Vice President of the American Chamber of Commerce: The Treasury Department will play a role in developing the Iraqi economy.
The Vice President of the U.S. Chamber of Commerce, Steve Lutes, confirmed on Wednesday that the Treasury Department will play a role in developing the Iraqi economy. Meanwhile, the head of the Iraqi Economic Council stated that the country is much better off economically today than in previous years.
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"Our visit to Iraq is the largest visit by businessmen from various sectors from the United States of America," Lotus said during a press conference attended by a Shafaq News Agency correspondent.
He added, " Iraqi Prime Minister Mohammed Shia al-Sudani is working to establish partnerships between Iraqi and American companies to develop Iraq's industrial and economic sectors."
He added, " The US Treasury and the US Chamber of Commerce appreciate the joint cooperation efforts between Iraq and America to develop the economy."
For his part, Ibrahim al-Baghdadi, head of the Iraqi Economic Council, emphasized during the conference that "the recent years following liberation have unfortunately witnessed a significant decline in education in Iraq. However, I hope that it will develop again with the presence of the American University, to save education, and this is considered a lifeline for Iraq."
He stressed that " we cannot forget the role of the United States in liberating Iraq from dictatorship, and that the United States is the world's leading nation in various fields and is the one who has the credit for Iraq after its liberation."
He pointed out that " the visit of the American delegation, consisting of more than 100 individuals and more than 60 American companies, is evidence of the progress made in relations to develop the Iraqi economy," adding that "two days ago, we launched the Private Sector Development Council, headed by Prime Minister Mohammed Shia al-Sudani, the First Vice President, the Minister of Planning, and the Second Vice President."
He explained that "Iraq today is better than it was decades ago, and we welcome any company that wants to work in Iraq to develop the Iraqi industry and economy."
Kirkuk's billion-dollar deal: Details of the purchase of 20 Tahoe, Land Cruiser, and Lexus vehicles
Kirkuk Provincial Council Chairman Mohammed Ibrahim Al-Hafez revealed on Wednesday the details of the purchase of 20 Tahoe, Land Cruiser, and Lexus vehicles for members of the provincial council, the governor, and his two deputies.
Al-Hafez explained to Shafaq News Agency, "The Kirkuk Provincial Council and the Kirkuk Governor submitted a list dedicated to purchasing vehicles, not only for council members, but also jointly with the governor and his deputies, and within the established legal frameworks."
He added, "The submitted list includes 15 Tahoe vehicles, in addition to two armored Tahoe vehicles, two Land Cruisers, and one Lexus vehicle, which are allocated to the council members, the governor, and his deputies."
Al-Hafez pointed out that "this project has been fully approved by the Ministry of Planning and the Ministry of Finance, with the funds allocated from border crossing revenues, with a 180-day preparation period and official approval."
Al-Hafez confirmed that "the company that supplied the vehicles has begun delivering the first batch, which includes eight Tahoe, Lexus, and Land Cruiser vehicles. Seven vehicles were distributed to members in the first phase, while the remaining vehicles will be distributed to members who have not yet received their vehicles."
Al-Hafez added, "What was circulated in some media outlets was inaccurate, and the goal of raising this issue was clear: to target the council and obstruct administrative work aimed at providing the best services to the people of Kirkuk, from all its components."
Al-Hafez compared the current government to previous governments, noting that "the current Kirkuk government, operating under difficult circumstances with a limited budget, faces significant challenges compared to previous governments that had huge budgets and were able to transform Kirkuk into one of the most developed cities in the region."
Some social media sites circulated news about contracts to purchase these vehicles, which cost approximately 2 billion and 629 million dinars, for members of the Kirkuk Provincial Council.
With the possibility of external financing, Iraq signs two memoranda of understanding with the United States on electricity and trade.
Iraq signed two memoranda of understanding with the American Chamber of Commerce on Wednesday in the fields of electricity and trade, including the provision of external financing from international banks.
The media office of Iraqi Prime Minister Mohammed Shia al-Sudani said in a statement received by Shafaq News Agency, "Al-Sudani sponsored the signing ceremony of a memorandum of understanding, within the framework of the principles of cooperation with GE Vernova , which includes projects for combined-cycle gas-fired power plants with a capacity of approximately 24,000 megawatts, in a plan that is the largest and most modern in the history of Iraq, with the possibility of securing external financing from international banks."
“ Also, in the electricity file, Al-Sudani sponsored the signing ceremony of a second memorandum that included the principles of cooperation between the Ministry of Electricity and the UGTRenewable group to establish an integrated solar energy project with a capacity of 3,000 megawatts, battery energy storage systems of up to 500 megawatts/hour, modernizing electricity transmission and distribution lines, and establishing up to 1,000 km of new infrastructure for high-voltage direct current transmission, in addition to a two-year period of technology transfer, training, operation and maintenance, with financing from the US Export-Import Bank, the British Export Agency, and JP Morgan as the organizing bank,” he added.
The Prime Minister also sponsored the signing ceremony of a third memorandum of understanding between the Federation of Iraqi Chambers of Commerce and the American Chamber of Commerce, as part of strengthening and enhancing bilateral economic cooperation.
