The Kurdistan Region deposits 120 billion dinars of non-oil revenues into the Iraqi treasury account.

The Kurdistan Region’s Ministry of Finance and Economy announced on Thursday that non-oil revenues for June had been deposited into the federal Ministry of Finance’s bank account.

The Ministry of Finance stated in a statement today that the region’s non-oil revenues for June 2025, amounting to 120,000,000,000 dinars (one hundred and twenty billion dinars), were deposited in cash into the Federal Ministry of Finance’s bank account at the Erbil branch of the Central Bank of Iraq.

On Tuesday, August 26, the Federal Council of Ministers approved the Ministry of Finance’s payment of salaries to Kurdistan Region employees for June 2025, with the regional government paying 120 billion dinars as a non-oil revenue payment.

An informed source revealed to Shafaq News Agency last month the details of the agreement between Baghdad and Erbil regarding the resumption of Kurdistan’s oil exports. He confirmed that the agreement stipulated that the Kurdistan Regional Government would receive 240 billion dinars in revenues for May and June, at a rate of 120 billion dinars per month, in addition to delivering 230,000 barrels of oil per day to Baghdad, in exchange for the latter sending the salaries of the region’s employees for those two months.

The roots of this crisis between the federal government in Baghdad and the Kurdistan Regional Government (KRG) lie in ongoing disagreements over oil export mechanisms and the unification of public revenues. This is a long-standing crisis that resurfaces from time to time, but it has worsened significantly since May 2025, when the federal government refused to send salaries to the region’s employees.

Shafaq.com

Expecting a record collapse in the toman, the Revolutionary Guards’ media attacks a “pessimistic” report by the Iranian Chamber of Commerce.

In a recent report, the Iranian Chamber of Commerce presented the worst-case scenario in the event of the activation of the “snapback” mechanism, predicting that the exchange rate would jump to 165,000 tomans and inflation would exceed 90% by the end of 2025.

However, the Tasnim news agency , affiliated with the Iranian Revolutionary Guard, attacked the report, warning that such forecasts could turn from a “warning tool” to a “tool of inflammatory intent,” sparking a wave of panic in the markets more than the facts on the ground reflect.

Shocking numbers and a bleak scenario

The report, translated by Shafaq News Agency, divided the economic outlook into three paths: optimistic, probable, and pessimistic. The outcome in all three is negative: an economic contraction ranging from -0.6% to -3.1%, and inflation ranging from 60% to 90%. However, the greatest focus was on the darkest scenario, which would raise the free exchange rate to historic levels of 165,000 tomans.

Economists believe that announcing such figures in an economy that is quickly affected by psychological expectations could push markets into a wave of monopoly and price hikes. “Mere talk of a currency collapse could translate directly into a real market collapse, even if no change in sanctions occurs,” one expert said, according to a report by the Iranian Tasnim News Agency.

The Chamber of Commerce likened the current situation to the beginning of the last decade when UN sanctions were reinstated. Many of the UN sanctions cited as a “potential threat” have not yet been fully lifted, such as restrictions on maritime insurance and the sale of dual-use goods.

Tasnim, on the other hand, points out that experience has proven that the heaviest pressure on Iran did not come from the Security Council, but rather from the US Treasury Department, which included central bank sanctions, isolation from the SWIFT system, and a ban on oil sales.

She added that these measures have tightened the noose far more than any international resolution, meaning that the UN’s snapback may be more symbolic than practical.

The Iranian agency’s report also highlights that “despite sanctions, Iranian oil exports have increased to approximately 1.7–1.8 million barrels per day, a figure unimaginable a decade ago. Changes in sales channels and adaptation to sanctions have made the economy more resilient than before.”

Shafaq.com

Through two projects, the Iraqi Oil Minister promises to achieve self-sufficiency in gasoline production by 2025.

Deputy Prime Minister for Energy Affairs and Minister of Oil Hayan Abdul-Ghani al-Sawad said on Thursday that Iraq will achieve self-sufficiency in gasoline production by 2025 through the launch of two new projects in Basra and Kirkuk governorates.

The ministry said in a statement today that the minister, during the opinion council meeting, reviewed the ministry’s key achievements and topics during the current month, including the opening of a fat refinery at the Northern Refineries Company, which will meet 70% of the country’s needs. He directed the refinery companies to develop their fat refineries to achieve self-sufficiency.

