Permanent Council Launched for Private Sector Development in Iraq

Prime Minister Mohammed S. Al-Sudani has launched the operations of the Permanent Council for the Development of the Private Sector in Iraq. The initiative aims to strengthen the role of the private sector in the national economy and address key legislative and institutional barriers. Prime Minister Al-Sudani highlighted the Council's responsibility to identify laws that hinder private sector growth, so the government can act swiftly to amend or replace them. He stressed the importance of youth empowerment, entrepreneurship, and small and medium-sized enterprises (SMEs) as central to future large-scale economic development. Al-Sudani also called for a genuine partnership between the government and private sector after decades of a state-dominated economy. He said institutional integration would reduce risks and delays in delivering essential public services. The Council will also focus on protecting and promoting domestic industries.

Key points from the Prime Minister's remarks include:

 - Iraq's 2024 accounts show 156 trillion IQD (US$119.2 billion) in spending out of a 213 trillion IQD (US$162.7 billion) budget; 90 trillion IQD (US$68.7 billion) was allocated to salaries.
 - The operational budget for 2024 was 40 trillion IQD (US$30.5 billion), with 26 trillion IQD (US$16.8 billion) for investment-including 13 trillion IQD (US$9.9 billion) for licensing rounds.
 - Financial inclusion has increased to 40%, from 10% two years ago.
 - Progress has been made in digital payments and correspondent banking relationships.
 - Sanctions on certain banks were related to past activities; current operations are audited by an international firm.
 - The Council will promote entrepreneurship and support job creation amid a growing labour force.
 - Emphasis was placed on protecting domestic products from dumping and improving control at border crossings to combat substandard imports.

Full statement from the Media Office of the Prime Minister:

Prime Minister Mohammed S. Al-Sudani officially launched today the operations of the Permanent Council for the Development of the Private Sector in Iraq. Prime Minister Al-Sudani welcomed the launch of the Permanent Council for the Development of the Private Sector, expressing confidence in its ability to fulfill its mandate and advance national priorities. He emphasized the need for the Council to identify key legislative obstacles hindering private sector growth, enabling the government to act swiftly in amending or drafting the necessary laws. The Prime Minister also underscored the importance of empowering youth, supporting entrepreneurs, and fostering small and medium-sized enterprises as essential drivers of future large-scale economic development. Prime Minister Al-Sudani emphasized that institutional integration between the public and private sectors would reduce risks and delays in meeting public needs and delivering essential services. He called for a genuine and long-overdue partnership between the government and the private sector, especially after decades of a state-dominated economy. He also stressed the Council's responsibility to promote and protect domestic industries by every possible means.

Highlights from the Prime Minister's remarks:

 - Iraq's 2024 final accounts show total spending at 156 trillion IQD (US$119.2 billion) out of a 213 trillion IQD (US$162.7 billion), with 90 trillion IQD (US$68.7 billion) allocated to salaries.
 - The 2024 operational budget amounted to 40 trillion IQD (US$30.5 billion), with 26 trillion IQD (US$16.8 billion) allocated to investment including 13 trillion IQD (US$9.9 billion) for licensing rounds.
 - Financial inclusion has reached 40%, up from 10% two years ago-a significant improvement, though still below national aspirations.
 - Iraq has advanced in digital payments, with active correspondent banking relationships and globally recognized transaction systems.
 - Recent sanctions on certain banks were based on past performance. Today, all banking operations are reviewed by a reputable international auditing firm.
 - The Permanent Council will play a key role in fostering entrepreneurship, creating job opportunities, and absorbing a growing labor force.
 - Iraq must protect its domestic products from market dumping, a key reason many local manufacturers have withdrawn from producing for the Iraqi market.
 - Addressing substandard goods brought into the Iraqi market, through strict border crossing control measures.