Wednesday Early Afternoon Iraq Economic News Highlights 8-24-22
Wednesday Early Afternoon Iraq Economic News Highlights 8-24-22
Fears Of Disruption To Next Year's Budget: An Increase In Poverty And Delays In Projects
Posted On2022-08-24 By Sotaliraq Baghdad / Mustafa Al-Jourani Demands are increasing in the Iraqi street to legislate the budget law for the next year, after the failure to pass it during the current year due to political differences that paralyzed all the joints of the state.
And Prime Minister Mustafa Al-Kazemi had previously confirmed, in a speech he delivered on the sidelines of a meeting of members of his government, that "the country needs the new budget in order for the state to proceed with its projects to serve the citizen."
Usually, the budget specifies the items of state expenditures during a year, especially for salaries, subsidies, and repayment of debt burdens, as well as the target of state revenues.
Economic Future
In this regard, the economic expert, Ahmed Saddam, believes that "the Iraqi economy needs to legislate the 2023 budget law, since budgets usually provide job opportunities and service projects that are in direct contact with the lives of citizens."
In an interview with Al-Mada, Saddam said, "Service projects in Iraq have been suspended since last year, which means that failure to legislate the next year's budget will have many negative effects on the service reality in the country."
The economic expert points out that “the lack of budget legislation will also increase the poverty rate in Iraq, which in turn is very high,” noting that “passing the financial budget will restore confidence between the people and the legislative authority.”
Saddam explains, "Negative expectations and statements about the failure to pass the budget lead to an increase in prices in the markets, and confuse the movement of trade in all governorates."
There is no law that allows for budget legislation
For his part, a member of the Legal Committee Salem Al-Anbaki said, in an interview with Al-Mada, that "the current government is a caretaker government, and it does not have any authority to legislate or send the budget bill for this year or this year."
Al-Anbaki indicated, during his interview with Al-Mada, that "the parliament does not now have any oversight role over the caretaker government, so there is no law that allows the legislation of the country's financial budget."
He added, "The current political situation also prevents the formation of the new government, which in turn can present the draft budget law as soon as possible."
Legal Opinions
In addition, the legal expert, Adnan Al-Sharifi, said in an interview with (Al-Mada), that “Article 80/Second of the Constitution stipulates that the Council of Ministers exercises the powers to propose bills.”
According to the legal expert, Article 60 of the constitution said:
First: - Draft laws are presented by the President of the Republic and the Council of Ministers.
Second: Law proposals are submitted by ten members of the House of Representatives or one of its specialized committees.
Al-Sharifi adds, “Here we are faced with two things. The first is that the House of Representatives submits the proposal to the government according to Article 60. Does the government submit the proposal to itself, and if it is the one who has the right to present the bill, does it propose to itself?”
The answer is a reverse case, just as the House of Representatives presents the proposal to the government. So the correct legal and constitutional interpretation of Article 80 of the Constitution is that if the government has full powers, it presents draft laws, and if it lacks powers as a caretaker government, it has the right to propose laws only.”
The legal expert went on to say, "But the government cannot propose laws on itself, but rather proposes them to Parliament because it does not have the right to submit a bill."
And the Federal Supreme Court obliged the Al-Kazemi government, through its decisions, regarding the inability of the caretaker government to propose important bills, with the invalidation of all appointment orders of higher grades issued during the caretaker period.
Although the financial budget for 2022 has not been passed, Fitch Ratings expected a decrease in the proportion of government debt in Iraq, to record 47% this year, but it stated that the decline in debt may not be sustainable in light of the political tensions that restricted public spending.
Earlier last week, Adviser to the Prime Minister, Mazhar Muhammad Salih, warned of what he described as a “financial blockade” due to the public finance problem, while indicating that there are fears of entering 2023 without a budget.
Saleh said in a press statement, which was followed by (Al-Mada), that "one of the most serious concerns currently being raised is the public finance problem, which may enter a financial impasse or blockade."
Saleh pointed out, "there is no authority to exchange at all, as the effective Financial Management Law No. 6 of 2019 amended allows it, in the absence of the budget law in the subsequent year, to spend at a ratio of 1/12 of the actual expenditures made in the previous year's budget." LINK
Oil Continues To Rise After A Report On (OPEC +) Production
Economie| 11:56 - 24/08/2022 Follow-up - Mawazine News: Oil prices continue to rise today, Wednesday, as prices rose yesterday, Tuesday, by about 4%, after reports about the possibility of the “OPEC +” group reducing production, which reinforced concerns about a lack of supply in the markets.
