Latest news with #IraqFutureFoundation
Shafaq News
4 days ago
- Business
- Shafaq News
Iraq's hidden workforce: The rise of waste picking
Shafaq News – Baghdad The informal profession of waste picking has become a critical lifeline for tens of thousands of young people and women across Iraq, according to Manar Al-Obaidi, head of the Iraq Future Foundation. In a statement, Al-Obaidi described the growing reliance on waste picking as both a social and economic phenomenon that is unfolding largely unnoticed by the state. 'Today, waste picking has become a last resort for tens of thousands of youth and women who lack access to formal employment and possess neither academic qualifications nor vocational skills,' Al-Obaidi wrote. 'It is no longer a random activity. It is a structured, expanding phenomenon operating quietly through Iraq's cities and alleys, overlooked by both government and society.' Despite its marginalization, Al-Obaidi emphasized the vital role waste pickers play in the national economy, particularly in the recycling sector, pointing out to rising imports by countries such as Turkiye, Iran, China, the UAE, and Saudi Arabia of recyclable materials originating in Iraq — including paper, aluminum, iron, and wood waste. Each category of recyclable material, he explained, creates a supply chain capable of generating at least 20,000 direct and indirect jobs, making waste picking one of the largest informal job generators in the country amid a lack of viable alternatives. This trend is intensifying at a time of deepening economic pressure. According to forecasts by Statista, Iraq's unemployment rate reached 18.22% in 2025, with a labor force of approximately 12.42 million people and a total population projected at 47.02 million. The combination of limited formal employment opportunities, rapid population growth, and weak vocational training systems has left many Iraqis with few options beyond informal work. Al-Obaidi noted that waste picking has thus become the only option for many, leading to increased competition in the sector. However, he warned that the industry operates entirely outside state oversight, and in some areas is controlled by organized networks that divide territories based on the type of recyclable material and impose fees or extortions on workers. 'This reflects the presence of a parallel informal economy that lacks both regulation and fairness,' he said. With domestic consumption rising and waste generation increasing, Al-Obaidi projected that Iraq's industrial and manufacturing sectors will increasingly depend on raw materials sourced from this growing activity. Yet despite this growing reliance, he criticized the absence of a clear government strategy to track where these materials go, how much they are worth, and who profits from their export. 'Why,' he asked, 'are they not reprocessed domestically to generate local added value?' Al-Obaidi also stressed that the goal is not to burden waste pickers with bureaucratic regulation, but to compel the state to recognize that this profession has become, for thousands of Iraqis, the only remaining way to earn a living. 'These are forgotten citizens, deprived of education and training, who found no path forward but to collect recyclables and sell them to meet their most basic needs.'
Shafaq News
02-07-2025
- Business
- Shafaq News
Foreign investment deficit persists in Iraq despite multibillion-dollar deals
Shafaq News - Baghdad Iraq recorded a net foreign investment loss of $8B in 2024, reflecting continued capital flight and underperformance in attracting financial inflows, according to the Iraq Future Foundation. Foundation director Manar al-Obaidi, citing Central Bank figures, reported that $7.6B in foreign holdings exited Iraq last year. Additionally, Iraqi entities placed $400M in overseas ventures. Data for the first quarter of 2025 showed the trend persisted, with $1B in external withdrawals and $133M in outbound Iraqi investments—a 21% rise from the previous quarter. Despite a year-on-year decrease in net outflows, al-Obaidi cautioned that the overall balance remains negative, underscoring persistent obstacles to retaining and attracting international capital. The Foundation highlighted that foreign direct investment plays a critical role in stabilizing the country's external accounts by bolstering hard currency reserves alongside oil revenues. Ongoing deficits, it warned, could intensify pressure on the financial system. While authorities claimed to have secured $63B in investment commitments over the past two years, the Foundation found no traceable impact in monetary statistics, and concluded that many projects remain pending or inactive, with no actual funds entering the domestic economy.
