IRAQ IS BACK

Iraq is taking decisive action to address customs evasion, a move that has sparked widespread protests and strikes across the nation. The government's new initiative, aimed at curbing illegal import practices, has led to a significant increase in import duties, which many traders argue is suffocating small businesses.

In response to the rising costs, trade organizations and members of parliament are urging the government to reconsider these regulations, emphasizing the detrimental impact on the local economy. The situation has intensified scrutiny on caretaker Prime Minister Muhammad Shia' Al-Sudani, who is concurrently navigating the complexities of government formation during this tumultuous period.

The ongoing crisis highlights the delicate balance the Iraqi government must strike between enforcing regulations and supporting its struggling businesses, particularly in the face of persistently low oil prices that have already strained the economy.

The General Company for Food Products, a division of Iraq's Ministry of Industry and Minerals, has officially launched its export operations, marking a significant milestone for the country's food industry. The inaugural shipment of 'Al-Bint' branded cooking oil has been dispatched to Jordan, signaling the company's entry into neighboring markets.

This first shipment, weighing 100 tonnes, originates from the Imam Ali Al-Hadi plant located in Maysan province. The export is part of a strategic partnership with a Bulgarian company, aimed at expanding the reach of Iraqi products beyond its borders. The total volume contracted for export stands at 1,000 tonnes, with the remaining quantities set to be shipped in phases according to the established plan.

This development not only highlights the capabilities of Iraq's food manufacturing sector but also underscores the potential for growth in international trade. As the company embarks on this new venture, it sets a precedent for other Iraqi businesses looking to explore export opportunities.

Nouri al-Maliki's recent bid for the prime ministership has sparked significant discussion regarding the current political landscape in Iraq. His unexpected re-emergence as a candidate underscores the ongoing struggle for power within the country, which remains a focal point of contention between the United States and Iran.

Al-Maliki, a figure known for his controversial tenure, brings with him a complex legacy that continues to influence Iraq’s political dynamics. His candidacy not only highlights the persistent divisions within Iraqi politics but also reflects the broader geopolitical tensions that shape the region.

The implications of al-Maliki's return extend beyond mere political maneuvering; they resonate deeply within Iraq's economic framework. As the nation grapples with various challenges, including economic instability and the need for reconstruction, the leadership choices made now will have lasting effects on Iraq's development and international relations.

In this context, al-Maliki's bid serves as a reminder of the intricate interplay between domestic politics and foreign influence in Iraq. As stakeholders assess the potential outcomes of this political shift, the focus remains on how these developments will impact Iraq's economic future and its position on the global stage.

Iraq's General Customs Authority has introduced new mechanisms aimed at refining the calculation of customs values for imported goods. These updated procedures will be implemented across all customs centers in the country, enhancing the efficiency and transparency of customs operations.

The new measures include the following key components:

• The customs value declared in commercial invoices submitted through the advance declaration system will be adopted, provided these invoices are supported by bank transfers at the time of customs clearance.
• For goods not declared under the advance declaration system and lacking bank transfers, the customs values recorded in the General Commission for Customs' records will be utilized.
• Requests to determine or amend customs values in official records can be submitted to the valuation department, contingent upon the provision of formal documentary evidence. Decisions on these requests are expected to be issued within three working days, adhering to applicable customs laws and international agreements.
• Iraqi banks, under the oversight of the Central Bank of Iraq (CBI), will be tasked with verifying the accuracy of data in commercial invoices related to foreign transfers, including the declared values.

The General Customs Authority has emphasized that these new mechanisms are designed to enhance transparency, streamline customs procedures, safeguard public funds, and foster a stable trading environment. This initiative aligns with the government's broader financial and economic reform agenda.

The decision is consistent with the amended Customs Law No. 23 of 1984 and Cabinet Decision No. 569 of 2025, reflecting a commitment to internationally recognized standards in customs operations.

Recent data from Transparency International reveals a positive shift for Iraq in the global Corruption Perceptions Index (CPI) for 2025. The country has climbed four spots to secure the 136th position out of 182 nations, reflecting a gradual yet significant improvement in its perceived levels of public sector corruption.

