The Industrial Coordination Council meeting: Several decisions issued

INA - BAGHDAD

PM Mohammed S. Al-Sudani chaired a meeting of the Industrial Coordination Council today, Sunday, where the state of national industry and its key requirements were reviewed.

He directed that the council convene regularly every month to address all obstacles facing industrialists, according to a statement by the PM Media Office - received by the Iraqi News Agency - INA.

The meeting resulted in several important decisions, including the acceleration of operations for base oil units in the southern and northern refineries to enhance the supply of essential industrial sector needs. It was also decided to increase the production of Benzyl by inviting investors to establish local production projects.

As part of the government’s strategy to localize industries in Iraq, the council approved the localization of precious metal industries, including gold and jewelry, as well as cosmetic products. Directives were issued to facilitate the establishment of private manufacturing facilities for these products. 

Additionally, measures were established to regulate gold exports by setting limits on processed quantities, requiring submission of documentation to the Central Bank to ensure the value of exported gold, and mandating the return of processed quantities under the bank’s supervision.

To support factory operations, a partial exemption was approved for government and essential industrial facilities, allowing them to receive electricity supply outside peak demand periods. 

The council also discussed submitting a plan to the Ministry of Electricity to separate power lines for industrial zones from residential areas to ensure continuous power supply to industrial areas within the current year.

Regarding industrial sector regulations, it was decided that all ministries and non-ministerial entities dealing with the private industrial sector must coordinate exclusively through the General Directorate of Industrial Development under the Ministry of Industry and Minerals. No entity may suspend or halt any industrial project without coordinating with the said directorate, which is the official sectoral authority responsible for regulating private industrial activity.

Additionally, it was decided that rental fees for land allocated for industrial projects would not be increased, by Economic Affairs Committee Decision No. 244 of 2011 and Cabinet Decision No. 24413 of 2024.

In line with government efforts to reduce pollution and protect the environment, the Ministry of Oil was instructed to develop a plan to provide liquefied petroleum gas (LPG) for use in brick factories across Iraq, as an alternative to the currently used fuel oil, which is a major pollutant. The ministry was also tasked with reviewing LPG pricing to encourage factory owners to transition to its use.

A decision was also made to exempt raw materials imported by domestic manufacturers—based on verified needs reports issued by the General Directorate of Industrial Development or the Iraqi Federation of Industries—from testing by the Central Organization for Standardization and Quality Control. This exemption aligns with Cabinet Decision No. 24261 of 2024, which applies to finished imported goods and domestically manufactured finished products subject to testing by the Central Organization, but does not cover raw materials.

The meeting also reaffirmed that the National Investment Commission must ensure that solar power generation systems are installed at a minimum of 50% capacity in all housing units and apartments, while also implementing insulation materials in construction.