Al-Sudani launches the "Iraq First" strategy
Amidst regional challenges and accelerating international transformations, Prime Minister Mohammed Shia al-Sudani raised the slogan "Iraq First" by announcing the launch of the National Security Strategy (2025-2030), marking a turning point in Iraq's journey toward strengthening its position as a strong, stable, and sovereign state.
The video for this My FX Buddies Blog post is below here:
During the official launch ceremony on Thursday, Al-Sudani explained that the new strategy falls within the framework of the government's national program aimed at serving citizens and consolidating the foundations of security, stability, sovereignty, and prosperity. He noted that it represents the fundamental document that will guide the management of the state's supreme national interests and define mechanisms for strengthening Iraq's regional and international relations.
The Prime Minister commended the national efforts that contributed to the preparation of the document, extending his thanks to the European Union Advisory Mission and international organizations for their technical and advisory support. He also directed all ministries and government institutions to work diligently and provide full support to implement the strategy's axes and means to achieve its comprehensive objectives.
Al-Sudani explained that the "Iraq First Strategy" will enable the state to develop its security and defense system, build a strong, diversified, and developmental national economy, and strengthen balanced and effective regional and international partnerships. He added that implementing the strategy will represent a fundamental pillar in enhancing community security, protecting diversity, consolidating peaceful coexistence, and adopting an effective service system that meets citizens' needs. Al-Sudani emphasized that "building the nation and serving the people is a collective national responsibility," requiring the development of institutions, the preservation of cultural heritage, and the protection of sanctities. He emphasized the importance of advancing the national vision adopted in the strategy, which is based on "a secure, federal Iraq with complete sovereignty, where justice and equality of citizenship prevail to achieve stability and development."
Government video on Twitter below:ابرزها اطلاق استراتيجية الامن الوطني العراقي للاعوام 2030 – 2025 .. تعرف على الايجاز الاسبوعي لرئيس مجلس الوزراء السيد محمد شياع السوداني.#الحكومة_العراقية#عام_استمرار_الانجازات pic.twitter.com/qk2kdyFpmR
— Government of Iraq - الحكومة العراقية (@IraqiGovt) May 23, 2025
Where did Iraq's "explosive" budgets go?
MP Suad Al-Maliki opened the public budgets file, questioning the fate of the massive sums the government has described as "explosive" for three consecutive years, given their failure to actually be disbursed to ministries .
In a televised interview broadcast by Al-Sa'a Network, Al-Maliki said, "Most ministries have received only 15% of their budgets, with the exception of the engineering effort, which operates within a rotating budget." She noted that "all ministries agree that they have not received the funds, despite months having passed since the budget was approved."
She added, "The official justification that the new appointments have caused a deficit is inaccurate, as the number of contractors is 150,000 fewer than the planned number."
Al-Maliki also revealed "a clear discrepancy in the disbursement schedules, with funds being delivered to ministries at the end of November and then being required to be repaid by the end of December, leaving a short window of time that is insufficient to activate projects or spend the funds optimally."
An Iranian politician rules out the possibility of war between his country and the United States.
Prominent Iranian politician and leader of the fundamentalist movement, Javad Larijani, ruled out the outbreak of war between his country and the United States .
Larijani said in press statements monitored by Al-Sa'a Network that "the outbreak of war between America and Iran remains a weak possibility, because any confrontation would be long-term and without a victor ."
He added, "Washington is well aware that it will not be the victorious party in the event of a military war ."
Meanwhile, Iranian Foreign Minister Abbas Araghchi reiterated his country's position on uranium enrichment, stressing that Tehran will continue its nuclear activities despite US pressure and statements .
Araghchi's remarks came in response to White House spokeswoman Caroline Levitt's assertion that halting uranium enrichment in Iran is a non-negotiable red line in the nuclear negotiations .
Levitt said that the United States is 100% committed to its red line on enrichment, and that the US President's Special Envoy, Steven Witkoff, and Secretary of State Marco Rubio have communicated this position directly to both Iranian officials and the American public .
The Association of Private Banks holds a specialized workshop on "Regulatory Controls for the Internal Assessment of Capital Adequacy Standards"
Advisor to the Association of Banks, Samir Al-Nusairi
The Iraqi Private Banks Association held a specialized workshop on the subject of regulatory controls for the internal assessment of capital adequacy standards.
