Latest news with #Al-Kadhimi
Shafaq News
29-06-2025
- Business
- Shafaq News
Iraqi MP: US pressure disrupts PMF salaries
Shafaq News – Baghdad/Washington The United States is ramping up pressure on Iraq's government, financial sector, and Visa Card companies, a senior Iraqi lawmaker disclosed on Sunday. Moeen Al-Kadhimi, a member of the Parliamentary Finance Committee, told Shafaq News that salaries for the Popular Mobilization Forces (PMF), typically processed through Al-Rafidain Bank in cooperation with Qi Card, had been frozen under what he described as 'intense American pressure.' To keep payments moving, Al-Kadhimi urged PMF leaders to temporarily revert to manual payroll lists and distribute salaries in cash until new deals with local banks can secure future electronic transfers. The salary freeze came just two days after their scheduled release, fueling speculation over whether technical glitches or Qi Card's refusal to process funds caused the disruption. PMF officials maintain the money is available and say talks with the Finance Ministry and local banks are ongoing to restore regular disbursement.
Shafaq News
15-06-2025
- Business
- Shafaq News
Iraq: Airspace closure unlikely to disrupt dollar transfers from US
Shafaq News/ The recent suspension of air traffic is unlikely to affect the flow of US dollars into Iraq, amid escalating regional tensions, the Iraqi parliament's Finance Committee stated. Committee member Moein Al-Kadhimi told Shafaq News that Iraq's oil revenues from exports are sent to an account at the US Federal Reserve, and later transferred to Iraq through financial remittances, rather than in the form of physical cash. 'Transfers are made from the Central Bank of Iraq to the US Federal Reserve,' Al-Kadhimi explained, 'and from there, the funds are sent to various countries from which Iraq imports goods for both the public and private sectors.' He clarified that the suspension of aviation does not impact Iraq's ability to receive its oil revenues, adding that $1 to $2 billion still reaches Iraq in cash, ensuring domestic liquidity remains stable. 'Employee salaries will not be affected in any way. Cash flow is available, and salaries will be paid on schedule,' he emphasized. Earlier, the Iraqi Civil Aviation Authority announced an extension of the closure of Iraqi airspace to all inbound and outbound flights, following an unprecedented wave of military escalation between Israel and Iran.
Shafaq News
11-06-2025
- Business
- Shafaq News
Exclusive: Iraq to submit 2025 budget to Parliament in July
Shafaq News/ The draft 2025 Iraqi budget will be submitted to the Council of Representatives at the beginning of July, an Iraqi MP confirmed on Wednesday. The member of the Parliament's Finance Committee, Moeen Al-Kadhimi, told Shafaq News that the Ministry of Finance has finalized its comments on the Federal Budget Law's tables and submitted them to the Council of Ministers for review. The goal is to assess the overall budget and compare it to last year's figures in light of this year's decline in revenue. He explained that the Ministry is currently preparing the final budget tables, pending the cabinet's response to its remarks. The 2025 budget bill is expected to be referred to Parliament early next month, once approved by the Council of Ministers. The Finance Committee believes the budget should be aligned with actual revenues and not exceed 140–150 trillion dinars (about $99,044B - $10.611B)—the range adopted in the 2023 and 2024 budgets, Al-Kadhimi noted. Since 2023, Iraq has operated under a three‑year Budget Law covering 2023–2025, approved by Parliament in June 2023. This law requires the government to submit detailed annual budget tables—including revenue estimates and expenditure allocations—for legislative review and implementation each year. However, delays in delivering the 2025 tables have effectively stalled budget execution, raising concerns ahead of anticipated early elections.
