Al-Kazemi: The White Paper is a draft solution to Iraq's economic crisis

[yota691]

Al-Kazemi: The White Paper is a draft solution to Iraq's economic crisis

Prime Minister Mustafa Al-Kazemi

 October 12, 2020 10:08 PM

Mubasher: The Iraqi Prime Minister, Mustafa Al-Kazemi, held a meeting today, Monday, with the political blocs to discuss the reform white paper.

Mustafa Al-Kazemi said, in a tweet on his official account on the social networking site "Twitter", today: "The white reform paper that we presented today to the political forces is a project for a solution to the crisis of chronic economic management, complete dependence on oil and not to diversify sources of income."

Al-Kazemi continued, "The interaction of the brothers in the political forces with the paper and its proposals betrays a responsibility towards our people that deserves to be praised."

The media office of the Prime Minister had indicated earlier in the day that the meeting with the political blocs witnessed the presence of the Speaker of the House of Representatives, Muhammad al-Halbousi, and the President of the Supreme Judicial Council, Faiq Zaidan.

The meeting discussed the reform white paper on overcoming the economic challenges that the country is going through, especially with regard to the financial aspect.

Al-Kazemi pointed to the size of the challenges facing Iraq, whether at the health level and the repercussions of the Corona pandemic, or at the economic level and the stifling financial crisis, or at the level of major security challenges.
 
Al-Kazemi stressed that addressing economic challenges is not an easy task, and that the current crisis is systematic, not related to this government and its procedures, and it needs real and radical reform and long-term plans to overcome it, stressing the need for integration in work between the authorities to achieve what we seek.

Prime Minister Mustafa Al-Kazemi reviewed the reform paper, stating that it is "a preliminary paper that needs everyone's efforts to develop it, and to benefit from existing expertise, in order to translate it into a reality for long-term work."

He expressed his hope that the House of Representatives would discuss the reform paper and approve it in principle, to be a general framework for real and serious work that could advance the Iraqi economy.

[yota691]

In the most prominent events, the reform paper and the "employment" initiative are leading the way, and the election law debate continues

•  Time: 10/12/2020 23:37:12
•  
•  Read: 2,119 times

  

{Baghdad: Al Furat News} The agency {Al Furat News} obtained the axes of the reform paper that will be discussed by the Council of Ministers tomorrow, in order to top it alongside the initiative {employment} to provide job opportunities in Iraq today.

Below are the main events of the day:

Prime Minister Mustafa Al-Kazemi holds a meeting with the political blocs to discuss the reform white paper ( details )

Documents ... The axes of the white paper that the cabinet will discuss tomorrow ( details )

Al-Kazemi: The White Paper on Reform is a solution to the chronic economic management crisis ( Details )

Al-Kazemi sponsors the launch of the (Employment) initiative for job opportunities in Iraq ( details )

 Al-Kazemi explains his support for the {Employment} Initiative ( Details )

Minister of Labor Adel Al-Rikabi: More than 10 thousand unemployed people hold higher degrees ( details )

Chairman of the Federal Service Council Mahmoud Al-Tamimi: We have worked for more than two weeks to produce a better employment initiative ( details )

Spokesman for Prime Minister Ahmed Mulla Talal: Three Simple Steps in the Process of Investing a Employment Initiative ( Details )

Disclosure of the meeting details of the Legal Committee and the Commission's experts ( details )

A member of the Iraqi coalition, Khaled Al-Jashami: The remaining period for the elections. The commission does not help the commission to update all biometric cards ( details )

A member of the Iraqi coalition, Hassan Khalati, suggests: The next session will resolve the disagreement of the electoral districts' details, whether by consensus or voting ( details )

Member of Parliament, Ala Talabani: The commission lacks some experience and information because of its novelty ( details )

Representative Legal: The Federal Court Law faces a problem of Aqiqah ( details )

Iran: We reached an agreement with Iraq about our financial assets, and Al-Kazemi promised to follow up on its implementation weekly ( details )

Foreign Minister Fouad Hussein meets with Egyptian President Abdel Fattah El-Sisi ... and presents to him the most important topics of tomorrow's summit ( details )

Sisi receives a message from Al-Kazemi ( details )

Egyptian Foreign Minister Sameh Shoukry: The tripartite meeting will be held tomorrow ... and Hussein: The Egyptian Prime Minister will visit Baghdad at the end of the month ( Details )

The President of the Republic, Barham Salih and the presidencies of the region are discussing several files and a demand to ensure the mechanism for stabilizing the disputed areas ( details )

South Korea calls on Iraq for a speedy and fair investigation into the death of the director of the Faw port project ( details )

Corona injuries and recovery cases remain high in Iraq ( details )

Member in Parliamentary Finance, Ahmed Hama Rashid: More than 6 million and 150 thousand employees and retirees in Iraq ( details )

Integrity determines the responsibility for bargaining with citizens for the payment of their dues dues ( details )

With documents ... Education agrees to cancel the student's stay rate in schools of distinguished and outstanding students ( details )

Parliamentary education reveals a proposal to reduce the fees for private study ( details )

Parliamentary Finance reveals obstacles to unifying the salary scale ( details )

Planning: One trillion dinars to employ youth in 7 governorates ( details )

Colonel kills a colonel in Diyala ( details )

Defense clarifies the circumstances of the killing of a colonel of a brigadier general in Diyala and opens an investigation ( details )

As for the most read news for today:

Al Furat News publishes the steps for using the "Tawfeel" platform ( details ).

Mohameed

[yota691]

Al-Kazemi explains his support for the "Employment}" initiative

•  Time: 10/12/2020 23:24:59
•  
•  Read: 2,236 times

  

(Baghdad: Al Furat News) Prime Minister Mustafa Al-Kazemi made clear his support for the "Employment" initiative.

Al-Kazemi said in a tweet on his Twitter account: “We supported the“ Employment ”initiative to provide job opportunities for our youth, which is a step towards activating fair, honest and scientific procedures for employment through the Federal Service Council and public and private sector institutions, away from favoritism, corruption and political investment in jobs.

