Iraqi traders take to streets over customs tariff hike, warn of rising costs and trade disruption
from the 6th
"Temporary relief"... Will Iraq settle for "1/12" instead of a budget?
The video for this My FX Buddies Blog post is below here:
For the second year in a row, the country is operating under the "12/1" financial management system, which ensures the provision of operational expenses only, most notably salaries, in the absence of a general budget that specifies spending categories and ensures the existence of investment projects, quotas for governorates, and development in various vital sectors in the country.
The absence of a budget coincides with significant fluctuations in oil prices, rising and falling according to political changes in the region, in addition to a liquidity crisis in the country, which turns the country’s financial management system into a “machine” for paying the dues of employees and retirees and nothing else, without any other activity.
What is happening has been described by economic experts as a "major crisis" with negative effects, although they pointed out that the lack of financial revenues led to the absence of any budget last year, which is what the new government will also do.
"12/1" is sufficient
The largest part of the country’s general budget is operational, which includes basic spending limits for ministries, salaries, fuel, and food rations, with the investment budget usually constituting less than 30%. Therefore, the country operates according to a “1/2” system in one way or another, as economist Nabil Jabbar Al-Ali sees it.
According to Al-Ali, speaking to Shafaq News Agency, the new Iraqi government may be content with following this system, as it guarantees the provision of operational expenses. The main reason is the lack of large revenues sufficient to achieve projects and other things, due to the decline in oil prices. This is also the reason that prompted the government not to pass a budget last year.
He believes that the new government will simply continue with this system and will not present a budget. When it does present one next year, it will focus on paying off debts, most notably those owed to contractors and companies.
The Financial Management Law in Iraq, amended in 2019, stipulates that spending shall be at a rate of “1/12” or less of the total actual expenditures for current expenses for the previous fiscal year, after excluding non-recurring expenses, on a monthly basis and until the federal general budget is approved.
Its third paragraph also states: In the event that the draft federal general budget law for a particular fiscal year is not approved, the final financial statements of the previous year shall be considered as the basis for the financial statements of this year and shall be submitted to the House of Representatives for the purpose of approving them.
The year 2015 passed without the government submitting the three-year budget schedules, which are supposed to be approved by Parliament. At the time, news circulated that the government refrained from submitting them because they coincided with the elections, and so that they would not be exploited by some political parties.
The outgoing government approved a three-year budget for the years 2023, 2024, and 2025, which was considered the highest in Iraq’s history, with the value of each budget exceeding 200 trillion dinars, with a deficit of 60 trillion dinars for each.
"Temporary relief"
The absence of a budget is not a "simple matter," according to economic expert Ali Karim Idhaib, but rather leads to the country's paralysis in terms of projects and appointments, especially in light of the current financial crisis and shortage of cash liquidity.
In his interview with Shafaq News Agency, Idheeb explains that the country is almost entirely dependent on oil, and when prices drop, things tend towards "chaos" due to the lack of financial planning in the country.
He emphasizes that the absence of a budget directly impacts the citizen, in terms of fewer job opportunities and weak services. Investors are also hesitant to enter the Iraqi market due to the lack of a stable financial vision. Consequently, the continuation of this situation threatens the stability of the country's macroeconomy.
Idheeb believes that relying on the "12/1" system for a long period is not a solution, as it is a "temporary emergency measure," and not a financial policy by which a country the size of Iraq can be run.
He points out that the “12/1” system limits spending to salaries and operating expenses, meaning there is no room to launch new projects or complete stalled projects. In this case, companies and contractors are the most affected, because their dues are delayed, and some of them are forced to stop their work or even withdraw completely. This causes unemployment and hits the local market.
He adds that relying on this system creates a state of distrust in the economic environment and makes the investor hesitant, whether local or foreign.
Despite the elections being held in October 2025, the current government has not yet been formed. Parliament is still discussing the issue of electing the President of the Republic, who in turn tasks the candidate of the largest bloc with forming the government, amidst political disagreements among all political blocs regarding the completion of the three presidencies.
Intensive meetings and delegations are currently taking place between the various forces, with the aim of reaching a resolution to complete the formation of the presidencies, amid expectations that the crisis will continue for another period, especially since the timelines include a 30-day deadline for the candidate of the largest bloc after he is assigned by the President of the Republic, until he presents his government and Parliament grants him its confidence.
