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A financial expert proposes allocating 10 percent of oil revenues for development and reconstruction

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A financial expert proposes allocating 10 percent of oil revenues for development and reconstruction

On May 8, 2022

The Independent -
A financial expert suggested allocating 10 percent of the revenues from the sale of Iraqi crude oil for development and reconstruction in the provinces.

This came at a time when the financial advisor to the Prime Minister, Mazhar Muhammad Salih, expected that Iraq's revenues this year would exceed 150 billion dollars.

The expert, Thamer Al-Azzawi, said in a statement to the newspaper "Al-Sabah", which was followed by the independent: "The rise in selling prices of crude oil is an important opportunity to invest the financial surplus in the implementation of strategic projects."

He stressed, "the necessity of allocating a percentage, such as 10 percent of the total revenues for the development and reconstruction sector,"

suggesting that "a higher reconstruction council be formed to allocate funds and identify projects."

Al-Azzawi added: "The funds can be directed to the reconstruction and development of two governorates each year, with the continuation of services in the other governorates.

Thus, all governorates will witness an urban and development renaissance in less than eight years."

Meanwhile, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, expected that Iraq's revenues this year would exceed $150 billion.

Saleh said in a statement carried by the Iraqi News Agency and followed by "Al-Sabah": "The reading of the International Monetary Fund and its expectation of a jump in Iraq's public revenues during the current year 2022, focuses on the total oil and non-oil public revenues of the federal Iraq."

Average exports

, and added, "The Fund may have estimated the average daily exports of crude oil at 3.4 million barrels per day, with an average annual price of $104 per barrel of oil exported or more, with non-oil revenues of no less than $8-10 billion."

He continued, "If the Kurdistan region's oil revenues and others are added, the total federal revenues could easily exceed $150 billion at the end of the 2022 fiscal year."

The International Monetary Fund expected, earlier, that Iraq would achieve a jump in its public revenues during the year 2022 after the rise in oil prices, amounting to 149 billion dollars and an annual change rate of 73 percent from the year 2021.

European Union

In the same context, oil prices rose yesterday at the close, ignoring concerns about global economic growth, as the imminent European Union sanctions on Russian oil increased the possibility of a supply shortage. Brent crude futures rose $2.08, or 1.88%, to $112.98 a barrel.

US West Texas Intermediate crude futures jumped $2, or 1.85 percent, to settle at $110.26 a barrel.

And the Ministry of Oil announced that "the ministerial meeting of the oil-exporting countries (OPEC) and the producing countries from outside it, decided to maintain its previous strategy regarding restricting production without change."

production levels

Undersecretary Hamid Younis, who headed the Iraqi side in the meetings of the Organization of Petroleum Exporting Countries and OPEC Plus, and the Ministerial Committee for Monitoring Production via video, said:

"The meetings concluded to keep the previously established production levels unchanged, and to proceed with the (OPEC Plus) plan towards gradual increases only.

The timetable for the strategy that was approved last year, which aims to achieve a balance between supply and demand and according to the requirements and needs of the global oil market, which faces many challenges that affect its stability.

For his part, the ministry’s spokesman, Assem Jihad, confirmed that “(OPEC Plus) and the research and specialized bodies in the organization will monitor developments in the global oil market during the next stage, as they are every time, by preparing technical reports and recommendations for ministerial meetings, as they are dealt with. realistically with the market, according to the variables by the producers, and in a manner that leads to more stability and the required balance.”

Jihad stressed that "the (OPEC Plus) strategy includes increasing production at a rate of (432 thousand barrels) per day during next June, and that

this increase will be divided among the producing countries according to the previously approved production rates."

The graph

and economist Haider Kazem Al-Baghdadi expected, “The demand and prices for crude oil will continue to rise to limits that were not in the accounts of experts and specialists regarding it,

although the graph is witnessing fluctuations between rise and fall,

but the final result indicates a rise due to the confused situation of the outbreak of Covid-19, Where

we find there are cities that

still suffer continuous closures, and

others double the preventive measures and partial closures, and a

third goes by ending the preventive measures, and

this situation leads to fluctuations in prices, but most countries of the world have lost a lot of their strategic reserves, and this is heading for crude prices in global markets to rise.

Global industries,

and indicated that “the growth movement, which is now rising, its paths are rising to compensate for the losses of the past period,” and that

“many economic blocs around the world have declined due to the closure that lasted for long periods that were not in their accounts and development plans, which confused the scene for most economies that are now heading to compensate The resulting losses, and

therefore global industries are gradually growing at a time when everyone is committed to the prevention of Covid-19 mutations, and

the accelerating global events and tensions witnessed in some regions of the world result in a rise in demand for crude oil, which leads to a continuous rise in oil prices. raw.”

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