On Monday, Al-Kazemi held a meeting with members of the Employment Initiative for Job Opportunities in Iraq, during which the initiative and its importance at the present time were discussed, as well as the plans that were developed in order to employ young people in the labor market.

According to the statement of his official office, Al-Kazemi welcomed the members of the initiative and blessed them for this national project, and stressed that it is a step in the right direction, to address unemployment that has been exacerbated by the wrong and accumulated employment policies.

Mohameed

[yota691]

Al-Kazemi discusses the reform "white paper" with the political blocs

Tuesday 13 October 2020 20

 

Baghdad: Morning

 

Prime Minister Mustafa Al-Kazemi discussed during a meeting held yesterday, Monday, with the political blocs the reform white paper, in the presence of Parliament Speaker Muhammad al-Halbousi and Chairman of the Supreme Judicial Council, Faiq Zidan.

A statement by the Prime Minister's Media Office stated that during the meeting, which was attended by the Minister of Finance and Planning, the reform white paper on overcoming the economic challenges that the country is going through was discussed, especially with regard to the financial aspect.

Al-Kazemi pointed to the size of the challenges facing Iraq, whether on the health level and the repercussions of the Corona pandemic, or at the economic level and the stifling financial crisis, or at the level of major security challenges, and stressed that despite the pressures and obstacles that the government faces, it is determined to work hard to overcome Ordeal.  

And Al-Kazemi stated that the government has assigned specific duties that culminate in early elections, and a date has been set for them, and the election law has been finalized, and work is continuing with the Election Commission and the concerned authorities, to hold the elections on time, and thus we have responded to the will of our people and our rational reference. The Prime Minister stressed that addressing economic challenges is not an easy task, and that the current crisis is systematic, not related to this government and its procedures, and it needs real and radical reform and long-term plans to overcome it, stressing the need for integration in work between the authorities to achieve what we seek.

Al-Kazemi reviewed the reform paper, and stated that it is "a preliminary paper that needs everyone's efforts to develop it, and to benefit from the existing expertise, in order to translate it into a reality for long-term work."

Al-Kazemi said that the white paper represents the beginning of economic reform, and despite it being lengthy and includes some measures, but it will be a base upon which we can develop the country's future vision, expressing his hope that the House of Representatives will discuss the reform paper and approve it in principle, to be a general framework for action. Real and serious that can boost the Iraqi economy.

[dinarbeleiver]

Yota Thank you! Do you think they will publish the white paper ? 

 

Things are hotting up exciting times. Love this quote

 

Al-Kazemi said that the white paper represents the beginning of economic reform, and despite it being lengthy and includes some measures, but it will be a base upon which we can develop the country's future vision, expressing his hope that the House of Representatives will discuss the reform paper and approve it in principle, to be a general framework for action. Real and serious that can boost the Iraqi economy.

 

 

[dinarbeleiver]

He expressed his hope that the House of Representatives would discuss the reform paper and approve it in principle, to be a general framework for real and serious work that could advance the Iraqi economy.

 

 

[yota691]

Al-Kazemi holds a meeting with the political blocs to discuss the reform white paper

•  Time: 10/12/2020 17:36:17
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•  Read: 3,133 times

  

{Baghdad: Al Furat News} The Prime Minister, Mustafa Al-Kazemi, held a meeting today, Monday, with the political blocs, in the presence of the Speaker of Parliament Muhammad Al-Halbousi and the President of the Supreme Judicial Council, Faiq Zaidan.

During the meeting, which was attended by the Minister of Finance and Planning, according to a statement of the Media Cabinet's Office, "the reform white paper on overcoming the economic challenges that the country is going through, especially with regard to the financial aspect, was discussed."
Al-Kazemi pointed to "the size of the challenges facing Iraq, whether at the health level and the repercussions of the Corona pandemic, or at the economic level and stifling financial crisis, or at the level of major security challenges, and he stressed that despite the pressures and obstacles that the government is facing, it is determined to work hard." To overcome the ordeal. " 
He indicated that "the government has assigned specific duties that culminate in early elections, and a date has been set for them, and the election law has been finalized, and work is continuing with the election commission and the concerned authorities, to conduct the elections on time, and thus we have responded to the will of our people and our rational reference."
He stressed that "addressing economic challenges is not an easy task, and that the current crisis is systematic, not related to this government and its procedures, and it needs real and radical reform and long-term plans to overcome it," stressing "the need for integration in work between the authorities to achieve what we seek."
Al-Kazemi reviewed "the reform paper, and indicated that it is a preliminary paper that needs everyone's efforts to develop it, and to benefit from existing experiences, in order to translate it into a reality for long-term work."
He stressed that "the white paper represents the beginning of economic reform, and although it is lengthy and includes some measures, but it will be a base upon which we can base the development of the country's future vision, expressing his hope that the House of Representatives will discuss the reform paper and approve it in principle, to be a general framework for real action." Jad can boost the Iraqi economy. "
Mohameed

[yota691]

Allawi: Next year will see the implementation of income tax on employee salary allocations

 

