Iraq Economic News and Points to Ponder Thursday Afternoon 4-10-25
A High-Level US Economic Delegation Visits Iraq, Affirming Partnership And Economic Development
Buratha News Agency1312025-04-10 The Vice President of the U.S. Chamber of Commerce, Steve Lutes, confirmed on Wednesday that the U.S. Treasury will play an active role in developing the Iraqi economy, noting that Iraq is witnessing increasing openness to economic partnerships with the United States.
Lutes stated during a press conference that "our visit to Iraq represents the largest delegation of American businessmen to visit the country, and includes diverse sectors of the American economy," stressing that "Iraqi Prime Minister Mohammed Shia al-Sudani is working to strengthen partnerships between Iraqi companies and their American counterparts to develop the industrial and economic sectors."
He also explained that "the US Treasury Department and the US Chamber of Commerce represent key players in supporting joint economic cooperation between the two countries, with the aim of achieving sustainable development and expanding the horizons of joint action."
In contrast, Ibrahim al-Baghdadi, head of the Iraqi Economic Council, emphasized during the conference that "the country has witnessed a significant decline in the level of education in recent years since liberation, but the presence of the American University in Iraq represents an important step toward saving education and represents a real lifeline."
Al-Baghdadi added, "We cannot forget the role of the United States in liberating Iraq from dictatorship. It is a pioneering country in many fields and continues to contribute to supporting Iraq."
He pointed out that "the visit of the American delegation, consisting of more than 100 figures representing more than 60 companies, is clear evidence of the development of economic relations between Baghdad and Washington," noting that "the Private Sector Development Council was launched two days ago, headed by Prime Minister Mohammed Shia al-Sudani, and including the First Deputy Prime Minister, the Minister of Planning, and the Second Deputy Prime Minister."
He concluded by saying, "Iraq is dozens of times better off today than it was in recent years, and we welcome any company willing to invest and work within Iraq to develop its industrial and economic sectors." https://burathanews.com/arabic/economic/458652
Planning: 241 Trillion Dinars In Investments Required By 2028
Money and Business Economy News – Baghdad The Ministry of Planning estimated the investments required by 2028 at more than 241 trillion dinars.
“The volume of investments required to achieve the targeted growth rate of 4.24% during the implementation period of the National Development Plan is a total of 241 trillion and 100 billion dinars,” the ministry’s spokesperson, Abdul Zahra Al-Hindawi, told Al-Sabah, followed by Al-Eqtisad News. He pointed out that “the government sector contributes about 157 trillion and 300 billion dinars of that.”
He explained that "private sector investments constitute 8.34% of the total required investments, and the crude oil sector will receive the largest share of capital formation, amounting to 27.4%, followed by the housing ownership and social development services sectors, which will receive 22.5% and 20.8% of capital formation, respectively."
Al-Hindawi pointed out that "the water and electricity sector will receive 8.6% of capital formation, while the manufacturing sector will receive 8.7%, and the remaining sectors will have varying percentages of capital formation," explaining that "in light of the expected targeted GDP growth rate of 4.24% at constant prices, which exceeds the estimated annual population growth rate of 2.5%."
For his part, economic expert Alaa Al-Fahd questioned the role of the private or mixed sector in providing these investments to establish projects within the national development plan, continuing, “The oil sector enjoys very significant foreign and local investment participation because it is productive, and any investment funds invested in this sector will be income-generating in the future and have investment benefits, while other sectors provide specific services and have investment aspects and infrastructure.”
Al-Fahd stressed that “if Iraq wanted to open up to investment and sign all projects, including the ‘Development Road’ and the completion of the ‘Grand Faw Port’, these amounts would be greatly multiplied,” noting “the necessity of the private and foreign sectors participating in this field, because the government cannot provide these amounts alone without cooperation, joint investment and partnership with other sectors.” https://economy-news.net/content.php?id=54298
US Agency: Partnership Contracts With Iraq Are The Largest And Most Recent
Energy Economy News – Baghdad Bloomberg, the US news agency, described the partnership contracts signed with the Iraqi government on Thursday as the largest and most recent, while noting Baghdad's success in developing the electricity generation sector with the two largest energy companies.
The agency stated in a report followed by "Al-Eqtisad News" that "Iraq signed non-binding agreements with two American companies aimed at adding 27 gigawatts to the country's electricity generation system, as part of efforts to meet the growing demand for energy." It noted that "the Iraqi government signed a memorandum of understanding with General Electric Vernova to build gas-fired power plants with a production capacity of up to 24 gigawatts."
She added that the plan, described as "the largest and most advanced" in the country's history, allows for access to external financing from international banks.
Electricity Minister Ziad Ali Fadel explained in a statement following the signing, according to the statement, that "the new stations will produce approximately 8 gigawatts without consuming fuel, while they will produce 16 gigawatts using natural gas and other fuels."
He explained that "demand for electricity in Iraq is expected to reach 55 gigawatts during the summer, while the country's current production capacity ranges between 16 and 26 gigawatts, depending on gas availability."
He pointed out that "the ministry signed another memorandum of understanding with UGT Renewables to establish an integrated solar energy project with a capacity of 3 gigawatts, financed by the US Export-Import Bank, the UK Export Finance Corporation, and JP Morgan," stressing that "the agreement includes a two-year period for technology transfer, training, operation, and maintenance."
The agency continued, "Oil Minister Hayan Abdul Ghani had previously announced talks with several companies to secure two floating storage and regasification units by early June, following the United States' decision not to renew the waiver that allowed OPEC's second-largest producer to purchase electricity from Iran."
For its part, the US Embassy confirmed that "Iraq's agreements with GE Vernova and UGT Renewables are worth billions of dollars." It should be noted that "the exact cost and timeline for the projects are unknown." https://economy-news.net/content.php?id=54309
Parliamentary Finance Committee: Amending The Import Control Authority Law Is A First Step Towards Achieving Sustainable Development
Money and Business Economy News – Baghdad Parliamentary Finance Committee Chairman Atwan Al-Atwani affirmed on Thursday that amending the General Authority for Import Control Law is a first step towards achieving sustainable development.
The media office of the Chairman of the Finance Committee stated in a statement, seen by Al-Eqtisad News, that "Al-Atwani received a delegation from the International Partners Foundation to discuss ways to enhance joint cooperation and exchange of expertise."
It noted that "the meeting discussed the financial situation in the country and the role of the committee in following up on the implementation of budget items, monitoring spending and evaluating performance. The priorities of the Finance Committee at the present time were also reviewed, foremost among which is the file of maximizing non-oil revenues."
Al-Atwani said, according to the statement: "We are currently working on preparing an amendment to the law of the General Authority for the Control of Federal Imports, with the aim of submitting it for a second reading as soon as possible, as it aims to maximize non-oil revenues.
He added, "The Finance Committee is finalizing plans to hold an expanded workshop in cooperation with the International Partners Foundation, with the participation of all relevant government agencies, to exchange views and consolidate important observations regarding this law. This will contribute to establishing clear mechanisms for its implementation, enabling the Authority to develop realistic estimates of state revenues."
Al-Atwani pointed out that "the approval of the amendment to the law of this authority and the development of a realistic plan for its implementation is the culmination of the efforts of the Finance Committee and a major national achievement during this parliamentary session, as it represents the first step towards achieving sustainable development by diversifying sources of income and moving away from the philosophy of a rentier economy that is entirely dependent on oil." https://economy-news.net/content.php?id=54311
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