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IMF urges Iraq to diversify the sources of imports and pays tribute to its stability Economic

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IMF urges Iraq to diversify the sources of imports and pays tribute to its stability Economic
FRIDAY, MAY 24 / MAY 2013 20:12

Twilight News / International Monetary Fund (IMF) urged Iraq to diversify its sources of imports, which depends on oil by up to about 95%, at the same time praising the country's success in maintaining economic stability despite the political and security challenges facing large.
And bequeathed the conditions of Iraq and the wars that it passed a state with weak institutions and an economy burdened by Citizen serious structural defect.

At the forefront of these glitches unilateral nature of the Iraqi economy by relying on oil source to be almost alone the composition of national income.

This means almost absolute dependence on oil dependence of the country and the fate of its citizens by fluctuations in the price of oil on world markets. One does not need to unruly imagination to visualize the disastrous effects on the Iraqis in the event of the collapse of oil prices.

The oil revenues provide for payment of salaries bloated bureaucracy and public sector flabby and security devices is tens of thousands of cadres as well as the army, police and workers in the education sector. And surviving on this giant Kharafi, whose name the state apparatus and joints on provided by Treasury him in the end of each month.

Faced with this situation called for the International Monetary Fund for Iraq to build a financial safety valves to diversify its sources of income, warning specifically of the survival of the national economy is exposed to the risk of the oil market.

He noted the International Monetary Fund (IMF) in a report addressed Radio Free Iraq and seen by "Twilight News" to Iraq's success in maintaining overall economic stability despite the political and security challenges facing large.

But the report urged the Iraqi government to accelerate economic reforms, including the non-oil private sector to contribute to the provision of jobs and drive growth.

The International Monetary Fund said that the risks that threaten the prospects of the Iraqi economy in general is still high. He called on the Fund to reduce government spending, including the current employment in state institutions and supporting fuel prices.

He expected the fund to keep the prospects for the development of the Iraqi economy in the medium term depend on what is happening in the oil sector developments.

The chancellor acknowledged the Ministry of Finance Hilal Tahan that the Iraqi economy is still economical a as evidenced by cash contribution of oil revenues to the state budget by about 93 percent.

Miller explained the circumstances that because of Iraq's economy is different from all the world's economies, including the 8-year war with Iran and the invasion of Kuwait, which was followed by harsh penalties for about 12 years and then the U.S. invasion and the subsequent fallout continues even now.

Miller predicted Iraq's transition to a market economy in the medium term, calling for the protection of the local product to enable the private sector to regain its role.

The spokesman for the Ministry of Planning Abdul-Zahra al-Hindawi said the ministry has prepared a plan aimed at addressing the unilateralism in the Iraqi economy to expand the role of the private sector and the oil find alternatives for the development of the Iraqi economy, such as agriculture, industry, tourism and investment.

Economic analyst Majid picture noted that what has been achieved in the development of Iraq was driven by increased oil production and not diversify the composition of GDP.

The International Monetary Fund predicted that the rising rate of growth of the Iraqi economy from 8.4 percent in 2012 to 9 percent this year on the basis of increased oil production to 3.3 million barrels per day.

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