The dollar in Iraq... Al-Marsoumi expects the dinar to remain within a narrow range until the budget is finalized.
Economic expert Nabil Al-Marsoumi said that the exchange rate of the Iraqi dinar against the dollar in the parallel market may remain within a limited range of fluctuation during the next stage, in the absence of major financial or economic variables capable of reducing the gap with the official rate or pushing it to further widen.
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Al-Marsoumi wrote on his Facebook account under the title “The Dinar in the Tunnel”, that the exchange rate in the black market seems likely to remain at levels he described as “sticky”, expecting that the fluctuation movement will not exceed about 2% up or down.
Al-Marsoumi links the continuation of this situation to the course of the upcoming budget, considering that the market may remain in a state of waiting until the trends in spending and fiscal policy become clear, or an exceptional development appears that changes the calculations of supply and demand for the dollar.
This reading reflects a state of relative stability in the parallel market, but it does not necessarily mean the end of the pressures that caused the widening gap between the official dollar price and the price traded by exchange companies and unofficial markets.
The movement of the dollar in Iraq is affected by several factors, including commercial demand for foreign currency, the volume of liquidity in dinars, import financing mechanisms and foreign transfers, in addition to the measures taken by the Central Bank to regulate access to dollars through official banking channels.
Conversely, increased public spending or changes in foreign trade and remittances could put renewed pressure on the parallel market, while improved access to dollars through the banking system could narrow the gap with the official rate.
The description of the price as “sticky” indicates the possibility that the market will remain within a relatively stable price range for a period, without a clear trend towards a sharp rise or fall, unless a strong economic or financial factor emerges that breaks the current state of equilibrium.
The Iraqi markets are watching closely in the coming period the course of the budget and the financial and monetary policies associated with it, as they are among the most prominent factors capable of affecting the volume of liquidity and demand for the dollar.
According to Al-Marsoumi’s reading, the next phase may remain governed by limited fluctuations, but any major development in fiscal policy, dollar flows, or foreign trade mechanisms could quickly move the market into a new price range.
The most prominent question facing the market remains: Will the next phase succeed in narrowing the gap between the official and parallel prices, or will the dinar continue inside what Al-Marsoumi described as the “tunnel”?
A new government comment regarding the removal of zeros and the market crisis.
Financial oversight on "every dinar" in Iraq... The Allocations Authority reveals mechanisms for monitoring funds.
The Federal Revenue Allocation Monitoring Authority confirmed today, Saturday, that the flow of funds in the Iraqi treasury is subject to continuous monitoring and supervision, starting from their allocation to the stages of disbursement and utilization. The head of the authority, Susan Abdullah, stated in a statement followed by the news agency that the authority plays a role of "early warning against corruption" by monitoring allocations and overseeing the funding provided by the Ministry of Finance to ministries and provinces, in addition to tracking the expenditures of funds and verifying sources of federal revenues.
Abdullah clarified that the authority has identified several corruption files and referred them to the competent bodies, including the Integrity Commission, the judiciary, and the Board of Supreme Audit. She emphasized that the authority's work does not conflict with the tasks of the Board of Supreme Audit, but rather comes within the framework of integration among oversight institutions, confirming that the authority monitors funds before they are disbursed and also oversees their usage after disbursement.
An economist says that the complexity of trade could exacerbate unemployment and push people towards the parallel market.
Manar Al-Obaidi, head of the “Iraq Future” Foundation for Economic Studies and Consultations, criticized on Saturday the obstacles and impediments facing traders in Iraq, starting from the establishment of companies and projects, through obtaining hard currency, to the banking procedures related to that, warning of the repercussions of bureaucracy on the labor market and the rise in unemployment rates.
Al-Ubaidi said in a detailed post followed by “Al-Sa’a”, “After more than three years of implementing the external transfer restrictions, it is not enough to repeat the demand for merchants to deal with banks, and then interpret the continued resort of some of them to the parallel market as merely a refusal to comply,” adding, “We are asking the merchant to become a banking regulator, while he faces complications from the moment he registers his activity.”
