Latest news with #Al-Kadhimi
Shafaq News
08-04-2025
- Politics
- Shafaq News
Iraq's former PM Al-Kadhimi breaks silence on return
Shafaq News/ Iraq's former Prime Minister Mustafa Al-Kadhimi said his recent return to the country after stepping down in 2022 marks the beginning of a new phase of political engagement while outlining conditions for any future participation in parliamentary elections and warning of political polarization. In remarks published Tuesday in an interview with Al-Majalla magazine, Al-Kadhimi said he left Iraq after the end of his term to recuperate from years of public service, which included leading the Iraqi National Intelligence Service before assuming the premiership in 2020. "Some described it as a warrior's rest — and that's partially true," Al-Kadhimi said. 'It was a period of reflection, observation, and writing — but also of preparing ideas and strategies in response to the rapid transformations in the region and the world.' Al-Kadhimi said he was motivated to return by accelerating regional developments, which he believes require 'constructive ideas and a return to rational dialogue, away from reckless adventures.' He emphasized Iraq's Arab identity, stating that Baghdad must remain aligned with the broader Arab consensus and 'cannot replace its strategic depth.' While refraining from confirming whether he will run in Iraq's upcoming elections, Al-Kadhimi outlined two key conditions for participation, the first is a credible electoral process with the highest degree of transparency, referencing past concerns over manipulation and mobilization since Iraq's first post-2003 election. The second is a call for shared national responsibility, urging all political actors—inside and outside government—to prioritize the country's stability regardless of political alignment. 'Our options remain open,' he said, noting ongoing dialogue with various political forces that share his vision for reform and moderation. On foreign relations, Al-Kadhimi strongly defended Iraq's strategic partnership with the United States, describing it as vital to the country's development and institutional progress. 'Unfortunately, some figures promote populist slogans about severing ties with Washington, while privately seeking US approval and connections,' he said, warning against what he termed 'hypocrisy mixed with ignorance.' Al-Kadhimi also stressed the need for Iraq to play a mediating role amid rising US-Iran tensions, saying Baghdad should serve as a 'bridge for dialogue' not only between Washington and Tehran, but also among Gulf states including Saudi Arabia, the UAE, and Qatar. "Iraq is uniquely positioned—geographically and historically—to help reduce regional polarization," he said, calling for a balanced foreign policy grounded in national interests, regional integration, and security priorities.
Shafaq News
30-03-2025
- Business
- Shafaq News
Iraq's budget in limbo: Funding woes and oil risks grow
Shafaq News/ Iraq's 2023–2025 budget, approved in June 2023, is the largest in the country's history, allocating around 198.9 trillion dinars ($153 billion) annually. With a focus on infrastructure development, public sector salaries, and fostering economic growth, the budget promises to play a pivotal role in shaping Iraq's future. The Kurdistan Region is set to receive 12.67% of the total budget, amounting to over $12 billion annually. With oil prices projected at $70 per barrel, Iraq expects oil revenues to reach approximately 117 trillion dinars each year. However, despite the budget's expansive scope, its implementation has faced significant obstacles. What was intended to be a smooth, multi-year framework has, instead, transformed into a series of annual plans, delaying progress and creating uncertainty. Still, the government remains committed to ensuring economic stability. Implementation Hurdles Mudher Mohammed Saleh, financial adviser to Prime Minister Mohammed Shia Al-Sudani, reaffirmed that the 2025 budget is legally grounded under Law No. 13 of 2023, which mandates a three-year spending plan. Saleh acknowledged delays in allocations but emphasized that 90% of Iraq's financial operations remain unaffected, stating, "The financial and economic situation is stable, with a high degree of certainty." He underscored the close collaboration between legislative and executive authorities. Nevertheless, slow disbursements have raised concerns. Moein Al-Kadhimi, a member of the Parliament's finance committee, warned that delays in finalizing both operational and investment budgets could harm market liquidity, hinder businesses, and stifle economic growth. 'The key issue isn't just a budget approval, it's funding,' Al-Kadhimi remarked. Although the 2024 budget is in place, funding for regional development and ministries remains stalled, delaying new projects. Al-Kadhimi projected total revenue from oil and non-oil sources at no more than 140 trillion dinars ($107 billion). He also called for a cap on allocations at 150 trillion dinars—127 trillion for operations and 23 trillion for investments—to preserve fiscal stability. The Crude Calculation Iraq's heavy reliance on oil revenues continues to strain the country's finances. The 2023 budget projected oil exports at 3.5 million barrels per day at $70 per barrel. However, actual exports fell to 3.2 million barrels per day, creating a 3 trillion dinar ($2.3 billion) gap. This shortfall has compounded the financial pressure, with oil prices fluctuating between $60 and $80 per barrel. Ahmed al-Jassim, a financial analyst, pointed out, "Oil prices, the backbone of Iraq's budget, remain highly volatile. The government faces mounting pressure to manage expenditures carefully." Looking ahead to 2025, Iraq anticipates a budget deficit of 64 trillion dinars ($48 billion), the same as in 2023 and 2024. While total budget allocations have risen from 198 trillion dinars to 211 trillion dinars, the persistent shortfall raises concerns about the need for increased borrowing, potentially draining foreign reserves and destabilizing the economy. Former Prime