Cabinet's 47th regular session decisions

INA - BAGHDAD

Prime Minister Muhammed S. Al-Sudani chaired on Tuesday, the 47th Regular Session of the Cabinet, discussing the country's general situation, the most prominent issues, and the items on the agenda and issued several decisions.

At the session's outset, the Prime Minister expressed condolences for the tragic traffic accident claiming the lives of educators at Al-Ibrahimi School in Safwan, Basra, expressing condolences to the families of the ten educational staff members and three children who lost their lives, acoording to a statement by the PM Media Office, received by the Iraqi News Agency - INA.

He instructed dispatching a delegation to offer comprehensive assistance, support, and follow-up on the needs of the bereaved families.
The Cabinet has implemented measures to aid importers in obtaining foreign currency at the official exchange rate, specifically for commodities like gold, cars, mobile phones, and cigarettes. This aims to alleviate the need for importers to turn to the parallel market for currency purchase.

The measures implemented, including reducing customs duties on shipping containers, easing procedures for importing gold through airports, and approving certificates of origin from exporting countries, are expected to have a positive impact on lowering foreign currency prices in the parallel market. This is particularly relevant as these materials constitute a significant portion of the demands for foreign currency in the parallel market.

In pursuit of economic reform, a committee has been established by the Cabinet, led by the Minister of Planning. The committee includes as members the Ministers of Interior, Construction, Housing, Higher Education & Scientific Research, and Justice.


Additionally, representatives from the Kurdistan Regional Government of Iraq, including the Ministers of Interior and Finance, are part of the committee. The Secretary-General of the Cabinet, the Head of the Legal Department, the Director-General of Customs, the Chairman of the Border Ports Authority, and the Director-General of the General Commission for Taxes also form part of this committee. The committee will undertake the following tasks:

 - Reviewing procedures to unify the customs policy across all border, land, sea ports, and airports and proposing necessary decisions to implement the directives outlined in the government program regarding customs unification.

 -The committee aims to develop a comprehensive and unified vision for implementing customs policies and product protection laws, fostering a more streamlined and effective approach in this domain.

 - Reviewing the mechanisms for implementing Border Ports Authority Law No. (30 of 2016) and its amendments, proposing necessary treatments to empower the Border Ports Authority and relevant authorities to fulfill their duties. The committee is expected to complete its work within a month, with the option to seek assistance from specialists as needed.

 Within the framework of continued support for the agricultural sector in accordance with what was stated in the government program, the Cabinet approved the recommendation of the Ministerial Council for the Economy (230308) according to the following:

 1. Authorizing the Mesopotamia State Company for Seed Production and the Iraqi Seed Production Company to engage with licensed private sector laboratories, exempt from the contracting methods outlined in the instructions for implementing government contracts (2 of 2014).

 2. Utilizing Ministry of Defense airports for receiving yellow corn, under the management and supervision of the Ministry of Agriculture.
 3. Allocating (150) billion dinars in addition to the remaining amounts of the amounts previously allocated to purchase corn for the season (2023-2024).

 4. Approving a price of (380) thousand dinars to purchase one ton of corn.

 5. Approval of a price of (435) thousand dinars for one ton of corn grains.
The Ministry of Agriculture is required to initially deliver the Ministry of Finance's share, constituting 70% of the proceeds from the sale of corn for the season (2022-2023). This commitment is in accordance with Article (44) of the Federal Budget Law of the Republic of Iraq for the fiscal years (2023-2024-2025), and it extends to future seasons as well.

Cabinet Resolution 248 of 2022 has been amended to approve the establishment of grain marketing centers (silos) in Wasit and Kirkuk governorates. This decision aims to enhance storage capacity using the revenues generated by the General Company for Grain Trade.

In the oil sector, the recommendation (230270) from the Ministerial Council for the Economy has been endorsed. This includes the approval of corrections outlined in the Ministry of Oil's letter regarding Cabinet Resolution (23068 of 2023) and Paragraph (5) of Cabinet Resolution (23188 of 2023) concerning the pricing of petroleum products.
Also in the oil sector, the Cabinet has approved the following:

1. The enforcement of Cabinet Resolutions (100 and 189 of 2022) is to be carried out by the Ministry of Oil, in line with its letter dated October 16, 2023.