"bankruptcy"
Economic expert Mustafa Al-Faraj reveals that some companies and contractors have declared bankruptcy and are moving to liquidate their machinery and companies due to the state's failure to pay their dues because of the absence of a budget. This is in addition to the cessation of appointments and job opportunities in the private sector. Therefore, the absence of a budget for the current year will exacerbate the crisis.
According to Al-Faraj, speaking to Shafaq News Agency, the new government will not be formed before the middle of the year, based on the available data. This will prevent it from presenting any budget and will postpone it to next year.
Regarding the impact of its absence, he emphasizes that the absence of budgets is a big mistake, and no country can proceed without a budget and be satisfied with operational expenses only, as this will completely halt projects and promotions and affect citizens and employees.
A member of the committee: Maliki may withdraw from the nomination for the sake of Iraq.
Baghdad/Al-Masalla: On Friday, Abdul Samad Al-Zarkoushi, a member of the Coordination Framework, identified the reason that might prompt Nouri Al-Maliki, the head of the State of Law Coalition, to abandon his candidacy for the next government.
Al-Zarkoushi said, “Nouri al-Maliki is a statesman who possesses experience, competence, and a personality that no one disagrees with. Therefore, his nomination by the Coordination Framework for the next government presidency is still valid, and there are no changes to this decision.”
He added that “the Coordination Framework, as the largest bloc in the Iraqi parliament, has the legal and constitutional right to nominate whomever it deems worthy of heading the next government.”
He pointed out that “Maliki is a statesman, but if he feels that his nomination may harm Iraq’s interests and cause damage to the people, he will make a decision to step down. This decision comes in accordance with a national vision, and the vision of the framework is what will decide matters.”
Al-Zarkoushi stressed that “it is unacceptable for any country to interfere in Iraq’s affairs to determine one person or another. Iraq is an independent and sovereign country, and the Iraqi political forces are the ones who determine the direction and identity of the next prime minister and the nature of his foreign relations and internal dealings. Al-Maliki is the one who will determine his final choice, and we are confident that this choice will be patriotic in all circumstances.”
The State of Law Coalition’s statements come amid continued political controversy over Nouri al-Maliki’s nomination for prime minister, following Trump’s tweet calling for al-Maliki to be removed from power in Iraq and for his past experiences not to be repeated, amid media speculation about the possibility of changing the nominee as a result of external positions and pressures.
The coordinating framework has repeatedly affirmed its commitment to its declared options, stressing that the decision regarding the position of Prime Minister will be made in accordance with internal understandings and constitutional balances between political forces.
The US Treasury freezes the assets of Halbousi and two of his party leaders
n official source in Anbar province revealed on Wednesday that Jordan and the UAE have frozen the assets of the head of the Progress Party, Mohammed al-Halbousi, and two of his party leaders, due to their inclusion in the US sanctions.
The source told Al-Maalomah News Agency that “Jordan and the UAE have frozen the assets of the head of the Progress Alliance, Mohammed al-Halbousi, the current governor of Anbar, Omar Mishaan Dabbous, and Hebat al-Halbousi, the Speaker of Parliament, due to their inclusion in the US Federal Reserve’s decision.”
He added that "the targeted party leaders stole huge sums of money after assuming leadership positions in the central and local governments and transferred them to banks outside Iraq."
He indicated that “Mohammed al-Halbousi and Speaker of Parliament Hebat al-Halbousi failed to convince the acting US ambassador in Baghdad to mediate to lift the freeze on his funds outside Iraq and the rest of the party leaders.”
He explained that "Al-Halbousi owns, undeclared, banks and exchange offices used in currency smuggling operations from Iraq to neighboring countries," stressing that "Al-Halbousi's talks with officials at the US Embassy in Baghdad and the Kuwaiti ambassador failed to release frozen assets outside Iraq due to their inclusion in the US sanctions."
The Iraqi Trade Bank reveals a plan to increase the number of branches to 70.
Government advisor: All salaries and pensions are fully secured and the financial situation is stable.
The Prime Minister’s financial advisor, Mazhar Muhammad Saleh, confirmed on Friday that all salaries are secured and the financial situation is stable, while explaining that the delay in salaries is due to temporary procedures for disbursement mechanisms and financial timings.
According to the official agency, Saleh said that “any limited delay that may occur in the disbursement of salaries is not in itself a financial crisis, nor does it reflect a shortage of resources or a breach of obligations, but rather it is due to temporary organizational and procedural considerations related to disbursement mechanisms and the management of financial timings.”
