Economist: Markets will face a recession during Eid due to weak purchasing power
Nouri explained in an interview with Al Furat News Agency that "most citizens are low-income, low-level employees, and covered by social welfare, which affects the level of spending in the markets."
He also predicted that "the dollar exchange rate will decline on the parallel market in the coming period, due to low demand for purchases."
Local markets are experiencing an economic slowdown as the Eid season approaches, with economic experts pointing to the possibility of a recession due to weak consumer purchasing power.
This decline is attributed to several factors, most notably the rising cost of living and declining real income, which has negatively impacted buying and selling activity.
Iraqi News for THU MAR 13 25
Parliamentary Finance Committee: Privatization is the optimal solution to fully collect taxes.
Jamal Kocher, a member of the Parliamentary Finance Committee, emphasized that "tax collection is a fundamental resource for the state in all countries of the world, but its collection in Iraq remains very weak." He emphasized the need to "establish a comprehensive government program to ensure full collection of tax revenues and to explore new alternatives that depart from old mechanisms."
"There are several points that must be taken into consideration in this context," Koger said in an interview with the official newspaper, as followed by "Al-Eqtisad News." "The first is to establish a clear government program to collect taxes in full. The second is to search for alternatives to traditional mechanisms. The third is to provide incentives for those who collect taxes as well as those who pay them. Finally, privatization represents the optimal solution to collect taxes in full."
He added, "Privatization will help the government in two key areas: first, reducing the burdens associated with appointments, and second, reducing operating expenses." He emphasized that "these mechanisms, if implemented in practice, could yield significant positive returns."
Regarding the expected revenues from these reforms, Kocher explained, "It depends on the mechanism the government will adopt. If it moves toward privatization, this means that the ministries' budgets will be separated from the government, which will boost the state's revenues and reduce its financial burdens."
The Kurdistan Region Investment Board opens the door to more American investments.
The US Consul General in the Kurdistan Region announced today, Thursday (March 13, 2025), that he had discussed with the Kurdistan Region Investment Board attracting more American investments to the region.
A statement from the consulate stated that US Consul General Steve Bittner met with Mohammed Shukri, Chairman of the Kurdistan Region Investment Commission, to discuss priorities for attracting US private sector activities to the Iraqi market and bringing more US technology to the Kurdistan Region.
Earlier, the Investment Authority stated in a statement that its chairman, Mohamed Shoukry, met with the US Consul General with the aim of attracting more US investment to the region.
The Commission noted that the meeting discussed joint coordination between the Kurdistan Region and the United States regarding investment activities. The two sides also emphasized the development of economic relations, trade exchange, and joint work.
Experts: E-commerce supports the national economy and startups.
The Cabinet's announcement of the issuance of the "E-Commerce Regulatory System" was widely welcomed in economic circles. This system aims to establish a clear legal framework regulating online buying and selling. This decision is part of the government's efforts to foster a safe and regulated digital environment that supports electronic payments and guarantees the rights of all stakeholders. This will contribute to expanding the scope of digital commerce and taking it to a more advanced level.
Finance and development expert Dr. Aqeel Jabr Al-Muhammadi confirmed to Al-Sabah that the issuance of this system represents a qualitative step towards stimulating electronic payment and guaranteeing consumer rights. He pointed out that it will encourage stores and digital platforms to register officially and adhere to consumer protection standards. He also explained that this regulation contributes to providing a more flexible competitive environment for producers, marketers, and e-stores, which enhances From market dynamics.
Al-Muhammadawi pointed out that adopting electronic payments as a fundamental part of this system will be subject to the supervision of the Central Bank of Iraq, ensuring the control and regulation of digital financial transactions. This regulation also opens the way for linking the Iraqi e-market with Arab and global markets, enhancing opportunities for digital trade exchange.
Economists believe that the "e-commerce regulatory system" not only regulates markets and protects consumers, but also represents a real opportunity to support the national economy, particularly startups and entrepreneurs, by encouraging investment in modern financial technologies. According to Al-Muhammadawi, this regulation lays a solid foundation for an integrated digital market in accordance with international standards, helping integrate new business operations into the national economy.
This system also enhances official recognition of online business activities, including e-marketing and digital business process management, in addition to providing advanced electronic means for displaying products and services. Through the use of applications, commercial websites, and social media, buying and selling processes will be facilitated, while e-governance and operations management will be improved according to the latest technical systems.
Earlier, the Association of Private Banks emphasized that regulating e-commerce is an urgent necessity to control digital markets and protect consumers, especially with the increasing incidence of fraud associated with online shopping.
