Minister of Finance: A series of measures taken by the government led to the stability of economic conditions

money and business

Economy News – Baghdad

Finance Minister Ali Abdul-Amir Allawi confirmed, on Wednesday, that the collapse of oil prices caused a crisis in the Iraqi economy, and when the government assumed its duties, there was a billion dollars in its accounts, noting that the series of measures taken by the government led to the stability of economic conditions.
Allawi said in his speech during the annual finance and banking services conference, which was held in Baghdad and attended by “Al-Iqtisad News”, that the collapse of oil prices caused a crisis in the Iraqi economy, and when the government assumed its duties, there was a billion dollars in its accounts, and the financial surpluses of the previous year were spent on Excess expansion in the public sector.
He added that the government struggled to manage the subsequent effects of the economic and security crises, and the problems were exacerbated by the lack of a budget in 2020, the expansion of public sector obligations and previous accumulations, while we were trying to absorb employment obligations and pensions, and economic activity shrank sharply, noting that the Iraqi economy suffered from a decline. to 11% of GDP in 2020.
He explained that the series of measures taken by the government led to the stabilization of economic conditions, including the devaluation of the local currency, which had an important impact on the recovery of the domestic product, in addition to that, the price of oil began to recover in the fall of 2020, as it reached 62 dollars in the first eight months.
And he indicated that the 2021 budget was passed and our credit rating was preserved and the public sector payroll and pension obligations became more under control than before, noting that the government took the start of reform and put the reform of the public sector and the entire public administration and the white paper is the first real evidence to restore the prestige of the economy and we showed our serious determination to Issues that have been outstanding for years, through the provision of services and the ability to create good jobs for young people whose number is increasing by more than one million annually, and we still depend on oil revenues.
He noted that our financial sphere is constrained by a serious stagnation because the economy is not diversified and relies heavily on a single resource and a large degree of the state budget, the difficulty of creating jobs from the private sector, corruption is very high in all parts of the government and the political repercussions and public protests, although the government has reduced internal tensions And we promised to hold early elections and we will fulfill these promises on the tenth of next October, Iraq will vote to elect a new House of Representatives.
He stressed that the government approved major projects, including the G4 licensing rounds, the Total project, the Faw port, a number of renewable energy projects, and the Al-Bidaa Canal to pump water in Basra, which is the first water desalination project, and there are quite a few projects and initiatives launched by the government.
He added, “We have taken a new decision to subject large investments and are subject to scrutiny by the advisors of the relevant departments. As for the financial sector, we were able, in cooperation with the Central Bank, to control the side effects that resulted from the new exchange rate and the emergence of positive effects with the registration of requests for investment licenses and new industrial projects,” he added. The United Nations Trade Organization project to automate customs, as well as reform government banks, was approved.
Allawi said that Iraq is witnessing a good recovery during the year 2021, and in the medium term we must have positive results through the support of the International Monetary Fund for our reform program represented by the White Paper. Separating the future of Iraq from the massive technological changes and opportunities towards a digital economy. The digital economy will not lead to job creation, but rather contribute to a basic diversification of our economy. We need to develop the environment for the telecommunications sector, by creating a digital environment, supporting digital skills, creating digital platforms, digital financial services, and supporting pioneers Business and Finance Ministry is interested in the latter two aspects of the five pillars.
And he indicated that the Ministry of Finance is promoting a fund to support youth, and we have allocated 30 billion dinars in the 2021 budget, and work will begin in the coming weeks, and the adoption of high-speed and affordable Internet and the provision of government services. That country has to restore its economy to the global energy market, which is the main challenge.
He noted that the government launched a high-level committee on climate change and the environment, preparing a green paper and rationalizing us towards alternative energy.

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