He affirmed that “salaries, pensions, and social welfare allowances are fully secured within the approved financial framework,” noting that “regular disbursement is the general rule, with the possibility of limited time differences in some exceptional cases, without this affecting financial stability or the ability to meet entitlements.”
Saleh stressed that "the financial situation is stable, and liquidity management will continue in a way that ensures the sustainability of public spending and protects the incomes of employees, retirees and social welfare beneficiaries, while working to reduce any delays to the lowest possible level, within the priorities of spending in public finance."
Statistics show that the ASYCUDA system is harming more than one million Iraqi traders, with losses amounting to billions.
Economic expert Nabil Al-Marsoumi stated on Saturday that the "ASYCUDA" system implemented by the Iraqi government has caused a decrease in trade transactions and a decline in customs revenues in the country, calling for dialogue sessions with chambers of commerce to reach appropriate solutions after the deterioration of the economic situation as a result of the application of the customs tariff.
This comes at a time when calls have been launched to begin a general strike in markets and shops throughout Iraq starting tomorrow, Sunday, in protest against the application of the new customs tariff, and the accumulation of containers of imported goods and commodities in the ports of Basra in the far south of the country.
Al-Marsoumi said in a post today that commercial activity in Iraq is currently of utmost importance, as there are more than 350,000 commercial establishments and more than one million traders dealing in imported and local goods worth tens of billions of dollars, and employing millions of workers.
He added that this activity is currently suffering from the repercussions of the ASYCUDA system, and from the application of the customs tariff, which, according to official information, has led to a halving of Iraq’s trade transactions with the outside world, and to significant losses for traders and the government, whose customs revenues also decreased in January by 71 billion dinars compared to the months that preceded it.
The economist stressed that "there is an urgent need to hold a dialogue session with the chambers of commerce to reach suitable solutions for the government, merchants and the general public."
The Iraqi government raised customs duties by percentages ranging between 5% and 30%, distributed across brackets starting from 5%, 10% and 15%, up to the maximum limit of 30%.
These ratios cover the entire customs tariff register consisting of 99 chapters containing approximately 16,400 customs items, which are the items adopted globally in trade.
A few days ago, the General Authority of Customs in the Ministry of Finance issued a directive to adopt a reduction rate of 25% on the average import values recorded in the ASYCUDA system.
Over the past month, Iraq has witnessed angry demonstrations in several provinces, protesting the decision to impose new taxes and fees, and to apply customs tariffs to imported goods.
Widespread anger in Iraq over large sums deducted from the salaries of employees and retirees
A number of employees and retirees were surprised, after receiving their monthly salaries, to find large amounts deducted, which sparked a state of discontent and concern in the employment and retirement circles.
Retirees and employees, through Shafaq News Agency, called on the House of Representatives and the relevant regulatory bodies to “open an urgent investigation into the matter, and to host officials in the Retirement Authority and the administrations of government banks, especially Al-Rafidain and Al-Rasheed banks, to reveal the reasons for these deductions and other similar cases, and to guarantee the rights of beneficiaries.”
In this context, an informed source told Shafaq News Agency that one of the reasons for the deduction is due to loans and advances granted to employees and retirees, as some government banks have resorted to deducting amounts equivalent to the installment of two months or more in one payment, instead of regular monthly deductions, which has caused a major imbalance in the value of the salaries received.
The source added that this measure caused financial harm to many families, especially in light of the difficult living conditions, calling on the competent authorities to "reconsider the deduction mechanism, adopt transparency in dealing with beneficiaries, investigate this manipulation, and hold negligent officials accountable."
Employees and retirees hope that the relevant authorities will take swift steps to address this problem and prevent its recurrence in the future, in order to preserve the financial stability of a broad segment of society.
Iraqi traders' association announces market closures in protest againstcustoms duties
The Iraqi Traders Association announced on Friday its call for a general closure of all commercial markets throughout Iraq, starting next Sunday and continuing until further notice.
The group explained in a statement received by (Al-Mada) that this step comes in protest against the new customs fees, and to demand the immediate removal of the accumulated containers from the port of Umm Qasr.
The Iraqi Traders Association called on all merchants and market owners to adhere to the closure, stressing that this step aims to achieve legitimate demands and protect the interests of the commercial sector.
Al-Maliki maneuvers: “An honorable retirement” and restoring the golden age of “Da’wa”
Throwing the ball into the "framework's" court... and Washington brandishes the oil file.
S&P affirms Iraq's credit rating with a stable outlook
Standard & Poor's (S&P) credit rating agency affirmed Iraq's credit rating at B-/B with a stable outlook.
