Economy Update – Baghdad
The Iraqi Council of Ministers convened today for its regular session, during which it approved several key initiatives, including the establishment of a National Mobile Company and an air services agreement between Iraq and Jordan.
Prime Minister Mohamed Shaya Al-Sudani led the session, focusing on the nation’s current situation, the implementation of the government program, and addressing items on the agenda with necessary decisions.
As part of its efforts to enhance the telecommunications sector and increase revenue streams, the Council approved the creation of the National Mobile Phone Company. This entity will operate on a national license utilizing fifth-generation technology, in partnership with Vodafone International Telecommunications Company.
The following key points outline the collaborative framework for establishing the National Mobile Company, structured as a limited private company in accordance with the Companies Law No. (21 of 1997, amended):
- The Ministry of Communications, represented by Public Al-Salam Company, the Public Retirement Authority (State Employees Pension Fund), and the Iraqi Trading Bank (TBI) will each hold a one-third equity stake in the company as a long-term investment.
- The aforementioned government entities must seek the approval of the Council of Ministers for nomination of candidates to the board of the National Mobile Company.
- Those candidates must also secure Council approval before undertaking key governance decisions, including:
- Amending shareholder contributions.
- Setting future share subscription tiers.
- Making strategic decisions impacting the project’s success.
- The Minister of Communications will oversee the implementation of the National Mobile Phone project and will provide periodic updates to the Council.
In addition to telecommunications initiatives, the Council is advancing several infrastructure projects. Key decisions include:
- Increased funding and reserves for the rehabilitation of the road connecting the Imam (PBUH) bridge to the Shalamjah border port in Basra.
- Creation of electrical current delivery infrastructure for the Al-Rifai sewage project in Dhi Qar, inclusive of cost adjustments for the main project.
- Development of remaining works for the Balad/Salahuddine water project, associated with the overall Water of Country/Salah al-Din project, and corresponding cost increases for the main project.
- Modification of costs related to the construction of the Chaldean Patriarchate headquarters, including furniture cost provisions.
- Adjustments to the Salah al-Din Al-Hurriya station project costs to optimize allocations without imposing additional financial burdens on the Iraqi budget.
- Increased reserves for sewage projects in the Al-Saladi and Shafi’i districts, designated for Diwaniyah Governorate.
The Council also approved a special recommendation pertaining to contracting approaches in Salah al-Din Governorate, aligned with the provisions of the Budget Law and with instructions for direct implementation and the execution of trust-based projects.
Additionally, an amendment to decision number 300 of 2022 was ratified, mandating the Ministry of Finance to cover interest payments on a loan from the Iraqi Trade Bank, benefiting the Iraqi Football Association.
On matters of foreign relations, the Council approved a memorandum for mutual entry exemption for diplomatic passport holders between Iraq and Morocco. Furthermore, the draft law for an air services agreement between the Iraqi and Jordanian governments was sanctioned and is set to be referred to the House of Representatives in accordance with constitutional procedures.
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