The statement continued, "The memorandum includes nine articles aimed at expanding communications between institutions, companies, organizations, and businesspeople in Iraq and the United States, strengthening existing economic, cooperative, scientific, and technological relations, and developing cooperation between small and medium-sized enterprises in the two countries."
Al-Nusairi confirms that the comprehensive banking reform project announced by the Central Bank will yield promising results.
Economic and banking advisor Samir Al-Nusairi confirmed that the banking reform project announced by the Central Bank is consistent with the methodology included and adopted in the government program and the Central Bank's third strategy for the years 2023 and 2024. It will yield promising results in cooperation with global consulting firms Ernst & Young, K2, and Oliver Wyman to build a transparent information base for comprehensive reform, starting with the banking sector as the first essential link in the economy. Without a sound, solid, and modern banking sector, a strong and robust national economy cannot be built.
Al-Nusairi pointed out that among the important initial results achieved is the commencement of the completion of the actual implementation of the plans drawn up during 2025 and 2026 for comprehensive reform, which are summarized in enhancing financial inclusion and achieving stimulating and sustainable returns for shareholders and investors, and the government and the Central Bank leading projects aimed at modernizing the private banking sector and meeting the needs of the transition to a rapidly growing national economy, creating a fair competitive environment in the banking market, and raising the level of private banks’ ability to confront risks and protect depositors and creditors, thus restoring confidence in the banking sector in general, as well as expanding digital transformation procedures, expanding and diversifying banking services and products, and complying with international standards.
Al-Nusairi pointed out that the above objectives, which were discussed yesterday at the Banking Reform Conference, are established as primary and secondary objectives in the Central Bank's third strategy for the years 2024-2026, and that work is being done on them with a steady, systematic approach, and that the objectives will be achieved in cooperation with Oliver and Eman at an accelerated pace in the years 2025 and 2026.
It is clear that the Central Bank, in cooperation with relevant authorities, will focus on the following: sharing with the private banking sector detailed criteria and timelines for implementing the reform process, activating support channels, and holding workshops to provide technical assistance. The Central Bank of Iraq is fully committed to achieving this transformation by working closely with all relevant stakeholders to pave the way for a strong, resilient, modern, and inclusive financial and banking system.
Abu Raghif: The next phase will witness unique opportunities in the fields of communications and digital transformation.
The Communications Commission's media office stated in a statement received by {Euphrates News} that "Abu Ragheef began the workshop with a speech in which he reviewed the regulatory body's responsibilities in the media and communications sectors, stressing Iraq's commitment to protecting freedom of expression and opinion and user rights, and promoting a transparent competitive environment that guarantees quality services and keeps pace with international standards."
The commission's chairman noted that "work is underway to adopt advanced oversight mechanisms to regulate the market, in line with applicable law and approved media regulations," emphasizing the importance of "balancing freedom of expression, content regulation, and intellectual property protection. He also affirmed the commission's commitment to media pluralism within the framework of the constitution and the law."
Abu Raghif also pointed out the authority's "openness to reputable international companies, particularly American companies, given their expertise in economic development and the transfer of modern technology."
He added, "The next phase will witness unique opportunities in the fields of communications and digital transformation."
At the conclusion of the workshop, the Commission's Chairman responded to inquiries and interventions from representatives of American companies regarding work mechanisms, regulatory legislation, facilitating procedures, and future partnership prospects, emphasizing the Commission's welcome of all initiatives that contribute to supporting the business environment and technological development in Iraq.
Government advisor: The dollar exceeds 40% of Iraq's foreign currency reserves.
The financial advisor to the Iraqi Prime Minister, Mazhar Mohammed Salih, revealed on Wednesday that more than 40% of the country's foreign currency reserves are in US dollars.
Saleh told Shafaq News Agency, "The US dollar accounts for more than 40% of Iraq's investment portfolio of foreign reserves," noting that "this is due to the fact that oil revenues are received in dollars."
He added that "Iraq's foreign reserves, which have reached $110 billion or less, play an important role in protecting the national economy from external shocks," noting that these reserves are diversified between various foreign currencies and gold in the national investment portfolio.
According to the Central Bank, Iraq has foreign exchange reserves of 130.8 trillion dinars, including 162.6 tons of gold.
Will the Amman negotiations really change the future of relations between Iran and the United States?
In a move that sparked considerable controversy in the Iranian political and media arena, the Iranian newspaper Sharq announced a two-day suspension of publication after publishing a report on a secret meeting between Iranian Parliament Speaker Mohammad Bagher Qalibaf and a number of Iranian officials with Supreme Leader Ali Khamenei, during which they discussed the possibility of starting direct negotiations with the United States. This move was not merely a temporary suspension of publication; rather, it sent a strong message about the sensitivity of the issue, and the newspaper was subjected to pressure from official Iranian institutions in light of the report, reflecting the state of tension and anxiety regarding the negotiations with Washington.
Tensions within Iran: Reformists vs. Hardliners
Since US President Donald Trump announced the possibility of conducting direct negotiations with Iran in the Sultanate of Oman, the Iranian media and political arena has been embroiled in a cycle of bickering and contradictions. While hardline media emphasizes that negotiations with the United States will bring no benefit to Iran, reformist and moderate media insist that negotiations are the only way to lift the harsh economic sanctions that significantly impact daily economic life in Iran.
Conflicting reports: Are these direct or indirect negotiations?