By 09:50 Baghdad time, US crude futures "West Texas Intermediate" rose 0.16% to $93.89 a barrel.
Brent crude futures rose 0.21% to $100.38 a barrel, according to Bloomberg website data.
The rise came after media reports, citing sources in the “OPEC +” group, that the group, which includes Russia and Saudi Arabia, may move towards reducing oil production in the event of a supply glut after reaching an agreement between Iran and Western countries on the nuclear agreement and lifting sanctions on Iranian oil. Ended 29/N33 https://www.mawazin.net/Details.aspx?jimare=203331
Kuwait and Baghdad resume negotiations on the shipping lane *"Khor Abdullah"*
Economie| 12:27 - 08/24/2022 Baghdad-Mawazine News : A Kuwaiti delegation is heading to the Iraqi capital, Baghdad, this week to resume Kuwaiti-Iraqi negotiations on the "Khor Abdullah" shipping lane.
The two sides are seeking to enhance cooperation and coordination on the outstanding issues after negotiations were halted during the nearly two-year period of the Corona pandemic.
According to sources, the delegation includes the Undersecretary of the Ministry of Communications, Kholoud Shehab, the commissioned assistant undersecretary for the transport sector, Jamal Kandari, and some officials. According to Kuwaiti news.
The sources stressed the great importance of "Khor Abdullah" as a navigation corridor located between the Kuwaiti islands of Bubiyan and Warba, and the Iraqi Faw peninsula.
She stressed the need to complete the demarcation of the maritime border with Iraq in full.
The sources stated that the political leadership in both countries is keen to finalize this file without disturbing the atmosphere of bilateral and neighborly relations between the two countries. https://www.mawazin.net/Details.aspx?jimare=203307
In Preparation For The Iraqi National Trade Forum.. Baghdad Chamber Of Commerce Meets With The International Trade Center And The International Agency For Migration
Economie| 08:18 - 23/08/ Baghdad - Mawazine News The Baghdad Chamber of Commerce held a joint meeting, on Tuesday, with the International Trade Center (ITC) and the International Agency for Migration (IOM) to discuss joint cooperation and the role that the Baghdad Chamber of Commerce will provide in the Iraqi National Trade Forum, which contributes to enhancing the competitiveness of the value chain for agribusiness in Iraq to be held in the month Next November in Baghdad, for companies and related projects, in the presence of the government and the private sector, over a period of three days.
According to a statement by the Baghdad Chamber of Commerce received by Mawazine News, the forum will include “sessions, discussion and B2B sessions that include Iraqi companies and entrepreneurs with major international companies, 20 companies, in addition to an exhibition (Made in Iraq) for Iraqi agricultural projects and field visits to participating international companies to companies and projects.” Iraq to see their work and Injazlthm.
According to the statement, the Baghdad Chamber of Commerce discussed all the details with the ITC and the IOM and its role in the forum in general, and the participation of entrepreneurs, owners of emerging pioneering ideas and projects with the required specialization, as well as the way for Iraqi projects and companies to participate in the forum.
The statement added, that the meeting was banned from the Baghdad Chamber of Commerce by Alaa Al-Nouri, a member of the Board of Directors of the Baghdad Chamber of Commerce, Falah Hassan Al-Jubouri, Director of Entrepreneurship and Marketing at the Baghdad Chamber of Commerce, and Anmar Iyad Maluki, Director of International Organizations in the Baghdad Chamber of Commerce, and a representative of the United Nations Migration Agency IOM Mahdi Mohamed is the National Livelihood Officer, Zahraa Watut is the Program Officer at ITC and Rop Kohlimann is the ITC Trade Support Officer.
The statement concluded, that the registration method for participation and attendance in the forum will be announced soon, in cooperation with the Baghdad Chamber of Commerce. Ended 29/R77
The Service Council clarifies the mechanism for fixing wages and contracts and talks about the salary scale[/size]
Political | 12:16 - 24/08/2022 Baghdad - Mawazine News The Federal Service Council has counted the number of appointments listed and approved within the 2021 budget, while specifying the reason for not completing the appointment of more than 9 thousand job grades.