Minister Mustafa al-Kadhimi stressed the importance of diversifying Iraq's revenue sources to mitigate these risks. With oil prices potentially falling to $60 per barrel, he emphasized the need to boost non-oil revenues through customs duties, taxes, telecom revenues, utility fees, and state property income. "Current non-oil revenues are below 15 trillion dinars but should reach at least 30 trillion," al-Kadhimi asserted. Despite these challenges, al-Kadhimi remains optimistic. As long as Iraq maintains an export rate of 3.5 million barrels per day, liquidity should remain intact, with a funding ceiling of 50 trillion dinars. However, without significant reforms or a reduction in the deficit, Iraq risks excessive borrowing and depletion of foreign reserves, endangering long-term financial stability. Baghdad-KRG Rift The budget delays have been primarily driven by a long-standing dispute between Baghdad and the Kurdistan Regional Government (KRG). Abdul-Hassan Al-Ziyadi, an economic expert, highlighted the inefficiency of Iraq's budgeting process, which often extends for months, sometimes even a full year. "This uncertainty ripples across both public and private sectors, making strategic planning nearly impossible." At the heart of the deadlock is a revision to Article 12, Section (C), which recalculates the cost of producing and transporting crude oil from the Kurdistan Region. Initially set at $10 per barrel, the cost was raised to $16, sparking disputes that have delayed the 2025 budget submission. The conflict also reflects deeper political and economic rifts. The KRG insists on maintaining control over its oil revenues, a right it claims is enshrined in Iraq's Constitution. However, Baghdad argues for central oversight, citing the national importance of oil revenues. A key point of contention is Article 14 (7), which allows Baghdad to allocate funds directly to KRG provincial governments if the regional administration fails to distribute them fairly. The Kurdistan Democratic Party (KDP) opposes this provision, with spokesperson Shaswar Abdulwahid describing it as 'an unconstitutional power grab' that undermines the Kurdistan Region's authority over its own resources. Baghdad, however, argues that the measure ensures equitable distribution of resources across Iraq. Compounding the crisis is the KRG's growing financial strain, exacerbated by the suspension of its independent oil exports through Turkiye. Since March 2023, a dispute between Baghdad and Ankara over the legality of Kurdish oil exports has shut down the Ceyhan pipeline, severing the region's primary revenue stream. The resulting losses, estimated at $5 billion, have made it increasingly difficult for the KRG to meet its financial obligations, including salary payments. Late Is Better Than Never An official source revealed to Shafaq News that Iraq is preparing to submit its final 2025 budget to Parliament in the coming days. The finalized budget is expected to be delivered either after the Eid al-Fitr holiday on March 31st or by mid-April for legal review. This schedule aligns with the government's financial priorities and requirements. The 2025 budget, projected at around $200 billion, faces a significant deficit. This gap is primarily due to a sharp decline in Iraq's strategic reserves of gold and foreign currency, as well as liquidity shortages. Furthermore, the government's ongoing commitment to large-scale projects requiring substantial funding has put additional strain on Iraq's finances. As a result, the operational budget will see reductions, and the pace of government service projects will slow. Sectors under Siege Public Service Strain The budget crisis has had far-reaching consequences, particularly in the public services sector. Disruptions in funding have left healthcare, education, and social programs in limbo, directly affecting millions of Iraqis who rely on government services. Manar Al-Abidi, executive director of the Iraq Future Foundation, noted, "Each delay not only disrupts contractors and businesses but directly affects citizens. From hospitals to schools, funding interruptions have stalled essential services, straining the systems people depend on." According to the Ministry of Planning, up to 30% of essential public services have been affected. Salary delays for 2.5 million government employees, including teachers and doctors, have fuelled public frustration, while pensioners continue to struggle with delayed payments. The Ministry of Health has warned that 60% of public hospitals are running low on essential medical supplies, forcing patients to seek private care. Meanwhile, more than 7,000 schools have had operations delayed, impacting 2.8 million students and raising concerns about Iraq's long-term educational prospects. Economic researcher Ahmed Eid described the situation as a 'major crisis' that could upend Iraq's economic stability. "A budget isn't just a financial document, it's the backbone of economic growth, job creation, and financial security," Eid emphasized. He warned that continued delays risk stalling progress, scaring off investors, and weakening market confidence. Private Sector Struggles The private sector is also feeling the strain. The Ministry of Planning reports that 42% of key development projects planned for 2024, worth more than $12 billion, have been put on hold. This is particularly evident in the construction sector, where activity has dropped by 20% due to the suspension of government contracts. Businesses dependent on public sector spending are also facing mounting challenges. "This delay is fuelling economic uncertainty," Eid cautioned. "Companies are hesitating to invest, and hiring freezes are spreading across industries." The Federation of Iraqi Industries has reported that 35% of small and medium-sized enterprises have experienced declining revenues, while private sector employment has shrunk by 8% in the first quarter of 2024. As the budget impasse continues, experts are urging a swift resolution. "The budget is not just about numbers—it's about Iraq's future," Eid concluded.