Shafaq News
08-04-2025
- Politics
- Shafaq News
Iraq's former PM Al-Kadhimi breaks silence on return
Shafaq News/ Iraq's former Prime Minister Mustafa Al-Kadhimi said his recent return to the country after stepping down in 2022 marks the beginning of a new phase of political engagement while outlining conditions for any future participation in parliamentary elections and warning of political polarization. In remarks published Tuesday in an interview with Al-Majalla magazine, Al-Kadhimi said he left Iraq after the end of his term to recuperate from years of public service, which included leading the Iraqi National Intelligence Service before assuming the premiership in 2020. "Some described it as a warrior's rest — and that's partially true," Al-Kadhimi said. 'It was a period of reflection, observation, and writing — but also of preparing ideas and strategies in response to the rapid transformations in the region and the world.' Al-Kadhimi said he was motivated to return by accelerating regional developments, which he believes require 'constructive ideas and a return to rational dialogue, away from reckless adventures.' He emphasized Iraq's Arab identity, stating that Baghdad must remain aligned with the broader Arab consensus and 'cannot replace its strategic depth.' While refraining from confirming whether he will run in Iraq's upcoming elections, Al-Kadhimi outlined two key conditions for participation, the first is a credible electoral process with the highest degree of transparency, referencing past concerns over manipulation and mobilization since Iraq's first post-2003 election. The second is a call for shared national responsibility, urging all political actors—inside and outside government—to prioritize the country's stability regardless of political alignment. 'Our options remain open,' he said, noting ongoing dialogue with various political forces that share his vision for reform and moderation. On foreign relations, Al-Kadhimi strongly defended Iraq's strategic partnership with the United States, describing it as vital to the country's development and institutional progress. 'Unfortunately, some figures promote populist slogans about severing ties with Washington, while privately seeking US approval and connections,' he said, warning against what he termed 'hypocrisy mixed with ignorance.' Al-Kadhimi also stressed the need for Iraq to play a mediating role amid rising US-Iran tensions, saying Baghdad should serve as a 'bridge for dialogue' not only between Washington and Tehran, but also among Gulf states including Saudi Arabia, the UAE, and Qatar. "Iraq is uniquely positioned—geographically and historically—to help reduce regional polarization," he said, calling for a balanced foreign policy grounded in national interests, regional integration, and security priorities.
Shafaq News
30-03-2025
- Business
- Shafaq News
Iraq's budget in limbo: Funding woes and oil risks grow
Shafaq News/ Iraq's 2023–2025 budget, approved in June 2023, is the largest in the country's history, allocating around 198.9 trillion dinars ($153 billion) annually. With a focus on infrastructure development, public sector salaries, and fostering economic growth, the budget promises to play a pivotal role in shaping Iraq's future. The Kurdistan Region is set to receive 12.67% of the total budget, amounting to over $12 billion annually. With oil prices projected at $70 per barrel, Iraq expects oil revenues to reach approximately 117 trillion dinars each year. However, despite the budget's expansive scope, its implementation has faced significant obstacles. What was intended to be a smooth, multi-year framework has, instead, transformed into a series of annual plans, delaying progress and creating uncertainty. Still, the government remains committed to ensuring economic stability. Implementation Hurdles Mudher Mohammed Saleh, financial adviser to Prime Minister Mohammed Shia Al-Sudani, reaffirmed that the 2025 budget is legally grounded under Law No. 13 of 2023, which mandates a three-year spending plan. Saleh acknowledged delays in allocations but emphasized that 90% of Iraq's financial operations remain unaffected, stating, "The financial and economic situation is stable, with a high degree of certainty." He underscored the close collaboration between legislative and executive authorities. Nevertheless, slow disbursements have raised concerns. Moein Al-Kadhimi, a member of the Parliament's finance committee, warned that delays in finalizing both operational and investment budgets could harm market liquidity, hinder businesses, and stifle economic growth. 'The key issue isn't just a budget approval, it's funding,' Al-Kadhimi remarked. Although the 2024 budget is in place, funding for regional development and ministries remains stalled, delaying new projects. Al-Kadhimi projected total revenue from oil and non-oil sources at no more than 140 trillion dinars ($107 billion). He also called for a cap on allocations at 150 trillion dinars—127 trillion for operations and 23 trillion for investments—to preserve fiscal stability. The Crude Calculation Iraq's heavy reliance on oil revenues continues to strain the country's finances. The 2023 budget projected oil exports at 3.5 million barrels per day at $70 per barrel. However, actual exports fell to 3.2 million barrels per day, creating a 3 trillion dinar ($2.3 billion) gap. This shortfall has compounded the financial pressure, with oil prices fluctuating between $60 and $80 per barrel. Ahmed al-Jassim, a financial analyst, pointed out, "Oil prices, the backbone of Iraq's budget, remain highly volatile. The government faces mounting pressure to manage expenditures carefully." Looking ahead to 2025, Iraq anticipates a budget deficit of 64 trillion dinars ($48 billion), the same as in 2023 and 2024. While total budget allocations have risen from 198 trillion dinars to 211 trillion dinars, the persistent shortfall raises concerns about the need for increased borrowing, potentially draining foreign reserves and destabilizing the economy. Former Prime Minister Mustafa