According to the World Bank’s “Doing Business 2020” report, Iraq ranked 154th out of 190 economies in ease of starting a business, with an average of 8.5 procedures and 26.5 days to establish a company and officially begin its operations, based on the case studied in Baghdad.
The economist stressed that "these figures reveal that the obstacles to establishing businesses preceded the external transfer restrictions by years," noting that "tightening the transfer requirements needed a parallel reform to make fulfilling them possible."
Al-Ubaidi noted that “taxes, social security, fees, and other obligations should be clear and calculable before a merchant makes his decision. However, the abundance of instructions, their overlap, and the difficulty in understanding their application make the final cost unclear to him.”
He pointed out that "the merchant can include a known fee within the cost of his goods, but it is difficult for him to plan for a commitment whose amount or timing he does not know. This is in addition to the financial extortion he is subjected to, which exceeds the money he pays to the state, which accumulates the cost of his trade whenever entering the formal sector becomes linked to uncertainty and its weak attractiveness, even if it allows obtaining currency at the official rate."
Al-Ubaidi pointed out that "a trader who has been working for 20 years, buying and selling for cash, and reinvesting his profits in merchandise, but he does not have regular financial statements or complete historical records. Today he is required to provide documents explaining how his capital was formed," indicating that "his activity may be legitimate, but his commercial history is not documented in the way that the bank needs. Here the gap appears: he has an existing business and accumulated funds, but he does not have the financial file that allows verification of them."
He stressed that "this gap needs institutional treatment: a clear path for documenting the activity and sources of funds, accounting assistance, and requirements that are commensurate with the size of the activity and its risks, without dropping verification or being lenient with illicit funds. A financial record that has not been built over years will not appear simply by issuing new instructions."
The economist stressed that “even a merchant who fulfills his requirements may encounter a bank that does not find sufficient benefit in serving him,” noting that “a small transfer requires verification of the identity of the client, the beneficiary, the source of funds, the invoice, and the purpose of the transfer,” pointing out that “a large part of this work is also required for a large transfer, while the return from a small one may be much less.”
The head of the "Iraq of the Future" Foundation warned that "this disparity creates an incentive for some banks to favor large transfers and set limits or conditions that exclude small ones, and the result is that the merchant whom we ask to move to official channels may not find a banking service suitable for the size of his business."
Al-Ubaidi ruled out a decline in reliance on the parallel market if the official alternative remains difficult to access, unclear in cost, and limited in service to small traders, calling for the importance of finding alternative solutions that rely on technology and automation to regulate trade and link traders with approved suppliers, banks, and shipping companies.
The economist suggested "a digital solution that the merchant enters with a small purchase order, which helps him complete his file, provides a documented invoice from an approved supplier, clarifies the cost of purchase, shipping and fees, collects similar orders, and links payment to the arrival and receipt of goods. Thus, with each transaction, the merchant creates a commercial and financial record that can be referred to."
He added that "the success of these digital solutions requires that they be accompanied by simpler procedures for registering businesses, declared and accountable government dues, an approved path for documenting funds, and a banking commitment to serving small transactions."
Al-Ubaidi concluded by saying, “Either we place obstacles, impediments, and ambiguity in front of the merchant and demonize him under the pretext that he is the one who creates currency market speculation, this is a clear lack of understanding of the market and the commercial sector.” He considered that “every small merchant is a job opportunity for five direct people and five indirect people,” and warned that “the cessation of any merchant’s work, or the decline of his work, is the loss of 10 direct and indirect job opportunities in a market where unemployment rates are rising significantly.”
The economist concluded by saying, "Whoever wants to reduce the parallel market must make the official route usable. The trader needs a door he can enter through, a cost he knows in advance, and a bank that accepts his service."
The dollar between banking restrictions and the parallel market: Institutional obstacles facing traders in Iraq
Al-Obaidi said in a detailed post, “After more than three years of implementing the external transfer restrictions, it is not enough to repeat the demand for traders to deal with banks, and then interpret the continued resort of some of them to the parallel market as merely a refusal to comply,” adding, “We are asking the trader to become a banking regulator, while he faces complications from the moment he registers his business.”
According to the World Bank’s Doing Business 2020 report, Iraq ranked 154th out of 190 economies in ease of starting a business, with an average of 8.5 procedures and 26.5 days to establish a company and officially begin its operations, based on the case studied in Baghdad.
