International Monetary: Rising oil prices are an opportunity to implement reforms of the White Paper

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[size=52]International Monetary: Rising oil prices are an opportunity to implement reforms of the White Paper[/size]

[size=45]Translation: Hamed Ahmed[/size]
[size=45]The Iraqi economy is expected to fully recover, and return to its pre-Coronavirus situation, after the apparent rise in global oil prices, with indications of a doubling of financial budgets and recording a surplus of domestic product. The International Monetary Fund believes that this financial improvement is an appropriate opportunity to implement measures stipulated in the white paper to reform the economic situation, stressing that this includes improving the quality of public services and creating investment opportunities, as well as supporting social welfare.[/size]
[size=45]A report published by (The National), the news website and its translation (Al-Mada), stated that "the International Monetary Fund stated in a statement that the strengthening of oil production is expected to push the growth rate of Iraq's gross domestic product this year to rise by 10%."[/size]
[size=45]The report added, "The International Monetary Fund's estimates indicate that Iraq's economy has begun to recover in a new way." And he stated, "The IMF expected that the real GDP this year would reach its pre-Corona pandemic rate, as the country, which is the second largest oil producer in OPEC, will benefit from the rise in oil prices."[/size]
[size=45]The report indicated that “the domestic product of the non-oil sector, which expanded by 20% during the year 2021, is expected to expand by another 5% during this year, due to the resumption of economic activity as well as a stronger financial consensual position and more stimulating measures than the Central Bank of Iraq.” “.[/size]
[size=45]The head of the International Monetary Fund mission in Iraq, Tokher Mirzov, said that "the economic recovery is going well."[/size]
[size=45]Mirzov suggested that "the current fiscal and monetary balances will double and record a relative surplus in the country's gross domestic product."[/size]
[size=45]The report stated, "Crude oil prices, which rose to less than $140 a barrel in mid-March after the United States and its allies imposed economic sanctions on Russia in response to its military invasion of Ukraine, have made some gains, but are still rising." And he spoke about "a 67% increase in oil prices during the year 2021 due to increased demand and the mobilization of global economic momentum."[/size]
[size=45]And the report indicated that "Brent crude, the international benchmark for two-thirds of the world's oil, and West Texas Intermediate crude, have recently reached more than $111 per barrel." He stated, "The economies of the oil and gas exporting countries in the Middle East are making profits from the rise in energy prices, and the International Monetary Fund expects the economic growth rate of these countries to rise this year by 5.4%."[/size]
[size=45]The report continued, "Consumer prices are on the rise in Iraq, despite the rise in oil prices," expecting "the inflation rate in the country will rise during this year to 6.9%, and one of the reasons for this is due to the rise in food prices."[/size]
[size=45]While the fund's envoy, Mirzov, stressed that "high oil revenues this year will compensate for the rise in food prices and imported energy," but he considered that "caution against the impact of high food prices on the most affected segment must remain an urgent priority."[/size]
[size=45]And Finance Minister Ali Allawi said last month, "Iraq, as is the case with other oil-exporting countries in the region, is trying to reform its economy and diversify its sources."[/size]
[size=45]Allawi pointed out that "the country is seeking technical assistance and moral support from the international community to strengthen its reform program." The report stressed, "An economic reform document called the White Paper was submitted by Iraqi Prime Minister Mustafa Al-Kazemi to Parliament in 2020, and recommended stopping financial support for sectors considered vital to Iraq's economy, especially the energy sector."[/size]
[size=45]Mirzov returns to say, "The current favorable conditions of the oil market also provide an opportunity to expedite the structural reforms stipulated in the white paper." Mirzov added, "This includes enhancing the quality of public services and creating a financial space for the more needed investments," explaining that "the social protection network requires a reform of civil services, reducing the ineffective rate of energy subsidies, diversifying sources of financial resources and strengthening management." The report continues, "The IMF stated that reforming the electric power sector will be vital to reduce financial costs and enhance the productivity of the private sector."[/size]
[size=45]He pointed out that "improving social aid coverage and targeting will also help protect the most affected segment of the country."[/size]
[size=45]And the report indicated, "The country needs to build a protective budget for the future by saving part of oil imports through a well-designed sovereign fund."[/size]
[size=45]The director of the Middle East and North Africa region at the International Monetary Fund, Jihad Azor, said last April that "the current situation does not allow time to be wasted. It is important to take advantage of this sudden gain from high oil prices to accelerate and strengthen the economic transformation that Iraq needs."[/size]
[size=45]Azor added, "The country needs to maintain a rate of progress in the optimal use of resources stemming from the increase in oil prices, while also taking the necessary structural reforms in the medium term in order to avoid the impact of any fluctuation in oil prices."[/size]
[size=45]About: The National News[/size]
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