World Bank confirms its commitment to support Iraq
World Bank confirms its commitment to support Iraq
11/05/2014 12:22:00
World Bank confirmed its commitment to support Iraq to benefit more from the oil sector, the most important source of revenue in the country and turn it into an engine for development.
and the World Bank noted in a report, that “the recovery in Iraq’s oil sector has made great progress, pointing out that Iraq depends on oil and gas as a source of about 98 per cent of exports and 96 per cent of its revenue official. ”
According to the report, “with the adoption of a new energy strategy supported by the World Bank, is seen Iraq beyond to make short-term gains realized by oil and gas exports to focus on the diversification of the economy in the medium term.”
He demanded the World Bank Iraq by reducing its dependence heavily on the energy sector.
indicated that the government initiated through the adoption of “National Strategy Integrated Energy” last year, in the implementation of an ambitious plan to transform the energy sector with plans to allocate more than 600 billion dollars for this sector Over the next 16 years.
, the report says, “The treatment of mass and low investment always take a long time, however, the efforts made by the Iraqi government and development partners started to bear fruit, the first time since the events of 2003, and specifically in the fall of 2013, I got Baghdad on electricity over 24 hours a day. ”
According to the report, the national energy strategy, which was developed with support from the Fund of Iraq, which is managed by the World Bank, is the result of a concerted effort between the key ministries in Iraq, oil, electricity, finance, planning, water, environment, industry and minerals.
was The World Bank expressed concern about the increasing pressure on the Iraqi budget because of the high overhead and delay in approving the budget for the country so far.
said Masood Ahmed, director of the Department of Middle East and Central Asia at the bank, said that “economic growth in Iraq has Thassanna considerably over the past two years, but the the general budget of the country are suffering from increasing financial pressures as a result of the increasing volume of expenditure on the country’s budget and delayed approval. ”
said Ahmed to, that “administrative expenses and public on the budget began to expand during 2013, causing the existence of a deficit of large budget last year and the current year 2014.”
and went on to say, that “if you do not modify those expenses will suffer the budget deficit is greater than the supposed value to him now.”
He was the Minister of Finance purity of net debt is likely during the meetings of the IMF and World Bank cooperation with the World Bank for the implementation of a joint program provides financial liquidity to meet the shortfall in the budget in 2014. ”
It is noteworthy that the parliamentary Economic Committee confirmed that the decision to re-draft the federal budget to the government depends on the discount rate be agreed upon by the Quartet problem recently.
Underscoring experts lower surplus in the Development Fund for Iraq, pointed to the possibility of a deficit in the budget.
said committee member Qusay F in an interview, “The House of Representatives, according to his regime has the right to reduce the rate of 4% of the total federal budget, and more than this percentage will be the prerogative of the government.”
added F, that “the Quartet if it agreed to take over the province exported 100 thousand barrels of oil per day, it means that the rate of export installed in the draft budget will be reduced to three million and 100 thousand barrels and this will reduce the draft budget to more than 4%, so it will be a modification of the project from the jurisdiction of the government. ”
and the form of the House of Representatives Committee Quad includes two Vice-Speaker of the House Qusay al-Suhail and Aref Tayfur, MPs Haider Abadi, and Salman al-Jumaili to find quick solutions to the budget crisis.
experts expect for a budget deficit for this year due to declining oil production and exports and lower indicators surplus in the “Development Fund for Iraq”, at the time carried the Committees on Finance and Economics Barlmanatan government responsible fiscal deficit the federal budget. PUKmedia for New Morning
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