The seminar hosted representatives of the Central Bank, including the relevant managers of the Banking Supervision Department at the Central Bank, and was attended by representatives of all commercial and Islamic banks, including the directors of risk, compliance, credit, internal and financial audit, and members of the boards of directors who are members of the Risk Committee.
The workshop was moderated by the Association of Banks' advisor, Samir Al-Nusairi, who spoke about the objectives of regulatory standards for capital adequacy in accordance with the requirements of the Basel Committee's second pillar to secure a capital buffer to mitigate risks. He emphasized the need to strengthen and improve corporate governance in banks based on the Environmental and Social Standards Guide issued in 2024.
He pointed out that the comprehensive banking reform project, which the Central Bank is working to implement in cooperation with the global consulting firm Oliver Wyman, is sponsored and supported by the government.
Central Bank representatives Ali Abdul Aziz and Hussein Reda spoke about the details of the regulations and tasks required of banks, as well as the procedures and timelines required to implement the regulations over the coming year.
The attendees discussed the regulations and observations that required clarification and answers from the Central Bank. These were answered by Central Bank representatives. At the conclusion of the workshop, it was decided to form a permanent joint working group between the Central Bank and the banks to follow up on implementation and address any obstacles that may hinder implementation. Specialized workshops and training courses will also be held for relevant leadership cadres on the boards of directors and executive management at banks to ensure accurate implementation and application of the regulations.
Central Bank: A comprehensive five-pronged plan to combat money laundering
The Central Bank announced on Thursday that it has put in place preventative measures to combat money laundering across various sectors, while noting that there is international cooperation at the strategic level involving international organizations.
Hussein Ali, Deputy Director General of the Central Bank's Anti-Money Laundering and Combating the Financing of Terrorism Office, said, "The crime of money laundering is linked to the extent of the predicate crime being committed domestically, as well as to the extent of preventative measures taken by the state."
He explained that, "Based on a comprehensive assessment of the anti-money laundering and counter-terrorism financing system, weaknesses in this system were identified, where they are being exploited, which sectors are being exploited in money laundering, and which predicate crimes are most commonly committed."
He added, "After identifying these crimes and the points where money laundering occurs, mitigating measures were put in place to address the risks of money laundering through these sectors."
He continued, "Easing measures have been put in place in the real estate sector, with real estate sales being conducted through the banking sector. Special measures have also been put in place in the gold sector, with financial institutions enforcing stricter controls on gold transfers."
He pointed out that "electronic cards, which were exploited by some unscrupulous individuals for foreign withdrawals, were used to benefit from the exchange rate or to move illegal funds. This phenomenon has been curbed and mitigated by establishing controls and updating the limits on these cards so that they are no longer useful to those who make foreign withdrawals."
He emphasized that "all these treatments are based on a real evaluation process with very precise results, which helped ensure that the treatments were specific and focused." He noted that "the Anti-Money Laundering Law addresses all these sectors, and there are international and national studies that identify new trends pursued by money launderers. Every time a new method is added, countries implement preventative measures for it."
He explained that "one of the methods also includes registering fake companies, and there are procedures in place for this in cooperation with the Companies Registration Department, including the process of identifying the real beneficiary of these companies, which is a very important matter to prevent the use of front companies for these companies."
He pointed out that "the Iraqi state took appropriate measures, and even when it was evaluated by the Financial Action Task Force, the evaluation result regarding the beneficial owner issue was appropriate for Iraq's situation."
He pointed out that "all measures taken are based on a risk-based approach, so that when there are risks, measures are taken to address them, while private transactions involving citizens are not complicated."
He emphasized that "all countries in the world cooperate in the field of combating money laundering through multiple channels, and in the Anti-Money Laundering Office we have counterpart offices called counterpart units." He explained that "information is exchanged with these units without any conditions, and without the involvement of diplomatic bodies such as the Ministry of Foreign Affairs or the intelligence service."