One of the most controversial points concerns the nature of the upcoming negotiations. While Iran insists that the negotiations will be "indirect," the United States asserts that they will be "direct." This conflicting narrative reveals a complete lack of coordination between the two sides and reflects internal tensions within Iran over how to handle the nuclear negotiations. While some in Iran believe that talk of negotiations is merely a formality, others question the viability of negotiations with the United States, which they view as a threat to the country's sovereignty.
Who decides fate? The media or the authorities?
The swift apology by Sharq newspaper reflects what appears to be intense pressure from Iranian authorities on the media to tone down reports promoting the idea of direct negotiations with Washington. This raises questions about the ability of the Iranian media to freely address sensitive issues, especially when these relate to international relations and major politics. While reformist media promotes the idea of openness to the West, hardline media remain strongly opposed to this approach.
Are negotiations really the solution?
Despite internal disagreements over the issue of negotiations with the United States, the most important question remains: Will these negotiations succeed in changing the Iranian economy? Some believe these negotiations could be a real opportunity for Iran to emerge from its economic crisis by lifting sanctions, while others believe the United States may use these negotiations as leverage to achieve further political gains.
In this context, Hassan Namkadost, professor of journalism and communication, pointed out that what is being announced in the media may be mere formalities after tangible results were reached in recent weeks. This argument reinforces the belief that negotiations may have already begun behind the scenes, and that what is being revealed in the media is merely part of a complex diplomatic game.
The Future of Relations: A Diplomatic Window or a Dead End?
Ultimately, the big question remains: Will these negotiations be a step toward improving relations between Tehran and Washington, or will they merely be political charades that fail to achieve the desired results? With the tense domestic climate in Iran and the differences between reformists and hardliners, the country's official position remains ambiguous. However, whether the negotiations are direct or indirect, this diplomatic window may be the last chance for both sides to sit down at the negotiating table to establish a basis for resolving the outstanding issues between them.
Prime Minister: Iraq is a virgin land for investment opportunities in all sectors.
Al-Sudani's media office stated in a statement received by {Euphrates News} that "the latter received a large economic delegation from the American Chamber of Commerce, and a number of American company presidents and investors, in the presence of the Chargé d'Affaires at the US Embassy in Iraq."
According to the statement, Al-Sudani reviewed "the facilitations and measures taken by the government to facilitate the entry of businessmen and companies into the Iraqi market, which now boasts many promising opportunities," noting that "Iraq provides a broad and diverse market for various products, goods, and services."
He stressed that "the Iraqi people have accomplished much in confronting terrorism and laying the foundations for their developmental renaissance," noting "the importance of bilateral relations with the United States and their sustainability, especially since Iraq today stands as a distinguished democratic model in the region."
The statement added that Al-Sudani "stressed that due to the war of the 1980s, the blockade of the 1990s, and the war on terror over the past two decades, development in Iraq has been delayed in all sectors," indicating that "Iraq is a virgin land for investment opportunities in all sectors."
He explained that "Iraq today enjoys political, security, social, and economic stability, and is witnessing an unprecedented development renaissance," noting that "Iraq has a skilled workforce, and we have promising talents in various fields."
He added, "Our government has worked to improve the business environment, and we have made efforts to reform laws to facilitate company registration and operations in Iraq." He noted that "Iraq has an investment law that provides many advantages to investors, and the government is working on a package of laws to encourage foreign investment."
He added, "Iraq's trade balance does not suffer from a deficit, but what is required is to correct the imbalance in the economy's structure and reduce its dependence on oil." He added, "Iraq is an industrial and agricultural country, and represents the shortest corridor between global trade from the East and the West, which passes to Europe via Türkiye."
He said, "The development road project will be the shortest economic corridor linking Asia to Europe, and the least expensive for transporting goods." He emphasized that "Iraq possesses minerals that have not yet been exploited, and it is the world's largest country in sulfur reserves and second in phosphates."
He explained, "Iraq produces 4 million barrels of oil per day, but the associated gas is flared, and at the same time we import gas to operate power plants." He added, "Our government has developed a vision for projects, and has begun implementing contracts with international companies. Gas flares will cease by early 2028."
He continued, "Iraq is among the top ten countries in the world in terms of natural gas reserves," noting that "there are those who paint a negative picture of the situation in Iraq, which is unfair and inaccurate."
Al-Sudani concluded by saying, "Iraq has witnessed the entry of numerous investment companies to implement projects in the energy, housing, industry, and agriculture sectors, with the value of investment licenses reaching $88 billion." He explained that, "We have granted sovereign guarantees to the private sector to implement projects in various sectors."
How Iraq is Modernising and Diversifying its Growing Economy
From the Iraq Britain Business Council (IBBC):
How Iraq is Modernising and Diversifying its Growing Economy
For the last three years Iraq has enjoyed relative stability, good oil prices and a growing economy. For those who invested in the Iraqi stock market, returns of over 100% are common and GDP in 2025 is estimated to be up to 5%.
Oil and Gas sales has driven this expansion, but other factors such as sovereign wealth funds are now encouraged by the GOI's stability to invest, such as the Saudis with their Public investment fund, the Qataris ( both government and private sector, and the Gulf states, have driven around $3.5bn investment into infrastructure, housing and the development road initiative, in addition to Iraqis investing in consumer real estate such as cafes and housing all feeding off economic and political confidence. The government has also pledged up to $400bn of investment into development, infrastructure and the Al Fawr port complex and the new $15bn trade deal with UK for cyber, telco and defence support.