According to a previous World Bank report, Iraq remains committed to pursuing stability and sustainable growth, despite the significant challenges it has faced in recent years, including the war against terrorism and economic fluctuations.
The government has focused on rebuilding infrastructure, improving public services, and pushing forward economic reforms, supported by international partnerships aimed at promoting sustainable development and human capital development.
The World Bank noted that Iraq’s oil-based growth model has been a major source of economic instability, limiting its ability to achieve stable growth and sustainable development. Continued reliance on oil revenues makes the Iraqi economy more vulnerable to risks amid the accelerating global shift towards reducing carbon emissions.
The bank explained that Iraq is among the countries most exposed to the effects and shocks of climate change, both in terms of physical risks, such as rising temperatures, water scarcity and extreme weather events, and in terms of financial vulnerabilities that exacerbate these challenges.
Want to Support My FX Buddies?
.png)
Support My FX Buddies Big or Small I appreciate it all
BuyMeACoffee CashApp:$tishwash
https://paypal.me/tishwash
.jpeg)
International forum to support investment companies
On the sidelines of the Baghdad International Fair, the capital, Baghdad, witnessed the launch of the International Business Forum, with the participation of representatives of government agencies, the banking sector and international institutions, along with leaders of the private sector, to discuss investment opportunities and facilities provided to foreign companies in Iraq.
During the opening session, the head of the National Investment Commission, Haider Mohammed Makkiya, announced that the total volume of investments in Iraq had risen to $104 billion, distributed as $67 billion in foreign investments and $37 billion in local investments, an increase of $2 billion during the past four months, in an indicator that reflects the growing confidence of investors and the transition of the investment landscape to a more stable and mature stage.
Iraq's investment environment
Regarding the forum, the Prime Minister’s financial advisor, Dr. Mazhar Muhammad Saleh, said that the investment environment in Iraq still suffers from the existence of inactive and stagnant laws within the structure of the economy, indicating that they constitute a deterrent factor to investment and limit opportunities to attract foreign companies.
Saleh added, in an interview with Al-Sabah, that international organizations had previously presented their visions to address these problems according to clear legislative frameworks, noting that activating or amending just one law within the House of Representatives could make a real difference in the reality of economic performance.
He stressed that reforming these laws would transform Iraq into an attractive market for international companies possessing technology and capital, emphasizing the importance of the legislative role of the House of Representatives in creating a stable and stimulating environment. For investment and economic development.
Efforts behind success
The Chairman of the Board of Directors of the American-Arab Chamber of Commerce, David Hamoud, praised the great and concerted efforts that stood behind the success achieved by the Baghdad Fair, expressing his pride in being present at this economic event that is being held on land that carries a deep historical and cultural significance.
Hammoud explained to Al-Sabah that the Chamber's representation of the American private sector stems from the conviction that capital always seeks safe opportunities, stressing that security and the rule of law constitute The foundation of any successful investment.
He added that this participation contributes to conveying a new and positive image of Iraq after the transformations it has witnessed in the past period, noting that the United States includes states specializing in different economic fields.
He stressed that a growing number of American businessmen are showing a genuine desire to work within the Iraqi market, noting that the Chamber is working to connect these opportunities and achieve partnerships that serve the interests of both sides.
International standards
Meanwhile, the representative of the International Trade Centre, Devka Rajiv, saw that the reform process in Iraq is moving towards conformity with international standards in various economic sectors and joints, explaining that this trend forms an important basis for improving the business and investment environment.
Rajiv explained to Al-Sabah that Iraq has made significant and important progress towards joining the World Trade Organization, reflecting the seriousness of government institutions in modernizing economic and trade systems and aligning them with international requirements. She pointed out that the Investment Authority plays an active role in encouraging investment by reviewing existing laws and legislation and intervening to develop them in line with the needs of international companies and contributing to creating an attractive and stable environment for foreign investments.
Customs work automation
The Director General of the Iraqi General Authority of Customs, Dr. Thamer Qasim Dawood, pointed out that the adoption of automation in customs work has greatly contributed to serving investment companies operating in Iraq, by facilitating procedures and speeding up the completion of transactions, stressing that all border crossings have become fully automated, with the adoption of electronic systems in recording customs work.
Daoud told Al-Sabah: “The customs clearance and payment processes are carried out electronically according to modern systems, most notably the ASYCUDA system, which ensures transparency and accuracy. He stressed that the authority prevents any illegal exemptions in cooperation with the competent authorities.”
