Twilight News / Prime Minister Mohammed Shiaa al-Sudani received, on Thursday evening, a phone call from United Nations Secretary-General Antonio Guterres, during his presence in the Saudi capital Riyadh, which hosts the Arab-Chinese summit.
During the call, Al-Sudani praised the efforts of the United Nations in assisting Iraq in many humanitarian and development files, and thanked the Secretary-General of the United Nations for supporting Iraq’s sovereignty and maintaining its security.
For his part, Guterres expressed the readiness of the United Nations to cooperate with the Sudanese government and support it in various files. He also expressed his “strong” interest in the priorities presented by the government in supporting all segments of society, making it a government capable of facing challenges. He also stressed the aspiration of the United Nations to support Iraq in facing and overcoming many problems, foremost of
The Secretary-General of the United Nations praised Iraq’s pivotal role in the region, and its ability to mediate and bring the views of different countries closer, to be a supportive bridge to stabilizing the region.
{Politics: Al Furat News} The National Security Adviser, Qassem Al-Araji, received today, Thursday, the US Ambassador to Baghdad, Alina Romanowsky, assuring her that the stability of the region is in everyone’s interest.
Al-Araji discussed with the American ambassador, according to a statement that {Euphrates News} received a copy of, “developments in the political and security situation in Iraq and the region, the importance of ending the Syrian al-Hawl camp file, continuing cooperation in the field of combating terrorism and drugs, exchanging information and controlling borders.”
Al-Araji assured the US ambassador, that “the new Iraqi government follows the principle of balance, non-interference in the affairs of others, and mutual respect for sovereignty, in its relations with countries,” pointing out that the stability of security in the region and the world is in the interest of all.
{Politics: Al Furat News} The National Security Adviser, Qassem Al-Araji, received today, Thursday, the US Ambassador to Baghdad, Alina Romanowsky, assuring her that the stability of the region is in everyone’s interest.
Al-Araji discussed with the American ambassador, according to a statement that {Euphrates News} received a copy of, “developments in the political and security situation in Iraq and the region, the importance of ending the Syrian al-Hawl camp file, continuing cooperation in the field of combating terrorism and drugs, exchanging information and controlling borders.”
Al-Araji assured the US ambassador, that “the new Iraqi government follows the principle of balance, non-interference in the affairs of others, and mutual respect for sovereignty, in its relations with countries,” pointing out that the stability of security in the region and the world is in the interest of all.
Twilight News / Experts from the International Monetary Fund on Thursday called on Iraq to “vigilant and be wary” about the economic weaknesses that may affect it in the medium term, and while they indicated that the Iraqi economy is “recovering gradually,” they urged Iraqi officials to adopt necessary economic steps, most notably diversifying government revenues, strengthening the social welfare network, and correct
The International Monetary Fund said in a “concluding statement” related to “inigential” conclusions reached by experts at the conclusion of a mission they carried out to Iraq, describing as representing their views and not necessarily the views of the Executive Board of the Fund, that “the rise in oil prices provided the Iraqi economy with much-neededed breathing space, after it approached to entering
But the experts’ report said “fundamentsic imbalances persisted, and dependence on oil continued to increase.”
In their report, the experts called for “the need to start a meaningful economic transformation, accompanied by a prudent, careful and disciplined fiscal policy aimed at building buffer margins of financial reserves, reducing dependence on oil, and reorienting the path of spending towards priority investments and meeting social needs.
“The careful adjustment and alignment of the 2023 budget with this transformation is a crucial step in maintaining the gains made by recent policy efforts,” the report also considers that decisive structural reforms represent a critical trend towards improving social and economic conditions and promoting the development of the private sector as the main engine of growth and employment through job creation.
Economic prospects and risks
Although the experts’ report considered that “the Iraqi economy is gradually recovering in the midst of the basic and growing fundamental weaknesses, as the real GDP is expected to grow by 8% in 2022, due to the increase in oil production by 12%, experts also saw that real non-oil GDP will increase at a more moderate pace, amounting to 3%, after recovering by 21% in 2021.”
The report added that “inflation has been relatively contained, reaching an average of 5% during the first ten months of 2022, given that the subsidies provided for food and fuel have disrupted the passage of high global commodity prices and their transfer to the Iraqi market.”
The report added that “thanks to the rise in oil prices, the balance of current account balances of public finances and the balance of external balances (i.e. for their surplus / deficit) for this year are expected to achieve a surplus of (6 percent) and (11 percent), respectively, while the volume of foreign currency reserves of the Central Bank of Iraq is likely to reach more than 90
But the experts’ report pointed out that “these surpluses obscure the expansion of the balance of non-oil public finances (surplus/deficit), with Iraq’s dependence on oil continues to increase, and the need to use the price of oil to balance the government budget (the price of a barrel of oil required to reach zero deficit), to reach $66 a
While the report noted that “the economic outlook is positive in the near term,” “weaknesses can be evident in the medium term.”