At IBBCs Baghdad conference in February, over 350 business delegates flocked to hear the leading minsters or oil, communications, foreign affairs and key advisors to the Prime Minister, expand on opportunities in Iraq, where the atmosphere was palpably enthusiastic to participate in the new Iraq economy.
Beyond Infrastructure we also see expansion in Schooling and Universities, in more diverse services such as travel, tech and professional services like law and banking. Collaboration with international companies and countries is key to Iraq's evolution, as new skills and technologies are coming into the country, driven by international confidence in Iraq. Iraq needs a more skilled workforce to enable engineering and business expansion, and companies like Unihouse and Mselect are supporting these skills.
Indeed, IBBCs membership mix reflects this diversification, modernisation and internationalisation of the economy: private schools, training and skills companies, tech and media companies, high end added value design, and the establishment of Agritech and marine sector companies bringing expertise into the country like DPD, AL Zaman Group(Marine Shipbuilding company Uk Ltd ) Gold Sponsors, and CJ-ICM.
At our Spring Conference at the Mansion House on June 3rd we will showcase the leaders in these new sectors and explain why they are now investing and establishing in Iraq. You will also meet the best of British expertise, through the sagacity of Lord Howell on energy, Lord Green on banking, Professor Frank Gunter with his report on Iraq Entrepreneurs, and from Iraq the minister of Transport, who will outline the significant infrastructure opportunities, as well as other Iraqi officials soon to be confirmed. Underpinning UK investment the UKEF CEO, Tim Reid, will present how companies can access the £billions in UK trade guarantees, Jon Wilks CMG ( former Ambassador) will articulate his much anticipated geo political insights and dynamics especially with an election looming and developments in Syria, Iran and the Middle East, The IFC on investment initiatives led by Hogan Lovells (Gold sponsor) and with TBI (Gold Sponsor), and key IBBC companies in energy, finance , maritime, agritech, tech and education will be evident on stage. For those wanting more interactive discussion there are roundtables on Entrepreneurship, Growth, Transport (with Sardar, Gold Sponsors), Education and a special Tourism and heritage panel and exhibition. On 2nd June will be a special networking reception at the Mansion house for delegates, and the Tech forum online - covering how AI and Tech support the services sector- including its use in education, investment and Pharma.
To view the latest speaker, line up and to register, please go to this link on IBBCs website.
While the worlds stock markets are in turmoil, for once, Iraq presents a beacon of economic and social stability as it takes the long march towards modernity and diversification of its economy. Come and hear how this is happening and meet the people who are making it happen. Register here for the IBBC Mansion House conference.
Gold sponsors include: Trade bank of Iraq, Sardar Group and Al Zaman Group (Marine Shipbuilding company Uk Ltd), Hogan Lovells International LLP
US fears the Popular Mobilization Law... "It threatens Washington's interests and creates a new Revolutionary Guard."
The Washington Institute for Near East Policy called on the US administration, headed by Donald Trump, to send a "calm and firm" message to the Iraqi government regarding the risks of passing a new law related to the Popular Mobilization Forces (PMF), warning that this legislation would transform the PMF into an entity similar to the Iranian Revolutionary Guard.
The institute stated in a report translated by Shafaq News Agency that "the Popular Mobilization Forces (PMF) have been considered a threat to US national security interests and Iraqi civilians for years," noting that "US-designated terrorists hold senior leadership positions within the PMF, including the head of the organization and the chief of staff, exploiting this institutional structure to secure government salaries for tens of thousands of militia members affiliated with designated terrorist groups such as Kata'ib Hezbollah and Asa'ib Ahl al-Haq."
He considered that "these practices represent blatant manipulation," noting that "Baghdad is currently studying two legislative projects that could grant the Popular Mobilization Forces greater legitimacy as a national security institution. The first is the Popular Mobilization Forces Service and Retirement Law, which the report described as internally aiming to remove leaders of rival militias. The second, and more important, is the amended Popular Mobilization Forces Authority Law, which restructures the Mobilization Forces within a formal framework resembling a ministerial institution."
According to the report, passing the new law would consolidate the Popular Mobilization Forces, which number approximately 238,000 members, as a parallel armed force with powers at the local and regional levels. The report emphasized that "the legislation will consolidate the Popular Mobilization Forces' status as a permanent structure within the Iraqi security sector, not as an emergency force, but rather as a ministry-like institution that would be difficult to reform or dissolve later."
He also warned that the draft law explicitly refers to the Popular Mobilization Forces as the "guarantor of the political system," led by Shiite factions since 2003, similar to the role of the Iranian Revolutionary Guard Corps. This weakens the standing and prestige of the Iraqi armed forces and grants the militias broad powers that could include "militarizing the political process, from candidate registration to voting and government formation."
The report also warned that the legislation could encourage militias to repeat the violence against demonstrators and civil society organizations, as occurred during the 2019 protests, it said.
He called on the Trump administration to act quickly and convey its clear objections to officials in Baghdad, via direct messages to the President, Prime Minister, and Speaker of Parliament, to prevent the bill from being referred to the House of Representatives for ratification. He noted that such a step would not require a significant American effort, but rather a "firm signal behind the scenes."