The economist stressed that "these figures reveal that the obstacles to establishing businesses preceded the external transfer restrictions by years," noting that "tightening the transfer requirements needed a parallel reform to make fulfilling them possible."
State dues
Al-Ubaidi noted that “taxes, social security, fees, and other obligations should be clear and calculable before a merchant makes his decision. However, the abundance of instructions, their overlap, and the difficulty in understanding their application make the final cost unclear to him.”
He pointed out that "the merchant can include a known fee within the cost of his goods, but it is difficult for him to plan for a commitment whose amount or timing he does not know. This is in addition to the financial extortion he is subjected to, which exceeds the money he pays to the state, which accumulates the cost of his trade whenever entering the formal sector becomes linked to uncertainty and its weak attractiveness, even if it allows obtaining currency at the official rate."
Proof of source of funds
Al-Ubaidi pointed out that “a trader who has been working for twenty years, buying and selling for cash, and reinvesting his profits in merchandise, but he does not have regular financial statements or complete historical records. Today he is required to provide documents explaining how his capital was formed,” indicating that “his activity may be legitimate, but his commercial history is not documented in the way that the bank needs. Here the gap appears: he has an existing business and accumulated funds, but he does not have the financial file that allows verification of them.”
He stressed that "this gap needs institutional treatment: a clear path for documenting the activity and sources of funds, accounting assistance, and requirements that are commensurate with the size of the activity and its risks, without dropping verification or being lenient with illicit funds. A financial record that has not been built over years will not appear simply by issuing new instructions."
Banking obstacles
The economist stressed that “even a merchant who fulfills his requirements may encounter a bank that does not find sufficient benefit in serving him,” noting that “a small transfer requires verification of the identity of the client, the beneficiary, the source of funds, the invoice, and the purpose of the transfer,” pointing out that “a large part of this work is also required for a large transfer, while the return from a small one may be much less.”
The head of the “Iraq of the Future” Foundation warned that “this disparity creates an incentive for some banks to favor large transfers and set limits or conditions that exclude small ones, and the result is that the merchant whom we ask to move to official channels may not find a banking service suitable for the size of his business.”
Al-Ubaidi ruled out a decline in reliance on the parallel market if the official alternative remains difficult to access, unclear in cost, and limited in service to small traders, calling for the importance of finding alternative solutions that rely on technology and automation to regulate trade and link traders with approved suppliers, banks, and shipping companies.
Digital solutions for businesses
The economist suggested "a digital solution that the merchant enters with a small purchase order, which helps him complete his file, provides a documented invoice from an approved supplier, clarifies the cost of purchase, shipping and fees, collects similar orders, and links payment to the arrival and receipt of goods. Thus, with each transaction, the merchant creates a commercial and financial record that can be referred to."
He added that "the success of these digital solutions requires that they be accompanied by simpler procedures for registering businesses, declared and accountable government dues, an approved path for documenting funds, and a banking commitment to serving small transactions."
Demonizing the Iraqi merchant
Al-Ubaidi concluded by saying, “Either we place obstacles, impediments, and ambiguity in front of the merchant and demonize him under the pretext that he is the one who creates currency market speculation, this is a clear lack of understanding of the market and the commercial sector.” He considered that “every small merchant is a job opportunity for five direct people and five indirect people,” and warned that “the cessation of any merchant’s work, or the decline of his work, is the loss of 10 direct and indirect job opportunities in a market where unemployment rates are rising significantly.”
The economist concluded by saying, "Whoever wants to reduce the parallel market must make the official route usable. The trader needs a door he can enter through, a cost he knows in advance, and a bank that accepts his service."
An economist accuses "influential parties" of fabricating the dollar crisis and calls on the Central Bank to intervene urgently.
On Saturday, economist Abdul Rahman Al-Mashhadani accused influential parties of fabricating the current rise in dollar exchange rates in local markets, explaining that the goal of this rise is to achieve exorbitant profits for specific banks that are not subject to sanctions.