He stated that "there is international cooperation at the strategic level through reports and through our participation in relevant international organizations," noting that "regarding our work, we conduct an investigation, and after completing the file, it is referred to the judiciary, and we say that this person carried out a money laundering operation, and took out the funds of such-and-such state, and this money reached such-and-such a value, and is present in such-and-such accounts, and after that, there is official judicial cooperation from one judiciary to another for the purpose of seizing and confiscating the funds."
The Governor of the Central Bank receives a delegation from the European Bank for Reconstruction and Development (EBRD)
The meeting discussed the measures required to commence their work in Iraq next September, following the completion of Iraq's accession procedures to the European Union bank.
During the meeting, His Excellency the Governor reviewed the progress of the ongoing financial and banking reform plans and the role of the Central Bank in achieving monetary stability, maintaining the stability of the general price level, and controlling inflation. He also reviewed the procedures for transitioning to digital banking and employing modern financial technologies to provide financial and banking services.
The meeting discussed the role of the Central Bank of Iraq in supporting economic growth through its financing initiatives for economic sectors.
For its part, the European Bank delegation expressed its readiness to provide technical support and financing for the restoration and modernization of infrastructure, the transition to a green economy, and supporting the private sector to play its role in the growth of the Iraqi economy.
Media Office
May 22, 2025
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Fri morning MAY 23 25
The relationship between the state and the economy and the problem of transitioning from the traditional to the organized
Dr. Haitham Hamid Mutlaq Al-Mansour
At the heart of every country is a vibrant economy that regulates the rhythm of its life, and Iraq is no exception. The modern state is no longer merely a political entity that maintains security and public order; it has transformed into a major player in shaping the economy and achieving its balance and stability.
Unfortunately, this relationship takes on more complex dimensions, with the economy sometimes becoming an arena for political conflict and at other times a tool for domination and control. Since the founding of the Iraqi state, the economy has remained hostage to political fluctuations, beginning with the industrialization phase in the mid-twentieth century, through the economic blockade of the 1990s, and finally reaching the post-2003 period, which witnessed a radical transformation in the structure of both the economy and politics. The state, which is supposed to be the guardian of economic balance and resource allocation, has become a cause for weakening the market and deepening imbalances. The dominance of government fiscal policy in the economic arena and the marginalization of productive sectors in favor of a rentier economy, in which oil revenues contribute 95% of the gross domestic product, is a cause for concern regarding macroeconomic policy and the relationship between the state and the economy, and what it should be.
Therefore, Iraq's contemporary history cannot be read in isolation from the intertwining of the economy and power structures. These two sides of the same coin were shaped by both strength and weakness. The state, which is supposed to be a framework for regulating economic life, has, in the Iraqi case, become a competitor to it and a restrictor of its activity. It controls its components and directs its course beyond the limits of revenue and cost, and in most cases, beyond the conditions of the economy.
Perhaps this "satisfactory" relationship is not a final destiny, but rather a milestone in a long journey in search of an economic identity freed from the sway of politics without being detached from it. In other countries, not far from us, the state has succeeded in serving as a tool for achieving social and economic justice through fair tax policies, smart investments in infrastructure, and empowering the private sector without relinquishing its oversight role. However, in Iraq, we are witnessing the absence of a clear economic vision that transforms the state from an incubator of development into a factor hindering it. Bureaucracy is bloated and favoritism is rampant, while basic services decline and job opportunities shrink.
Under the prevailing rentier pattern of government sector employment, this economic model has produced a consumer culture worthy of study. Citizens have been transformed from producers into recipients of oil rents through public employment or government support. This has led to a profound distortion in the relationship between the individual and the state. The state no longer represents a regulatory authority, but rather has become a "provider" expected to distribute provisions. Thus, society has been robbed of its productive capacity, while the economy has been robbed of its competitive vitality.
There is no escape from a vision framed around transforming the state's role from that of a "merchant" distributing oil revenues to that of an "engineer" building a diversified economy. If we work to develop progressive socioeconomic programs aimed at changing the individual's stereotype from a recipient of financial aid to an actor in production and export processes, this vicious cycle can be broken. Global experience proves that countries that succeed in combining a fair market with social security are the most stable and prosperous.
With its structural imbalances still present, the Iraqi economy is now at a crossroads: Either the state continues its traditional role as a controller and unfair distributor of wealth, which threatens to perpetuate crises, or it transforms into an economic regulator and protector of the interests of the majority by regulating and creating the basic conditions for market growth, production, and diversification, which is the only path to achieving stability and prosperity.