He pointed out that the current tense regional situation presents Washington with a powerful opportunity to exert pressure, as the United States is redeploying its forces extensively, while Iraqi militias are keen to remain outside the US targeting circle. This provides Washington with leverage that must be used wisely to prevent "the birth of a new Revolutionary Guard in the heart of the region," as the report put it.
According to the report, the institute called on decision-makers in the White House and the US embassy in Baghdad to urgently reinforce this message and shift from quiet pressure tools to more vocal ones, including imposing sanctions on the Popular Mobilization Forces as a whole, as Washington previously did with the Iranian Revolutionary Guard.
He explained that "these sanctions will have a broad financial impact within the Iraqi financial system, given that the Popular Mobilization Forces receive their salaries from the Iraqi government."
The report continued, stating that "early US action to block this legislation would demonstrate the Trump administration's awareness of the delicate developments in Iraq and its ability to deter Iranian-backed groups without waiting for a military escalation via drones or kidnappings and killings of Americans."
The report concluded with a recommendation not to be satisfied with warnings, but to take concrete steps, such as imposing immediate sanctions on the General Engineer Company, the economic wing of the Popular Mobilization Forces (PMF), which the report likened to the Khatam al-Anbiya Foundation, the economic conglomerate affiliated with the Iranian Revolutionary Guard Corps, which has long been subject to international sanctions imposed by the United States, the European Union, and the United Nations.
Iranian President: We do not seek nuclear weapons and do not fear any threat.
Pezeshkian's remarks came in a speech he delivered today, in which he addressed the challenges facing the Islamic Republic and external threats.
"The enemies assassinated our best scientists to prevent us from advancing," Pezeshkian said, emphasizing that these attempts will not deter Iran from continuing its path toward development and scientific progress. He added, "The more intense the attacks and threats, the stronger and more resilient we will become, and we will confront them."
Iran rejects terrorism and calls for peace
The Iranian president emphasized that his country has always been a victim of terrorism, but some are seeking to distort the facts by accusing Tehran of practicing terrorism. He explained that Iran supports regional peace and stability and does not intend to attack any country, but at the same time, it will confront any aggression forcefully and decisively.
Pezeshkian stressed that Iran will not become a colony of foreigners, and that the Iranian people will not compromise their national sovereignty. He said, "We fear no threat and stand steadfast in the face of pressure," calling on countries that have imposed sanctions on Iran to lift them to achieve stability and mutual cooperation.
indirect talks with Washington
In a related development, Pezeshkian announced that the Iranian foreign minister will travel to the Sultanate of Oman next Saturday for indirect talks with the United States. He emphasized that Tehran believes in dialogue as a means of resolving problems, adding, "We will continue on the path without problems and will resolve all issues through constructive dialogue."
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Prime Minister: Iraq is a virgin land for investment opportunities in all sectors.
Al-Sudani's media office stated in a statement received by {Euphrates News} that "the latter received a large economic delegation from the American Chamber of Commerce, and a number of American company presidents and investors, in the presence of the Chargé d'Affaires at the US Embassy in Iraq."
According to the statement, Al-Sudani reviewed "the facilitations and measures taken by the government to facilitate the entry of businessmen and companies into the Iraqi market, which now boasts many promising opportunities," noting that "Iraq provides a broad and diverse market for various products, goods, and services."
He stressed that "the Iraqi people have accomplished much in confronting terrorism and laying the foundations for their developmental renaissance," noting "the importance of bilateral relations with the United States and their sustainability, especially since Iraq today stands as a distinguished democratic model in the region."
The statement added that Al-Sudani "stressed that due to the war of the 1980s, the blockade of the 1990s, and the war on terror over the past two decades, development in Iraq has been delayed in all sectors," indicating that "Iraq is a virgin land for investment opportunities in all sectors."
He explained that "Iraq today enjoys political, security, social, and economic stability, and is witnessing an unprecedented development renaissance," noting that "Iraq has a skilled workforce, and we have promising talents in various fields."
He added, "Our government has worked to improve the business environment, and we have made efforts to reform laws to facilitate company registration and operations in Iraq." He noted that "Iraq has an investment law that provides many advantages to investors, and the government is working on a package of laws to encourage foreign investment."
He added, "Iraq's trade balance does not suffer from a deficit, but what is required is to correct the imbalance in the economy's structure and reduce its dependence on oil." He added, "Iraq is an industrial and agricultural country, and represents the shortest corridor between global trade from the East and the West, which passes to Europe via Türkiye."
He said, "The development road project will be the shortest economic corridor linking Asia to Europe, and the least expensive for transporting goods." He emphasized that "Iraq possesses minerals that have not yet been exploited, and it is the world's largest country in sulfur reserves and second in phosphates."
He explained, "Iraq produces 4 million barrels of oil per day, but the associated gas is flared, and at the same time we import gas to operate power plants." He added, "Our government has developed a vision for projects, and has begun implementing contracts with international companies. Gas flares will cease by early 2028."
He continued, "Iraq is among the top ten countries in the world in terms of natural gas reserves," noting that "there are those who paint a negative picture of the situation in Iraq, which is unfair and inaccurate."
