Latest news with #al-Fatlawi
Shafaq News
03-07-2025
- Business
- Shafaq News
Indian workers' strike halts operations at Karbala Refinery
Shafaq News – Karbala All operational and control units at the Karbala oil refinery have been shut down following a strike by Indian workers responsible for critical parts of the facility, a local lawmaker said on Thursday. Zuhair al-Fatlawi, a member of parliament representing Karbala, told Shafaq News that workers from the Indian company managing the operation, control, and hydrogenation units staged a protest outside the refinery's administration in response to delayed salary payments. 'The failure to pay their salaries led to a complete shutdown of all operating, control, and hydrogenation units inside the refinery,' al-Fatlawi confirmed. He added that direct communication is underway between refinery management and relevant authorities, alongside parliamentary efforts to resolve the issue swiftly and restore operations. One of Iraq's Key Energy Assets Iraq inaugurated the Karbala Refinery in April 2023 with a production capacity of 150,000 barrels per day. However, it has been out of service since September 25, 2024, due to intensive maintenance. Two months later, the Prime Minister instructed that operations resume at the start of 2025. The Karbala refinery is regarded as one of Iraq's most strategic energy infrastructure projects. According to Oil Minister Hayan Abdul Ghani, the facility supplies 8,000 to 9,000 cubic meters of gasoline per day and has helped reduce fuel imports to between 4,000 and 5,000 cubic meters.
Shafaq News
15-05-2025
- Business
- Shafaq News
Stopgap spending: Iraq's budget ambitions clash with fiscal reality
Shafaq News/ A widening gap between Iraq's budgetary ambition and its fiscal capacity is forcing the government into stopgap financing measures, exposing how vulnerable the country's oil-dependent economy remains to even modest shifts in global energy markets. Despite a record three-year budget approved in 2023, the government has resorted to reallocating tax trust funds to cover public sector wages, in an unusual move that lawmakers see as a 'clear signal' of tightening liquidity. This budget, passed under Law No. 13, is based on a crude oil benchmark of $70 per barrel, but revenues briefly exceeded expectations early in the year, with oil trading around $75. However, prices have since fallen below $62 following the removal of OPEC+ production limits, cutting into the country's main revenue stream. With oil accounting for nearly 90% of government income, the fiscal impact has been immediate. Lawmaker Zuhair al-Fatlawi confirmed that the government had drawn from contractor-held tax deposits to meet payroll obligations. 'This reflects a shortfall in liquid funds,' he told Shafaq News. 'Routine revenue flows are proving inadequate.' Ministries such as Health and Water Resources are operating without full allocations. Capital projects in Babil, Al-Diwaniyah, and Karbala have either slowed or halted due to inconsistent disbursements. 'Some regions are funded, others are left waiting,' al-Fatlawi emphasized. Revenue Rigidity Prime Minister Mohammed Shia al-Sudani's Financial and Economic Advisor, Mudher Mohammad Saleh, defended the fiscal approach, pointing to mechanisms within the budget law that allow for flexibility. 'The budget operates on the principle of fiscal space,' he explained. 'It enables borrowing, resource reallocation, and controlled spending adjustments.' The government is authorized to borrow up to 64 trillion Iraqi dinars ($48.89B) if needed. Iraq's vulnerability is less about the oil price itself and more about the absence of diversified revenue sources. Non-oil tax collection remains underdeveloped, and budget execution is inconsistent across agencies. 'Oil volatility is a risk, but institutional rigidity is the larger issue,' said a Baghdad-based analyst. Notably, payment delays to contractors are triggering liquidity problems in the private sector, and further disbursement lags could freeze project pipelines and reduce market activity in a heavily state-led economy. 'Liquidity stress is contagious in Iraq's fiscal ecosystem,' public finance expert Mustafa al-Faraj affirmed. 'When escrow funds are repurposed, it undermines financial discipline and signals deeper structural imbalance.' The IMF has noted that delayed infrastructure investment can cut expected GDP impact by up to 40%, weakening the effectiveness of public spending even when funding is eventually restored. Tools Available, but Reforms Lag Iraq's Central Bank holds more than $100 billion in foreign reserves, offering a strategic buffer. However, economist Safwan Qusay cautioned against using reserves to plug structural gaps. 'These reserves are meant for external stability, not internal liquidity.' Qusay advocated for accelerating domestic reforms: enforcing utility payments, monetizing idle public assets, and revising land-use fees. 'The state needs to act more like an investor and less like a passive payer,' he emphasized, estimating that if prices stay below projections, Iraq could face monthly shortfalls exceeding $1.5 billion. In that scenario, options include tapping domestic bond markets or seeking external financing—a move that could further test fiscal credibility. Disparities in budget transfers across provinces have also raised concerns about equity and governance. With the next national elections set for November 2025, prolonged underfunding in public services may carry political consequences, particularly in provinces already expressing frustration over project delays and financial uncertainty. For now, Iraq is not in immediate fiscal crisis, but the warning signs are evident. Reliance on short-term measures to manage a structurally rigid and oil-dependent system has narrowed policy space, and without faster reform and revenue diversification, fiscal pressures could escalate into grave economic and political risks.
Shafaq News
22-04-2025
- Politics
- Shafaq News
Run separately, unite later: CF's Iraq election plan
Shafaq News/ Iraq's State of Law Coalition is continuing its efforts to amend the country's electoral law, Coalition spokesperson and lawmaker Aqil al-Fatlawi announced on Monday. According to al-Fatlawi, the current electoral framework has discouraged participation from both voters and candidates, prompting growing demands within the political establishment for legislative change. 'The existing electoral law has become unattractive for voters and candidates alike,' he noted. 'That is why the idea of amending it was introduced, and there is a degree of responsiveness from some political blocs. The process is now moving forward.' The reform drive comes as the broader Coordination Framework (CF)—Iraq's main Shiite political alliance, which includes the State of Law Coalition—outlined its strategy for the upcoming parliamentary elections, confirming plans to compete through separate electoral lists. The alliance also reaffirmed that the vote is scheduled for November 11. In a statement issued after its 225th regular meeting, held at the office of Badr Organization leader Hadi al-Amiri, the CF explained that although its member parties will run individually, they intend to regroup under a single parliamentary bloc—also named the Coordination Framework—after the elections. The alliance, which includes several Iran-aligned factions, remains one of the most influential forces in Iraq's legislature, with considerable leverage across both executive and parliamentary branches.
