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- TUESDAY,02-07-2024,
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The industrial sector in Iraq suffers from a deteriorating reality, especially after the year 2003, which led to the closure of large and well-known production factories and the layoff of thousands of workers with the entry of imported goods that rival local ones, until Iraq became a popular market for goods from various countries, which made the employees of the industrial sector a burden on the economy and the budget after its revenues represented 14% of the national product.
In a governmental move to revive the national industry in Iraq, MP Ali Al-Lami revealed today, Tuesday, a three-year plan to revive the factories of Maysan Governorate, indicating that they are capable of producing 20 products.
Maysan Governorate has four major government factories for the production of paper, plastic, and vegetable oils, and another for sugar. However, most of these factories have either stopped production due to the need to rehabilitate their production lines, or for marketing reasons, or high production costs, according to the local government of the governorate.
Al-Lami said, “Maysan, like the rest of the country’s governorates, has a series of government factories and plants that have been affected in recent years by limited government support, the impact of imports, and the lack of prospects for correcting their production path, which has led to severe damage that has taken multiple directions.”
He added that he "followed up on the Maysan factories file with the Ministry of Industry with the aim of reviving a plan consisting of 3 stages to revive the factories that can produce more than 20 products in the first stage and support many ministries and markets."
He pointed out that "the industry file at the level of Iraq needs an objective reading and bold decisions that contribute to reviving thousands of factories and plants that can attract no less than 100,000 workers in various specializations and reduce the annual import bill by up to 25% in general."
He pointed out that "Maysan is in dire need of reviving factories, not only in the public sector but also in the private sector, through a comprehensive roadmap that gives priority to national production in terms of marketing."
Iraq has official companies that are still active and productive, such as textiles and electrical industries, which bear the names “Ishtar” and “Al-Qithara” for their products, in addition to food products, such as dairy products. However, most of these products are sold in company centers, or limited offices only, and have not reached the local market, which is full of imported goods.
It is noteworthy that Article 30/Second of the General Budget Law for the year 2023 imposed an obligation on all ministries and government institutions to meet their needs and purchase their requirements and supplies from the local product, but its implementation is very limited, which contributed to the extinction of the local industry, according to specialists.
Iraqi MPs had previously confirmed that the failure of campaigns to support national industry in previous governments was due to political agendas that prevented the re-operation of factories, in favor of the expansion of import companies affiliated with influential parties since 2003.
Economic experts attribute the weakness of local industry, especially the companies of the Ministry of Industry and Minerals, to corruption and weak marketing. They confirmed that the Ministry’s factories are almost paralyzed, while they indicated that the correct way is to import tools and have the industry be called a semi-factory, in order to create job opportunities domestically and for the process to proceed according to this pattern.
It is noteworthy that the phosphate, fertilizer, brick, putty and pharmaceutical factories are all stopped or almost stopped, although they are intertwined with the agricultural and industrial sectors.
The industrial sector in Iraq in general, which is supposed to contribute to employing many segments of society, has been facing a major deterioration since 2003 until now, in light of the shutdown of most factories and the shift towards imports. The Federation of Iraqi Industries estimated years ago the percentage of stalled projects at 40 thousand projects, and successive government programs always include the topic of stimulating the economy and local industry, but without fulfilling any promise. Rather, trade exchange with countries in the region continues while neglecting local industry.
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