Al-Mashhadani told Al-Maalouma that "the local market is witnessing clear confusion due to the unjustified rise in exchange rates," calling on the Central Bank of Iraq to "conduct a real and urgent review of the monetary policy mechanisms currently in place."
He added that "it has become necessary for the Central Bank to intervene immediately and inject sufficient quantities of foreign currency (dollars) to save the market and curb speculators," while warning of "the continued rise in exchange rates and the worsening of the crisis if the situation remains as it is without radical solutions."
Economist Dirgham Muhammad Ali had previously confirmed to Al-Maalomah that the main reason behind the rise in the dollar exchange rate was related to the withdrawal of Al-Taif Bank, which is a major official gateway for dollars entering the country through the Western Union network.
Al-Zaydi: We are working on diversifying the economy and are proceeding with the establishment of the Generations Fund.
Announcedprime minister Ali Al-Zaidi On Saturday, he said that his government is working to diversify the economy inIraqHe pointed to the continuation of the establishmentfundGenerations.
President Al-Zaidi: We are working to diversify the economy and make Iraq a center for trade and investment.
Prime Minister Ali Faleh al-Zaidi affirmed on Saturday that the government will continue working to diversify the economy and empower the private sector, in addition to implementing a number of projects and initiatives aimed at supporting development and achieving economic stability.
In a speech addressed to the Iraqi people on the occasion of the National Day of the Republic of Iraq, Al-Zaydi said that the government is working on “diversifying the economy, empowering the private sector and linking government spending to results,” noting the progress of the initiative for one million residential plots.
He added that the government is proceeding with “establishing the Generations Fund to guarantee the future of our children,” in addition to establishing economic cities and implementing the development road, so that Iraq will be a trade route, an energy corridor, an investment center and a bridge between East and West.
Al-Zaydi indicated that the government will continue to combat corruption, protect public funds, and enhance preventive oversight, stressing that protecting Iraq’s interests, security, sovereignty, and national decision-making was a fundamental responsibility in confronting the repercussions of the conflict in the region.
He affirmed that “with the unity of the Iraqi people and their national and social harmony, we will move from confronting crises to building the future,” stressing that “it is our responsibility to make sovereignty a path to reform.”
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The House of Representatives will resume its sessions on Sunday and Monday to vote on and discuss a package of laws and international
The House of Representatives will resume its sessions tomorrow, Sunday, and the day after tomorrow, Monday, with two agendas that include voting and discussing a number of draft laws and proposals.
According to the two agendas, the council will vote in its twenty-third session on a proposal to amend the Landlords Law.
The first reading of the draft intellectual property law will be completed, along with the first reading of the draft law ratifying the agreement on security cooperation and combating crime.
Between Iraq and Spain.
The twenty-fourth session includes voting on amending the Notaries Public Law, and reading draft laws on juvenile care, securities, and commodities.
In addition to my projects for Iraq to join the International Maritime Aid Organization and the International Solar Alliance.
Parliament is moving towards voting on the deputy prime ministers.
The House of Representatives is expected to vote on the deputy prime ministers this week, according to informed sources.
Sources told Baghdad Today that the names being considered for the positions include Mohsen Al-Mandalawi, Laith Al-Khazali, and Mohammed Tamim, noting that the mechanism for deciding on the names and the date of the final vote have not yet been officially announced.
She added that the matter is still under arrangement and consultation, pending an official position regarding the date and voting mechanism
The Finance Committee is furious with the minister: We haven't seen the 2027 budget and information is being withheld.
The Finance Committee of the House of Representatives expressed its strong dissatisfaction with the sending of the 2027 General Budget Law to the Cabinet before it had been informed of the initial details of the law, noting that it would discuss the position of the Minister of Finance in this regard.
Member of Parliament’s Finance Committee, MP Jamal Kojar, told Ultra Iraq that “the upcoming meetings of the Finance Committee will focus on the budget file and how to deal with the draft law and its details, after it was sent by the Ministry of Finance to the Council of Ministers without informing us.”
Kujer added that the discussions will also revolve around "the committee's position on the Minister of Finance, who did not inform the committee members of the details before sending the draft to the Cabinet," indicating that "there is a state of extreme resentment within the Finance Committee due to the lack of information regarding the draft budget reaching the representatives before it was sent by the Ministry of Finance."