Asharq Al-Awsat
04-03-2025
- Politics
- Asharq Al-Awsat
Mustafa Al-Kadhimi's Return to Iraq
Former Iraqi Prime Minister Mustafa Al-Kadhimi is returning to Iraq as a geopolitical earthquake shakes the Middle East, depriving Iran of its strategic footholds in Gaza, Lebanon, and Syria. The first conclusion we can draw is that Tehran does not set the tempo any longer. Meanwhile, the factions in Iraq that take their marching orders from Iran are confronting existential challenges as calls for restoring the state's authority and sovereignty, liberating it from the dominance of militias, are growing louder. However, the irony is that Iran's weakness adds to the significance of Iraq, as Al-Kadhimi returns, in Iran's calculations. Within the span of just ten weeks from - September 27 to December 8, 2024 - Hezbollah Secretary-General Hassan Nasrallah's assassination crowned the collapse of Hezbollah's leadership, and the fall of Bashar al-Assad's regime ended the strategic framework that Iran had been operating through to take its influence to historically unprecedented levels. In addition, Hamas was destroyed and almost all of Gaza has been turned to dust. As a result, Baghdad has become Iran's most suitable alternative to compensate for losses in Syria, Gaza, and Lebanon. On the other hand, increasing numbers of Iraqis are now calling for the "liberation of Iraq's decision-making from Iranian hegemony" amid growing pressure, both domestically and globally, on the government to rein in armed factions and remove the threat they pose to internal, regional, and global stability. Therefore, it is difficult to view Kadhimi's return as merely a footnote in a shifting regional landscape or to dismiss it as just one of many signs pointing to an opportunity for Iraq to redefine its relationship with its neighbor based on new rules dictated by the changing regional balance of power and Iran's evolving position within it. If it is true, as his opponents claim to undermine his popular legitimacy, that Al-Kadhimi did not become prime minister (2020–2022) through democratic elections, it is also true that he left a strong mark on the political landscape. His government made progress on several issues that matter to Iraqi citizens, taking unprecedented steps to contain the armed factions that had long dominated governance, and it balanced Iraq's foreign policy, recalibrating its relations with regional and international powers. The assassination attempt he survived in November 2021 is concrete evidence of the deep resentment that his policies left and their impact on Iran's agenda in Iraq. Al-Kadhimi is part of a broad segment of Iraq's Shiite political forces that seek to reinforce Iraq's independence from Iran, going against the other faction that maintains strong allegiance to Tehran. His return will invigorate a political agenda that prioritizes dissolving the armed factions into the regular security forces, which Iran's proxy militias see as a direct threat to their influence. His return to Baghdad also coincides with the growing influence of Arab state actors, particularly Saudi Arabia and the UAE, and with the continued presence of the United States. Recent months have seen an increase in Gulf investment, as well as indications from Washington that it is willing to help Baghdad rebuild its armed forces - on the condition that the latter curbs the influence of Iran-backed militias. The fact is that Al-Kadhimi is not merely a controversial politician of post-Saddam Iraq returning to power. His comeback is not just part of his personal trajectory, it is closely tied to the resurgence of the narrative advocating the independence of the Iraqi state, among both politicians and the public, as well as the growing momentum behind the push to reshape relations with Iran on new terms that respect Iraq's sovereignty. At the same time, Iran has room to maneuver. It understands that the domestic shifts in Iraq will not necessarily cost it all of its influence. Iran may see the political formula in Iraq to alleviate US pressure, especially with President Donald Trump's administration now in power. In contrast to what happened in Syria, where the regime collapsed entirely, developments in Iraq are likely to redistribute power within the current framework, giving Iran the option to adapt instead of gambling away its influence all at once. After Gaza, Lebanon, and Syria, there is now an opportunity for an Iraqi political alliance that includes Al-Kadhimi, who can leverage his symbolism and ties to patriotic and non-ideological Shiite factions, the Kurds, with their political and geographic weight, and the