He added that approvals are issued within moments upon completion of the requirements, indicating that Iraqi law is among the best laws supporting the investment sector.
outskirts of major cities
In a related context, Dr. Mohamed Hassan El-Sayed, representative of the Ministry of Planning, said: The ministry is currently moving towards the outskirts of major cities to prepare areas designated for investments, indicating that this is a step aimed at attracting investors and relieving pressure on city centers.
In an interview with Al-Sabah, Mr. Al-Sayed pointed out that this approach comes within an integrated plan to create a suitable investment climate that achieves optimal use of available resources, explaining that the ministry encourages investment in the governorates by establishing economic and industrial cities in areas outside the cities, due to their role in supporting future economic projects.
He added that these cities will contribute to development and re-export, stressing that the main goal is to achieve integration between the public and private sectors.
International data
Meanwhile, the head of the International Chamber of Commerce branch in Iraq, Mohsen Al-Humaid, stated that the Chamber is working to encourage foreign companies to enter the Iraqi market, relying on three international factors that contribute to creating a safe and attractive investment environment. He explained that one of the most prominent of these factors is the International Arbitration Center, which guarantees the preservation of the rights of all working parties and enhances confidence in commercial and investment transactions.
Al-Humaid told Al-Sabah: “The Chamber has a special platform for direct communication with international companies, which aims to facilitate partnerships and build effective cooperation channels between the Iraqi private sector and its international counterpart, in order to support investment and enhance the presence of foreign companies in Iraq.”
Banking development
In addition, the representative of the Central Bank of Iraq, Ahmed Dawar Salman, pointed out that the bank has achieved an important financial accomplishment by strengthening its relations with a number of international institutions and bodies, stressing that this has contributed to the development of banking work and raising the level of international confidence in the Iraqi financial sector.
Salman added to Al-Sabah that the procedures for financial transfers are witnessing greater smoothness in terms of safety and accuracy of transfer operations, which has encouraged global banks and international banks to express their desire to be present and work inside Iraq. He added that cases of delay in transfers are mostly due to a lack of some auditing requirements, as the Central Bank is keen to adhere to international standards to ensure transparency and financial stability.
Open visions
Meanwhile, economist Khalid al-Jabri considered the conference an opportunity for a meeting between official Iraqi economic and commercial channels (the Customs Authority, the Tax Authority, the Registrar of Companies, the Central Bank, and some banks) with the aim of highlighting the strength of the improvements made over the past three years in economic activity.
Al-Jabri continued, in an interview with Al-Sabah, that the improvements are generally good, but added that there is still a long way to go to continue the necessary reforms.
He pointed out that the Iraqi economy suffers from a fragile structure and needs a set of legislations and amendments, explaining that the country changed its political system after 2003, but its administrative system did not change, which caused a clash between the democratic political system and the multiplicity of decision-making authorities from parliament to judiciary to central bank to monetary policy.
He added that open visions are incompatible with the totalitarian vision with which the administrative and economic laws were written before 2003, which left a fundamental distortion and negatively affected the economic movement and created a continuous clash between the Iraqi private sector, which operates with the market economy and its methodology, and the laws that operate with the central totalitarian system.
Openness to the world
Nidal Sharaan, representative of the Saudi pavilion, confirmed that the impression formed by the delegation confirms that Iraq has a genuine desire to open up to the world.
He indicated that this approach could constitute a real starting point towards achieving sustainable economic development.
He stated that participation in the Baghdad International Fair provided important opportunities for direct communication with relevant parties, revealing that several understandings were discussed with representatives of the Iraqi private sector, paving the way for future cooperation and building partnerships. It serves common interests.
Baghdad merchants' strike paralyzes trade in protest against increased customs tariffs
On Sunday morning, Iraqis woke up to an unusual sight in the streets of the capital, Baghdad, as markets and shops appeared completely closed, in a general strike carried out by merchants in protest against a government decision to raise customs tariffs.
Major commercial areas such as Al-Shourja, Al-Rashid Street, Al-Karrada, Al-Rabeei, Al-Sina’a, and Jamila witnessed an almost complete closure of shops, while a number of merchants went out in demonstrations in the middle of Al-Shourja, demanding a reversal of the decision, which they described as “suffocating,” due to the sharp rise in commodity prices and the decline in citizens’ purchasing power that it caused.
Traders confirmed that the decision led to a major recession in the markets and increasing financial losses, which prompted them to escalate the strike, indicating their intention to continue the closure until the government responds to their demands to open a serious dialogue and review the customs tariff in a manner that is appropriate to the difficult economic conditions.