Finance Minister Ali Abdul Amir Allawi "Internet"

money and business Economy News - Baghdad The Minister of Finance, Ali Abdul-Amir Allawi, said that Iraq's revenues from the beginning of this month until the end of the year do not exceed 15 trillion dinars, explaining that the Ministry of Finance will implement, from next year, income tax on employee salaries allocations. Allawi added, in an interview with the Euphrates channel, which was seen by "Al-Eqtisad News", that the ruling expenditures, which are represented by retirement and foreign debt benefits that reach 50 billion dollars, and social security, oil revenues are not sufficient to meet these monthly requirements, indicating that the Ministry of Finance is looking for A way to increase non-oil revenue to finance salaries. He stressed that without cooperation between the Ministry of Finance and the Central Bank, this crisis cannot be avoided, and therefore any rupture between the two parties will harm the economy, explaining that the Iraqi reserves of foreign currency are estimated at between 53-55 billion dollars, and an investor is between deposits in US bonds. He added that the white paper includes a vision of moving the Iraqi economy to the post-oil era and gives an opportunity to advance the economy, and address all obstacles and distortions in the economic map, stressing that the reform paper clarifies the economic dilemma and the solutions put forward to treat this dilemma. And that the World Bank confirmed that Iraq is on the verge of an economic disaster, and the situation is dangerous and acknowledged by the most important international party, explaining that the salaries of employees and retirees accounted for 20% of oil revenues, while today they constitute more than 120% of oil revenues, stressing that the salaries of retirees amount to 1.2 One trillion dinars per month. He pointed out that the productivity of the Iraqi employee is the lowest in the world, indicating that the reform paper may be implemented within a period of 10 years, and anyone who has a realistic vision for managing the economy must present it. He explained that the previous government opened the doors to employment in an ill-considered and unrealistic manner, and its repercussions occurred on this government, stressing that it is not permissible to employ any person under the scale of salaries and allocations. He stressed that the 2021 budget will be presented to the Council of Ministers during the month of November, and will include rationalization of the electricity and oil sector, and the expansion of the network of direct taxes on employee salaries, because salary allocations sometimes reach five times the salary. He noted that the ration card allocations amount to 5 trillion dinars, which is part of the ruling expenses and not to prejudice them. On the relationship between Baghdad and Erbil, Allawi said that the region's benefits represent 12% of the general budget, and oil exports must be under Baghdad's control. He added that the agreement between Baghdad and Erbil now is to give the region its oil and revenues from the border crossings to Baghdad, but the region has not yet provided and has reasons, explaining that Kurdistan grants oil companies 25% of the extracted oil revenues, due to participation contracts and not service contracts. He stressed that Baghdad did not grant the region funds in the sixth and seventh months of this year, because he did not send oil to Baghdad, stressing that the closure of the US embassy in Iraq will have economic repercussions on Iraq.

Number of observations 547   Date of addendum 10/11/2020

[yota691]

 

Shafaq News publishes the items of the "white paper" by Al-Kazemi

 

•  

 2020-10-12 10:25

 

 

Shafaq News / Shafaq News Agency has obtained copies of the "white paper" that Prime Minister Mustafa Al-Kazemi intends to present to the Parliament.

 

On June 22, 2020, Al-Kazemi announced the preparation of what he called the "White Paper", which includes economic, financial and administrative reforms, and it is scheduled to be sent to the Iraqi Parliament for the purpose of discussion.

The paper consists of five axes to achieve sustainable financial stability, achieve macroeconomic reforms, provide basic services, and develop governance and the legal environment.

 

In the context, the Prime Minister, Mr. Mustafa Al-Kazemi, held a meeting today, Monday, with the political blocs in the presence of the Speaker of Parliament Muhammad Al-Halbousi and the President of the Supreme Judicial Council, Faiq Zaidan. The country, especially when it comes to the financial aspect.

 

Al-Kazemi reviewed the reform paper, and indicated that it is a preliminary paper that needs everyone's efforts to develop it, and to benefit from the existing expertise, in order to translate it into a reality for long-term work.

He stressed that the white paper represents the beginning of economic reform, despite being lengthy and includes some measures, but it will be a base upon which we can develop the country's future vision, expressing his hope that the House of Representatives will discuss and approve the reform paper in principle, to be a general framework for real and serious work. It can boost the Iraqi economy.

 

 

[yota691]

Al-Kazemi: The path to reform is not easy, and we need long-term plans to overcome the crises

 

Policy

- 10-12-2020 06:05 PM - Number of readings: 4,660

 

 

 

Today, Monday, Prime Minister Mustafa Al-Kazemi stressed the need for all parties to come together to overcome the current economic, security and epidemic crises.
This came during his meeting with the political blocs, in the presence of Parliament Speaker Muhammad al-Halbousi and Chairman of the Supreme Judicial Council, Faiq Zaidan, where he stressed the need for real and radical reform and long-term plans to overcome crises in parallel with the integration of work between the authorities.
Indicating that the white paper represents the beginning of economic reform, including the components it contains that make it a base for developing the country's future vision, for real and serious work that can advance the Iraqi economy.

 

 

 

[yota691]

'Comprehensive economic reform'

Al-Kazemi announces the presentation of the "White Paper" and praises the interaction of political forces

2020.10.12 - 21:52

 

Baghdad - People  

Prime Minister Mustafa Al-Kazemi confirmed, on Monday, that the "white reform paper" that we presented today to the political forces is a solution to the chronic economic management crisis.  

"The white reform paper that we presented today to the political forces is a project for a solution to the chronic economic management crisis, complete dependence on oil and not to diversify sources of income," Al-Kazemi said in a blog post on "People".  

He pointed out that "the interaction of the brotherhood in the political forces with the paper and its proposals betrays a responsibility towards our people that deserves to be praised."  

  

On Monday, Prime Minister Mustafa Al-Kazemi discussed with the political blocs the reform white paper on overcoming the economic challenges that the country is going through, especially with regard to the financial aspect.  

The media office of the Prime Minister said in a statement, which "people" received a copy of, (October 12, 2020), that “Prime Minister Mustafa Al-Kazemi held a meeting today with the political blocs in the presence of the Speaker of Parliament Muhammad Al-Halbousi and the President of the Supreme Judicial Council, Faiq. Zidan, "noting that" during the meeting, which was attended by the Ministers of Finance and Planning, a discussion of the reform white paper on overcoming the economic challenges that the country is going through, especially with regard to the financial aspect, was discussed.    

