Industrial Coordination Council Meeting Highlights
On Sunday, Prime Minister Mohamed Shi’a El-Sudani convened the Industrial Coordination Council to assess the state of the national industry and outline its primary requirements.
Ongoing Council Sessions
The Prime Minister emphasized the importance of regularly scheduled meetings, directing that the council convene periodically each month to tackle the challenges facing industrial stakeholders effectively.
Key Resolutions
The meeting resulted in several significant resolutions aimed at enhancing industrial productivity. A decision was made to expedite the operation of essential oil units in both southern and northern refineries, thereby supporting the private industrial sector’s demands. Additionally, plans were announced to boost the local production of bicwell by inviting investors to establish relevant projects.
Localization of Industries
In alignment with the government’s strategy to localize industries in Iraq, the council approved initiatives to enhance the domestic production of precious metals, particularly in gold and jewelry, as well as cosmetic products. Measures will be implemented to facilitate the establishment of factories, including enhanced oversight of exported gold quantities. This will include protocols for tracking remanufactured goods and coordinating with the central bank to ensure compliance with export controls.
Energy Supply to Factories
To support factory operations, the council approved a partial exemption for crucial government industrial factories from peak load energy restrictions. Discussions were held regarding a plan for the Ministry of Electricity to isolate industrial zones’ power needs from residential areas, aiming for suitable energy provision this year.
Streamlining Industrial Operations
In a move to better organize industrial activities, it was decreed that ministries and agencies, which do not fall under the Ministry of Industry and Minerals but interact with the private industrial sector, must liaise exclusively through the General Directorate of Industrial Development. No entity can obstruct or halt industrial projects without coordination with this directorate, which holds the authority to regulate the private industrial sector.
Land Rental Policy
A decision was made to maintain existing land rental rates for industrial developments, in adherence to Economic Affairs Committee Decision (244 of 2011) and Cabinet Resolution (24413 of 2024).
Environmental Protection Initiatives
In support of the government’s environmental goals, the Ministry of Oil was tasked with formulating a plan to provide liquid gas/LPG for brick laboratories across Iraq, replacing the currently used black oil, which contributes to pollution. Additionally, studies will be conducted on pricing liquid gas to encourage the transition among laboratory owners.
Import Regulations
The council also decided that raw materials imported by national factory owners will be exempt from standard testing requirements if verified needs are disclosed by the General Directorate of Industrial Development or the Iraqi Industries Union. This exemption, based on Cabinet Resolution (24261 of 2024), is specific to raw materials and does not extend to fully manufactured products.
Promoting Renewable Energy
The National Investment Authority was also directed to initiate the implementation of solar energy systems and to encourage the use of insulating materials in the construction of residential units and apartments.
The meeting equated to significant strides in addressing the operational needs of Iraq’s industrial sector and underscored the government’s commitment to fostering a sustainable manufacturing environment.