This strike comes days after warnings issued by traders about the consequences of implementing the decision, which prompted citizens yesterday, Saturday, to rush to the markets to buy food and consumer goods, fearing price increases or shortages in supply.
While some economic voices blame this decision for the accumulation of goods at ports and the disruption of trade, official sources maintain that the customs increase has generated significant revenue, a move aimed at bolstering the public treasury. However, as the crisis worsens, calls have grown louder to expand the strike to other governorates if immediate action is not taken.
The Central Bank Governor visits the Iraqi House and renews his support for humanitarian initiatives.
During his visit, His Excellency was briefed on the services provided by the Iraqi House to children without guardians. The House takes them in from an early age, nurturing and caring for them, and providing them with academic and vocational training. It also secures employment opportunities for them in both the public and private sectors, contributing to their integration into society and their economic empowerment.
He noted that a number of the children from the House have successfully completed their university studies at prestigious colleges, including medicine, dentistry, pharmacy, and engineering, a true testament to the success of the sustainable care model adopted by the Iraqi House for Innovation.
His Excellency commended the positive results achieved by this initiative and pledged sufficient support to meet the institution's essential needs, as well as those of the elderly care home currently under construction.
The visit included a tour of the facility, during which the governor met with the elderly residents and toured its various amenities, including children's play areas, restaurants, and small businesses run by the sons of Professor Hisham Al-Dhahabi. These businesses serve as practical models of self-reliance and skills development.
During the visit, Mr. Al-Alaq affirmed his full financial and moral support for this humanitarian institution, praising the efforts made in caring for vulnerable groups and emphasizing the importance of partnerships between official institutions and community initiatives in promoting social solidarity and achieving sustainable development.
Media Office,
February 7, 2026
To enhance economic cooperation, Erbil hosts the "Investment Roundtable" between the Kurdistan Region and the Kingdom of Saudi Arabia.
The "Kurdistan Region-Saudi Arabia Investment Roundtable" will kick off in the capital Erbil on Sunday, February 8, 2026, hosted by the Rotana Hotel, with the aim of strengthening trade partnerships and opening new horizons for Saudi investments in the region.
The forum begins with welcoming remarks delivered by Dr. Mohammed Shukri, Head of the Investment Authority in the Kurdistan Regional Government, and Azzam Mohammed Abdul Latif, Director of the Commercial Representation Office at the Consulate of the Kingdom of Saudi Arabia in Erbil, to highlight the depth of bilateral relations and the shared desire to develop the investment sector.
The program includes a presentation under the slogan "Invest in Kurdistan," which will feature a short film about the business environment in the region, as well as a detailed presentation by the Foreign Direct Investment (FDI) unit about incentives and promising sectors.
A "Government Roundtable" session will also be held to answer questions related to policies and procedures, where the regional government ministries will provide an overview of the services and facilities they offer to support foreign investors and remove obstacles to major projects.
The forum will dedicate significant space to "business dialogue," providing an opportunity for Saudi and Kurdish companies to showcase their activities, with a particular focus on Saudi companies to present their interests and aspirations in the regional market. The forum will also feature bilateral networking sessions to exchange project proposals and explore opportunities for direct collaboration.
The meeting is scheduled to conclude with a closing speech by Safeen Dizayee, Head of the Department of Foreign Relations in the Kurdistan Regional Government, summarizing the results of the discussions and outlining the roadmap for future economic cooperation between the two sides.
**update
I don't think this is a big deal but I will still be researching
The Electoral Commission announced today, Sunday (February 8, 2026), the approval of former MP Hassan Al-Khafaji as an alternative MP in the House of Representatives for the current Prime Minister, Mohammed Shia Al-Sudani, as the latter did not take the constitutional oath as an MP.
The Sudanese MP resigns from parliament, and a replacement is "preparing".
I don't know exactly what this means yet, it's only been out for an hour just wait
text of the document
General Secretariat of the Council of Representatives / Department of Parliamentary Affairs
Subject: Replacement Candidate
The Independent High Electoral Commission extends its best regards.
With reference to your letter No. (1622/9/1) dated February 1, 2026, and based on the decision of the Board of Commissioners No. (2) of the regular meeting (5) dated February 8, 2026.
We would like to inform you that the candidate following Mr. Mohammed Shiaa Sabbar Hatem Al-Sudani in the number of votes in the 2025 Iraqi Council of Representatives elections (within the Reconstruction and Development Coalition) is Mr. Hassanein Qasim Mohammed Khalaf Al-Khafaji, with sequence number (26) for Baghdad Governorate, and with (7330) votes.
