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- Wednesday, 09-25-2024, PM 3:38
- Karar Al-Asadi
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The Iraqi industry has been suffering from a setback since the late nineties of the last century, from which it has not recovered until now, until the "import boom" came after 2003 to finish off what remained of limited local industries, and thus government and private factories and plants closed their doors to witness with regret the tragedy of the decline of the national industry.
Hussein Mardan, a member of the Parliamentary Committee on Agriculture, Water and Marshes, identified the “real reasons” for the weakness of Iraqi exports of goods and commodities to other countries.
The Iraqi industry has turned into a political "commodity" that the heads of government are trying to achieve a media achievement with and to increase their popular support only, according to what observers see, and they confirm the absence of any real solutions to support it, whether by imposing taxes on imported goods or contributing to their marketing internally. They confirmed that supporting this industry, especially the electrical industry, will constitute a large financial resource for the state.
Mardan said, "Iraq has many unique and rare goods such as dates and others, but the most prominent reasons for the weakness of Iraqi exports abroad are packaging, marketing and promotion, especially by the government in pumping real media material about Iraqi goods, in addition to the weakness of coordination with other countries," noting that "the best types of Iraqi dates go to the Emirates and India and are packaged there on the basis that they are not Iraqi."
Mardan added, "The committee has taken positive steps in this regard and has begun working to support the local product over the imported one," stressing that "there are parties benefiting from the weakness of Iraqi exports in order to flood the market with imported products."
On August 31, a member of the Parliamentary Economic Committee, Muwaffaq Hussein, revealed that there was a significant job slack within the Iraqi Ministry of Industry and Minerals, noting that 66,000 employees in the ministry were not working.
He pointed out that the productivity of an employee in Iraq does not exceed 17 minutes per day, in light of Iraq's need for a law to regulate official holidays that waste time and prevent production and development.
Over the past two decades, successive governments have postponed looking into the problems of human development in the private sector, and have resorted to a public sector employment movement, so that the government job has become “the dream and goal of the young man,” and these problems have accumulated and combined until they have become a heavy burden on successive budgets, no matter how explosive their investment is.
The Ministry of Finance’s accounts showed, on July 18, that expenditures increased by 12% during the first five months of this year compared to the same period last year, due to salaries and job slack.
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 subject 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.
It is noteworthy that the economic expert Nasser Al-Kanani confirmed in a previous statement that “the current Iraqi government has been in power for a long time, but until now we have not seen any real activation of the industrial sector, nor even any government support for the private sector rather than the government sector, and this certainly weakens the national economy, and therefore the economy is still fragile.”
He added, "Iraq cannot rely solely on imports, and in return for continuing to rely on oil to support the state budget, there must be a national industry that constitutes a basic resource to support the state treasury, as this is an important economic matter to enhance the state's resources."
Prime Minister Mohammed Shia al-Sudani said on May 2, 2023, during the Mineral Investment Conference held in Baghdad, that “Iraq is capable of producing a national industry that rivals what is produced in Arab countries... We will not remain spectators while Iraq remains a consumer market, but rather there will be national production.”
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