Al-Sudani concluded by saying, "Iraq has witnessed the entry of numerous investment companies to implement projects in the energy, housing, industry, and agriculture sectors, with the value of investment licenses reaching $88 billion." He explained that, "We have granted sovereign guarantees to the private sector to implement projects in various sectors."
Government Advisor: Cooperation between Fiscal and Monetary Policies Ensures Sustainable Economic Stability
The Prime Minister's Advisor for Financial Affairs, Mazhar Mohammed Salih, explained on Wednesday the mechanism for closing and financing the budget deficit. He noted that the state's general budget is based on an oil price of $70 to counter market fluctuations. He emphasized that cooperation between fiscal and monetary policies ensures sustainable economic stability.
Saleh told the Iraqi News Agency (INA): "Since the federal state budget was enacted under Law No. 13 of 2023, amended (the three-year budget for 2023, 2024, and 2025), it has been based on conservative oil prices to counter oil market fluctuations. This includes adopting a price of $70 per barrel of crude oil, an export capacity of 3.4 million barrels of oil per day, and an annual spending ceiling of approximately 200 trillion dinars, with a planned deficit of approximately 64 trillion dinars."
He explained that "the planned deficit, if realized, turns into an actual deficit, financed (according to the degree of deficit) from domestic sources and a small number of committed external sources, depending on actual need, particularly for financing development projects."
He added that "the domestic sources of deficit financing are loans provided by the government banking system, often to finance the general budget when a deficit occurs, as a bridge loan. With the exception of the first quarter of fiscal year 2025, nothing has occurred that requires significant borrowing, except for less than 6% of the total planned annual balance to date."
He pointed out that "there is close and precise cooperation between fiscal and monetary policies, and they are proceeding closely together to build sustainable financial stability in our country to confront any shock of a sudden drop in global oil prices and its repercussions on financing the state's general budget."
He continued: "This is in order to maintain spending related to securing salaries, wages, pensions, social care, the basic services program, and support for farmers, all of which are constants in spending in the 2025 fiscal year, while proceeding with basic service projects (education, health, sewage networks, electricity, water, and roads)."
The Foreign Minister stresses the importance of strengthening Iraqi-American economic cooperation.
Deputy Prime Minister and Minister of Foreign Affairs Fuad Hussein stressed on Wednesday the importance of strengthening economic cooperation between Iraq and the United States. He noted that Iraqi diplomatic missions abroad are making every effort to support investors and provide the necessary facilities to overcome the challenges they face.
The Ministry of Foreign Affairs said in a statement, seen by Al-Eqtisad News, that "Deputy Prime Minister and Minister of Foreign Affairs, Fuad Hussein, participated in the interactive dialogue session held by the Iraq-US Business Council in the capital, Baghdad."
According to the statement, the Foreign Minister pointed to "the strength of trade relations between Iraq and the United States of America," stressing "the importance of strengthening economic cooperation between the two sides.
" Hussein stressed "the pivotal role played by the Iraq-US Business Council, as well as the institutional relationship with the American Chamber of Commerce."
The statement added that "the Foreign Minister highlighted the most prominent challenges facing the development of trade relations between the two countries, particularly with regard to the infrastructure for investment development in Iraq."
It continued, "The Minister listened to the interventions of the attendees on the most prominent challenges facing investors, especially Americans, and stressed the importance of joint cooperation to overcome obstacles." The Minister indicated that "one effective way in this framework is to benefit from the efforts of Iraqi diplomatic missions abroad, which are making efforts to support and assist investors and provide the necessary facilities to overcome the challenges that hinder their work."
Despite Tariffs, US brings largest Trade Delegation to Iraq
Prime Minister Mohammed S. Al-Sudani received a delegation from the U.S. Chamber of Commerce on Wednesday, including American investors and corporate executives, accompanied by the U.S. Chargé d'Affaires in Iraq.
The meeting focused on strengthening economic ties and promoting Iraq as an attractive destination for foreign investment.
The Prime Minister outlined steps taken by the Iraqi government to facilitate business entry, noting the country's broad and diverse market, legal reforms, and investment incentives. He emphasised Iraq's stability, skilled labour force, and ongoing development across various sectors.
According to a statement from the US Embassy, almost 60 U.S. companies are part of the delegation, aiming to. "strengthen U.S.-Iraq private sector ties and foster fair and balanced trade between the U.S. and Iraq."
The U.S. Chamber and the Federation of Iraqi Chambers of Commerce earlier signed a memorandum of understanding (MoU) to "strengthen ties between the US and Iraqi private sectors." It added: "This partnership will foster long-term economic collaboration."
Last week, the US imposed additional tariffs of 39 percent on imports from Iraq (excluding oil).
Full statement from the Media Office of the Prime Minister:
Prime Minister Mohammed S. Al-Sudani Welcomes a Delegation from the U.S. Chamber of Commerce
Prime Minister Mohammed S. Al-Sudani welcomed today, Wednesday, a large delegation from the U.S. Chamber of Commerce, which included a number of corporate executives and American investors, in the presence of the U.S. Chargé d'Affaires in Iraq.
The Prime Minister reviewed the facilitations and measures taken by the government to support the entry of businesspeople and companies into the Iraqi market, which now holds numerous promising opportunities. He noted that Iraq offers a broad and diversified market for various goods, products, and services.
