Non-Oil Revenues-Iraq Gazette 4821-Salaries-Oil-Article 12 C-Global Investment-Partnerships-UST-JPM
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We appreciate every single one of you while being here at patreon.com with Militiaman and Crew, our Discord chat room. It’s vibrant and Samson’s bringing in an amazing amount of news. So if you guys want to come in and join us, that’d be great.
You know how to reach us. We’ve got links, so check them out. Anyway, Parliamentary Finance Committee.
This looks like today. Amending the Import Control Authority is a first step towards achieving sustainable development and basically this one’s going to be about maximizing non-oil revenues and all of it’s going to be, well, it’s effectively private sector related. So the Parliamentary Finance Committee, Atwan al-Atwani, affirmed on Thursday that amending the General Authority for Import Control Law is the first step towards achieving sustainable development.
It says the priorities of the Finance Committee at the present time were also reviewed today. Among them were the file of maximizing non-oil revenues. The private sector is totally related to non-oil revenues.
End of story. Atwani goes on and says we’re currently working on maturing the amendment laws. In other words, maturing to me sounds like they’re just going to be amending the law as time goes on or adjusting it.
But anyway, they just say that the General Authority for the Federal Import Control, they have an aim of submitting it for a second reading as soon as possible as it aims to maximize non-oil revenues. I believe they’ve already gotten everything they probably need to get started in place, but then again, they’re going to keep making it better and better for investors. The Finance Committee is also finalizing plans to hold an expanded workshop in cooperation with the International Partners Foundation with the participation of all relevant government agencies to exchange views and consolidate important observations regarding this law.
They will contribute to enhancing or, I’m sorry, establishing clear and focused mechanisms in its implementation, enabling the authority to develop realistic estimates of state revenues. They’re going to need to know how much money they’ve got coming in and going out. That’s all there is to it.
So the electronic platforms that they have now, I’m fairly certain that it’s going to be quick and easy. He points out the approval of the amendment to the law of this authority and development of realistic plan for its implementation is the accumulation of the efforts of the Finance Committee and a major national achievement during the parliamentary session as it represents the first step towards achieving sustainable development by diversifying sources of income and moving away from the philosophy of a rentier economy that is entirely dependent on oil. I don’t know you guys, I’m sorry, but part of the Finance Committee is just now getting on board.
I think that the Federal Finance Committee, the Federal, excuse me, the Federal Ministry has been working on this for a long time and I think they were bucking the system for a long time, but now they’re obviously welcome to the party. So anyway, that’s my view on it. It’s a good article.
It just goes and supports the fact that the part of the Refinance Committee is on board with Iraq basically embracing the private sector and so I’m sure that they’re going to get what they want. Are they going to get credit for it? I’m not so sure. Anyway, today you guys, they published in the Gazette a number 4281 and it talks about salaries, making sure the obligation to pay salaries between the Federal Government and the Kurdistan Regional Government.
Okay, they talk about, indirectly, oil and they talk about Article 12 and Article 12C, Article 2, Paragraph C. They don’t say 2 anymore, but in this particular article, but bottom line is they mention it. I would come in and read it. It’s from the Federal Supreme Court.
It’s number 4281. You can go to their website and look at it. You can translate it on your own if you’d like.
I put a post in Patreon.com, so if you’re really interested. It’s long. I think it was like, well, according to them it was 15 pages.
But anyway, it’s a good read. There’s some key components in there that talk about the obligations. It talks about Article 12, Paragraph C. It mentions oil and it mentions salaries and that they have to do that.
Now, one of my articles I’m going to have tonight, if I missed it already. No, I didn’t, but it’s a good read. So, one of the issues they talk about, they say first, is an urgent executive order obligating the Federal Ministry of Finance to pay the salaries at all categories of employees of the Kurdistan Region for all previous months, as well as the observed months.
So, I’m not sure about the previous months and the observed months, but I think that the 2024 or the tripartite budget. Look, the tripartite budget includes 2023, 2024, and 2025. But anyway, the second issue is they obligate the Federal Ministry of Finance to pay the salaries of employees of the Kurdistan Region without interruption or delay under the pretext related to the settlement of salaries or technical administrative issues, such as the trial balance or technical and supervisory procedures.
