Iraq PM Calls for Investing in High Oil Prices to Support Economic Reform

Students gather in a schoolyard in Sulaymaniyah in the Kurdistan Region on Sunday, which marked the first day they were opened after a closure forced by the COVID-19 pandemic. (AFP)
Students gather in a schoolyard in Sulaymaniyah in the Kurdistan Region on Sunday, which marked the first day they were opened after a closure forced by the COVID-19 pandemic. (AFP)
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Iraq PM Calls for Investing in High Oil Prices to Support Economic Reform

Students gather in a schoolyard in Sulaymaniyah in the Kurdistan Region on Sunday, which marked the first day they were opened after a closure forced by the COVID-19 pandemic. (AFP)
Students gather in a schoolyard in Sulaymaniyah in the Kurdistan Region on Sunday, which marked the first day they were opened after a closure forced by the COVID-19 pandemic. (AFP)

Iraq’s Prime Minister Mustafa al-Kadhimi underscored the importance of investing in high oil prices to help ease economic burdens on the people.

During a meeting with the parliament’s finance committee on Sunday, Kadhimi said the draft budget submitted by the government aims to achieve economic and financial reform and support vital sectors to help address the majority of problems suffered by the country’s economy for decades.

According to a statement by his media office, the premier stressed the need to activate automation mechanisms, digital trading and the Federal Service Council’s role, in line with the economic reform plan.

He further highlighted the significance of the fair distribution of wealth among all Iraqi regions, in line with the constitution.

He said the country was facing several challenges, adding: “We have been working hard to reform the current situation and put the country’s economy on the right track, in implementation of the government’s agenda that was passed by the House of Representatives.”

The financial committee has held more than 300 meetings within a month with several ministers and senior officials in various sectors to decide on the frameworks that would balance between spending and revenues.

“The committee handed over a copy of the amendments made on the budget to the government,” the statement added, noting that they cover reducing expenditures and maximizing revenues in a practical manner.

The committee stressed it worked on supporting the private sector and taking bold steps to address and support industrial, agricultural and real estate banks to achieve comprehensive development in these sectors.

Meanwhile, disagreements are still ongoing between the federal government in Baghdad and the Kurdistan Regional Government (KRG) on the Kurds’ share in the budget and the mechanism for implementing the oil in exchange for salaries deal.

Deputy Prime Minister of the Kurdistan Region Qubad Talabani said on Sunday that the region is ready to conclude a deal with the federal government to implement all the obligations, provided that the deal is fair and enforceable.

The Kurdistan Region’s share in the federal government’s budget does not exceed five percent after the deduction of sovereign expenses, he noted.

Talabani called for re-establishing Iraqi state-oil marketer SOMO in a new way that guarantees the transparent management of selling and marketing oil, including the region’s oil.

“We have been in contact with Baghdad for nearly a year, and our current talks are different and numerous and focused on many issues,” he said.

Head of the Kurdistan Democratic Party’s (KDP) bloc in the Iraqi parliament Vian Sabri told Asharq Al-Awsat that negotiations will continue a final agreement on the region’s share is reached, according to the constitution and regulations.

“Our position is to support the region’s commitment to deliver 250,000 barrels of oil per day to the federal government and half of the non-oil revenues.”

“In return, the federal government will commit to paying the region’s dues according to their legal deadlines,” she stressed.



UN Says ‘Deliberate’ Choices ‘Systematically’ Depriving Gazans

04 June 2025, Palestinian Territories, Nusirat: Displaced Palestinians gather in a charity kitchen to receive aid amid a shortage of food, in Nuseirat refugee camp. (Belal Abu Amer/APA Images via ZUMA Press Wire/dpa)
04 June 2025, Palestinian Territories, Nusirat: Displaced Palestinians gather in a charity kitchen to receive aid amid a shortage of food, in Nuseirat refugee camp. (Belal Abu Amer/APA Images via ZUMA Press Wire/dpa)
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UN Says ‘Deliberate’ Choices ‘Systematically’ Depriving Gazans

04 June 2025, Palestinian Territories, Nusirat: Displaced Palestinians gather in a charity kitchen to receive aid amid a shortage of food, in Nuseirat refugee camp. (Belal Abu Amer/APA Images via ZUMA Press Wire/dpa)
04 June 2025, Palestinian Territories, Nusirat: Displaced Palestinians gather in a charity kitchen to receive aid amid a shortage of food, in Nuseirat refugee camp. (Belal Abu Amer/APA Images via ZUMA Press Wire/dpa)

The UN aid chief said Wednesday that recent "horrifying scenes" of Gazans being killed while seeking food aid were the result of "deliberate choices that have systematically deprived" them of essentials to survive.

A US and Israeli-backed group operating aid sites in the Gaza Strip announced the temporary closure of its facilities on Wednesday, with the Israeli army warning that roads leading to distribution centers were "considered combat zones".

The announcement by the Gaza Humanitarian Foundation follows a string of deadly incidents near the distribution sites it operates.

On Tuesday, 27 people were killed in southern Gaza when Israeli troops opened fire near a GHF aid site, with the military saying the incident was under investigation.

"The world is watching, day after day, horrifying scenes of Palestinians being shot, wounded or killed in Gaza while simply trying to eat," UN humanitarian chief Tom Fletcher said in a statement.

"Emergency medical teams have confirmed treating hundreds of trauma cases. Yesterday alone, dozens were declared dead at hospitals after Israeli forces said they had opened fire.

"This is the outcome of a series of deliberate choices that have systematically deprived two million people of the essentials they need to survive."

He echoed the call by UN chief Antonio Guterres for immediate independent investigations, saying they were not isolated incidents, and the perpetrators must be held accountable.

"No-one should have to risk their life to feed their children," said Fletcher.

The GHF began operations a week ago, but the UN and major aid groups have refused to cooperate with it over concerns it was designed to cater to Israeli military objectives.

Meanwhile the United Nations has described the amount of aid allowed into Gaza, after Israel partially lifted a more than two-month total blockade, as a trickle.

"We must be allowed to do our jobs: we have the teams, the plan, the supplies and the experience," said Fletcher, the UN under-secretary-general for humanitarian affairs and emergency relief coordinator.

"Open the crossings -- all of them. Let in life-saving aid at scale, from all directions. Lift the restrictions on what and how much aid we can bring in.

"Ensure our convoys aren't held up by delays and denials. Release the hostages. Implement the ceasefire."