Thursday Afternoon Iraq Economic News Highlights 7-21-22

Repeating The July Scenario... The South Without Electricity

Posted On2022-07-21 By Sotaliraq  [size=45]Repeating the July scenario... the south without electricity Alsabaah-160460In weather that reached a temperature of 50 degrees Celsius, the scenario of the collapse of the electricity network was repeated in July, despite the preparations announced by the government during the past months to solve the electricity problem.

This scenario occurred during the past years, as last July witnessed a similar collapse of the electricity system, and as a consequence Prime Minister Mustafa Al-Kazemi directed the dismissal of the Director General of the General Company for Electricity Transmission / Middle Euphrates as an agency, and the punishment of reprimanding him for neglecting to perform his duties and duties.

On Wednesday, five southern governorates, Basra, Maysan, Dhi Qar, Wasit and Muthanna, witnessed a complete shutdown of the electric current.   LINK

Expectations Of Achieving A Net Surplus Of Oil Revenues Of About 25 Trillion Dinars

Posted On2022-07-21 By Sotaliraq    Baghdad/Bright news  Yesterday, Wednesday, experts expected that oil revenues would achieve a net surplus at the end of this year by about 25 trillion dinars, ruling out the possibility of approving the federal general budget law for the current year, stressing that the current government cannot dispose of this amount as it is a daily tasking government. Economic expert Mustafa Hantoush said, in an interview with Al-Mada, that "the revenues of the Iraqi state for this year may reach 120 billion dollars, or approximately 180 trillion dinars."

Hantoush added, "These rates show that the increase will be more than 50 trillion dinars than what was decided in last year's budget."

He pointed out that "last year's budget, which is currently being worked on according to Federal Financial Management Law No. 6 of 2019, estimated revenues at about 128 trillion."

And Hantoush stated, "The law of emergency support for food security and development, which was recently approved by the House of Representatives and entered into force, provided for financing the Ministry of Finance with 25 trillion dinars, from the surplus achieved from oil sales revenues." He stressed, "The amount of the Food Security Law will be taken from the surplus estimated at 50 trillion dinars, and this means the possibility of ending this year and we have a net financial surplus estimated at 25 trillion dinars."

And Hantoush added, "Iraq is approaching the end of the year in light of the absence of a government," and finds that "talking about the budget law has become a thing of the past, and we will not have a budget in 2022."

And he continues, "The new government, after its formation, will start submitting the budget bill for the next year to the House of Representatives for approval."

Hantoush stressed, "The financial surplus achieved from the rise in oil revenues does not mean that we have achieved an economic surplus." He spoke of "a major economic depression, with an increase in the poverty rate, according to official figures, to 31%, while the number of the unemployed, according to official figures as well, has reached 3.5 million citizens, while according to the organizations' figures, the number of unemployed people reaches 4.5 million people."

Hantoush went on to say that "Iraq's exposure to an economic depression despite the presence of abundance indicates that the official system possesses specialized people who are able to deal with reality, and we need an economic government, otherwise the rules of the economy in the country will collapse and the poverty rate will increase."

For his part, economic expert Safwan Qusay said, "Iraqi oil revenues have doubled in the current period, especially with calculating the price of a barrel on the basis of $100 for the current year." Qusay agrees with Hantoush, that "the estimates confirm that Iraq's revenues for this year will reach 120 billion dollars at the end of next December." He pointed out, "Iraq has other revenues, the total of which may reach with oil revenues by about 200 trillion dinars," stressing that "these amounts are not allowed for the government to spend due to the absence of the budget law."

Qusay stressed, "The parliament earlier resorted to boosting public spending by enacting the Emergency Support Law for Food Security and Development, and despite the money that this law will take, we will have a good surplus at the end of the year." He looks forward, to "the House of Representatives approving an economic budget during the next year that is commensurate with the stage and the volume of revenues and addresses the financial and economic challenges."

Government sources had confirmed earlier about the start of preparing a draft federal budget law for the next year, provided that the next government would submit it to Parliament and legislate it.    LINK

Baghdad Investment: Al-Ansari Confirms That Industry Is The Backbone Of The National Economy And That The Country Is In Need Of Development Projects…

Posted On2022-07-21 By Sotaliraq   Baghdad Investment: Al-Ansari confirms that industry is the backbone of the national economy and that the country needs development projects that support national products and enhance its role in local markets…

The head of the Baghdad Investment Authority, the consultant engineer (Haider Al-Ansari), inaugurated this morning, Wednesday, 20/7/2022 (the plant for the production of air filters for gas turbines), the investment implemented by the Emirati Taj Al-Hajras Trading Company, located in Al-Amiriya / Hittin District / Khalaf Al-Ayadi residential complex, which is considered one of the most prominent industrial investment projects in the capital, Baghdad, which aims to provide national products that conform to the approved technical specifications that match global industries in terms of efficiency, with local cadres and with the support of the best companies. The project, which was equipped with modern and advanced equipment and devices from solid Korean manufacturers, aims to provide the electricity companies' needs of air filters instead of importing them from outside the country.

Al-Ansari toured the factory and was briefed about all its departments and the mechanism of manufacturing filters in it, where he praised the efforts made in its establishment and management, stressing that industry is the backbone of the national economy and that the authority is working to enhance the role of national industries and develop the production process in the capital, Baghdad, through its various industrial projects in line with the directions of The Iraqi government and the calls of Prime Minister Mustafa Al-Kazemi to support the local product and bring it back to the fore in the Iraqi markets.

Al-Ansari added that the country needs these development projects that meet the needs of the local market, which prompts the authority to focus its efforts and endeavors to attract sober companies to implement various projects within this sector, while providing all facilities and facilitating procedures for companies to establish industrial edifices that advance the wheel of development and contribute to laying the foundations for economic advancement. In the capital, Baghdad.