Prime Minister Al-Sudani emphasized that the Iraqi people have made significant achievements in defeating terrorism and laying the foundations for national development. He stressed the importance of maintaining and strengthening bilateral relations with the United States, particularly since Iraq today stands as a distinguished democratic model in the region.
Key highlights from the Prime Minister's remarks:
- Due to the war in the 1980s, the sanctions in the 1990s, and the fight against terrorism over the past two decades, development in Iraq has been delayed across all sectors.
- Iraq is a fertile ground for investment opportunities in all fields.
- The country today enjoys political, security, societal, and economic stability, and is witnessing an unprecedented development boom.
- Iraq has a skilled labor force and promising expertise across various fields.
- The government has worked to improve the business environment and made serious efforts to reform laws to facilitate company registration and operations.
- Iraq's investment law offers numerous incentives to investors, and the government is working on a legislative package to further encourage foreign investment.
- Iraq's trade balance is not in deficit, but structural reforms are needed to reduce reliance on oil.
- Iraq is an industrial and agricultural nation and represents the shortest commercial route between East and West, connecting to Europe through Türkiye.
- The Development Road Project will become the shortest and most cost-effective economic corridor linking Asia and Europe.
- Iraq possesses untapped mineral wealth and ranks first globally in sulfur reserves and second in phosphate reserves.
- Iraq produces 4 million barrels of oil per day, but flares associated gas while simultaneously importing gas to power electricity stations.
- The government has set a vision for strategic projects and signed contracts with international companies to stop gas flaring by early 2028.
- Iraq ranks among the top ten countries in the world in natural gas reserves.
- Some portray a negative image of Iraq, which is not only unfair but also inaccurate.
- Iraq has welcomed numerous investment companies to carry out projects in energy, housing, industry, and agriculture, with the total value of investment licenses reaching $88 billion.
- Sovereign guarantees have been granted to the private sector to support the implementation of projects in various sectors.
The Iraqi banking system is on the verge of collapse. Banks monopolize remittances, with Al-Ahli Bank being an example.
Many economic experts consider foreign and local banks with foreign management, such as the bankAl-AhlyIt is under Jordanian management, and it monopolizes bank transfers in Iraq, depriving local banks of them, without providing any tangible banking services to Iraqis.
This happened with a license granted byCentral Bank of IraqAlthough these banks, including the Bank of Jordan,Al-AhlyIt has no competitive advantage.
But it has guaranteed to the Americans and opened accounts for it at Citibank in GB.MorganIn the United States only because it is owned by foreign investors affiliated with banks inJordanAnd inGulf
The bank is not working .Al-AhlyAnd other similar banks operate on the principle of providing distinguished banking services to Iraqis, but they operate under the guarantee of foreign banks in their countries.
These banks achieve imaginary profits of up to 300 billion dinars annually, and profits can reach billions in the event of sales with side commissions.
Accordingly, many see a need to amend the policies of the Central Bank, support the Iraqi banking system, strengthen its standards, and enhance its ability to transfer money and engage in banking operations.
In terms of percentages, and in comparison with countries in the region, it does not give more than 14 percent to foreign banks, whileIraqIt provides 100% interest to these banks.
Contrary to the Companies Law, which set the interest rate at 49%, the Central Bank relied onBanking LawArticle 107, which allowed the CouncilCentral Bank ManagementGive a percentage without specifying more or less.
Iran... Negotiating with Washington is a condition for the regime's survival
As the primary concern for the continuation of religious authority, Khamenei can maneuver positions with a great deal of flexibility and pragmatism.
Summary
From this, we can understand the regime's insistence on not rejecting the principle of negotiation with the US administration and President Donald Trump. Instead, it is embracing indirect negotiations and building on their results and the potential they can offer in terms of rebuilding trust between the two parties. This would allow for a radical shift in their strained relationship, not just a transition to direct negotiations, but something far beyond that.
The most rational reading within the US administration is that any military operation, airstrikes, or destruction of nuclear , military, or even economic facilities will not end with the downfall and elimination of the Iranian regime. This goal cannot be achieved without a ground battle that requires the landing of US forces on Iranian territory and engaging in a direct battle with its armed forces, inflicting a severe and decisive defeat on them, similar to what happened in Afghanistan and Iraq. This means that Washington must, in return, be prepared to absorb the repercussions of human losses among its forces in confronting Iranian forces, which possess high combat capabilities and have not lost their spirit of confrontation or their ability to do so, as happened with the Iraqi army and armed forces.
While a ground operation has been ruled out, at least in the foreseeable future, the Iranian regime's leadership, despite its unwillingness to see the current escalation reach a point of no return, does not view any airstrike against the regime, should it occur, as an existential threat to its survival and grip on power in Iran. Washington has also indirectly acknowledged this, considering that any airstrike aims to weaken the regime and force it to sit at the negotiating table on its terms, abandoning all its regional, nuclear, and missile ambitions, or to become a source of threat to other parties in the regional neighborhood, particularly Israel , thereby turning it into a harmless "matchstick."