With appreciation.
The outgoing Prime Minister, Mohammed Shia al-Sudani, relinquished his membership in the House of Representatives on Sunday, after winning the recent elections.
A parliamentary source told Shafaq News Agency that "Al-Sudani has relinquished his membership in the House of Representatives, and his replacement is supposed to take the constitutional oath in tomorrow's parliamentary session, Monday."
Al-Sudani had won the elections held in October 2025, personally receiving more than 92,000 votes, while his coalition as a whole achieved more than 400,000 votes, amounting to 46 seats.
In addition to al-Sudani, Nouri al-Maliki, the head of the State of Law Coalition, has not yet taken the constitutional oath, after also winning the elections.
An economist warns that the strike in local markets is a harbinger of disaster.
Al-Ansari told Al-Furat News Agency: “Many of the words that citizens need in their daily transactions, in addition to many services, have stopped today, and this is a disaster.”
He explained that "the codes for the materials were not based on global prices and market tariffs, but rather on higher estimated prices, which will affect the smooth arrival of goods to the Iraqi citizen at a normal price."
Al-Ansari added that "the Iraqi economy does not need such shocks that affect trade," noting that "the GDP does not exceed 20%, and therefore these decisions should be reviewed, and the tariff should be converted to electronic, and then the increases should be started gradually and not at a rate of 100% or 200%."
He pointed out that "the 'Skoda' program, which is a software system approved by the United Nations, calculates customs tariffs electronically and provides estimated prices for materials, which prevents inflation of the invoice value," noting that "previously there was currency smuggling through forged invoices for every imported commodity."
Al-Ansari stressed that “implementing the system is a good thing, but the sudden increase in prices and its timing was wrong and unsuccessful,” explaining that “the Skoda system identifies goods by means of an electronic code that cannot be tampered with and provides an accurate calculation of the value of customs and taxes for each imported commodity.”
On Sunday, a number of commercial centers, especially in the capital Baghdad, witnessed widespread closures of shops in key areas such as Al-Shourja, Al-Rashid Street, Al-Karrada and Al-Sina’a, in protest against the increase in customs tariffs.
Parliamentary move to summon Al-Sudani and the Minister of Finance
Member of Parliament, Mohammed al-Khafaji, revealed on Sunday a parliamentary move to summon Prime Minister Mohammed Shia al-Sudani and Finance Minister Taif Sami to Parliament to discuss the current financial crisis.
Al-Khafaji told Al-Maalouma, “There is an urgent need to summon those concerned to understand the repercussions of the financial crisis the country is experiencing and to develop effective solutions.”
He added, "The summons also aims to discuss the constitutional violations committed by the Cabinet, represented by making strategic decisions and signing contracts that exceed the powers of a caretaker government." He pointed out that "the Constitution defines the government's duties at this stage, and any action outside this framework is a legal violation that necessitates accountability and parliamentary oversight."
The US Treasury is pursuing Iranian funds.
The US Treasury Department announced on Sunday that it is intensifying its efforts to track Iranian funds.
The Treasury stated in a brief statement that the Iranian regime is transferring funds abroad to escape inflation.
Tensions between Iran and the United States have escalated recently, with both sides exchanging threats and warnings. This comes as the US Department of Defense (the Pentagon) released its National Defense Strategy for 2026 on January 24, which stated that "Washington believes Iran may attempt to acquire nuclear weapons, including by refusing to negotiate its nuclear program."
The current round of indirect negotiations between Iran and the United States ended temporarily last Friday in the Omani capital, Muscat.
Iranian Foreign Minister Abbas Araqchi confirmed earlier on Sunday that his country does not seek war, but is prepared for it if it is imposed on it, while stressing Tehran's commitment to the diplomatic path and its rejection of any external dictates.
This came in conjunction with Iranian President Masoud Pezeshkian's assertion that "the Iranian people respond to respect with respect, and do not accept the language of threats or the use of force."
A "rare" meeting of the State Administration Coalition with the participation of Maliki, Sudani and Bafel Talabani
The State Administration Coalition held an expanded meeting today, Sunday (February 8, 2026), in which the head of the State of Law Coalition, Nouri al-Maliki, the Prime Minister, Mohammed Shia al-Sudani, and the head of the Patriotic Union of Kurdistan, Bafel Talabani, participated, to discuss the latest political developments in the country and the course of understandings between the forces participating in the coalition.