So, that’s part of it. Basically, what does it mean? It means that the salaries are indirectly oil extraction costs. They talk about Paragraph 12C.
They talk about all those things. In essence, you’re going to find that those two things are related to, I believe, an exchange rate orientation. They haven’t done these things or finished these things yet, and they’re probably not going to finish them until they actually change their exchange rate.
Because the fact remains is that the salaries, the oil has not been paid. They have obligations, once again, in the Gazette. And we also know about investment, infrastructure projects.
J.P. Morgan’s coming into town as far as financing these infrastructure projects. Building 4 million housing units, industrial cities, doing that at $1,310 to $1 USD is never going to happen. It’s never going to happen.
However, is this happening? 100% in my view. Okay, it says this article is from Erbil to Baghdad. April’s salary list arrives on Sunday.
So, we just talked about salaries. That’s in the Gazette, right? Okay. He says here that his name is Hal Rami.
He told the news media outlets that the April payroll list will be prepared next Sunday. So, these news outlets basically state, Hal Rami talking to the news outlets, the April payroll list will be prepared next Sunday and sent to Baghdad as soon as possible. Noting that reviewing the list will not take long and the commitments on the payroll have been resolved.
I like that part because they’ve already said their commitments and their comments on the payroll have been resolved. So, they’ve discussed it. They’ve done it.
Okay. He adds that after the audit is completed, the list will be submitted to the federal finance minister, Taif Sami, and Kurdistan Region’s April salaries will be funded. Okay.
That’s not just, you know, we got the money, but we’re going to fund it. All right. And that’s coming within a few days.
That’s what it says. Okay. So, following a series of discussions between delegations with the federal government and the regional government, the Kurdistan Regional Government’s finance ministry, this gentleman by the name of Janab announced on February 3rd, that’s been a month, February, March, April, about two months, that a solution had been reached with the federal government to issue the region’s employees salaries for the current year.
Now you talk about what we just talked about earlier in the Gazette. You know, they have obligations. They have obligations to take care of.
And I would assume that Article 12C is relevant to this. So, keep it in mind. It’s actually really fascinating, so that when we’re doing our study, that they’re actually physically showing that Iraq is doing what they said they were going to do.
And has it taken them a long time? Yeah. Are they ready at this stage? Of course they are, I would say. I think this is kind of showing evidence of it.
When are they going to do this? Well, it looks like they’re in the process. Okay, here’s an article from Supporting Investment, right? Investment’s going to be the salaries, you got oil, you got the new systems in play, you have the electronic transactions that have been in play, the e-governance that’s been in play. And so here, the American Chamber of Commerce, it says, we have huge opportunities in Iraq.
Steve Lutz, Vice President of the U.S. Chamber of Commerce, who is currently, was currently visiting, maybe he’s still there, visiting Iraq with, it says that with the largest economic delegation in history. That’s a pretty bold statement, okay? It says that they revealed on Wednesday, so it was yesterday, and they were discussing the development of various sectors, including technology. Really? What kind of technology? Would that be the blockchain environment? Would that be the digital environment? I would say so.
It says the American delegation was honored to meet with the Iraqi Prime Minister, Mohammad Shihal Sadani. They listened to his speech on relations between Iraq and the United States and ways to develop them. So, Sadani is talking specifically about relations between Iraq and the United States.
It says the American economic delegation signed several agreements, important agreements, with Iraq, some of which were attended by the Prime Minister, and this was in coordination with the United States Treasury Department. Really? So we don’t have a hand in this? Yeah, it’s, I think we all know that we do, that the United States has a big hand in it. Lutz confirmed that the U.S. Economic Mission met with a number of ministers and will meet with others as well, and there’s a discussion about developing the Iraqi technological and economic sector.
No doubt. Lutz also notes that this visit will be a new spark, especially given that many investment opportunities we seek to capitalize on in light of the long-term partnership with our Iraqi partners. It says that American companies have tremendous opportunities to develop various Iraqi sectors in oil and gas, and the U.S. Treasury Department believes that American companies are the strongest and most advanced, and therefore they can compete and outperform other companies.
