reconciliation revealed that about 90 percent of the homes of the displaced within their liberated areas are unfit for living. The head of the committee, Sharif Suleiman, told Al-Sabah:

Most of the displaced families living in the displacement camps hope to return to their homes, but the vast majority of them were destroyed and lack various services at a rate of about 90 percent, forcing those who returned or wished to return to change their decision.

And he indicated that the committee is working in coordination with the concerned authorities to improve the status of the liberated areas, in order to contribute to the return of the displaced to them, proposing to compensate the displaced with financial grants and aid after assessing the extent of the destruction of their homes, which were destroyed by the terrorist gangs of "ISIS", in order to enable them to rehabilitate them.    https://alsabaah.iq/81025-.html

Iraq Is Focusing On The "Most Powerful Country In The European Union" And Is Planning A Military And Economic "Alliance".

Policy  |Today   Baghdad today - Baghdad   Today, Sunday (July 23, 2023), the Parliamentary Foreign Relations Committee described France as one of the strongest countries of the European Union allied to Iraq, while indicating that Baghdad is planning joint security, military and economic action with Paris.

A member of the committee, Amer Al-Fayez, told "Baghdad Today" that "France is considered one of the strongest countries of the European Union, an ally of Iraq, and there is a joint security and military work between the two countries, in addition to economic files that concern the conditions of the region in general, as there is joint coordination between Baghdad and Paris."

And Al-Fayez stated, "The visit of French Defense Minister Sebastien Lecorno to Iraq a few days ago comes to strengthen security and military cooperation between the two countries, especially since Iraq has worked greatly to remove the threat of terrorism from the world by fighting and defeating the terrorist organization ISIS, and this visit comes as a complement to the Iraqi Prime Minister's visit to Paris, to complete the discussion of files with a security and military dimension."

On Wednesday (July 19, 2023), the Iraqi Prime Minister, Muhammad Shia'a al-Sudani, received the Minister of the French Armies, Sebastien Licorno, and his accompanying delegation.

According to a statement issued by Al-Sudani's office, which was received by "Baghdad Al-Youm", the meeting witnessed a discussion of bilateral relations between the two countries, and prospects for developing them at the security level, within the scope of the international coalition, and within the framework of advice and training to raise the performance of the Iraqi security forces, and an emphasis on continuing bilateral cooperation to continue training, cooperation in the field of armaments, and exchange of information.

During the meeting, the Prime Minister praised France's support for the Iraqi forces, referring to the (strategic partnership agreement) that was signed during his visit to France last January, which represents a clear action map for the development of Iraqi-French relations in the fields of economy, security, energy, culture, education, and others.

Al-Sudani stressed, according to the statement, that the government is working to organize the relationship with the international coalition in Iraq, in a way that is commensurate with the post-war phase against the terrorist gangs of ISIS, as this phase is witnessing a significant growth in the capabilities of the Iraqi security forces in their various types of military.

Armament File Is Present

Al-Sudani spoke about the government's interest in the issue of training and arming, and the desire to cooperate with French companies in this regard, especially in the field of air force, defense system and military industrialization, stressing that cooperation with France is not limited to the security aspect only, but also extends to several fields, in light of the availability of real opportunities for an enhanced partnership of integration between the two countries.

For his part, the French Minister of Armies conveyed the greetings of French President Emmanuel Macron to the Prime Minister, and affirmed the French government's readiness to cooperate with Iraq in the field of training, armament and capacity development. He also indicated the seriousness of his country's government in providing everything Iraq needs and developing real partnerships with it.

On Wednesday (July 19, 2023), an official source in the Kurdistan region stated that the French Defense Minister, Sebastien Licorno, will arrive in Erbil today, coming from the capital, Baghdad, to meet with officials in the region.

The source said in an interview with "Baghdad Today": that Licorno will visit Erbil, coming from the capital, Baghdad, through its international airport, and will hold a series of expanded meetings with the head of the Kurdistan Democratic Party, Massoud Barzani, and the president of the region, Nechirvan Barzani.

According to the source, the French Minister of Defense will discuss strengthening and increasing coordination between the international coalition forces with the Iraqi forces and the Peshmerga forces.

Regional Security

The French Minister of Defense began a visit to Baghdad on Tuesday (July 18, 2023), with a meeting with his Iraqi counterpart to discuss the French arming of Iraq and confirm his country's position in helping it fight terrorism and drug smuggling.

Iraq is focusing on the "most powerful country in the European Union" and is planning a military and Iraqi Defense Minister Thabet al-Abbasi said after his meeting at his ministry's headquarters in Baghdad with his French counterpart, Sebastien Licorne, in a tweet on "Twitter": I received the French Minister of Armies, Sebastien Licorne, where we held bilateral talks on regional security and joint cooperation between the two countries.  LINK