The question remains: Is the political will capable of waging this fateful battle? I expect that economic history alone will provide the answer.
Oil and Gas Law: The Memorandum of Understanding between Baghdad and Erbil is postponed to a new parliamentary session.
Despite more than a decade and a half of repeated calls for the enactment of an oil and gas law, this pending issue remains one of the most controversial issues in Iraq, particularly in the relationship between Baghdad and Erbil.
The current government, headed by Mohammed Shia al-Sudani, has repeatedly emphasized the importance of enacting the law as a key to resolving oil disputes and distributing wealth fairly. However, political pressures and deep divergences in viewpoints among various forces have prevented this goal from being achieved.
Recently, Kurdistan Regional Prime Minister Masrour Barzani signed two contracts worth $110 billion over the course of their implementation with American companies HKN Energy and Western Gas. The agreements relate to the development of the Miran and Topkhana-Kurdimir gas fields in Sulaymaniyah, sparking anger within the federal government.
The Federal Ministry of Oil declared two agreements between two American energy companies and the Kurdistan Regional Government invalid due to their failure to obtain federal approval. The Ministry emphasized that any investment agreements must be concluded through the federal government.
In a 2022 ruling, the Iraqi Federal Court deemed an oil and gas law regulating the oil sector in Iraqi Kurdistan unconstitutional and ordered the region's authorities to hand over their crude oil supplies.
Controversy is constantly raging between the federal government and the Kurdistan Region over oil and gas issues, underscoring the need to move forward with resolving the relationship by approving oil and gas. However, several factors consistently push the issue toward deferral.
During the last government meeting, Prime Minister Mohammed Shia al-Sudani stressed "Iraq's need to enact an oil and gas law to benefit from this natural resource."
In addition, the Parliamentary Oil and Gas Committee revealed the latest developments in the agreement on the draft oil and gas law.
Committee member Bassem Naghmish said that the government had previously formed a committee headed by the Deputy Prime Minister for Energy Affairs, the Deputy Prime Minister for Economic Affairs, and the Iraqi State Organization for Mobilization and Statistics (SOMO) to negotiate with the regional government regarding amending the disputed articles and preparing a final draft of the oil and gas law.
Speaking to Al-Eqtisad News, he added that the Parliamentary Oil Committee hosted a number of officials from the Ministry of Oil during the previous legislative session, and discussed the formulations and provisions that required amendments to the Oil and Gas Law.
Naghmish stressed that agreeing on the draft oil and gas law, approving it by the Council of Ministers, and then sending it to Parliament will contribute to resolving many of the outstanding issues between the federal and regional governments.
The President of the Republic recently confirmed that relations between the federal government and the Kurdistan Region are good, and that there are ongoing negotiations and meetings between the two parties to resolve outstanding issues.
During a televised interview followed by Al-Eqtisad News, he stressed that the absence of an oil and gas law is causing numerous problems between the federal government, the Kurdistan Region, and the provinces, and that its adoption will resolve these issues.
For his part, MP Briar Rashid ruled out proceeding with the discussion and approval of the oil and gas law within the House of Representatives during the current session.
Rashid said, "The oil and gas law is one of the important laws that has been postponed for several parliamentary sessions without a final decision due to the lack of political consensus." He explained that, "If passed, this law will contribute to addressing many outstanding issues."
He added that "currently available indicators confirm there is no intention to discuss the law further, which effectively defers it to the next parliamentary session." He emphasized "the need to resolve complex and postponed laws, given their role in addressing numerous problems and supporting the development of state institutions through a clear legal framework."
Rashid pointed out that "controversial laws require political consensus, and if a positive climate exists, these laws will be implemented. They will constitute a turning point in ensuring fairness to all parties and clearly defining duties and rights."
Meanwhile, Kurdistan Democratic Party (KDP) leader Wafa Mohammed stressed that the oil and gas law was one of the most prominent conditions the party set for joining the State Administration Coalition and participating in forming the current government. However, political pressure from some parties complicated the situation and delayed the passage of the law.
