The rise in oil prices is a last chance that will not be repeated.. IMF: Iraq is fighting a decisive

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[size=52]The rise in oil prices is a last chance that will not be repeated.. IMF: Iraq is fighting a decisive battle to preserve its economy[/size]

[size=45]Translation: Hamed Ahmed[/size]
[size=45]The International Monetary Fund confirmed that Iraq is in the battle to preserve its economic existence, calling for investing in high oil prices and not using it in the previous mechanisms, indicating that more than one-fifth of the people live below the poverty line.[/size]
[size=45]A report published by (The National) news website and its translation (Al-Mada), stated that "the International Monetary Fund calls on Iraq's political leaders to agree on the economic goals that the new government should achieve, and they seek to form a government in the coming weeks."[/size]
[size=45]The report added, "The head of the International Monetary Fund mission in Iraq, Tokher Mirzov, said that the diseases of Iraq's economy are many and well-known, and every year thousands of Iraqi children are born in difficult socio-economic conditions."[/size]
[size=45]According to the report, Mirzov stated that "more than one-fifth of the country's people continue to live in poverty, with the difficulty of providing a reliable source of electric energy and potable water, and the absence of other basic services."[/size]
[size=45]Mirzov pointed out that "university graduates are faced with the challenges of a lack of economic opportunities and often take to the streets to demand change."[/size]
[size=45]Mirzov stressed that "many of these challenges are caused by years of wars and insecurity," noting that "wrong economic policies also played a role in the emergence of these challenges," while stressing that "mismanagement undermined the optimal and effective use of state resources."[/size]
[size=45]He also added, "Most of the available oil resources have been used to maintain a social contract based on providing jobs in the government sector and granting aid instead of building a market economy supported by a solid financial system," and he talked about "the dominance of the state's public sector by undermining the opportunity to develop and develop the private sector." .[/size]
[size=45]Mirzov said, "The main lesson from the recent history of Iraq is that such policies are not permanent and stable policies and do not create sufficient job opportunities for more than 800,000 young people who enter the labor market annually in Iraq."[/size]
[size=45]The report also quoted Mirzov as saying, "Government salaries, social welfare benefits, and pensions are already consuming the bulk of Iraq's oil revenues, leaving little to matters of urgent priority and making public expenditures vulnerable to severe damage due to volatile oil prices."[/size]
[size=45]And the report stated, “When Iraq finds itself teetering on the brink of economic collapse after every major drop in the global oil price market, this is not surprising, and on each of those occasions it stimulates to make attempts to implement economic reforms, and every time these reforms are abandoned as soon as they stabilize.” Oil market conditions are improving.”[/size]
[size=45]And he indicated, "The shortcomings of the Iraqi economy once again became apparent two years ago, when the outbreak of the Corona epidemic and the collapse of oil prices harmed the economy."[/size]
[size=45]The report continues, "The government at that time struggled to pay its bills, the public debt became unbearable, and the central bank's hard currency reserves decreased rapidly."[/size]
[size=45]And he continues, "These pressures have restricted the government's ability to take any effective measure in the face of the health crisis in its darkest circumstances."[/size]
[size=45]And the report added, "The authorities, in the midst of a difficult circumstance like this, put forward a long-term vision for a structural transformation of Iraq that aims to move away from the state's economic approach based on oil only towards creating job opportunities in the private sector and the independence of the economy."[/size]
[size=45]And he went on, "The recent rise in oil prices provides sufficient resources and space in the policy to benefit from the rapid post-pandemic recovery and to start making this long-term vision a real thing."[/size]
[size=45]The report raises the question, "Will Iraq take advantage of this opportunity, or will the old economic behavior continue to prevail?"[/size]
[size=45]And it goes back to Mirzoff, who saw that "this question is considered very vital now more than at any other time, because in a world now living in conflict with climate change, any opportunity like this may be the last."[/size]
[size=45]Mirzov added, "Iraq is in an existential battle for the future of its economy at a time when the acceleration of the world's pace to save the planet makes the issue of perpetuating dependence on oil revenues questionable."[/size]
[size=45]The report pointed out that "the severe salinity rate and desertification threaten to destroy the living situation of millions and make large parts of the country uninhabitable."[/size]
[size=45]He continues, "This comes in conjunction with rising temperatures and increasingly frequent heat waves, as well as droughts and other natural disasters."[/size]
[size=45]The report stated, "Current demographic trends will further exacerbate the demand for water and the burdens of sewage systems and electric power."[/size]
[size=45]And he warned, that "many sectors of the economy may disappear forever without any urgent adjustments in the policy to confront climate change and diversify the sources of the economy."[/size]
[size=45]The report finds that "addressing Iraq's chronic and looming challenges will require wide-ranging reforms on an unprecedented scale."[/size]
[size=45]And he added, "The most important thing is to improve management and strengthen public finances to ensure their sustainability and create space for more urgent investments in social protection networks and civil service reform."[/size]
[size=45]While the report spoke of the importance of “reconstructing the electricity sector and reviving the financial sector to support private investment,” it is contingent on “achieving such reforms with the presence of permanent and broad political support, which was not present in the past.”[/size]
[size=45]He added, "The global oil markets have now provided another opportunity for Iraq to ensure a brighter future for its citizens."[/size]
[size=45]The report concluded that “what the new government will exploit before the absence of such opportunities forever may resonate through generations. It will be of historical importance to her.”[/size]
[size=45]About: The National News[/size]
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