So, Lutz affirmed that the U.S. Treasury Department will play a role in developing the Iraqi economy. Meanwhile, the head of the Iraqi Economic Council stated that the country is faring better economically today than in previous years. Well, it’s nothing new that the United States Treasury and the United States has been involved in this process.
The Strategic Framework Agreement proves that. Okay, it says that we cannot forget the role of the United States in liberating Iraq from dictatorship. The United States is the world’s leading nation in various fields and is one who has the credit for Iraq’s liberation.
Okay. It says that the visit of the American delegation consisted of about 100 figures and more than 60 American companies is evidence of the progress made in relations to develop the Iraqi economy. It goes on and says that two days ago, we launched a private sector development council headed by the prime minister, Sheil Sadani, the first vice president and minister of planning, and the second vice president.
It says Iraq today is a dozen times better off than it was in the past, and we welcome any company that wants to work in Iraq to develop its industry and economy. Well, why would they be able to be talking about industry and economy and welcoming anybody? That’s really big money, developing industrial cities, right? Industry. It’s amazing.
He goes on to, here’s another one. He doesn’t, I thought it was the same guy, but it’s not. It’s Haider Algarawi.
Okay. It says the public and private sectors are partners in addressing the housing crisis. Again, this is about investment.
It says Iraq needs approximately 4 million housing units, and this need has increased with the country’s population growth rate, which is rising at a remarkable rate. It says the housing crisis can be addressed in stages by expanding the role of the private sector. Again, it’s not from the state doing it.
It’s from the private sector coming in. Think about how much it costs for 4 million housing units, and you’re going to try to build those at 1310? I don’t think so. It’ll be far cheaper with a new real effective exchange rate.
I think we’ve been over that numerous times. So look, you add a new exchange rate to the equation, all those houses become so much cheaper, so much far more cheaper. It’s not even funny.
And here’s another one that says Al-Sudani chairs a meeting of the industrial sector support committee, an industrial sector support committee, and they’re talking about investment again. All right. A number of topics related to this important sector were reviewed during the meeting in order to launch a second package of support decisions.
So there’s a second package of support decisions relating to industrial sector, which is in line with priorities of supporting national industry in the government program. And the targets are diversifying sources of income. What are they talking about? Non-oil income? I would say so.
And they’re maximizing their local products, so they want to make things at home, and opening horizons and opportunities for work in the private sector, employment for the youth. Unbelievable. Okay.
So the meeting also addressed the important issues and challenges facing the sector, including those related to the first industrial support package, the mechanisms for lending to industrial projects approved by the cabinet, in addition to cabinet’s decisions related to ownership. So ownership, lending, the establishment of industrial cities, and the export of local products. So but now they’re going into a second phase, because that was, they said there could be some challenges in the first part, but now they’re going into the second part.
All right. It goes, as part of government’s support for national industry, this meeting discussed fees imposed on industrialists by ministries and rental allowances in industrial cities, in addition to the minimum required for those practicing the profession of auditors. So they have international institutions dealing with Iraq’s budget, international auditors.
Taif Sami’s got that on her plate, because they’re going to audit with international standards, the lists from the Kurdistan region. Those are things that you should keep in mind. I know it’s a big picture, and there’s a lot of information.
But again, here we are. Al-Sidani directed the relevant committee to communicate with officials from relevant bodies to resolve issues related to the industrial sector. A number of decisions were also taken to find swift, immediate solutions to obstacles impeding the process.
So basically, Al-Sidani is making everyone ready, his team’s ready, for any challenges that may arise. The importance of emphasis towards the industrial sector, to me, is powerful. Look, the largest projects in the country are going to be derived out of this important sector, the industry sector.
Basically, as I feel, is I’d like to know what that second package is all about. Is it a follow-up package, because they’re going to make a move that they have to be prepared to manage this new system. So this last article is the Ministry of Finance.
It’s Iraq seeks to open economic partnerships and finance priority projects. So now they’re still – what are they talking about? They’re talking about investments still. Finance Minister Tayyip Sami confirmed on Thursday that Iraq, or today, seeks to deepen economic partnerships and finance priority projects.
Well, we saw that yesterday and the day before. They talked about J.P. Morgan being involved. It’s one of the biggest banks in the world, right? Why would they be coming in and staying around thinking that they’re going to fund all these investments with an exchange rate that’s basically a form of currency manipulation, right? It seems to be that way.