Al-Sawad pointed out that the Ministry has achieved self-sufficiency in gas oil and kerosene, and the Ministry’s efforts to achieve self-sufficiency in gasoline production during the current year by completing the FCC projects in Basra, the naphtha improvement project in Kirkuk, and other projects.

The statement quoted the minister as saying that a contract had been signed with Schlumberger to raise production rates in the Akkas field to 100 million standard cubic feet per day. A preliminary agreement had also been signed with the American company Chevron to develop four exploration blocks in the Dhi Qar Oil Company, in addition to the Balad oil field and any other exploration field or block.

Al-Sawad noted the ministry’s intention to increase cooperation with international companies specializing in the oil and gas sector, including American companies.

On July 7, Prime Minister Mohammed Shia al-Sudani announced that Iraq would stop importing gasoline this year, asserting that the country was on the verge of self-sufficiency in petroleum products, with a future export plan.

Iraq is one of the countries that partially relies on imports to meet its needs for refined gasoline, despite having several major refineries.

Shafaq.com

Iraq’s imports of goods amounted to about $90 billion during the year.

The Central Bank of Iraq revealed on Thursday that Iraq’s imports of goods from around the world will exceed $87 billion in 2024.

The bank stated in statistics reviewed by Shafaq News Agency that “the value of imported goods reached $87.410 billion, a 32.78 percent increase compared to 2023, when the value of Iraqi imports reached $65.826 billion.”

He added that “Asian countries came first in terms of the value of imports, which amounted to $59.045 billion, followed by Western European countries with a value of $11.058 billion.”

The statistics continued, “Arab countries came in third with a value of $9.073 billion, South American countries came in fourth with a value of $4.082 billion, and North American countries came in fifth with a value of $2.736 billion.”

She also indicated that imports from Eastern Europe amounted to $1.031 billion, from Oceania countries $140 million, from non-Arab African countries $131 million, and finally from Central American countries $114 million.

According to the bank, the top imports included transportation equipment and machinery valued at $33.653 billion, followed by miscellaneous goods valued at $13.811 billion, manufactured goods valued at $9.965 billion, mineral fuels valued at $8.566 billion, and food products valued at $4.720 billion.

On Tuesday, August 26, Prime Minister Mohammed Shia al-Sudani estimated the financial value of Iraq’s imported goods at more than $70 billion in 2025.

Shafaq.com

Oil Products: Our revenues from electronic payments have increased to 700 billion dinars per month.

The Oil Products Distribution Company confirmed on Thursday that its revenues from electronic payments have risen to 700 billion dinars per month. In a statement to the official news agency, the company’s general manager, Hussein Talib, stated that “the company was among the first government departments to adopt electronic payments,” noting that “all failures encountered during the experiment have been addressed and the system has been rolled out across the company’s various departments.”

He also explained that “all of the company’s departments are currently operating on an electronic payment system, which covers 100% of the supply of petroleum products to beneficiaries, in addition to activating electronic payment for citizens through fuel stations,” noting that “work is underway to fully complete this process in the coming period.”

He continued, “The company generates sales of approximately 700 billion dinars per month via electronic payments, which constitutes two-thirds of its revenues.” He noted that “the problems associated with the payment mechanism are simple and not complex, as daily coordination is conducted with the Central Bank and electronic payment gateways to address any errors or failures immediately.”

Burathanews.com

Advisor: The government has succeeded in harnessing the economy for international rapprochement.

Prime Minister Mohammed Shia al-Sudani’s government program focused on using economic power as a diplomatic tool to achieve Iraq’s national interests. It relies on a strategy of employing economic tools such as oil, investment, contracts, aid, trade, and commercial agreements to strengthen the country’s position and political standing regionally and internationally.

Employing the economy

In an interview with Al-Sabah, the Prime Minister’s Financial Advisor, Dr. Mazhar Mohammed Saleh, explained that the government’s program approved by the House of Representatives represents a turning point in the development of what is known as productive economic diplomacy. He noted that the country has witnessed a clear shift toward utilizing the economy as a tool for international political influence and rapprochement, and building partnerships based on mutual benefit and interest.