The project consists of two production lines: the first (cylindrical-conical filters line) and the second (a box-type filters line) with a unique filter inspection device in Iraq. With the requirements and needs of electric power stations. It is hoped that the project's production rates will increase with its expansion in the future through the opening of other production lines.

It is noteworthy that the project, during its implementation period, contributed to alleviating unemployment and will have a major role in providing diverse local job opportunities for all specializations, which is one of the most important goals that the authority aspires to achieve. LINK

Gold Is Falling And Approaching Its Lowest Level In A Year

Arabic and international   Economy News _ Baghdad    Gold prices fell today, Thursday, to their lowest levels in nearly a year, as the prospect of an interest rate increase by major central banks to curb spiraling inflation affected the attractiveness of the precious metal.

Although gold is considered a hedge against inflation, higher interest rates increase the opportunity cost of holding the yellow metal, which does not yield a return.

Spot gold fell 0.3 percent to $1,691.84 an ounce by 03:13 GMT, after falling to its lowest level since early August 2021, recording $1,689.40 earlier in the session.

US gold futures fell 0.6 percent to $1,690.40 an ounce.

The European Central Bank is set to raise interest rates for the first time in 11 years on Thursday, with a larger-than-said move increasingly likely as policymakers fear losing control of unbridled consumer price growth.

The dollar's decline limited gold's losses, as it fell 0.3 percent against rival currencies, and the dollar's weakness makes gold cheaper for holders of other currencies.

Among other precious metals, silver fell in spot transactions 0.6 percent to $ 18.54 an ounce, and platinum fell 0.5 percent to $ 854.03, while palladium increased 0.3 percent to $ 1867.20.

https://economy-news.net/content.php?id=28967

Planning discusses government efforts to improve the human capital index

Money and business   Economy News – Baghdad The Ministry of Planning discussed, during a workshop held today, Wednesday, government efforts to improve the human capital index in Iraq.

The Undersecretary of the Ministry of Planning for Technical Affairs, Maher Hammad Johan, said in his speech, "The issue of human capital is of great importance, and that our successive national plans referred in their most basic axes to the issue of strengthening it."

Johan revealed, "the formation of high-level teams between the Ministry of Planning and Finance at the level of the ministries of planning and finance, concerned with this issue," noting that "all the current urgent and critical variables make us turn strongly and with clear focus to strengthening human capital to be a tool for the real development wheel."

Johan called on the World Bank and the concerned authorities to "find a vision and clear future lines that can contribute to preparing a real plan to enhance human capital."

For his part, the representative of the World Bank, Igor Khewves, said that "the main objective of this workshop is to know the challenges and obstacles that affect the advancement of human capital and how they can be overcome," adding that "this issue requires a lot of cooperation with ministries and the contribution of sectors in order to improve its outputs."

In addition, the Director-General of the Department of Human Development in the Ministry of Planning, Maha Abdul Karim Al-Rawi, said during a presentation she gave on the priorities of improving human capital in Iraq, that "this file is one of our national priorities now and in the future, and we are working with great care and seriousness in order to stop its depletion and benefit from the income of Iraq is the stage of the demographic gift.

Al-Rawi indicated, "The ministry has adopted the human capital building project by forming a work team to prepare its policy headed by the ministry and the membership of the relevant sectoral ministries," noting that "investment in human capital will achieve a development in the reality of the relevant sectors and build job opportunities, as well as increase productivity. and improving public services.

https://economy-news.net/content.php?id=28964

$900 Per Minute.. An American Company Represents Iraq In An Oil Lawsuit Against Turkey

Iraq paid $2.5 million, as part of a fee, to an American law firm representing Baghdad in the oil lawsuit against Turkey.

And US organizational files revealed that the American law firm "Vinson & Elkins" will represent the Iraqi Ministry of Oil before the US State Department amid a long-running dispute between Iraq and Turkey over a pipeline agreement.

Reuters said the Texas-based law firm that focuses on energy issues disclosed its work for the Iraqi Oil Ministry this week in files submitted to the US Department of Justice under a federal law called the Foreign Agents Registration Act.

The law requires law firms, lobbyists, and others to disclose certain actions to foreign governments that bypass traditional court-based legal services. Disclosures can provide a glimpse into information about the costs of law firms and clients that has not been widely publicized.

In filings filed July 18, James Loftis, the company's partner in Houston, said the State Department had requested a briefing on legal issues in a pending arbitration that Iraq brought in 2014 against Turkey over allegations that the country violated an agreement involving a major oil pipeline.

The filings showed Loftis, the company's international dispute resolution practice officer, billing at $900 an hour.

Vinson & Elkins represents Iraq in arbitration at the Paris-based International Chamber of Commerce.

The company revealed in its files that it received more than $2.5 million in fees in June, in exchange for legal services related to the Iraqi Oil Ministry's arbitration.

The company declined to comment on the company's invitation and the registration of the law, the first of its kind for the company of 700 lawyers under US law that dates back decades. Representatives of the US State Department and the International Chamber of Commerce, as well as a representative of the Iraqi Oil Ministry, declined to comment.

A lawyer for Turkey at King & Spalding did not immediately respond to a similar letter.

The Iraqi Oil Ministry's relations with US companies also include "Clery Gottlieb Steen & Hamilton".

The company said in a disclosure by a foreign agent at the Ministry of Justice last month that its work focuses on issues related to oil and gas policy in Iraq.

Cleary Gottlieb said it received more than $188,000 in legal fees in April from the Oil Ministry, according to Justice Department files.     https://www.iqiraq.news/international/40465-900-.html