In an exclusive interview with Al-Eqtisad News, Mohammed said that the oil and gas law is one of our most important demands, but that there are political parties exerting strong pressure and complicating matters, especially recently.
He explained that the Kurdistan Democratic Party does not hold the current government headed by Mohammed Shia al-Sudani responsible for the delay, but rather places the blame on the political parties exerting such pressure.
Mohammed indicated that postponing the law until the next parliamentary session is likely given the current political situation, emphasizing that the law will be one of the party's key conditions for entering into any political alliances or forming the next Iraqi government.
The Kurdish leader added that the party is preparing to contest the upcoming elections with new alliances, which may be built on the prior agreement to pass this vital law, which is pivotal in regulating the relationship between the federal government and the Kurdistan Regional Government regarding the management of natural resources and the distribution of oil revenues.
The current Iraqi government was formed in late 2022 under a political agreement signed with forces in the Kurdistan Region. The agreement included a clause pledging to submit a consensus oil and gas law to parliament within six months "at most."
The current government made clear efforts in this regard, including preparing an initial draft and submitting it to parliament. These efforts almost completely halted after the Kurdistan Region's oil exports were halted in March 2023.
Among them is Iraq.. Iran proposes forming an economic development group consisting of eight countries.
Iranian Ambassador to Saudi Arabia Ali Reza Enayati proposed establishing an economic development group comprising the Gulf states, his country, and Iraq, according to a report published by the semi-official Iranian Mehr News Agency on Friday.
In a speech delivered at the provincial diplomatic forum in Shiraz, Enayati said, "In addition to political relations, there must be public communication in various economic, tourism, and trade fields."
He added, "The security outlook is shifting from a geopolitical orientation to one of development," adding, "This shift in vision may take time, but we are clearly seeing it in the countries of the Persian Gulf region, and this shift has provided an important opportunity for the Islamic Republic of Iran."
Enayati continued, saying, "Iran and Iraq are located to the north of the Persian Gulf, and to the south of it are six countries. These eight countries can form a single group to develop economic cooperation."
He pointed to the importance of the corridors and Iran's strategic location, noting that "the Iran corridor represents the ideal advantage for Iran, and we can take advantage of this opportunity and transform it into a general economic route for the countries of the region that are now thinking about development."
Oil: US companies' dealings with the region, separate from Baghdad, are unconstitutional.
The Ministry of Oil confirmed on Friday that American companies' dealings with the region, separate from the federal government, are unconstitutional.
Iraq and the Season of Absolute Powers: No Oversight or Budget... A "Political Emergency" Paralyzes the State
Hopes for the passage of the 2025 budget in Iraq are gradually fading, amid a political landscape marked by legislative stagnation, a nearly paralyzed parliament, and a government seemingly more preoccupied with managing political balances than fulfilling constitutional and financial obligations. In this context, Member of Parliament Jawad Al-Yasari affirmed on Friday (May 23, 2025) that next year's budget schedules "have become a thing of the past," indicating the impossibility of passing it at the present time.
Absent parliament... no prospect of holding sessions
In a statement to Baghdad Today, the leftist said, "The Iraqi government has no real seriousness in sending the 2025 budget schedules, and even if it did send them—which is unlikely—it would be impossible to pass them in light of a paralyzed parliament, with no sessions, no quorum, and no deputies."
He pointed out that holding parliamentary sessions "has become extremely difficult, due to the preoccupation of blocs, parties, and even MPs themselves with election campaigns and ongoing preparations for the general elections. This means that the new budget schedules will not be discussed or approved, and the Ministry of Finance will continue to work with the remaining 2023 and 2024 budget schedules."
A government in a political impasse
These statements highlight a deeper dilemma facing the Iraqi government, which had pledged at the beginning of this year to submit the budget schedules before the end of the first quarter, according to statements made by Cabinet spokesman Bassem Al-Awadi. However, the passage of months without submitting the schedules reflects either a delay in the government's ability to formulate them within the timeframe, or political considerations preventing their passage amid a tense and unstable parliament.
Finance between reality and maneuver
According to sources from the Ministry of Finance, government spending will not cease in the absence of 2025 budgets, as the provisions of Article (13) of Financial Management Law No. 6 of 2019 allow reliance on previous years' budgets to cover basic current expenditures, most notably salaries, social support, and temporary employment. However, the absence of a budget effectively freezes investment spending, halts new projects, and disrupts the work of ministries and governorates.