According to the statement, Al-Kazemi referred to "the size of the challenges facing Iraq, whether at the health level and the repercussions of the Corona pandemic, or at the economic level and stifling financial crisis, or at the level of major security challenges," stressing that "despite the pressures and obstacles that the government faces, but it is Determined to work hard to overcome the ordeal. "     

"The government has assigned specific duties that culminate in early elections, and a date has been set for them, and the election law has been finalized, and work is continuing with the election commission and the concerned authorities, to hold the elections on time, and thus we have responded to the will of our people and our rational reference."    

He stressed that "addressing economic challenges is not an easy task, and that the current crisis is systematic, not related to this government and its procedures, and it needs real and radical reform and long-term plans to overcome it," stressing "the need for integration in work between the authorities to achieve what we seek."    

Prime Minister Mustafa Al-Kazemi reviewed "the reform paper, indicating that it is a preliminary paper that needs everyone's efforts to develop it, and to benefit from existing experiences, in order to translate it into a reality for long-term work."    

Al-Kazemi stressed that "the white paper represents the beginning of economic reform, and despite it being lengthy and includes some measures, but it will be a base upon which we can develop the country's future vision." A year for real and serious work that could boost the Iraqi economy. "    

[yota691]

Economy News publishes the white paper

 

Ministry of Finance building

money and business Economy News - Baghdad:  Al-Eqtisadiah News publishes the economic reform paper called the "White Paper" which was released by the Ministry of Finance.  It can be viewed by clicking here .

Number of observations 390,   date of addendum 10/13/2020

[King Bean]

12 hours ago, yota691 said:

Ministry of Finance will implement, from next year, income tax on employee salaries allocations.

 The poor people, paying the cost of Maliki and team stealing the country blind. I suspect an income tax will go over like a lead balloon. BUT....if they give them more purchase power with a better value to their currency, this tax may be easier swallowed. Just my opinion. Go Kazemi.

 

                                                                

[yota691]

"Al-Kazemi White Paper" .. High hopes and "Harsh Measures"

 

Free / Exclusive - Washington

October 14, 2020

 

 

Al-Kazemi said that the "white paper" had received positive reactions from the political blocs

The Iraqi Council of Ministers approved, on Tuesday, new mechanisms for economic reform, which it called the "white paper", which it said include "hundreds of measures to revive the Iraqi economy," and to invest the "enormous resources of the country" in the "scientific way."

The "white paper" extends to 100 pages, and is supposed to be implemented for (3-5) years, according to Iraqi government spokesman Ahmed Mullah Talal.

The Cabinet approves the "White Paper" as a plan for financial and economic reform.

100 pages containing hundreds of measures to revive the Iraqi economy and push it towards investing, managing and employing the enormous resources of the country in the scientific way that gives the economy a clear and solid identity, during a period of 3 to 5 years to come.

- Ahmad Mulla Talal (@AhmadMullaTalal) October 13, 2020

High hopes

On Monday, Iraqi Prime Minister Mustafa Al-Kazemi said that the reform paper is "a draft solution to the chronic economic management crisis, complete dependence on oil and not to diversify sources of income."

Al-Kazemi praised the "interaction of the brothers in the political forces with the paper and its proposals."

The white reform paper that we presented today to the political forces is a project for a solution to the chronic economic management crisis, and complete dependence on oil and failure to diversify sources of income. The
interaction of the brotherhood in the political forces with the paper and its proposals expresses a responsibility towards our people that deserves to be praised.

- Mustafa Al-Kadhimi (@MAKadhimi) October 12, 2020

Law expert Jamal Taher Al-Asadi told Al-Hurra that about 47 pages out of 96 constitute the white paper, dealing with "general evaluations in seven main points, which are an existing, well-known and discussed general review, and there is nothing new in it."

However, some of the axes of the remaining paper, according to Al-Asadi, who held the position of inspector general of the Ministry of Justice, and then the Ministry of Interior until 2019, could "redefine the state's economic system," but it will require "concerted efforts" between the House of Representatives and the government to legislate many laws. " In order to bypass "a large buffer wall that refuses to leave the cocoon of system and socialist thought into the system of labor and production."

The Iraqi economy is suffering from declining revenues due to the drop in oil prices and the effects of the Corona pandemic

Al-Asadi referred to the second axis of the paper, which discussed “rehabilitating the financial sector, activating the sectors that drive the economy, including agriculture, oil and gas, supporting the private sector, structuring self-financed public companies, redirecting surplus labor and treating slack in state institutions, human development, training and learning.”

Al-Asadi believes that this axis is "one of the great tasks of any government," and called for giving the government "freedom" on this issue.

Al-Asadi appears confident as he tells the Al-Hurra website, “This white paper, although it contains repetitions ... and a review, but it is a“ very important paper that can establish a general rule for work between Parliament and the government, ”as well as a road plan agreed upon between the legislative and executive authorities, far from Political Auctions.

However, a group of experts and officials, whose opinions were requested by the Al-Hurra website, pointed to a group of problems that raise doubts about the effectiveness of the government's reform measures.

Harsh and 'bitter' measures

The first axis of the reform paper contains proposals to reduce government salaries by rates ranging from 12-25 percent, raise government support for some sectors, stop funding the retirement fund from the budget, reduce government support for public companies, collect electricity wages "according to global pricing" and increase customs wages. And taxes. "

Iraqis need to be imported to provide for almost everything they need

"The paper looks good in theory," Salam Sumaisem, an economist and former government consultant, told Al-Hurra.

But Sumaisem expected corruption to impede the implementation of the paper, adding, "How can a policy be applied to raise taxes without eliminating corruption, and how will a corrupt tax official, for example, apply the government's measures to raise taxes?" at same time?".

"The victim who will pay the price for these reforms is the middle class and the poor," Sumaisem said.

 

 

The government's introduction to the paper admits that it "contains harsh measures," but said that "they must be taken despite their bitterness," and added that adopting them requires "political courage."

Adopting the paper may require more than courage. According to the legal expert, Saad Hassan, "reforms cannot be made without a national database."

Hassan added to Al-Hurra website, "The economic reform paper is not serious if the national number project is not among its first priorities."