Kujer added that "the Minister of Finance also prevented the members of the parliamentary committee from accessing detailed information about the budget, without any understandable reasons," stressing that "the committee must be informed of all the details of the new budget for 2027, in light of the challenges facing the country and the difficulties that will accompany its legislation."
MP: The 2027 budget will be sent this month and approved before the end of the year
Member of Parliament Mohammed Al-Moussawi revealed on Saturday the expected date for sending the proposed federal general budget law for 2027 to Parliament, stressing that there is a governmental and parliamentary trend to reduce expenditures and activate the productive sectors.
Al-Moussawi told Al-Maalouma News Agency that “the Council of Ministers will send the proposed 2027 budget law to the House of Representatives during this month,” explaining that “the Parliamentary Finance Committee will immediately begin studying the budget and reviewing all its items upon its arrival so that it can be submitted for discussion and voting at the beginning of the tenth month.”
He added that “next year’s budget will be significantly different from its predecessors, as it will focus primarily on development programs and activating the productive sectors in the country, as well as reducing many unnecessary government spending items,” predicting that “the House of Representatives will pass the budget and vote on it definitively before the start of the new year.”
It is worth noting that the parliamentary finance committee hosted Finance Minister Faleh al-Sari last week to discuss key amendments to the draft budget law, including a detailed discussion of changing the current operating mechanism and transitioning to a "program-based budget."
The State of Law coalition nominates Yasser Sakheel and Haider Bahaa for the Interior and Higher Education portfolios, respectively.
An informed source stated on Saturday that the State of Law coalition, led by Nouri al-Maliki, has officially nominated Yasser Sakheel for the Ministry of Interior portfolio.
The source told Shafaq News Agency that the coalition also nominated Haider Bahaa, who currently serves as the Dean of the College of Pharmacy at Al-Nahrain University, for the Ministry of Higher Education portfolio, noting that the State of Law coalition sent the two names to Prime Minister Ali Al-Zaidi.
For his part, MP Qusay Abbas, from the Badr parliamentary bloc, confirmed that political blocs of various orientations and parties are holding continuous meetings and dialogues to finalize the names of the candidates and complete the vote on the ministerial cabinet under the dome of the Iraqi parliament.
Abbas told Shafaq News Agency that there is no specific date for the House of Representatives session to complete the vote on the cabinet, explaining that the issue of choosing candidates for ministerial portfolios is left to the Prime Minister, who is responsible for the selection and sending the names of the candidates to Parliament.
On May 14, the Iraqi parliament voted to approve Ali al-Zaidi's government and its ministerial program, including 14 ministers. Voting on the remaining nine ministries was postponed until further notice due to ongoing political disagreements over the distribution of portfolios, amid reports of international warnings against including armed factions in the new cabinet.
Since then, the coordination framework has authorized Prime Minister Ali al-Zaidi to make contacts with the heads of the political blocs and entities participating in the government, whose candidates for the vacant ministries have not yet been decided up to the time of writing this report.
Al-Khazali: Next week is the deadline for finalizing the names of the ministerial cabinet and voting on them.
MP Faleh al-Khazali confirmed on Saturday that political forces have finalized their choices, and it is highly likely that the issue of completing the cabinet and voting on the nominated names will be resolved next week. This aims to end the crisis of vacant ministerial
positions and enable the ministries to perform their duties and provide services to citizens. Al-Khazali told Al-Maalouma that "political forces have finalized their choices regarding the names that will be submitted to Parliament for a vote next week, thus ending the cabinet formation crisis and allowing ministries to carry out their duties and provide services to citizens."
He added that "completing the cabinet is essential to achieving integration between the legislative and executive branches and to address the stalled service-related issues that citizens are waiting for." He pointed out that "a complete government will contribute to strengthening the institutions' ability to implement their programs."
Al-Khazali stated that "completing the cabinet will help the government complete its work, allowing for a clearer evaluation of the performance of government institutions, highlighting strengths and weaknesses and addressing them," emphasizing that "resolving the ministerial issue represents an important step towards stabilizing government operations."