Economic partners

Saleh added that Iraq has adopted the principle of diversifying its economic partners at the regional and international levels, in addition to opening up to Europe, particularly Italy, Germany, and France. This includes encouraging major international companies to operate in Iraq and launching major strategic projects, in light of expectations regarding the future of the development road strategy, such as the Faw Port, railway links, associated gas, and solar energy, within a vision that is attractive to investors.

Italy: A successful model

Saleh continued, noting that the government has worked to link the economy to national sovereignty, meaning enhancing self-reliance, but with intelligent negotiation, particularly with major powers. He explained that Italy is a successful model of economic diplomacy, having used the oil, infrastructure, security, and culture issues to build a balanced partnership that serves Iraqi sovereignty and the national interest, which has contributed to improving Iraq’s international standing.

shared vision

The government advisor stressed that Italy is interested in partnering with Iraq in the oil, gas, and clean energy sectors, and working to ensure the stability of the flow of Iraqi oil to Europe, in light of global supply tensions, especially after the Ukrainian war, without…

We must not overlook Italy’s security and training cooperation within the NATO mission, nor must we overlook the productive power of Iraqi diplomacy in cultural and educational support, as it is noted that there is Italian support for Iraqi antiquities and the restoration of heritage sites, within the framework of diplomacy.

Cultural.

foreign investments

For her part, Dr. Ikram Abdul Aziz, an economic affairs expert, stated that the importance of productive Iraqi economic diplomacy stems from organizing promotional events to attract foreign investment to Iraq, diversifying the economy by reducing dependence on oil, diversifying sources of income, and strengthening non-oil sectors. Abdul Aziz added, in an interview with Al-Sabah, that the economic policy has contributed to enhancing job opportunities by attracting investments, developing economic projects, and improving the standard of living, noting that Iraqi economic diplomacy works to strengthen positive relations with other countries and achieve economic development.

Alsabaah.iq

Parliamentary Committee: Budget tables will arrive before the elections.

Iraqi Dinar-Dollar auction Parliamentary Services Committee member Baqir Al-Saadi confirmed that the government has resumed work on a number of suspended service projects, as part of the 2023 and 2024 budgets.
Al-Saadi told Al-Furat News Agency that the committee is awaiting the government’s 2025 budget schedules, which it has delayed sending.
He expected that the budget schedules would reach the House of Representatives in October (a month before the parliamentary elections scheduled for November), with the aim of approving them as soon as possible. He stressed the importance of approving these schedules, especially given the overdue financial dues owed to contractors.
Al-Saadi emphasized the importance of the role of contractors, describing them as “partners in the work,” and stressing the need to support and encourage them to complete vital projects that serve citizens.

Alforatnews.iq

Al-Sudani: 150 trillion dinars in annual spending, compared to only 3 trillion in tax revenues.

Prime Minister Mohammed Shia al-Sudani affirmed on Monday that Iraq faces a major economic challenge, namely the priority of reform and the transition to a diversified economy. He noted that public spending in each fiscal year amounts to approximately 150 trillion dinars, compared to tax revenues that do not exceed 3 trillion.

In a speech at the Tax Conference for Economic Development and Investment Environment held in Baghdad, Al-Sudani said, “The general budget amounts to approximately 150 trillion dinars annually, compared to tax revenues that do not exceed 3 trillion. These figures require a pause and review.”

He added that “economic reform decisions were previously exploited as part of slogans and to pressure official institutions,” noting that “the government sponsored a tax reform conference in December 2023, which produced a package of important recommendations.”

He explained that “Cabinet Resolution No. 24074 of 2024 put the tax reform packages into effect, followed by the formation of the Supreme Committee for Monitoring Tax Reform,” indicating that “the efforts resulted in international interest from investors in tax reform in Iraq.”

Al-Sudani continued, “The government has worked to increase non-oil resources despite great caution due to the absence of a supportive political and social environment,” noting that “the index rose from 7% in 2022 to 14% in 2024.”

He pointed out that “tax revenues increased by 26% in 2024 compared to the previous year, and by 3% in the first half of the current year compared to the same period last year,” stressing that “digital transformation has contributed to enhancing tax capacity and accuracy.”

Al-Sudani explained that “the tax inquiry platform has put an end to cases of name mismatch, delays, and corruption, and undermined taxpayers’ confidence in tax procedures,” adding that “the tax payment receipt and reconciliation system has been implemented electronically, having previously been paper-based.”

