Economy Update – Baghdad
The full decisions from the sixth cabinet session, convened on Tuesday and chaired by Prime Minister Mohammed Shia Al-Sudani, are now being presented.
The Prime Minister’s media office stated that during the session, the Council of Ministers addressed various national issues, focusing on pivotal economic and service matters. The meeting also reviewed the government’s program priorities, discussed agenda items, and made formal decisions regarding them.
To expedite the completion of previously stalled projects, the following approvals were granted:
- Increase in reserve funds for the residential complex in the Diwaniyah/Sunni governorate, encompassing adjustments in overall project costs and supervision.
- Augmentation of reserve funds for the residential complex project in Nineveh Governorate/Tal Afar District.
- Increased reserve amounts for the Al-Hamdaniya sewage project, which has a capacity of 14,000 m3/day, alongside a rise in total project costs.
In a bid to enhance infrastructure in the Samarra district, the Council of Ministers sanctioned the formation of a committee, headed by the Minister of Construction and Housing, which will include the Governor of Salah al-Din and various other significant stakeholders. This committee will oversee the project and ensure compliance with the established guidelines set forth for government contracts.
The committee’s responsibilities include:
- Reviewing and approving the proposed project according to the stipulations of the governmental contracts implementation instructions (2 of 2014), as well as supervising all project stages until its completion.
- Possessing authority as granted by the Prime Minister’s office as documented on December 22, 2024.
- Engaging an independent consulting firm, preferably foreign, for design audits and project supervision, ensuring an independent component is included.
- Selecting specialized companies for project tenders and preparing a referral record, all under Prime Ministerial approval.
In support of the private industrial sector, the Cabinet approved Resolution 24413 from 2024, facilitating exceptions for industrial investment projects with investment licenses in accordance with the amended Investment Law (13 of 2006). This includes provisions regarding the transfer of ownership of industrial projects that have been operational for a minimum of three years.
The Council also approved a significant capital increase for Al-Rashid Bank, boosting its capital from 2 billion dinars to 50 billion dinars, drawing from the bank’s expansion reserve account, following the Public Companies Law (22 of 1997).
Furthermore, authorization was granted to the Minister of Finance to engage in contractual negotiations with the legal advisor (the Cut Cutlop Foundation) concerning sovereign guarantees as per the governmental contracts instructions (2 of 2014).
In the sphere of agriculture, the sale of local wheat at a price of 410,000 dinars per ton to civil mills was approved from the surplus of the General Company for Grain Trade. To protect local products, additional measures were also established:
- A 40% additional fee imposed on imports of polyethylene-based products used for bottled water and food packaging, effective for four years without exceptions, while closely monitoring the local market.
- Recommendations for the Ministry of Industry and Minerals to assess import increases relative to the previous three years for assessing unjustified increases among other considerations.
Additionally, the supervisory bodies are tasked with auditing the impact of the newly imposed fees on locally available products, with these directives taking effect 120 days post-approval.
In the energy sector, the Council approved the issuance of an invitation to the company B1 to submit proposals for the rapid implementation of a floating platform FSRU to import liquefied gas, also permitting an exemption from the standard government contract regulations (2 of 2014).
Moreover, the Council endorsed the addition of the National Advisor for Mental Health to the National Supreme Authority for Narcotics and Mental Affairs, in alignment with the upcoming amendments to the drug and psychotropic substances legislation.
In educational matters, the Cabinet has delegated the General Directorate of Evaluation and Examinations with the authority to print examination materials in compliance with government contracts for a one-year period. Furthermore, in external relations, the following measures were approved:
- Exemption of the Czech Republic from the resolution that dictates the cancellation of the tax avoidance agreement.
- Empowerment of the Iraqi ambassador to the Czech Republic to negotiate and finalize the tax avoidance agreement.
- Preparation of authorization documentation by the Ministry of Foreign Affairs for the ambassador per established protocols.
The Cabinet concluded by approving the admission controls for the Iraqi Police College proposed by the Ministry of Interior, which will set study fees for beneficiaries of the Cabinet’s earlier decision while ensuring compliance with reciprocal arrangements with other nations.
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