This comes amidst the continued vacancy of several ministerial positions, as the acting management of some ministries has impacted the effectiveness of work within a number of institutions, further increasing the importance of finalizing the cabinet.
With the US veto lifted and internal disputes overcome, is Al-Zidi's cabinet nearing completion?
A breakthrough is on the horizon to complete the cabinet in Ali al-Zaidi’s government, after the resolution of the vacant ministries was delayed for more than four and a half months, due to the veto imposed by Washington on the appointment of some Iraqi figures to ministerial positions because of their closeness to Iran on the one hand, and due to the disputes between the blocs over the seats, which came as a consequence of the American veto on the other hand.
According to information obtained by Al-Sa’a Network, this week will be crucial for passing the vacant ministries and completing the cabinet.
Sadiqoun: Monday is the deadline for completing Al-Zidi's cabinet.
According to MP Mohammed Al-Baldawi, head of the Sadiqun parliamentary bloc, the cabinet will be finalized and the vote on the vacant ministries and the position of deputy prime minister will take place very soon and will be this week, after overcoming internal disputes and addressing problems with the international actor, in reference to the American veto imposed on some Iraqi figures, including the Sadiqun bloc's candidate, "Asa'ib Ahl al-Haq," Laith Al-Khazali, for the position of deputy prime minister.
Al-Baldawi told Al-Sa’a Network: “The political blocs have reached understandings and agreements on passing the vacant ministries and completing the vote on the cabinet in accordance with the entitlements shown by the results of the last elections,” adding that “the decision will be made soon and will be this week, specifically on Monday or Tuesday next week.”
Al-Baldawi explained that “the Prime Minister will present the names of the candidates for ministerial positions and deputy prime ministers to the House of Representatives for the purpose of voting on them in the presence of all political forces,” indicating that “Prime Minister Ali Al-Zaidi and the forces of the Coordination Framework and the State Administration Coalition played an important role in overcoming the political crisis and completing the constitutional entitlement in voting on the rest of the ministerial cabinet, through reaching understandings between the internal parties on the one hand, and working to overcome the impasse with the international and regional actor regarding the assumption of some figures for ministerial positions in the state.”
The head of the Sadiqun parliamentary bloc continued: “The movement’s remaining share, according to the electoral entitlement, is one ministry in addition to the position of Deputy Prime Minister,” stressing that “the bloc’s candidate for this position is Laith al-Khazali, due to his qualifications and experience, which makes him an important pillar in the success of the current government by working with al-Zidi and all the ministers.”
Al-Baldawi stressed "overcoming the external veto and overcoming internal and external differences regarding the completion of the cabinet, and the vote on it will be complete this week."
Earlier, Speaker of Parliament Hebat al-Halbousi revealed that Prime Minister Ali al-Zubaidi had informed the Iraqi presidencies of the results of his visit to the United States, including lifting the American veto imposed on the appointment of some figures to important positions, most notably Laith al-Khazali, the brother of Asaib leader Qais al-Khazali.
Advanced understandings
For his part, Wael al-Rikabi, a leader in the State of Law Coalition, revealed that dialogues are continuing between political parties in order to complete the vote on the ministerial cabinet this week.
Al-Rikabi told Al-Sa’a Network: “The dialogues between the political blocs are still ongoing, and there are serious agreements between the leaders of the blocs in this regard.”
He added: “The leaders of the blocs agreed to pass the two deputy prime minister positions after the internal agreement and the lifting of the external veto that was imposed on some figures assuming important positions in the state.”
Al-Rikabi predicted that “Parliament will proceed with the vote to complete the cabinet next Monday,” explaining that “things are going smoothly and well in light of the ongoing dialogue between the leaders of the blocs,” and indicating that “the next two days will most likely witness understandings reaching a high level that qualifies for deciding on and completing the cabinet.”
Al-Rikabi pointed out that "the position of Minister of Interior will be in accordance with the agreements and entitlements from the share of the State of Law Coalition," indicating that "the coalition's candidate for this position so far is Yasser Sakheel, and if things continue on these understandings, he will remain the coalition's candidate for the position of Minister of Interior."