According to a Baghdad Today correspondent, the meeting witnessed extensive discussions on outstanding issues between political forces, and mechanisms to enhance coordination between the caretaker government and the coalition forces, in order to ensure the stability of executive and legislative work, and to proceed with issues of priority to the citizen.
According to our correspondent, the attendees stressed the importance of maintaining the unity of the State Administration Coalition’s position and addressing any problems through internal dialogue, as well as emphasizing the need to support steps in economic and service-related matters and to fortify the internal political situation against regional and international challenges.
The coalition has not held a meeting at this level for several months, making this meeting a rare one in terms of timing and the nature of the attendees, amid frequent talk of differences in visions among its members regarding a number of political and economic issues.
An economist says budget reform has been stalled since 2009 and the crisis will take a long time to resolve.
Nouri explained to Al-Furat News Agency that: “The International Monetary Fund has proposed reforms since 2009 based on reducing dependence on oil revenues, regulating government privileges and subsidies, and diversifying non-oil revenues; however, these measures have not been effectively implemented.”
He added that "diversifying non-oil revenues is achieved through activating tax and customs revenues, supporting local production in the industrial, agricultural and tourism sectors through partnership between the public and private sectors, in addition to intensive investment in clean energy to reduce dependence on oil."
Nouri pointed out the "need to regulate the operational budget, especially the spending of the three presidencies, as it accounts for high percentages that have contributed to creating a gap between citizens with limited income and the unemployed."
The expert stressed "the importance of activating the sovereign wealth fund for investment from budget implementation surpluses after legalization, with the aim of achieving financial sustainability, in addition to activating the export support fund and encouraging small and medium enterprises as a fundamental pillar for reviving the economy."
Government advisor: New economic strategies to boost non-oil sectors and empower youth
Saleh told Al-Furat News Agency that: “Iraq seeks to revitalize non-oil sectors, such as agriculture, manufacturing, trade, and religious tourism, taking advantage of the country’s natural and human resources and strategic geographical location.”
He pointed out that “government plans include supporting the private sector and enabling it to play a greater role in economic development, by facilitating investment procedures, improving the business environment, and encouraging partnerships between the public and private sectors, in addition to supporting small and medium enterprises, which are considered a key driver for generating job opportunities, including granting sovereign guarantees for the first time to private sector projects.”
On the financial side, the economic advisor affirmed that “the government is working to improve the management of public resources, diversify non-oil revenues, reduce waste in spending, and reform the tax and customs system in a way that ensures financial sustainability without negatively affecting the economic triangle (government, merchant, consumer).”
Saleh added that “unemployment, especially among young people and graduates, represents one of the most prominent economic and social challenges,” explaining that “the government has linked education and training programs to the needs of the labor market, strengthened vocational and technical education, and encouraged employment in the private sector through financing initiatives for young people and the establishment of the Riyada Bank to support emerging projects and self-employment.”
The advisor concluded his remarks by emphasizing that "these measures aim to stimulate economic activity and absorb young energies, thus contributing to creating broader opportunities for growth and development."
Al-Abadi suggests to Al-Maliki that he withdraw after being tasked with forming a government, so as not to give the Americans credit.
The Victory Coalition, led by Haider al-Abadi, suggested on Sunday to Nouri al-Maliki, head of the State of Law Coalition, that he proceed with his candidacy for the position of Prime Minister, and withdraw after being assigned by the President of the Republic, in order to preserve sovereignty and not have his withdrawal considered a response to the American side, since the withdrawal will come after the assignment.
Ibrahim al-Sultani, a member of the Victory Coalition, stated in an interview with Al-Ahd TV, that “when the American position (Trump’s tweet) was issued, I am sure that Mr. Maliki, with his exceptional political mind, has an idea of what will happen if he insists on proceeding with the nomination process.”
He added, “As a citizen, I say that in order to preserve sovereignty, we should proceed with Mr. Maliki by assigning him after he is named President of the Republic, and then Mr. Maliki should influence himself to withdraw, or the coordination framework should begin to reconsider so that matters come out within the framework of preserving sovereignty and also preserving the coordination framework.”
Al-Sultani continued, “I firmly believe that if we cling to al-Maliki without taking into account the opinions of the key pillars of the framework, such as Sheikh al-Khazali and Mr. Ammar al-Hakim, who have large blocs and influence on the street, then I believe that if we insist on this, it will greatly affect the coordination framework.”