He affirmed that “there is communication with reputable international companies to work towards achieving the highest international standards in the tax system,” emphasizing that “the draft of the new income tax law adopts international standards while adhering to social justice and tax exemptions for those with the lowest incomes.”

He pointed out that “the new law, which will soon be enacted, will be business-friendly and supportive of the green economy and startups,” noting that “the Supreme Committee for Tax Reform has completed a policy paper on tax accounting for oil companies to address the problems and obstacles facing their operations.”

Al-Sudani added that “the unification of tax procedures between the federal government and the Kurdistan Regional Government has facilitated the processing of tax files for universities and private banks,” stressing that “the reforms being implemented represent a message to citizens to support their political system and manage resources optimally.”

He concluded by saying, “We will not allow any tax increase that creates a business-repellent climate or comes at the expense of fair taxation.”

Shafaq.com

Finance Minister: Iraq is witnessing tangible progress in tax reform.

Finance Minister Taif Sami confirmed on Monday that Iraq is witnessing tangible progress in the field of tax reform, while pointing to the government’s commitment to developing the tax system in line with international standards. The Minister of Finance stated, in her speech during the Tax Conference for Economic Development and Investment Promotion, that “this conference confirms the state’s commitment, under the direct supervision of Prime Minister Mohammed Shia al-Sudani and the Ministry of Finance, to developing the tax system in line with international standards, contributing to diversifying non-oil revenue sources and increasing the state’s financial resources.”

She added, “Over the past period, we have worked to implement the government program through a series of reforms and measures, including updating tax legislation and instructions, developing tax accounting mechanisms, protecting the state’s rights, and achieving social justice.”

She also noted that “the objectives of the National Reform Plan 2025-2030 are to boost domestic revenues with funding from the European Union and German organizations, review tax ceilings, expand electronic payment and collection services, and enhance financial inclusion. They also aim to identify obstacles to the effective implementation of tax policies and develop appropriate solutions, in line with the requirements of judicial oversight and sound financial management tools.”

She continued: “It also aims to stimulate economic legislation and investment activity in line with international transparency requirements, create an attractive and conducive business environment for the private sector, and improve the economic operating environment by increasing the efficiency of financial procedures, reducing red tape, encouraging start-up projects, and developing collection services using advanced electronic tax management systems to enhance citizen and investor confidence in financial institutions and reduce corruption.”

She also explained that “these efforts aim not only to increase public financial revenues, but also to build an attractive economic and investment environment based on transparency and fairness in achieving sustainable development and enhancing national economic stability.”

Sami also emphasized: “Over the past two years, we have achieved tangible progress on tax reform, as confirmed by the data and figures related to the growth of domestic revenues, which reflect the extent of the progress and achievements made.”

The Minister of Finance called on international partners, including financial institutions and international and regional organizations, to “effectively contribute to supporting the Iraqi tax reform plan by exchanging technical expertise and providing advisory, technical, and training support.” She noted that “your participation with us in this process will be safe and decisive in accelerating reform efforts and ensuring our adherence to international standards.”

The Minister of Finance concluded her remarks by emphasizing “the Ministry of Finance’s commitment to the path of financial and tax reform, in line with a national development vision and unlocking investment opportunities that benefit Iraq.”

Burathanews.com

The first segment of the development road was shown to international companies.

The Ministry of Transport is preparing to present the first section of the development road project to international companies by the end of this year.

This was announced by the Ministry’s Media Office Director, Maitham Al-Safi, who confirmed in a statement to Al-Sabah that the development road project is progressing according to the set timelines, with the preliminary design phase having been completed and the detailed phases now underway.

He added that the project has made significant progress, and that detailed designs are expected to be completed by the end of this year and the first video will be presented to international companies. He noted that consulting firms have submitted models of the project’s economic model.

Al-Safi explained that the development path will benefit a number of ministries, institutions, and local governments, with a focus on the raw materials available in each governorate. It is expected to provide more than (100) thousand job opportunities, with the possibility of increasing the number of workers later.

The media spokesman pointed out that the Grand Faw Port, which is the main component of the development road and its first launching station, has completed its five docks in full, in addition to a road of (62) km length linking the Faw Port to the city of Umm Qasr with a completion rate of (100%), as well as the navigation channel, the completion rate of which has reached (90%), and the completion rate of the container yard has exceeded (94%), and it is expected that they will all be completed by the end of (2025).

Alsabaah.iq