Hassan asserts that "granting citizens a national number that distinguishes each one of them will give Iraq a real database for its citizens that does not need to implement a general census of the population for statistical purposes, and thus the proportions of the governorates in the budget will be determined in an accurate manner without any injustice."

He says that "the national number will make it easier for the regulatory agencies to follow bank balances, property and graft, and double and multiplication of salary will end," in addition to many other benefits that can reduce many government expenditures and contribute to effectively fighting corruption.

Some of the government white paper reforms, as I expected in previous publications that the government reform paper will not deviate from the framework of the Fund's policies

Posted by Nabil Marsoumy On  Events Events, October 9, 2020

Researcher Haitham Al-Mayahi seems confident of the effectiveness of the "white paper", which he said makes it possible for Iraq's economic system to transform in the future from a rentier state dependent on oil imports to a country that exports its industrial and agricultural products and opens its doors for investment.

But Al-Mayahi says that "the paper is incomplete and is not the end of the path, but rather a beginning that needs action and verification of words."

Journalist and analyst Ahmed Al-Suhail contradicts Al-Mayahi's opinion, as he believes that the economic pledges that Al-Kazemi makes are nothing more than "repeated promises" that previous governments have always repeated in the context of talking about the financial and economic crisis, adding that "Al-Kazemi's new attempt will probably not succeed either." .

Al-Suhail told Al-Hurra that the crisis "has become a major part of the rentier system, whose pillars were designed to keep it rentier in a way that allows it to continue the process of corruption through currency auctioning, money smuggling and laundering on import pretexts.

Al-Suhail added that Al-Kazemi "promotes" economic plans while continuing to borrow without providing the alternatives he had pledged in the past months, just as his "massive campaign against the outlets ended with a settlement with the armed parties and without adding anything to the budget."

 

[southbeach]

US Iraq Strategic Framework Agreement plus Iraq White Papers equals 1:1.  

[southbeach]

Will give life to SIGR Report

[6ly410]

https://shafaq.com/en/Economy/Ministry-of-Finance-praises-the-White-Paper

Ministry of Finance praises the “White Paper”

Economy White Paper

•  

2020-10-19 04:30

 

Shafaq News / Ali Allawi the finance minister praised, on Monday, the "white paper", saying it restores "balance" to the Iraqi economy.

"The reform paper is the impetus to reform the economy and create opportunities for citizens to live a decent life." The minister said.

He pointed out that "mismanagement and the reliance on oil revenues is what deteriorate the economy, so we are currently seeking to activate agriculture, industry, tourism, investment and others sectors” stressing “the necessity for more cooperation between the executive and legislative authorities. "

Despite much criticism by officials and specialists, who considered the white paper one of main reasons for the high exchange rate of the dollar against the Iraqi dinar, the Cabinet had recently approved it.

The paper is composed of five axes to achieve reforms in the financial, economic, basic services, and the laws fields.

The current government is heavily criticized for not securing sufficient funds to pay the salaries of state employees, which may expose it to tremendous pressure in the coming months.

Iraq is suffering from an acute financial crisis, as a result of the decline in oil prices on the global markets since 95% of its budget relies on oil revenues.

[yota691]

THU, OCT 29, 2020

Iraq’s economic White Paper misses a key issue for the energy sector

MENASource by Harry Istepanian

 

A worker is seen near an electrical generator board, after continuous power outages in Najaf, Iraq June 22, 2019. Picture taken June 22, 2019. REUTERS/Alaa al-Marjani

On October 10, the government of Iraqi Prime Minister Mustafa al-Kadhimi issued a White Paper to reform Iraq’s economy. The energy sector’s future has taken considerable space in the blueprint alongside the country’s increasing demand for electricity. The paper lists the Iraqi government’s plan for the next three to five years, with an effort to satisfy the gap between demand and supply which has mushroomed to 10.1 gigawatts in 2019—more than one-third of the country’s supply of electricity. The seven bullet points of technical and administrative measures for the government primarily aim to improve the efficiency of the electricity sector’s production, transmission, and distribution, including the formation of a regulatory mechanism to monitor its performance.

Since the popular protests in October 2019, the staggering drop in oil prices, and the COVID-19 pandemic, the electricity supply in the summer months has roundly deteriorated. The political instability following the resignation of former Prime Minister Adel Abdul-Mahdi led to a halt in most projects and a significant decline in the Electricity Ministry’s ability to carry out maintenance activities. The results have amounted to significant power cuts in many parts of the country, especially in July, when demand was at its peak due to the summer heat. This sparked massive protests in several provinces, particularly in the south, where temperatures can soar to above 130 degrees Fahrenheit.

Iraq’s rapid population increase by one million annually is mainly blamed for the rise in demand for electricity. Despite large investments in equipment and networks, Iraq has not been able to keep up with the demands for new supply connections and upgrades to existing infrastructure. The Iraq Energy Institute, a think tank, estimates that Iraq would require $40 billion in investment for the electricity sector to achieve the stated goal of full 24/7 electrification by 2030. The private sector would most likely have to account for a significant share of that investment. Strong government institutional capacities and a favorable investment climate are the likely preconditions for private investment to step in.

While the White Paper has a detailed plan to develop the electricity sector, with emphasis on generating more electricity and improving billing and collection, the core issue of the electricity shortage lies in the distribution sector, where several factors—among those transmission and distribution line losses, theft, tampering—are stagnating more than 58 percent of the generation capacity. The government-owned distribution companies have enjoyed a local geographic natural monopoly—which include the north, south, Middle Euphrates, and Baghdad—from the beginning. For the electricity sector to become operationalized as a commercial entity—which is currently missing in the electricity network structure—a competitive retail business should be introduced.