2. In accordance with the Federal Financial Management Law (6 of 2019) as amended, the Petroleum Products Distribution Company is authorized to bear the initial cost of taxes arising from the contract in question. Once the exact amount of these taxes has been determined, they will be classified as government debt. Subsequently, the matter will be presented to the Cabinet for consideration of potential waiver, cancellation, or postponement under the powers granted by the aforementioned law.

As part of the government's initiatives to enhance the gas sector and optimize its utilization, the Cabinet has endorsed the recommendation (23097 of 2023) from the Ministerial Council for Energy. This approval pertains to the tender for the modernization of the gas desalination plant and the establishment of a nitrogen unit, along with facilities for compressing and drying gas from the West Qurna/2 field, according to the following:

The Cabinet has granted approval for the tender concerning the modernization of the gas desalination plant, establishment of a nitrogen unit, and gas compression and drying facilities for the West Qurna/2 field. The Italian company (SICIM S.p.A) will oversee the project, with a total amount allocated at 619 million dollars and an implementation period of 990 days.

The Cabinet also approved the recommendation of the Ministerial Council for Energy (23093 of 2023) regarding the Bin Omar field gas investment project, according to the following:

 1. The Cabinet is recommended to exempt the gas investment project in the Bin Omar Field from the provisions of Cabinet Resolution (245 of 2019), as amended by Cabinet Resolution (23374) of 2023. This exemption pertains to the announcement of investment projects exclusively through the National Investment Commission.

 2. Guaranteeing the payment of funds through the Ministry of Finance (payment guarantee), determined by the Ministry of Oil from November 21, 2023, in light of the annual budget allocations.

 3. Financial payments for all dues through crude oil, exclusively via the Oil Marketing Company (SOMO), are exempted from the instructions in order to facilitate budget implementation.

In continuation of the government’s efforts to develop the electricity sector and address its crises, the Cabinet approved the recommendation of the Ministerial Council for Energy (23091 of 2023) regarding the Iraqi-Saudi electrical interconnection project, according to the following:

 1. The implementation of consulting work for the Iraqi-Saudi electrical interconnection project is referred to Tetra Tech for the highest technical and financial evaluation score. The total cost for this project is (1,088,652) dollars, with an anticipated completion timeframe of six months.

 2. The Ministry of Electricity is authorized to sign the tripartite contract within the operational budget allocations, exempted from the instructions for implementing government contracts outlined in (2 of 2014).

In support of the sports sector and complying with the directives of the Prime Minister, the Cabinet has approved the allocation of 923 million dinars from the total budget designated for the Asian Cup for Archery Championship/first stage. This championship is scheduled to take place in Baghdad from February 20-25, 2024. The allocated funds aim to ensure the event meets the standards set by the World Archery Federation, as outlined in the letter from the Ministry of Youth and Sports dated November 19, 2023.

In an effort to curb the spread of narcotics and address its impact, the Cabinet has given approval for the allocation of ten billion dinars from the Ministry of Finance to the Ministry of Interior/General Directorate of Narcotics and Psychotropic Substances Affairs. This funding is designated for the maintenance of drug rehabilitation centers and is sourced from the emergency reserve, in accordance with the provisions of the Federal Budget Law of the Republic of Iraq for the three fiscal years.

In the military industrialization sector, the Cabinet has approved the transfer of all iron scrap, encompassing weapons, military equipment, military scrap, and colored metals (copper, lead, aluminum), confiscated by security services, to the Defense Industries Commission. This decision is contingent upon a final and conclusive ruling from competent courts.

The Cabinet has agreed to incorporate the Defense Industries Commission into the provisions of Customs Law No. 23 of 1984, as amended. This inclusion is contingent on the condition that the ultimate beneficiary of goods imported by the Commission is either the Armed Forces or the Internal Security Forces.