An Iraqi quest for US support in implementing the reform program

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[size=52]An Iraqi quest for US support in implementing the reform program[/size]

[size=45]Translated by Hamid Ahmed[/size]
[size=45]Finance Minister Ali Abdul-Amir Allawi confirmed that Iraq is seeking the support of the United States of America in the field of technical assistance and moral support in implementing the reform program after its completion, ruling out major economic agreements at the present time, and he spoke about the lack of financial aid after the apparent rise in oil prices. .[/size]
[size=45]According to a news report by Al-Monitor and The National, translated by Al-Mada, "Finance Minister Ali Abdul-Amir Allawi confirmed that Iraq is seeking technical assistance and moral support from the international community to support its reform program amid the escalation of oil prices."[/size]
[size=45]And the report continued, "Allawi said in his statements on the sidelines of the quarterly meetings with the World Bank and the International Monetary Fund in Washington: We do not urgently need financial support now as much as we need more technical assistance and moral support in favor of our completed reform program."[/size]
[size=45]He pointed out, "Prime Minister Mustafa Al-Kazemi had handed the Iraqi parliament in 2020 the white paper program for economic reform, through which it was recommended not to work in stages in the aspect of financial support in sectors considered vital for the Iraqi economy, especially industrial ones."[/size]
[size=45]The report stressed, "Allawi confirmed that Iraq does not plan to conclude any major economic agreements with the United States, but welcomes the continuation of American support for economic development in Iraq, and its focus is now more on what we call programs and plans instead of financial aid."[/size]
[size=45]The report pointed out that "Iraq has begun to gradually recover from two shocks that it has suffered, represented by the consequences of the outbreak of the Corona epidemic and the collapse of oil prices in 2020".[/size]
[size=45]He explained, "Both the growth paths of the oil and non-oil sector began to return to their pre-pandemic rates, according to the World Bank, as oil production rates rose with the easing of restrictions imposed during the Corona pandemic and the return of internal economic activity."[/size]
[size=45]And he indicated, "The estimates indicate a rise in the country's GDP rate during 2021 by 1.3%, after a sharp contraction of 11.3% in the year 2020, according to the International Monetary Fund."[/size]
[size=45]The report quotes the World Bank, that "the transformation taking place in the oil markets has greatly improved and developed Iraq's economic aspirations, especially in the medium term."[/size]
[size=45]And the World Bank added, “The expectations of economic growth in general for the country in 2022 will be at a rate of 8.9% at a time when the procedures for restricting production included in the OPEC Plus agreement were stopped, as well as Iraq’s production of crude exceeding the rates of 4.6 million barrels per day that were before the pandemic.”[/size]
[size=45]According to the World Bank, "the sudden gain from the case of high oil prices would provide Iraq with a fundamental opportunity to implement constructive economic reforms."[/size]
[size=45]And the report added, "Iraq relies heavily on oil revenues to rebuild its economy after decades of war."[/size]
[size=45]And he quotes the Iraqi Oil Ministry, that "the country's crude oil exports for the month of March amounted to more than 3.24 million barrels per day, with financial returns of 11.7 billion dollars, the highest since 1972."[/size]
[size=45]According to the international credit rating agency, Fitch Solutions, it is expected that "oil resources will cover 88% of the country's financial revenues this year."[/size]
[size=45]And the institution expected that "the rise in oil prices will lead to an expansion of Iraq's financial surplus by 6.7% of GDP in 2022, compared to 2% of GDP in 2021."[/size]
[size=45]The report stressed that "the Brent crude index, which is a measure of the prices of two-thirds of the world's oil, has risen this year by 30%, due to concerns about oil supplies resulting from the Russian-Ukrainian crisis and the increase in demand for oil in global markets."[/size]
[size=45]The report goes back to the Minister of Finance, who stressed that “what we need is a revolution in our financial management and in our understanding of the strategic and economic issues facing the country. We have missed many opportunities to extricate the country from its poor economic performance, and perhaps Iraq has lost the equivalent of 50 years of development.”[/size]
[size=45]And the report continued, "Iraq has failed to form a government so far since the October elections, and the parliament, according to this situation, cannot pass the 2022 budget."[/size]
[size=45]Allawi described, "The delay in approving the budget is a problem for Iraq at a time when it is gradually recovering from crises that have damaged the country's economy." He said, "The rise in oil prices had financial benefit returns for Iraq."[/size]
[size=45]And Allawi said in a press statement, "Iraq wants to have a specific plan to take advantage of this sudden financial gain, otherwise it may accumulate as cash." Allawi pointed out that "the government has drafted an emergency food aid law that could contribute to alleviating the consequences of increasing food prices, through a series of cash transfers and aid to the poorer class of Iraqis."[/size]
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