Iraq’s current regulatory framework is insufficient to support the development and liberalization of the electricity retail business. Besides, the sector needs the Iraqi parliament to legislate several new laws for introducing roof-top solar energy, energy efficiency for households, and net metering to allow distributed generation customers to sell excess electricity at a retail rate and receive credit on their electricity bill. This credit would offset customer’s electricity consumption during the low season and reduce the amount of electricity consumers are currently purchasing from the distribution companies.

The government has already corporatized its production, transmission, and distribution entities after an Electricity Law was passed in 2017. But, in effect, the companies exist in name only and have not been operationalized. Although employees have been transferred to these companies, typical company operations have yet to be implemented. Rather, they have only performed a rudimentary set of administrative functions, such as providing monthly expenditure summaries to the Electricity Ministry without producing company accounts or raising capital for investment. Hence, the Iraqi government needs to immediately start to value the state-owned companies, record their liabilities, plan the rescheduling of their debt, implement financing criteria including a self-financing ratio, and transfer financial, planning, and greater administrative functions from the government departments. There have been delays in the process of implementing corporatization due to policy uncertainties and political sensitives around the issue of privatization. Any future corporatization road map will need to ensure that corporate governance and privatization are separate issues.

Simultaneously, the Iraqi government needs to establish an electricity regulator and wholesale market to facilitate the financial transactions between the generation and distribution/retail companies. Any reform of the electricity sector will eventually witness a change in asset ownership and a shift towards separating the Iraqi government’s natural monopoly and contestable assets and services in all parts of the energy supply chain. The reform is expected to allow the Iraqi government to maintain current ownership of the transmission and generation services, while the distribution and retail activities will be separated under the ownership of the independent state-owned enterprise (SOEs), local governments, private companies, or community-owned trusts operating within a statutory geographic franchise.

By the end of the reform process, the electricity sector will be separated into two distinct parts. One will include the electricity subsidies that result from below cost pricing, with cost measured as accounting costs. The other will be the contestable part—generation and retail—with mixed government and private ownership. The government is subsidizing the energy sector more than $6.5 million per day. This is an astronomical amount considering the financing needs of other essential sectors such as education and healthcare. The electricity subsidies are provided by the Finance Ministry to essentially reimburse the Electricity Ministry for providing subsidies to its customers. Since 2008, the volume of subsidies and waste from poor revenue collection has exceeded the notional amount of $55.7 billion and has begun to erode the Iraqi government’s capital base during the current economic hardship.

The White Paper mentions that the current electricity tariffs are far from meeting the government objectives in reducing the subsidy. The amount of the subsidy and percentages should be determined based on redistributive criteria that must privilege lower-income populations—approximately 20 percent of Iraq’s total population— rather than the 36 percent of consumers who are currently benefiting from the lifeline tier of 1,500 kWh per month. Iraqis have been primarily concerned with affordability, reliability of supply, and transparency and accountability issues. To be politically acceptable, electricity reform should address each of these issues with a clear plan of action and timeline for successful implementation. Affordability can be addressed in the near term by introducing more effective subsidy mechanisms for low-income households. Furthermore, concrete actions to improve transparency and accountability—especially relating to the billing system—through staff training and grievance redress mechanisms should be provided in an effort to build trust.

The gradual restructuring and increasing of the existing tariff and the elimination of broad subsidies in favor of targeted ones for the most vulnerable will ultimately work to eliminate the sector’s financial deficit and establish a balanced budget. In turn, this would reduce the financial burden on Iraqi citizens caused by the utilization of costly private generators. Hence, the government’s policy for the next period should include a gradual increase in the electricity tariff , where electricity rates slowly approach cost-recovery levels. This requires considerable time to attain the current cost-covering level.

The gradual increase of the tariff should be in conjunction with measurable improvements in the electricity service provision, aiming at the government’s long-promised goal of a sustainable 24/7 electric service. Introducing alternative tariff rate settings along with the implementation of advanced metering schemes will smooth consumption patterns over the course of the day. The tariff setting needs to be continually reviewed to remain in line with the fiscal budget, taking into consideration the diversity in conventional and renewable resources. It shouldn’t be a burden on consumers or the public purse. Rather, it will be used as a flexible tool to enhance equity among various customer groups and provide the necessary revenue for the Electricity Ministry.

The path toward a sustainable electricity supply in Iraq is by no means simple, but a solution certainly exists. Although a number of approaches have been presented in the White Paper to tackle the current issues, all of these reforms will undoubtedly require significant effort and dedication on behalf of the government. Iraq must consider the long-term social, economic, and environmental benefits of the energy sector for its people. Investing in reforming the energy sector today will pave the road toward a secure energy future for tomorrow.

Harry Istepanian is a senior fellow at the Iraq Energy Institute. He has more than thirty-five years of experience in power and water industries in developing countries, including Southeast Asia, the Middle East, New Zealand, and Australia.

[yota691]