In a related context, Al-Muhammadi stressed the importance of supporting e-commerce intermediaries, given their pivotal role in facilitating and connecting e-commerce and economic transactions. He explained that these intermediaries contribute to enhancing e-payment tools and achieving integration between e-stores and consumers, which helps complete the cycle. Digital business operations.
It is expected that the regulation of e-commerce will have a positive impact on economic market growth indicators by enhancing the added value of the gross domestic product (GDP) and achieving broader integration between the various components of the digital economy, thus providing a favorable environment for the development of the e-commerce sector in Iraq.
For his part, Mustafa Akram Hantoush, a financial and economic expert, pointed out that e-commerce in Iraq now provides thousands of jobs through online applications, enabling citizens to earn good profits that cover their daily expenses. He praised the government's steps to regulate this trade through dedicated platforms that guarantee the rights of all parties, explaining that the legal and financial regulation of this sector will contribute to its development and increase the volume of digital transactions.
In the same context, Ghazi Al-Kinani, advisor to the Global Smart Card Company, emphasized that the government's decision to regulate the e-commerce market is extremely important, especially given the significant expansion witnessed in this sector in Iraq during the recent period. He explained to Al-Sabah that e-commerce has become a vital, competitive sector that requires continuous development to keep pace with global changes.
Al-Kanani pointed out that the expansion of e-commerce operations in Iraq reflects the country's ability to keep pace with global developments in this field, in addition to providing job opportunities for a wide range of youth in various specializations, which contributes to improving the situation. Economic for Iraqi families.
The Association of Private Banks organizes a dialogue session to discuss the latest developments in the banking sector in Iraq.
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Tehran: Electricity exports to Iraq continue
The CEO of the National Iranian Electricity Company (Tavanir) said that electricity exports to Iraq are continuing due to the existence of a contract between the two countries in this regard.
In a statement to the Iranian ILNA news agency, Mostafa Rajabi Mashhadi said, regarding the US revoking Iraq's exemption from sanctions for electricity imports, "Given the existence of an electricity export contract between the two countries and the remaining period of this commitment, Iraq will continue to import electricity from Iran under the signed contract."
He stressed: "Electricity exports to Iraq will continue, and naturally the priority is to provide electricity within the country."
The CEO of the National Iranian Electricity Company indicated that electricity exports are being exported off-peak and based on commitments.
Regarding Iran receiving its electricity export payments to Iraq, he said, "According to negotiations between the two countries, it was decided that the debts due for the past few months would be paid as soon as possible, and a portion of them were paid last month."
Rajabi Mashhadi also revealed that negotiations on electricity trade with Türkiye and Russia are ongoing and will be finalized in the near future
Net foreign investment into Iraq declined by 48%.
The Iraqi Statistical Office issued an official report stating that net foreign investment into Iraq fell from $2.9 billion in the second quarter to just $1.5 billion, a decline of 48%.
Foreign direct investment plays a pivotal role in strengthening the Iraqi economy, as it contributes to reducing dependence on the state for foreign currency, in addition to supporting vital economic sectors, according to economic expert Manar Al-Obaidi.
Meanwhile, the Iraqi government announced that net foreign direct investment over the past two years amounted to $63 billion, which contradicts official data released by the Iraqi Statistical Office.
Baghdad faces the challenge of balancing between Washington and Tehran
The United States is actively seeking to reduce Iran's influence in Iraq, a point clearly highlighted by Washington's recent decision to halt the renewal of the US waiver that had allowed Iraq to import electricity from Iran.
This decision, which appears to be economic on the surface, carries deep political messages aimed at weakening relations between Baghdad and Tehran.
Expert analyses indicate that the US is exploiting Iraq's reliance on Iranian energy—which constitutes approximately 30% of its total electricity needs, according to recent statistics from the Iraqi Ministry of Electricity—as a lever within its "maximum pressure" strategy against Iran.
In this context, Iraq finds itself between the hammer of American pressure and the anvil of the need to stabilize its relations with Iran.
Sources said that Iraqi Prime Minister Mohammed Shia al-Sudani faces a major challenge in striking a balance between the two sides, especially with the ongoing intensive contacts with Washington, which seeks to influence his decisions without completely severing lines.
Analysts have suggested that these contacts may be an attempt to push Sudan toward energy alternatives away from Iran, such as electricity interconnection projects with Gulf states, which are still in their early stages.
On the other hand, Iraqi citizens believe this decision threatens their daily lives. An Iraqi citizen from Baghdad, Umm Muhammad, wrote in a Facebook post: "We suffer from long hours of power outages, and now they want to cut it off completely. We are victims of their policies."