Sunnis, with their weight in the Arab world. This coalition could exploit Iran's frailty and render it a steppingstone on the path to reinforcing Iraq's national sovereignty. It would be no surprise if, in the upcoming elections, this alliance's campaign revolves around containing the militias' influence, integrating them into state institutions, strengthening ties with Gulf states as an economic and strategic alternative to Iran, rebalancing Iraq's relations with international powers so that its foreign policy serves national in isolation of regional conflicts, and, ultimately, advancing a new political vision centered on the notion of "Iraq First" that ends Baghdad's dependence on foreign axes. Iraq will not remain immune to the political shifts precipitated by the October 7, 2023, attack and the military and political upheaval in the Arab Levant that followed. Despite the challenges, Iraq is now in a better position than ever to reclaim its sovereignty and go from being a passive recipient of Iranian pressure to an active player that shapes its policies in line with its national interests.
Arab News
25-02-2025
- Politics
- Arab News
Former Iraqi PM returns to Baghdad despite security threats
BAGHDAD: Former Iraqi Prime Minister Mustafa Al-Kadhimi, known for promoting the rule of law, returned to Baghdad Tuesday for the first time in more than two years despite ongoing security threats. In 2021, he survived an assassination attempt in which two armed drones targeted his residence in Baghdad's Green Zone area. The attack came at a time of tensions sparked by the refusal of Iran-backed militias to accept parliamentary election results. Al-Kadhimi left Iraq after his term as prime minister ended in 2022 and has been living in London and the United Arab Emirates. The former prime minister did not immediately make any public statements upon his return. Three officials with his office who spoke on condition of anonymity because they were not authorized to speak publicly said security threats against the former prime minister were still present. They said he had returned at the invitation of current Iraqi political leaders who hoped he could use his connections to help them confront a worsening economic crisis that threatens the country's stability. Al-Kadhimi has good relations with the United States and Saudi Arabia. Iraq is currently looking to strengthen ties with both countries. He was Iraq's former intelligence chief before becoming prime minister in 2020 following mass anti-government protests that toppled the previous cabinet. Iraq is also set to hold parliamentary elections later this year, raising the possibility that Al-Kadhimi might be preparing to attempt a political come-back.
The Independent
25-02-2025
- Politics
- The Independent
Former Iraqi prime minister returns to Baghdad despite security threats
Former Iraqi Prime Minister Mustafa al-Kadhimi, known for promoting the rule of law, returned to Baghdad Tuesday for the first time in more than two years despite ongoing security threats. In 2021, he survived an assassination attempt in which two armed drones targeted his residence in Baghdad's Green Zone area. The attack came at a time of tensions sparked by the refusal of Iran-backed militias to accept parliamentary election results. Al-Kadhimi left Iraq after his term as prime minister ended in 2022 and has been living in London and the United Arab Emirates. The former prime minister did not immediately make any public statements upon his return. Three officials with his office who spoke on condition of anonymity because they were not authorized to speak publicly said security threats against the former prime minister were still present. They said he had returned at the invitation of current Iraqi political leaders who hoped he could use his connections to help them confront a worsening economic crisis that threatens the country's stability. Al-Kadhimi has good relations with the United States and Saudi Arabia. Iraq is currently looking to strengthen ties with both countries, particularly as regional upheavals over the past year have left Iran in a weakened position. During his term, Baghdad hosted a series of talks between Iran and Saudi Arabia, which helped pave the way for the regional rivals to formally restore diplomatic ties in 2023 after a seven-year rift. He was Iraq's former intelligence chief before becoming prime minister in 2020 following mass anti-government protests that toppled the previous cabinet. Iraq is also set to hold parliamentary elections later this year, raising the possibility that al-Kadhimi might be preparing to attempt a political come-back.