The Director-General of the Department of Research and Administrative Studies in the Service Council, Qassem Abdul-Ridha Shagait, said that "the total number of appointments to the Ministry of Health reached 7,038, distributed in Baghdad 1,821, Anbar 367, Muthanna 192, Babylon 505, Basra 550, Diyala 382, Karbala 299, Kirkuk 321. Maysan 216, Najaf 350, Nineveh 701, Qadisiyah 287, Salah al-Din 354, Dhi Qar 409, Wasit 284.
Shugait added, "While the appointment to the Federal Financial Supervision Bureau, the total was 116, all in Baghdad, while the appointment to the House of Wisdom was 3 degrees, all in Baghdad, and in the State Council 2 in Baghdad, and in the Border Ports Authority 7, and also all of them in Baghdad," according to the agency. Official news.
And he continued, "While the Federal Service Council approved the appointments of the Ministry of Health with a total of 56,433, the Council also approved the completion of the appointment of contracts for the water, sewage and municipalities departments 2016/2017 and they were as follows:
Basra Governorate Water Directorate 70, Basra Governorate Municipalities Directorate 43, Baghdad Water Directorate 44 Babil Water Directorate 173, Najaf Water Directorate 124, Maysan Water Directorate 39, Dhi Qar Water Directorate 137, Diwaniyah Water Directorate 85, Muthanna Water Directorate 60, Karbala Holy Water Directorate 70.
He went on to say: "While the completion of the appointment for the self-financing departments was as follows: the appointment of the Ministry of Communications' staff 711, the appointment of 81 Arab Gulf Academy graduates, the completion of the appointment of the contracts of the Ministry of Construction and Housing 2019 amounted to 148, the appointment of pilots to the permanent staff 93, and the re-appointment in the departments The self-financing was as follows: a reappointment in the General Company for Grain Processing 1, a reappointment in the Ministry of Transport 1, and a reappointment in the Ministry of Higher Education and Scientific Research 2.”
And regarding the initiation of confirming the procedure and contracts of those who have two years in accordance with the decision of the Council of Ministers, Shagait explained, “It depends on the data received by the Ministry of Finance after the audit process, and the Council also depends on the data provided by the Ministry of Finance.”
He pointed out that "Paragraph (1) of the circular of the General Secretariat of the Council of Ministers stipulates that ministries and agencies not associated with a ministry prepare an inventory of the names of contractors who have a contract service of no less than two years and ensure the availability of the necessary financial allocations without requesting additional financial allocations in preparation for their confirmation in coordination with the Ministry Finance and the Federal Public Service Council.
Regarding the salary scale law and its amendment, Shaghet said, “A committee has been formed that includes in its membership representatives from the General Secretariat of the Council of Ministers, the Ministries of (Finance and Planning), the Federal Financial Supervision Bureau and the Federal Public Service Council to study legislation related to the salaries of state employees and the mechanisms for their application and the possibility of matching the criteria for determining and presenting them. The solutions are in addressing the disparity in these salaries, and work is continuing.” https://www.mawazin.net/Details.aspx?jimare=203333
The Iraqi Ambassador To The United Kingdom Discusses A Comprehensive Program Of Work For The Reconstruction Of Iraq
Political | 11:25 - 23/08/2022 Baghdad - Mawazine News The Ambassador of the Republic of Iraq to the United Kingdom, Muhammad Jaafar Al-Sadr, discussed with Iraqi experts a comprehensive program of work for the reconstruction of Iraq.
A statement by the Iraqi embassy, received by Mawazine News, stated that "Ambassador Muhammad Jaafar Al-Sadr received Dr. Raouf Al-Ansari, Secretary-General of the Iraqi Consultative Commission for Reconstruction and Development in the United Kingdom, and a number of Iraqi experts who are members of the commission, which includes more than (60) Iraqi experts from within Iraq and abroad, and in various specializations.
The ambassador stressed, according to the statement, the importance of teamwork and coordination between experts inside and outside Iraq, and the need to communicate this effort to decision makers in Iraq.
For their part, the experts reviewed during the meeting their vision for the advancement and upgrading of various sectors in Iraq. They presented an overview of their contributions from studies that included more than 100 studies in 20 axes, which will be issued soon in a book to be a road map aimed at developing reality and finding appropriate solutions to problems in various sectors. Ended 29 / p. 87