Voting on ministries in stages
Regarding the delay in passing the cabinet in full, political researcher Mujahid Al-Tai confirmed that this problem has become familiar in the Iraqi political context and the context of forming governments, as the formation of most governments goes through many stages due to external pressures and internal disputes.
Al-Ta’i told Al-Sa’a Network: “The previous government and the one that followed it went through many stages before it was completed, and Iraqis have become accustomed to this delay in forming governments and naming ministers, which usually does not happen all at once as is the practice in most countries of the world.”
He added: “The formation of al-Zaydi’s government was contingent on internal political agreements and external pressures, especially with the United States imposing a veto preventing figures affiliated with armed factions from assuming any ministerial positions.”
Al-Ta’i pointed out that “the new path in the political process has become a pragmatic path, witnessing the transformation of some figures from the path of weapons to political work and then involvement in the government, which is what is happening in countries that are witnessing security reform processes, which grant some privileges and important positions to groups that used to carry out their work with weapons.”
Obstacles that may delay the resolution
But Al-Ta’i noted that “lifting the American veto on the appointment of some figures to important positions is still uncertain, which may open the door to delaying the formation of the cabinet and disrupting it for another period.”
In addition, some factions negotiating with the government on the issue of handing over weapons are attempting to form a new ministry to be added to al-Zaydi’s cabinet, which could disrupt negotiations to complete the cabinet this week.
Shafaq News Agency quoted an informed source as saying that a "new" security ministry might be created within the current cabinet, and that all remaining ministerial portfolios would be voted on in a "single package".
The source said that "one of the armed factions being negotiated with by the Quartet Committee on restricting weapons to the state has demanded the creation of a new ministry to support the security ministries."
He added that "some resistance factions demanded privileges that would serve as guarantees, but the government does not want the guarantees to reach the level of privileges, as most of the demands raised by the factions as a condition for restricting and regulating weapons have been implemented, the most important of which is the American withdrawal, and there is currently a gradual withdrawal of Turkish forces from Iraqi territory."
The Iraqi parliament published the agenda for its session scheduled for next Sunday, without including the completion of the vote on the cabinet.
More than four and a half months have passed since the partial vote for Ali al-Zidi’s government, as the Iraqi parliament voted on the ministerial portfolio on May 14, during which it decided on 14 ministries and postponed the decision on 9 ministries.
Several obstacles hindered the completion of the vote on Al-Zidi’s cabinet. The most prominent problems that faced the resolution of the vote on the remaining vacant ministries, which have been run by acting ministers since the confidence was granted to Al-Zidi’s government, are the political forces’ disagreements and their insistence on obtaining ministerial portfolios in proportion to the number of their parliamentary seats according to their vision, in addition to the problem of political entities that have armed wings taking over those portfolios.
The biggest problem that prevented the cabinet from being passed throughout the past period lies in the conditions imposed by the United States on Iraq to remove the representation of armed groups in the current government on the one hand, and to remove the government from Iranian influence on the other hand. Because of the American conditions that President Donald Trump started, he removed Nouri al-Maliki, the candidate of the Coordination Framework Forces, from the position of Prime Minister. Then Washington followed it with other conditions and threatened to cut off relations, end American support and impose sanctions on Iraq in the event that armed groups reach the ministerial portfolios or if the influence of Iranian policy on Iraq continues under the new government.
The nine ministerial portfolios that were not voted on are: Interior, Defense, Labor, Immigration, Reconstruction and Housing, Planning, Culture, Higher Education, Youth and Sports, in addition to the positions of Deputy Prime Ministers.
Sustainable reform and ministerial program
Confronting the shock, overcoming our economic and financial crisis, and moving towards sustainable reform are priorities in the ministerial program of the new government. The reform and recovery roadmap has been drawn up according to the paragraphs in the third axis of the program, which forms the basic pillar for building successful economic stability and sustainable development in accordance with Iraq’s economic vision and with what was stated in the National Development Plan for the years 2024–2028 and Iraq’s Vision 2030, and with what the government announced that it is planning until 2035.