A lot of countries in the world are being targeted about currency manipulation. So anyway, Finance Minister Tayyip Sami confirms that Iraq seeks to deepen this partnership, finance these priorities. It says the Minister of Finance participated in the joint annual meetings of the Arab financial bodies held in the state of Kuwait.
The presence of a number of finance ministers and governors of the central banks in the Arab countries, which will discuss ways – or which did discuss ways to support economic development and enhance financial and investment integration in addition to reviewing the financial performance reports and economic indicators of the concerned bodies. That seems like the single window to have enough information to be able to do that. That’s what they do.
That single window they talked about in the past. They give out performance reports. They give out economic indicators.
And they give it to who? Those that are concerned bodies. But most of those concerned bodies are going to be doing industrial projects. They have $250 million or more in their pocket.
A lot of people just don’t realize that, but that’s what they’re talking about in my view. The Minister of Finance stressed the importance of achieving and enhancing Arab financial cooperation and exchange of experiences between these countries, noting that Iraq seeks to deepen economic partnerships and finance priority projects. It says Iraq’s participation reflects the government’s keenness to highlight its economic initiatives, balance its financial relations with the Arab countries, and to seek benefit from the experiences of other countries to develop domestic financial policies.
Well, isn’t balancing kind of leveling the playing field? That’s what this is about. Iraq’s participation reflects the government’s keenness to highlight its economic initiatives, balance its financial relations with Arab countries. So they have to all be in sync, do they not? They have to be on a level playing field.
Fair is fair. I think that’s what they’re talking about, without saying in our way. All right.
Basically, what is it doing? It’s seeking to benefit the experience of other countries to develop domestic and financial policies. It goes on and says that according to the statement, the meetings concluded with a review of the future initiatives that support financial integration and implement practical plans to promote development. The participants also stress the importance of exchanging experiences, sharing successful experiences to drive investments, and activate cooperation among the member states.
And who are they talking about? They want to activate among the member states. This is – they’re talking about the region, for instance. Here we are, the meeting of the ministers of finance, Arab ministers of finance.
There was a meeting with that. Meeting of the board of governors of the Arab Fund for Economic and Social Development. A meeting of the board of governors of the Arab Monetary Fund.
Remember the AAD, Arab Accounting Dinar? Do you guys realize how they value that currency? It’s related to the SDR basket from the IMF. Do you ever think about things like that? I would, and I do. It says meeting of the board of governors of the Arab Bank for Economic Development in Africa.
Really? In Africa? So there’s a relationship. Wouldn’t that be African nations too? All right. Meeting of the board of shareholders of the Arab Investment Guarantee and Export Credit Corporation.
Export Credit Corporation. Isn’t that about cross-border payments? I would say so. Meeting of the board of governors of the Arab Authority for Agricultural Investment and Development.
Isn’t that one of the big sectors that Iraq’s going to be doing now? Did they enhance – did they get their water? Did they feel comfortable with Turkey because of the Development Road Project? Well, agriculture needs a lot of water, does it not? Sure. Meeting of the supervisory board of the Bader Fund to Support Entrepreneurship. They’re going to go after the youth to build new businesses because they’re going to have the ability to do so.
They’ll have the money to be able to do so. To me, this is a massive indicator that Iraq is going to balance her financial position with the region. She’s going to balance that financial position with the region.
This is about her integration into the global financial system. Basically, I think Iraq is going to utilize other countries’ financial experiences as a model in doing so. There’s a lot of experience out there.
They’ve had a lot of help for the last 20 years, and they’ve really moved it forward in the last two years under al-Saddani. Their efforts are all for developing partnerships in the financial and then the development respect to priority projects, and that’s going to be what we’re waiting for. Effectively, they’re talking about … I think they’ve had these meetings because they’re ready to go.
Look, you’re not going to build four million housing units, industrial cities, and other major projects at $1310 to $1 US dollar. I think it’s blatantly obvious now. I think it should be by everybody.
Anyway, that’s what I have for you guys tonight. I appreciate you guys being with us. It’s been a great day.
It’s been a beautiful day. It’s been sunny and hot, and I hope everybody’s feeling the heat coming up. Enjoy.
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