Over the past decade, Iraq's CPI score has seen a steady rise from a low of 16 in 2013, 2014, and 2015, to its current score of 28. This advancement places Iraq on par with countries such as Pakistan, Mali, and Bolivia in terms of perceived corruption levels.

Denmark continues to lead the index as the least corrupt nation, while South Sudan and Somalia find themselves at the bottom of the ranking. The Corruption Perceptions Index serves as a crucial tool for assessing the integrity of public sectors worldwide, relying on insights from experts and business professionals.

This improvement in Iraq's ranking is a noteworthy development for the nation's business environment, potentially enhancing investor confidence and fostering economic growth.

The Kurdistan Regional Government (KRG) has taken a significant step towards modernizing its financial services by launching the e-Psule platform. This innovative digital system is designed to streamline the process of issuing government payment receipts, marking a shift away from traditional cash-based and paper methods.

Officially endorsed by the Central Bank of Iraq (CBI), the e-Psule platform aims to enhance accessibility for citizens throughout the Kurdistan Region. Residents can now access government receipts, beginning with electricity bills, at any time without the need to visit government offices. This service is offered at no cost, ensuring that users are not burdened with additional fees or commissions when making payments through the platform or its authorized partners.

Key features of the e-Psule platform include:

• Complete user control, ensuring that no deductions are made from salaries or bank accounts without explicit consent from the citizen.
• Transparent digital receipts that provide a detailed breakdown of outstanding balances and current charges.
• A variety of payment channels, including the e-Psule application, approved e-wallets such as FastPay, AsiaPay, and NassWallet, as well as participating banks like FIB and Cihan Bank.

This initiative is part of the KRG's broader strategy to enhance financial transparency, improve service efficiency, and support its digital transformation agenda. By embracing digital solutions, the KRG is positioning itself to better serve its citizens and streamline government operations.

The General Company for Iraqi Cement, operating under Iraq's Ministry of Industry and Minerals, has announced a significant boost in production across its facilities for the year 2025. The Babil Cement Plant, in particular, has achieved an impressive production increase of over 13 percent compared to 2024. This surge is attributed to heightened output of sulphate-resistant cement and oil well cement, following the plant's successful acquisition of supply certification that aligns with American Petroleum Institute (API) specifications. This certification positions the plant to supply both national oil companies and foreign operators involved in Iraq's licensing rounds.

Other cement plants within the company have also demonstrated strong performance throughout the year. The Kubaisa Cement Plant produced more than 1.7 million tonnes, nearing its target annual capacity of 1.8 million tonnes. Meanwhile, the Najaf Cement Plant reported production exceeding 116,000 tonnes, showcasing stable operations and a commitment to meeting its operational obligations. The Al-Qaim Cement Plant approached its designed annual capacity of 840,000 tonnes, thanks to the implementation of strategic organizational and technical measures.

The company attributes these production improvements to enhanced resource management, consistent operation of production lines, and strict adherence to maintenance and operational programs. Efforts are ongoing to further elevate production levels and operational efficiency across all plants, aiming to satisfy local market demand and bolster national self-sufficiency.

Hyundai Livart, a prominent South Korean company, has secured a significant contract valued at KRW 117.8 billion (approximately $80 million) to develop essential facilities at Iraq's Common Seawater Supply Project (CSSP) located in Basra. This contract includes the construction of worker accommodations, offices, and various other infrastructure components.

The award was achieved through a competitive bidding process, where Hyundai Livart stood out among several Middle Eastern construction firms. The project is set to be completed by June of next year, marking a notable advancement in the region's infrastructure development.

In a related development, the Iraqi government approved the Common Seawater Supply Project for the Artawi oil field, which has been entrusted to Hyundai Engineering & Construction. This ambitious initiative is backed by a consortium of major players, including TotalEnergies, Basra Oil Company (BOC), and QatarEnergy, highlighting the collaborative efforts to enhance Iraq's oil production capabilities.

This contract not only underscores Hyundai Livart's growing influence in the Middle Eastern construction sector but also reflects Iraq's ongoing commitment to improving its infrastructure and oil industry operations.