On the other hand, the regime's leadership believes that the real threat to the regime and its continuity lies in internal instability, chaos, and ethnic and social conflicts, driven by economic and livelihood concerns. This danger could become a real threat if coupled with foreign intervention or an airstrike. For the first time, the regime's Supreme Leader clearly and explicitly expressed the internal threat, linking it to an external conspiracy seeking to stir up ethnic, regional, and social sensitivities, thus helping achieve the goal of bringing down the regime.
The Supreme Leader, along with the leadership of the ruling system, believes that any external military operation against Iran will be incapable of overthrowing the Islamic regime and rule. This is particularly true given that the Supreme Leader's ideological vision of "survival" and continuity differs from what American and anti-Iranian circles believe or seek. This view holds that external military action will contribute to strengthening internal unity and will not lead to the downfall or elimination of the regime. This fulfills the condition of "survival" and gives the leadership justification to speak of "victory" in confronting enemies, regardless of the extent of the human, material, economic, and military losses and damages that will result from such a confrontation.
There is no bias or slander against this ideological reading of the concept of survival and continuity. The Supreme Leader presented this reading in more than one speech in recent months when speaking about the wars waged by both Hamas in the Gaza Strip and Hezbollah in Lebanon. He considered the mere survival of both in the political scene on the Palestinian and Lebanese arenas a “victory for them,” and that the “setback” that befell them and their military, political, and social capabilities would not lead to their exit from the scene, but rather confirm their “survival” and their continuation in carrying the slogan of “resistance” and confronting Israeli ambitions.
Regarding the Syrian issue, the Iranian Supreme Leader believes that the resilience achieved by deposed Syrian President Bashar al-Assad over the past decade is a victory because he was able to survive and continue. The collapse that occurred was the result of his failure to heed Iranian advice on the necessity of internal reform.
This reading of the concept of survival, based on ideology, views human, economic, and urban losses as a condition and price for achieving victory and defeating the enemy and its goals, which seek to eliminate "resistance forces" and remove them from the political and strategic equations, as long as the victor possesses the ability to rebuild and compensate for the losses suffered by the group to which they belong and which constitutes their popular base.
Formulating or redefining political concepts in line with the ideological and doctrinal dimensions is at the core of the Supreme Leader's powers. This is not limited to redefining the concepts of defeat and victory, or survival and collapse, but also extends to concepts such as negotiation, national interests, and even the redefinition of secondary concepts related to the principle of ijtihad (jurisprudential interpretation), the transition from one religious ruling to another, or the suspension of one ruling and the implementation of another.
This flexibility in presenting a new formulation of concepts appears to be the dominant position of the Iranian Supreme Leader, who is leading the political process related to negotiations and confronting escalating internal and external challenges. It would be difficult for the Iranian government, led by President Masoud Pezeshkian, to refrain from issuing decrees implementing the hijab and chastity laws unless it received legal cover from the Supreme Leader, as he is the guardian of the jurist and the absolute religious ruler, given that this law falls within the core of his religious and ideological powers.
Given that he is the primary concern for the regime's survival and continuity, and that the principle of preserving this regime takes precedence over all religious and ideological priorities, given that the regime's continuity represents the continuity of religious authority and its institution, it is easy for him to turn around the high-ceilinged positions he takes at certain stages with a great deal of flexibility and pragmatism.
From here, we can understand the regime's insistence on not rejecting the principle of negotiation with the US administration and President Donald Trump, and its reliance on indirect negotiations and building on their results and the potential they offer in terms of rebuilding trust between the two parties. This would allow for a radical shift in the strained relationship between them, not just a transition to direct negotiations, but also something far beyond that, including the normalization of relations and opening the door to US economic and financial investments in infrastructure projects that the Iranian economy is desperate for. This then provides the Supreme Leader and the ruling establishment with a legitimate justification for considering negotiations as an existential condition for the regime's survival and continuity.
Private banks continue to monopolize foreign remittances, without providing any tangible banking services!
Many economic experts believe that foreign and local banks with foreign management, such as the Jordanian-run National Bank of Iraq, monopolize bank transfers in Iraq and deprive local banks of these services, without providing any tangible banking services to Iraqis. The Iraqi banking system is collapsing because most Iraqi banks are subject to US sanctions. This has prompted foreign and local banks with foreign management to monopolize bank transfers in Iraq and deprive local banks of these services, without providing any tangible banking services.
This was done with the approval of the Central Bank of Iraq, despite the fact that these banks, including the Jordan National Bank, lacked any competitive advantage. However, they were guaranteed by the Americans and had accounts opened for them at Citibank and JPMorgan Chase in the United States, solely because they were owned by foreign investors affiliated with banks in Jordan and the Gulf.
While the National Bank and other similar banks do not operate on the principle of providing distinguished banking services to Iraqis, they operate under the guarantee of foreign banks in their countries.
At the same time, these banks generate astronomical profits of up to 300 billion dinars annually, and profits could reach billions if sales are combined with side commissions.
As a result, many see a need to amend the Central Bank's policies, support the Iraqi banking system, strengthen its standards, and enhance its ability to process remittances and engage in banking operations.
In numbers, and compared to other countries in the region, it does not give more than 14 percent to foreign banks, while Iraq provides 100 percent to these banks. Contrary to the Companies Law, which sets the interest rate at 49 percent, the Central Bank relied on Article 107 of the Banking Law, which allowed the Central Bank's Board of Directors to give a percentage without specifying more or less.
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