While oil production is expected to “gradually rise from 4.4 million barrels to 5 million barrels per day by 2027, real non-oil GDP growth is expected to accelerate to 4% in 2023, thanks to the incentive created by the Emergency Support for Food Security and Development Act, before approaching that percentage to 3.5 percent in the medium term.”
The report pointed out that “with the expectations of the baseline for the decline in global oil prices, and the continuation of the expansionist position of fiscal policy, the balance of public finances and the balance of external balance are expected to decline, and turn into deficits by 2025.”
“The central bank’s foreign currency reserves could peak, at nearly $100 billion in 2024, and then decline rapidly over the medium term,” the report said.
The report warned that “these prospects may be exposed to significant potential negative risks in the midst of many looming challenges,” explaining that “it is possible that the decline in global oil prices at a faster pace to activate financial pressures early, and government funds in particular may be exposed to the accumulation of losses at a faster pace in the electricity sector, and the depletion of the
priority policy
“A sound financial framework is a critical element in overcoming the economic challenges facing Iraq,” the IMF experts’ report said, calling for careful balance between the goals of saving extraordinary and unexpected oil profits, in order to enhance resilience in the face of future oil price volatility, increase critical social spending, and spending on public investments, while gradually reducing the level of dependence on oil.”
The experts recommended that Iraq “commit to a fiscal base aimed at achieving the gradual reduction of the main non-oil fiscal deficit, to build a preventive reserve margin to stabilize public finances, in order to improve the government’s ability to facilitate spending in response to the decline in oil prices in the future.”
According to the experts, “the financial strategy should, at the same time, seek to allocate sufficient resources to public investments and the social safety net, in order to support the critical development needs of Iraq and support vulnerable populations.”
IMF experts also recommended “saving a significant portion of the potential unforeseen oil profits by targeting the major non-oil fiscal deficit of IQD 114 trillion (58% of non-oil GDP) in 2023 and, more importantly, by containing growth in the government’s wage bill, and increasing non-oil revenues.”
In light of the high inflation risks, the expert report called for “vigilance on the part of monetary policy, because although inflation has remained stable in recent months, there are still a significant risk of accelerating inflation in the near term, in light of a more lenient stance in fiscal consolidation, and the emergence of indirect secondary price effects of higher global commodity prices.”
In addition, the report considered that “there must be sustainable policy efforts in many key areas, namely:
1. Raising the efficiency of public financial management, especially through the establishment of the unified treasury account and the urgent implementation of the Integrated Financial Management Information System (IFMIS), in addition to strengthening control over contingent liabilities and liabilities.
2. Diversify government revenues, including by making wage tax more upward, eliminating regressive exemptions, strengthening tax and customs administration, and taxing sales of selected non-essential goods and services.
3. Reducing the government wage bill, which consumes about 40% of the annual budget, leading to crowding out and exclusion of other priorities. That bill cannot be sustained in the long run, encouraging importance to job creation by the private sector.
The report also called for “the need to adopt a complex approach that focuses on strengthening the control of the wage bill, developing and implementing a strategy to reduce public sector employment based on the natural decrease in staff numbers, and closely aligning the wages and allowances paid by the government with what the private sector.”
In parallel, the report urges “the development of civil service reforms (public sector workers), the development and implementation of a national employment strategy to improve the level of workforce participation, remove obstacles to private sector employment, and reduce the level of employment in the informal sector.”
4. Strengthening the social safety net as determining eligibility for the non-targeted ration card program would significantly strengthen the budget allocated to cash transfers. Linking cash transfers to record numbers (to a set of indicators) automatically would also ensure adequate protection for beneficiaries.
In addition, pension reform is an increasingly urgent issue, the most important of which is to restore the financial sustainability of the State Employees’ Pension Fund. In order to move forward with the reform, there is a need to harmonize pension systems with each other, or integrate them for workers in the private and public sectors, in order to facilitate the possibility of movement of workers between the two sectors,
5. Correct the trajectory of the electricity sector, which suffers annual losses in excess of 3% of GDP, while this sector is considered unable to meet domestic demand. Therefore, the comprehensive reform strategy for this sector should focus on strengthening the issues of monitoring and transparency of the costs of this sector, reviewing the structure of electricity tariffs, implementing investments in gas capture and harvesting, and in renewable energy sources, and continuing efforts to improve the collection of receivables and reduce losses and losses for technical reasons.
6. Promote financial stability where accelerating the implementation of core banking systems and initiating the restructuring of major government banks remains a critical priority.
In this context, the IMF team of experts welcomed the completion by Iraq of the first national AML/CFT risk assessment and is in line with the plans of the Iraqi authorities to move forward in accelerating the implementation of the key recommendations contained in the assessment. The experts also “supported the central bank’s efforts to strengthen transaction control through the foreign exchange auction, and its plans to explore alternative mechanisms for trade finance in order to facilitate them.”
The mission also recommended “developing tools for cash management in order to better support exchange rate stability.”
7. Improving governance: IMF experts welcomed the efforts of the Iraqi authorities to implement the National Integrity and Anti-Corruption Strategy, 2021-2024. UNAMI stressed the importance of continuing to strengthen governance (methands and means of public administration), including through the timely completion and publication of government audit reports, improving the legal framework, streamlining the institutional structure to combat corruption, and upgrading the digitization process (using digital technology in) government institutions.