Iraq is currently going through a critical, important, and sensitive stage due to the political, security, and economic conditions resulting from the ongoing war in Iraq’s geographical region, the global energy crisis, and the global economic recession. The economic reality, according to official data and preliminary results of the general population census, indicates that Iraq’s population has reached 46 million. Unemployment and poverty rates remain high overall, and the debt-to-GDP ratio and budget deficit are also rising. The World Bank, the International Monetary Fund, and Iraqi experts confirm that our economy is fragile, and our credit rating has weakened, with a stable outlook that has shifted to negative according to the latest assessment by a global credit rating agency. This necessitates significant solutions and efforts to achieve economic stability and national security.
To implement the planned strategies, we believe that building the foundations of a comprehensive economic and national security strategy, with a focus on the economic aspect, must result in achieving security, stability, economic development, and financial sustainability. This will contribute to the well-being of society and must be effective and feasible under the current circumstances in Iraq. Because the magnitude of the economic challenges, both internal and external, and the continued volatility of global oil prices necessitate the concerted efforts of all governmental, political, and popular entities, as well as the private sector, to protect Iraq, maintain fiscal discipline, and sustainably build a strong, diversified, and sustainable economy based on realistic data.
The fundamental economic principles of the national security strategy, particularly within the economic axis, should focus on building a sound, multi-resource national economy, with the private sector playing a pivotal role in leading the market and ensuring food, medicine, and environmental security for citizens. This requires identifying the economic challenges inherited by the new government from previous administrations and transitioning from fragility to recovery and achieving economic stability, which is the foundation for security and social stability in Iraq.
Given the well-known macroeconomic challenges, we propose a radical and comprehensive economic, financial, and banking reform that restructures the Iraqi economy in terms of its methodology and philosophy, both institutionally and legislatively. We also propose continued support for the reform plan undertaken by the Central Bank in collaboration with international partners. Furthermore, we propose establishing the foundations and pillars of a social market economy and involving the genuine private sector in economic decision-making, both institutionally and legislatively, in accordance with Articles 25 and 26 of the Constitution.
We emphasize the necessity of restoring consideration of the legislative environment of the laws issued in 2004 and in force until now that regulate the management of the economy, and of some other laws issued before 2003.
Iran's Qaani says US 'expelled' from Iraq
The United States has been "expelled" from Iraq despite its vast resources and military might, Esmail Qaani, commander of the Quds Force, the foreign operations arm of Iran's Islamic Revolutionary Guard Corps (IRGC), said on Thursday, crediting Iraqis and Iran's allied armed groups for the withdrawal.
"This year's anniversary is being observed at a time when the US, despite possessing vast resources and equipment, has been expelled from Iraq, and the Iraqi people are celebrating this victory, thanks to the resistance of the Iraqi nation and the heroes of the Resistance Front," he told a ceremony in Tehran marking two years since the killing of Hezbollah leaders Hassan Nasrallah and Hashem Safieddine.
Looking ahead, Qaani said coordination between the Iraqi government, state institutions and “the children of the Resistance” would move Iraq toward greater security, peace and sovereignty and help remove what he described as the remaining effects of the US presence in other fields. He added that armed groups remained active in Iraq, which he described as one of the region's most sensitive arenas, and were pursuing their course with “prudence and planning.”
Qaani also accused Washington of trying to downplay the significance of its departure by raising what he called “peripheral issues,” including aircraft overflights, without specifying which flights he meant.
The US-led Coalition ended its military mission in Iraq on September 30. Prime Minister Ali al-Zaidi marked the occasion by declaring there would be "no weapons outside the umbrella of the law, and no force outside state institutions."
Iraq's armed factions have taken differing positions on the withdrawal and the government's weapons-control process. Asaib Ahl al-Haq, Kataib Sayyid al-Shuhada and Harakat Ansar Allah al-Awfiya welcomed the withdrawal or pledged to honor agreements with the government, while Ashab al-Kahf rejected disarmament outright and threatened to attack foreign forces.
Qaani's last known visit to Baghdad came on August 10, when he led a senior military and security delegation on an unannounced trip and met Badr Organization leader Hadi al-Amiri and other political and faction figures. During that visit, he urged the factions "not to surrender their weapons for now," while warning them against any armed confrontation with government forces and pressing instead for a political settlement with Baghdad, an informed source told Shafaq News at the time
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