Baghdad, Iraq- Prime Minister Muhammed S. Al-Sudani officially launched the operations of the Permanent Council for the Development of the Private Sector in Iraq on Monday. During the event, he expressed his full confidence in the council’s ability to fulfill its mission and advance Iraq’s national priorities, according to a statement from the Prime Minister’s Media Office.
In his remarks, Al-Sudani emphasized the importance of identifying and addressing legislative barriers that hinder the growth of the private sector. He highlighted that the council’s role would be crucial in enabling the government to swiftly amend or create the necessary laws to support private sector growth. He stressed the need for a focused approach on empowering youth, supporting entrepreneurs, and fostering small and medium-sized enterprises (SMEs), which he considers key drivers of future large-scale economic development.
The Prime Minister also underscored the importance of institutional integration between the public and private sectors. By fostering this partnership, Al-Sudani believes the government will be better positioned to reduce risks, speed up decision-making, and enhance the delivery of essential services. He pointed out that Iraq has spent decades with a state-dominated economy, and now it is crucial to create a real and sustainable partnership between the government and private businesses.
The Permanent Council is tasked with promoting and protecting domestic industries through various means, according to Al-Sudani. The council will also be instrumental in fostering entrepreneurship, creating job opportunities, and addressing the challenges posed by a growing labor force.
Al-Sudani provided an overview of Iraq’s financial status, mentioning that the 2024 final accounts show total spending of 156 trillion IQD out of a 213 trillion IQD budget, with 90 trillion IQD allocated for salaries. The operational budget for 2024 is 40 trillion IQD, with 26 trillion IQD allocated for investment, including 13 trillion IQD for licensing rounds.
He also shared significant strides in Iraq’s financial sector, highlighting that financial inclusion has increased from 10% to 40% in just two years. While this is a marked improvement, he acknowledged that more work remains to meet national goals. Al-Sudani noted Iraq’s progress in digital payments, including active correspondent banking relationships and globally recognized transaction systems.
Additionally, Al-Sudani addressed recent sanctions imposed on certain Iraqi banks, which he explained were due to past performance. However, he assured that all banking operations are now being reviewed by a reputable international auditing firm.
A key concern raised by the Prime Minister was the protection of Iraq’s domestic products. He pointed out that market dumping has led many local manufacturers to withdraw from producing for the Iraqi market, and he called for stricter border controls to address the influx of substandard goods.
The launch of the Permanent Council marks a significant step in Iraq’s efforts to boost private sector growth, improve economic conditions, and create a more dynamic and sustainable economy.