al-Kadhimi stressed the importance of diversifying Iraq's revenue sources to mitigate these risks. With oil prices potentially falling to $60 per barrel, he emphasized the need to boost non-oil revenues through customs duties, taxes, telecom revenues, utility fees, and state property income. "Current non-oil revenues are below 15 trillion dinars but should reach at least 30 trillion," al-Kadhimi asserted. Despite these challenges, al-Kadhimi remains optimistic. As long as Iraq maintains an export rate of 3.5 million barrels per day, liquidity should remain intact, with a funding ceiling of 50 trillion dinars. However, without significant reforms or a reduction in the deficit, Iraq risks excessive borrowing and depletion of foreign reserves, endangering long-term financial stability. Baghdad-KRG Rift The budget delays have been primarily driven by a long-standing dispute between Baghdad and the Kurdistan Regional Government (KRG). Abdul-Hassan Al-Ziyadi, an economic expert, highlighted the inefficiency of Iraq's budgeting process, which often extends for months, sometimes even a full year. "This uncertainty ripples across both public and private sectors, making strategic planning nearly impossible." At the heart of the deadlock is a revision to Article 12, Section (C), which recalculates the cost of producing and transporting crude oil from the Kurdistan Region. Initially set at $10 per barrel, the cost was raised to $16, sparking disputes that have delayed the 2025 budget submission. The conflict also reflects deeper political and economic rifts. The KRG insists on maintaining control over its oil revenues, a right it claims is enshrined in Iraq's Constitution. However, Baghdad argues for central oversight, citing the national importance of oil revenues. A key point of contention is Article 14 (7), which allows Baghdad to allocate funds directly to KRG provincial governments if the regional administration fails to distribute them fairly. The Kurdistan Democratic Party (KDP) opposes this provision, with spokesperson Shaswar Abdulwahid describing it as 'an unconstitutional power grab' that undermines the Kurdistan Region's authority over its own resources. Baghdad, however, argues that the measure ensures equitable distribution of resources across Iraq. Compounding the crisis is the KRG's growing financial strain, exacerbated by the suspension of its independent oil exports through Turkiye. Since March 2023, a dispute between Baghdad and Ankara over the legality of Kurdish oil exports has shut down the Ceyhan pipeline, severing the region's primary revenue stream. The resulting losses, estimated at $5 billion, have made it increasingly difficult for the KRG to meet its financial obligations, including salary payments. Late Is Better Than Never An official source revealed to Shafaq News that Iraq is preparing to submit its final 2025 budget to Parliament in the coming days. The finalized budget is expected to be delivered either after the Eid al-Fitr holiday on March 31st or by mid-April for legal review. This schedule aligns with the government's financial priorities and requirements. The 2025 budget, projected at around $200 billion, faces a significant deficit. This gap is primarily due to a sharp decline in Iraq's strategic reserves of gold and foreign currency, as well as liquidity shortages. Furthermore, the government's ongoing commitment to large-scale projects requiring substantial funding has put additional strain on Iraq's finances. As a result, the operational budget will see reductions, and the pace of government service projects will slow. Sectors under Siege Public Service Strain The budget crisis has had far-reaching consequences, particularly in the public services sector. Disruptions in funding have left healthcare, education, and social programs in limbo, directly affecting millions of Iraqis who rely on government services. Manar Al-Abidi, executive director of the Iraq Future Foundation, noted, "Each delay not only disrupts contractors and businesses but directly affects citizens. From hospitals to schools, funding interruptions have stalled essential services, straining the systems people depend on." According to the Ministry of Planning, up to 30% of essential public services have been affected. Salary delays for 2.5 million government employees, including teachers and doctors, have fuelled public frustration, while pensioners continue to struggle with delayed payments. The Ministry of Health has warned that 60% of public hospitals are running low on essential medical supplies, forcing patients to seek private care. Meanwhile, more than 7,000 schools have had operations delayed, impacting 2.8 million students and raising concerns about Iraq's long-term educational prospects. Economic researcher Ahmed Eid described the situation as a 'major crisis' that could upend Iraq's economic stability. "A budget isn't just a financial document, it's the backbone of economic growth, job creation, and financial security," Eid emphasized. He warned that continued delays risk stalling progress, scaring off investors, and weakening market confidence. Private Sector Struggles The private sector is also feeling the strain. The Ministry of Planning reports that 42% of key development projects planned for 2024, worth more than $12 billion, have been put on hold. This is particularly evident in the construction sector, where activity has dropped by 20% due to the suspension of government contracts. Businesses dependent on public sector spending are also facing mounting challenges. "This delay is fuelling economic uncertainty," Eid cautioned. "Companies are hesitating to invest, and hiring freezes are spreading across industries." The Federation of Iraqi Industries has reported that 35% of small and medium-sized enterprises have experienced declining revenues, while private sector employment has shrunk by 8% in the first quarter of 2024. As the budget impasse continues, experts are urging a swift resolution. "The budget is not just about numbers—it's about Iraq's future," Eid concluded.