Al-Kazemi and the White Paper

- 3 Days Ago

Once again, the Iraqi Prime Minister, Mustafa Al-Kazemi, surprises the Iraqi political class with what it is not pleased with, after announcing the date for early elections - which made it obligated to search for an approach between a new electoral law, which it was forced to legislate under the weight of the demonstrations, and how to preserve its interests, and in light of the crisis The suffocating financial situation in Iraq, since the drop in oil prices due to the outbreak of the Corona virus, the government of Mustafa Al-Kazemi presented what it called a "white paper" to the Iraqi parliament, which included plans to reform the financial situation, and Prime Minister Mustafa Al-Kazemi said that the reform paper is a "draft solution to the crisis." Chronic economic management, complete dependence on oil and non-diversification of sources of income, ”and praised“ the interaction of brothers in political forces with the paper and its proposals. ”
The White Reform Paper 2021-2023 submitted by the government to the Iraqi political forces, stipulates achieving sustainable financial stability by maximizing revenues and reducing expenditures and undertaking administrative reforms. Some reforms include fundamental to the economic reality in the country in light of the rampant corruption in all state facilities and institutions. It has raised voices here and there about the extent to which such reforms can be achieved within a year and a half of the government's life, or its validity in implementation, while it is a transitional government whose mission is to prepare for elections and restore the prestige of the state, but the reality of the situation indicates that the political class is its only concern. It is to preserve its political and electoral gains and weights.
For his part, Iraqi Prime Minister Mustafa Al-Kazemi said that the “white reform paper” presented by the government to the political forces on Monday is a project to solve the chronic economic management crisis, the lack of diversification of sources of income and full dependence on oil. Al-Kazemi explained that the reform paper is a preliminary document that represents the beginning of reform. The economic base is considered a base for developing Iraq's future vision, expressing his hope that the Iraqi parliament will discuss the paper and approve it in principle, to be a general framework for real and serious work that can advance the Iraqi economy.
Al-Kazemi explained, during his meeting with the political forces, that the government is determined to overcome all the current political, security, economic and health challenges, despite the pressures and obstacles it faces, and he also indicated that his government was assigned specific duties that culminate in early elections, and a date has been set for them, as has been done. Finalizing the election law, in response to the will of the Iraqis.
According to what is being circulated in the local media in Iraq, and through various international social media, there is a division regarding the reform paper presented by Al-Kazemi, while many people - including MPs and politicians belonging to different blocs - believe that real reform requires taking measures, some of which may be surgical. On the other hand, other political forces started by publishing news or information without publicly adopting them. The white paper was described as “mere creation or unattainable ideas.” This occurs at a time when the Ministry of Planning data say that the unemployment rate in Iraq rose late In the year 2019, to 40%, from 22%, as a result of the outbreak of the Corona pandemic.
The “White Reform Paper” launched by Prime Minister Mustafa Al-Kazemi supports the gradual move away from the rentier economy of the state and maximizing its non-oil resources to support the budget, as well as operating factories that have been idle since 2003, and creating an appropriate environment for investment away from financial corruption. The paper is “applicable in the next phase,” Provided its success, seriousness and will, as well as not being obstructed by political blocs and influential people.
With this paper, Prime Minister Mustafa Al-Kazemi wishes to serve the people and get out of the economic and health crises that the country is currently experiencing, despite the pressures exerted on him, whether by political blocs or from the street, so the need to give the Prime Minister an opportunity for reform without objecting to the steps taken It is taken, whether at the economic, financial or health level.
In sum, this paper is a strong step taken by the head of the young Iraqi government, Mustafa Al-Kazemi, by proposing a new project in the economic and financial reform of the country, as it can be applied if it is accompanied by decisive decisions regarding the economic mistakes committed during the last stage, and putting the economic reality in the country on the path the correct.

[yota691]

Iraq is in 'trouble'!

A report looking at the results of reducing employee salaries and reducing the dinar: What might happen?

2020.11.01 - 12:37

 

People - Baghdad  

The Iraqi economy is floundering in an actual impasse, amid warnings of facing bankruptcy, while taking any reform measures means imposing a harsh reality on the majority of citizens.  

A press report titled "The White Paper: When Structural Adjustment Knocks the Door of Iraq", followed by "People", (November 1, 2020), reviewed the possible results of some of the measures recommended by the White Paper, including reducing employees' salaries and devaluing the national currency.  

It is likely that the report, published by the "Washington" Institute for Studies, that the options proposed by the White Paper will face "political resistance" and "popular discontent."  

  

  

Next is the text of the report  

The Iraqi government recently issued a white paper detailing economic and financial reforms aimed at pulling the country out of its current economic woes. The Economic Reform White Paper - developed by the Emergency Cell for Financial and Economic Reform, set up in May to manage the country's economic reforms - generally proposes reforms that are in line with the requirements of the World Bank and the International Monetary Fund for developing countries. While experts agree that these draconian measures are necessary, they will be difficult to implement and will likely encounter objection from the Iraqi people.  

  

By issuing the White Paper, the current Iraqi government took a new and unusual step in the country's political history. Half of the detailed 96-page document is a diagnosis of Iraq's economic problems and their roots. As Iraqi Deputy Prime Minister and Finance Minister Ali Allawi tweeted on October 18, "The reform paper identified with a scientific and objective vision the economic and financial problems that pose real challenges that can be overcome by a strategic planning method based on an objective analysis of the reality and extracting strategic goals as urgent priorities."  

  

By detailing the roots of these economic and financial crises, the White Paper brings the current crisis gripping the country back to the 1970s. The report describes how for half a century the state has relied on the country's growing oil revenues only to "expand the public sector" and "directly and indirectly control the economy." During this period, Iraq witnessed the emergence of a rentier state. These problems continued during the 21st century due to the CPA's failure to implement “shock therapy” programs, which left the country vulnerable to economic and financial systems characterized by a controlled economy, a rentier state, a ruling sectarian system, and a high degree of state interference in the joints of the country.  

  

In response to the country's turbulent economic past, the White Paper aims to establish a balance in the Iraqi economy by allowing the state to diversify it while creating economic opportunities for citizens. The necessity for diversification is justified by relying on the International Monetary Fund's 2019 report, which warned that “in the absence of any changes to the policy, the growing budget deficit will neutralize resources from essential investments to rebuild the country and improve public services, while undermining reserves and posing risks Threatening sustainability in the medium term. " However, the objectives outlined in the paper cannot be easily achieved since implementing reforms will require drastic measures.  

  

In 2003, Ali Allawi, then the Minister of Trade in the interim government and considered the architect of the current White Paper, stated that “we suffered because of socialist and Marxist economic theories and then cronyism. And now we face the possibility of applying free market fundamentalism.” This type of fundamentalism is clearly evident in the white paper. Its recommendations are very similar to the structural adjustment programs that the International Monetary Fund and the World Bank impose on low and middle income countries. These programs often force governments to reduce government expenditures on basic needs such as education, health care, the environment and subsidize the prices of basic commodities such as food grains. In addition, these programs oblige governments to devalue their national currencies and increase exports, which leads to a decline in actual wages and support for export-oriented foreign investments.  