This sentiment reflects a bitter reality, as a 2022 World Bank report indicated that 70% of Iraqis rely on private generators due to chronic energy shortages.
Ali al-Husseini, a Basra resident, said, "The Iraqi government is incapable of finding solutions, and each party is using Iraq as an arena to settle their scores." Meanwhile, a tweet on the X platform from a political analyst's account read, "Washington is turning Iraq into an arena for conflict with Iran, but the Iraqis will pay the price."
According to circulating information, this decision could exacerbate the economic crisis, as experts expect energy costs to rise by 20% if an immediate alternative is not found.
Sources have indicated that relations with Washington and Tehran will be a decisive factor in the upcoming Iraqi elections in 2025.
A political source in Baghdad said, "The crisis could be exploited by opposition parties to criticize the government and win the votes of voters angry about the power outages."
Social researcher Haider Al-Tamimi from Karbala said, “Frustration may push people to vote against the current parties if the situation continues as it is.”
Analysts expect the coming months to witness an escalation in US pressure, possibly with the imposition of new sanctions on energy companies linked to Iran.
Hassan al-Kaabi, a teacher from Najaf, wrote on Facebook: “If Iraq does not succeed in developing its energy infrastructure within two years, it may become a further hostage to the US-Iran conflict.”
Economist: Operating expenses and pensions are challenges that require strengthening the private sector
Financial and banking researcher Mustafa Hantoush confirmed on Thursday that operating expenses and retirement are challenges that require strengthening the role of the private sector.
Hantoush said in a statement to Al-Maalouma Agency, “Iraq is able to pay employee salaries, as more than 3.3 million barrels of oil are exported daily at prices exceeding $50 per barrel.”
He pointed out that "the problem does not lie in securing salaries, but rather relates to the challenges associated with operating and investment expenses, which requires addressing them seriously."
He explained that "the domestic debt has reached 83 trillion dinars, which necessitates opening the way for the private sector to enable young people to obtain real job opportunities."
He added that "the stability of the labor market depends on the presence of a strong private sector, especially with the referral of large numbers of employees to retirement in the absence of new appointments," warning that "the continuation of the current situation may lead to an exacerbation of the crisis, which requires adopting effective strategies to support the private sector as a sustainable solution."
A politician warns of the repercussions of Al-Kadhimi's return... he carries an American agenda.
Abdul Hamid al-Dulaimi, a member of the United Anbar Alliance, warned on Friday of the repercussions of the return of former Prime Minister Mustafa al-Kadhimi, describing him as carrying an American agenda that does not serve the people's interests.
In a statement to Al-Maalouma Agency, Al-Dulaimi said, "Former Prime Minister Mustafa Al-Kadhimi represents the last American card for Iraq, as he has clear plans to create widespread chaos in Iraq by fueling demonstrations to destabilize the country's security and stability for reasons that have become known to everyone, in addition to spreading political differences between the poles of the political process and planting a spirit of division among its components by strengthening the regional government over the center."
He added, "Al-Kadhimi's return to Baghdad carries within it American agendas, the outlines of which will become clear in the coming period, amid warnings from political and security sources of the repercussions of his return and its negative impact on the political process." He indicated that "Al-Kadhimi is working to attract the Sadrist movement by all means to strengthen his front and the illusions of those affiliated with the movement that his plan is in the interest of Iraq."
Finally, Al-Dulaimi stressed that “America follows a policy of planting its spies inside countries to implement its agenda as it deems appropriate for the interests of its country.”
MP Ali Shaddad sets the expected date for the budget tables to reach the House of Representatives and confirms that disagreements still exist.
Member of the Iraqi Council of Representatives, Ali Shaddad, said on Friday that amending Article (12) of the Budget Law for the three years (2023, 2024, 2025) is the reason for the delay in the current year's budget schedules reaching the Council of Representatives.
Shaddad expected the amendment of this controversial article between Baghdad and Erbil to be completed, and for the schedules to reach the Council of Representatives for discussion by the end of this March.
He pointed out that Article (12) of the Budget Law, which is being amended by the Council of Ministers, relates to the costs of producing the region's oil.
Shaddad explained to Noon News Agency that Article (12) indicated that the cost of producing and transporting one barrel of crude oil in the region amounts to $6, while the regional government believes that this amount is much less than the actual costs, due to the mountainous nature of the northern oil sites.
He pointed out that the region is also demanding an increase in its share of local fuel consumption, indicating that the central government and the Ministry of Oil do not have the authority to make this increase without referring to the Council of Representatives.
Shaddad hinted at internal and external pressures being exerted to expedite a final agreement to pass the budget and resume the region's oil exports via the Turkish port of Ceyhan.
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