Shafaq News / The second Karkh Investigation Court, which specializes in integrity issues, announced on Thursday that the second batch of tax trust amounts has been deposited in the bank account opened at Rafidain Bank, the main branch.
According to a statement issued by the Supreme Judicial Council, the amount is 134 billion, 455 million and 600,000 Iraqi dinars.
The statement confirmed the continuation of the process of recovering the amounts of tax trusts, bringing the total amounts recovered to 317 billion, 535 million, 536 thousand and 525 dinars.
Iraqi Prime Minister Mohammed Shiaa al-Sudani announced at the end of last November the recovery of 182 billion Iraqi dinars, as part of the stolen tax secretariats, which were known as “theft of the century.”
The “theft of the century” became the talk of the Iraqi street, political circles and others until it resonated outside Iraq to be addressed by Arab and Western media.
The “theft of the century” is the disappearance of 3.7 trillion Iraqi dinars (about two and a half billion dollars) of tax secretariat funds, and it was revealed by several concerned parties about two months before the end of the previous government rule headed by Mustafa al-Kazemi.
After theft was exposed, the Integrity Commission and the Judiciary moved to investigate the case and issued several judicial arrest warrants. The first of the detainees was businessman Nour Zuhair and was placed in prison, in addition to others, in addition to judicial decisions to confiscate the movable and immovable property of those involved in the the theft as well
The case file is still open to the Iraqi judiciary to reach all its threads, as well as ways to recover money smuggled out of Iraq, according to a number of deputies and politicians.
The Presidency of the Council of Representatives announced the end of the second legislative term / the first legislative year / the fifth electoral cycle.
Thus, Parliament went into recess without receiving the 2023 budget bill from the government.
Twilight News / The media office of Prime Minister Mohammed Shiaa al-Sudani announced on Thursday that the latter left the country for the capital Riyadh at the head of an official government delegation to participate in the Arab-Chinese summit, hosted by the Kingdom of Saudi Arabia.
A government source said on Wednesday that al-Sudani would participate in the Arab-Chinese summit to be held in Saudi Arabia.
The source told Shafaq News that the prime minister “will hold several meetings with King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman, in addition to a number of leaders participating in the summit.”
Shafaq News / Kurdistan Regional Government President Masrour Barzani said on Thursday that his government’s delegations will continue to visit the Iraqi capital Baghdad to resolve differences and outstanding issues with the federal government, stressing that the region will not compromise on its rights affirmed in the permanent constitution of the country.
Masrour Barzani said, in a speech on the sidelines of the ceremony of laying the foundation stone for the British University in Erbil, that the development of the education sector, higher education and scientific research is evidence of the cultural awareness of our people, and that he is very happy to develop this sector through the construction of practical centers, stressing that undoubtedly this issue will help to increase cultural and
“We have many universities in the Kurdistan Region, each of which has its own competence and privacy and has had positive effects on our society,” he added, noting that the British University can leave an important imprint within the cultural, educational and awareness project.
The President of the territorial government also stressed that his government is working on the development of the global sector and has taken it among its priorities, will provide assistance in this field, work to develop study centers in the region and be among the ranks of global centers.
Masrour Barzani touched on the problems facing the educational process in the region, and said that we have the problems of student housing and attention to the demands of professors and teachers, and do not forget that our ambitions are great, which are greater than our possibilities available to us, but we will not stop supporting the educational sector and we will continue with enthusiasm in this subject.
He noted that this university, as one of the branches of the International University of London, we hope that this branch will be able to provide many practical services in the region.
Masrour Barzani talked about relations between Erbil and Baghdad, and said, “We continue to improve the situation in the region, and our delegations continue to talk with the federal government, and Baghdad’s visit will continue to reach solutions to differences and outstanding issues.”
He expressed the hope that these delegations would be able to resolve those differences, explaining that resolving these differences would cause progress in the region in various areas.
“We are very optimistic that these problems will be resolved within a specific period, and we will not compromise on any of our constitutional rights and we will defend them and the rights of our people,” the head of the KRG government concluded.
Baghdad – Mawazine News , the US Ambassador to Iraq, Alina Romanowski, confirmed support for anti-corruption measures in Iraq and the Treasury Office is working with the Central Bank of Iraq to support and strengthen the banking system.
Baghdad – Mawazine News The Central Bank of Iraq denied the US Federal Reserve’s intention to punish some Iraqi banks.
An authorized source in the Central Bank of Iraq confirmed to the official news agency, which was followed by Mawazine News, today, Thursday, that “this news, which threatens the reputation of the banking sector and the business sector in Iraq, is untrue.”
The Central Bank of Iraq called on those who transmit the news to exercise caution by transmitting inaccurate information, stressing that all Iraqi banks are in compliance with the laws and instructions issued by the Central Bank, especially those related to combating money laundering and terrorist financing. Ended 29 / m99
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