The political impasse... when the state is frozen by an unannounced decision
The absence of financial tables is not merely a procedural flaw; it reflects a complex, deeply rooted political crisis. The paralysis of parliament due to electoral polarization and the lack of coordination between the government and the House of Representatives reveal that Iraq's constitutional institutions operate not according to the state's rhythm, but rather according to the rhythm of alliances. This makes major decisions, such as the budget, a direct victim of any political confusion.
In this context, observers believe that the elections have transformed into something resembling a "political state of emergency," in which the state is temporarily frozen, legislation and oversight are halted, projects are suspended, and decisions are postponed. In the absence of an effective parliament, the executive branch is left without institutional balance, opening the door wide open to the expansion of powers in the hands of the executive branch.
Indeed, some warn that repeating this model reinforces the logic of a temporary state—a state run by momentary orders, instructions, and assessments, rather than annual budgets and plans.
The economy is in a state of anticipation... neither recession nor growth
Economically, the absence of a 2025 budget schedule pushes Iraq into a gray zone: not a state of collapse, but also not one of stable growth. Salaries are being paid, and current expenditures are proceeding, but there is no clear economic horizon, no approved spending priorities, and no transparent investment map. This leaves the private sector in a state of "waiting freeze," unable to make expansionary decisions amid the ambiguity of public policies.
Stalled projects are likely to accumulate, domestic and foreign debts lack legislative cover for settlement, and promised development plans are stuck in the drawers of ministerial committees. In the governorates, project implementation is contingent on central allocations that never materialize, and some are managed through primitive "transfers" that reproduce local financial chaos.
Economists agree that the continuation of this pattern deprives the budget of its most important political and economic functions: setting priorities, controlling the deficit, stimulating growth, and distributing wealth fairly.
Management crisis or system crisis?
The absence of budget schedules for next year cannot be reduced to the scene of an absent parliament. Rather, it reflects a structural flaw in the relationship between the authorities, where planning and development priorities are being undermined by political rivalries and electoral gains. While the government continues to spend according to outdated schedules, infrastructure projects, administrative reform, and social service programs remain suspended on the ropes of lost time.
A dinner was held in Washington in the presence of Trump's senior advisor to welcome the Prime Minister of the Kurdistan Regional Government.
An official dinner was held last Thursday evening, Washington time, to welcome Kurdistan Regional Government Prime Minister Masrour Barzani's visit to the United States. Masad Boulos, senior advisor to US President Donald Trump, was also present.
A statement issued by the regional government stated that during the banquet held in Washington, which was also attended by a group of prominent American figures, Paul warmly welcomed the regional government's prime minister, describing his current visit to the United States as "very successful."
In his remarks, the US President's Advisor also stressed the critical importance of strengthening and consolidating the foundations of the strategic relationship between the Kurdistan Region and the United States, according to the statement.
In a speech on this occasion, the Prime Minister, according to the statement, expressed his "profound thanks and appreciation" to the hosts for their warm welcome and generous hospitality, stressing that "the Kurdistan Region is proud of the close cooperation, continuous support, and deep friendship that binds it to the United States."
He continued, "We look forward to further developing our bilateral relations in various fields and at all levels, in a way that serves the common interests of both sides."
Parliamentarian: The current recess of the House of Representatives is {unnecessary}
Al-Bazouni told Al-Furat News Agency, "The Council of Representatives is enjoying a legislative recess that is not needed at this stage," stressing that "suspending parliament's work for an entire month is unrealistic."
Al-Bazouni added, "The issue of suspending work is due to a premeditated matter that is not hidden from everyone," calling on the legislative authority to "fully assume its responsibility and the responsibility of Iraq and the position in which their people have placed them," stressing the necessity of "holding parliamentary sessions."
It is noteworthy that the Council of Representatives began a legislative recess on May 9 and will continue for an entire month.
Before the recess, the Council failed to hold any session due to the lack of a quorum due to the absence of representatives, despite the presence of many important and non-controversial laws on the agenda.
Did you miss the Special Report on the Kurds? Catch it below:
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