Shafaq News
30-06-2025
- Business
- Shafaq News
Iraq's dollar reserve bleeds from inflated import invoices
Shafaq News – Baghdad Iraq's foreign currency reserves are being drained due to inflated import invoices, a local economic expert warned on Monday, calling for urgent reform to the country's trade and currency transfer mechanisms. Manar al-Obaidi, head of the Iraq Future Foundation, said that trade data from countries such as China, Turkiye, and the United Arab Emirates show clear discrepancies between the declared value of goods exported to Iraq and their actual market prices, suggesting large-scale over-invoicing. He cited figures from Chinese exports as an example, in the first five months of 2025, Iraq reportedly imported $170 million worth of Chinese footwear and nearly $600 million in clothing. "These figures do not reflect the true demand in Iraq's market nor align with global prices," al-Obaidi stated, adding that this strongly indicates invoice inflation in terms of both volume and value. According to al-Obaidi, certain parties are exploiting the difference between Iraq's official exchange rate and the parallel market rate. He explained that by inflating invoices, these entities have managed to funnel large sums of money through the official banking channels, bypassing multiple layers of scrutiny designed to verify transfers and ensure they reach legitimate recipients. Although the Central Bank of Iraq has implemented stricter auditing procedures to control currency outflows, al-Obaidi argued that the current framework has proven ineffective. "The weakness is evident not only in the export data from trading partners but also in Iraq's persistently low customs revenues, which remain disproportionately small compared to the volume of declared imports," he said. Al-Obaidi called for a new mechanism linking bank transfers to customs duties, under which importers would not be allowed to access the official exchange rate unless they first settle the customs fees based on the declared value of the transfer. "This approach would achieve two key objectives," he explained, adding that "It would tighten oversight on transfers made at the official rate and increase state revenues by ensuring duties are calculated based on the real value of goods." However, he acknowledged that such a proposal may face resistance. Critics might argue it risks pushing the dinar further down in the parallel market by tightening access to foreign currency and could be seen as a fiscal intervention rather than a monetary one. "What Iraq is experiencing today, an uncontrolled drain of foreign currency and a decline in reserves due to unchecked imports, demands exceptional measures, even if they carry side effects," al-Obaidi warned. He concluded that reforming Iraq's transfer and import systems is no longer optional, but 'an urgent necessity to safeguard economic stability and protect Iraq's foreign currency reserves.'
Shafaq News
03-06-2025
- Business
- Shafaq News
Iraqi salary bill set to soar, economist warns
Shafaq News/ Iraqi government spending on salaries is set to surge, potentially doubling to 5% over the next five years and putting the country's economy at serious risk, economist Manar al-Obaidi, head of the Iraq Future Foundation, warned on Tuesday. In a Facebook post, al-Obaidi forecast a 27% increase in Iraq's public sector salaries in 2024, surpassing 60 trillion IQD ($42.37 billion) for the first time—an amount equal to 40% of total government expenditures. 'Salaries have reached dangerous levels that will have catastrophic consequences for Iraq's economy,' he cautioned. He noted that salary expenses have risen by 50% over the past five years, without a corresponding increase in non-oil revenues or improvements in public services, questioning, 'What's the benefit of raising the salary bill?' Meanwhile, the ongoing salary dispute between Baghdad and Erbil has fueled persistent tension, with the federal government's recent decision to halt salary disbursements to the Region's employees sparking criticism in Kurdistan. The Kurdistan Democratic Party (KDP) condemned the federal government's decision calling it a violation of constitutional rights and a form of political exploitation.
Shafaq News
02-05-2025
- Business
- Shafaq News
Billions lost in trade: Iraq's shrinking demand for Turkish imports
Shafaq News/ Iraq's imports from Turkiye dropped 13.7% in the first quarter of 2025 to $2.59 billion, down from $2.94 billion in the same period last year, the Iraq Future Foundation revealed on Friday. The foundation's head, Manar al-Obaidi, reported that 49 of 97 product categories recorded declines. Precious metals and gold showed the largest decrease, which he listed as 490%. Imports of wheat-based products fell 75%, meat 74%, iron 33%, flour 17%, and electrical appliances 8%. Grain imports rose 93%, fuel 76%, fruit 24%, mechanical equipment 9%, and furniture 8%. Al-Obaidi linked the drop to Turkish export restrictions, Iraq's product protection laws, border control measures, and new import delivery systems. Data from the Turkish Statistical Institute (TURKSTAT) placed Iraq as the fifth-largest importer of Turkish goods in the first quarter. Turkiye's total exports reached $65.32 billion, up 2.5% year-on-year, while imports rose 4.5% to $87.81 billion.
