Iraq's Council of Ministers Greenlights Key Economic and Infrastructure Reforms

In a recent session chaired by Prime Minister Mohammed Shia Al Sudani, Iraq's Council of Ministers approved several significant decisions aimed at revitalizing the country's economy and upgrading its infrastructure.

One of the primary decisions was the adjustment of fuel prices. The Council approved setting the price of kerosene to align with the global oil price index for investment petrochemical projects and fixed the price for the asphalt products plant in Nineveh at 400 dinars per liter. Additionally, the price of black oil for the Lime Cement Plant in Karbala Province was reduced from 150,000 dinars per ton to 100,000 dinars per ton.

Why this matters: These decisions have significant implications for Iraq's economic stability and growth, as they aim to revitalize the country's economy and upgrade its infrastructure. The successful implementation of these reforms could lead to increased economic prosperity, improved living standards, and enhanced regional stability.

The Council also imposed an additional customs duty of 50% on imported paper bags used for cement packaging, effective for four years. This measure is intended to protect local industries and increase government revenue. The Ministry of Industry and Minerals will monitor the market impact and assess import trends over the next four years.

In a move to bolster the oil sector, the Council approved an increase in the capital of the Dhi Qar Oil Company to 1,969,361,610,210 dinars. This increase is expected to enhance the company's operations and production capacity, contributing to the overall economic stability of the region.

The Council also greenlit several major infrastructure projects, including the development of the Faw Grand Port and the modernization of Baghdad International Airport. The Faw Grand Port project is a strategic initiative aimed at expanding Iraq's maritime trade capabilities, while the Baghdad International Airport development focuses on enhancing the airport's capacity and facilities.

Additionally, the Council approved a trade project between the Ministry of Electricity and French company TotalEnergies under the Take Or Pay model. This project aims to diversify Iraq's energy sources and reduce its dependence on fossil fuels.

To further support the electricity sector, the Council approved the Ministry of Electricity to bear the taxes and fees for the electricity connection project between Iraq and the Gulf Cooperation Council Interconnection Authority. This initiative is expected to enhance the stability and reliability of Iraq's power grid.

Other decisions included authorizing the Ministry of Foreign Affairs to send medical aid to Sudan and approving the Real Estate Bank to contract with foreign companies for banking system supplies. The Council also approved measures to resolve conflicts and violations related to the project linking the Mohammed Al Qasim Expressway with the Kirkuk Baghdad Road.

These decisions reflect the government's commitment to addressing economic challenges and improving infrastructure. By adjusting fuel prices, imposing additional customs duties, and investing in key sectors, Iraq aims to create a more stable and prosperous future.

Key Takeaways

• Iraq adjusts fuel prices to align with global oil price index.
• 50% customs duty imposed on imported cement bags to protect local industries.
• Dhi Qar Oil Company's capital increased to enhance operations and production.
• Major infrastructure projects approved, including Faw Grand Port and Baghdad Airport modernization.
• Trade project with TotalEnergies aims to diversify Iraq's energy sources and reduce fossil fuel dependence.