  

However, implementing such policy changes will likely be difficult in Iraq. In this case, halving the wage rate, cessation of subsidies, devaluation and borrowing are the main pillars of the white paper. But none of these missions will be simple and many will not gain popular support.  

  

With regard to borrowing, the Iraqi government is seeking to borrow $ 35 billion to finance its operations. But the Iraqi parliament does not allow the government to borrow from abroad, so domestic borrowing is the only option. But in a country torn apart by war, domestic sources of funding are scant.  

  

Likewise, improving efficiency and spending in Iraq's public sectors - particularly through devaluation and cutting subsidies - will not be easy. For example, electricity, one of the most prominent areas of public spending in Iraq, is a complex economic, technical and geopolitical problem in the country. The International Monetary Fund report 248/19 “recommended that spending measures should be given priority to contain the growth in wages and reduce the subsidies granted to the electricity sector.”  

  

However, these measures are inconsistent with existing practices. In Iraq, there is a presumption that the state will provide and support energy resources.  

  

As former Iraqi Minister of Electricity Luay Al-Khatib said: “The electricity sector in Iraq suffers from a set of problems. The country's complex bureaucracy often impedes progress by focusing on ineffective, short-term, technical solutions, rather than on long-term macro-institutional reforms. There is a chronic inability to manage raw materials for fuel coincides with a deficit in managing other energy portfolios and the broader business value chain. The sector is vulnerable to the conflicting agendas of a large group of Iraqi political actors that prevent the development of a unified national vision for its management, which plunges the sector into mismanagement and renders corruption rampant in it".  

  

Given the complex nature of these problems in Iraq, these reforms are likely to encounter political resistance. The White Paper was released at a time when Iraqis are discussing the process and results of next year’s general elections in June 2021. At such a time, it is difficult to expect any political bloc to publicly adhere to similar harsh measures suggested by the White Paper. Critics also point out that it is not the caretaker government's duty to institute medium-term economic reforms that will continue until 2023, that is, during the years of the next government's term.  

  

Most of these measures will likely not be supported by the Iraqi people. Focusing on wage cuts is a double-edged sword, as public sector salaries are the only part of government expenditures that end up in the local market and are traded among small and medium-sized companies. Thus, it is an important benefit to the common people. The Iraqi government should proceed with a gradual and cautious reduction of public sector wages; Cutting wages by half and devaluing the Iraqi currency will be the cause of widespread poverty, a problem that basically paralyzes the country.  

  

Moreover, devaluation of the Iraqi currency may be difficult in the current global economy. From the point of view of the state, it is logical to suggest a devaluation of the Iraqi dinar. Allawi had hinted that a weaker dinar might enhance the competitiveness of Iraqi goods, thus providing support for sectors such as agriculture and industry. In this context, Allawi pointed out that "all countries that export to Iraq, such as Turkey, Iran, China and Saudi Arabia, have devalued their currencies. We cannot compete if we keep the value of the dinar steady and stable."  

  

However, the devaluation of the dinar will help improve Iraqi exports only if it falls to a level even lower than the currencies of trading partners, which are already low. The Iranian rial fell against the dollar, and the Turkish lira is following a similar descending path. A devaluation of the dinar below these currencies would be bad and possibly dangerous.  

  

Accordingly, the Iraqi economy is in real trouble: Experts have warned that Iraq will face bankruptcy in the absence of any drastic steps, but similar steps are likely to result in great suffering for the majority of the Iraqi people. Critics stressed that the country should focus on cutting its large security and defense budget.      

  

The security problems in Iraq also represent a dilemma. In regions experiencing unrest, the Iraqi government is employing young people in the security sectors as a way to secure jobs for them, which further inflates the security budget. Those working in the security sector do not contribute to the economy, while the enormous jobs in this sector constitute an incubating environment for corruption, "ghost" employees, and double wages. In the case of the Popular Mobilization Forces, which are allocated $ 2 billion in the annual budget, their security contribution is conditional.  

  

In light of allocating a total annual budget of $ 8 billion to the Ministry of Defense, critics considered that this sector also needs reform, especially since the injection of funds to overcome the country's security challenges - a method favored by politicians around the world - did not contribute to solving security problems. Iraqi.  

  

Finally, the White Paper is an indication that Iraq needs a radical change not only in its economic policy but also in other areas of governance. While all Iraqis theoretically agree on the need for change, very few agree on the practical nature of what change should be. Despite this, the country has no easy choice, even if its various parties can agree on a way to achieve this. It is unlikely that the price of oil will increase anytime soon, and thus the budget problems are unlikely to be solved. Since the current bleak outlooks have convinced the Iraqi political class of the need to support the White Paper, much will depend on the government's decisions in managing its implementation.     

[Laid Back]

“Cutting wages by half and devaluing the Iraqi currency will be the cause of widespread poverty, a problem that basically paralyzes the country.”

 

What will happen if they revalue the Iraqi currency?

 

Go iraq

Go CBI 
Go open market economy 

Go RV

Go purchasing power

[dinarbeleiver]

13 minutes ago, Laid Back said:

“Cutting wages by half and devaluing the Iraqi currency will be the cause of widespread poverty, a problem that basically paralyzes the country.”

 

What will happen if they revalue the Iraqi currency?

 

Go iraq

Go CBI 
Go open market economy 

Go RV

Go purchasing power

It wouldn’t surprise me if we have more twists and turns with the Dinar. I wouldn’t be surprised if they devalue the Dinar before a spike happens! #MIGA  love your posts, this is closer than we have ever been to seeing this come true Go RV

[horsesoldier]

 . . . strategically applied pressure on a variety of fronts for which I believe Kazemi is at the Center of; Iraq is on the threshold ( and so are we ) of something WONDERFUL . . . the sooner the better if you please Mr. Prime Minister.

 

Kazemi is a most clever individual.

 

 

[6ly410]

 

[6ly410]