The IMF recommended that Iraq’s non-oil sector development and liberalization of "foreign exchange"
Tuesday, July 23, 2013 22: 05
Twilight news/ IMF praised the Government’s performance in maintaining macroeconomic stability in Iraq, despite security and political challenges faced by and the volatility of oil prices, but the Government recommended that the non-oil private sector development and liberalization of the foreign exchange market to encourage investment.
He said UNFPA representative resident in Oman Ghazi Iraq shubaikat at a press conference held at the Iraqi Business Council in the Jordanian capital Monday evening that the Fund report on the economic situation in Iraq of 2013 stressed the need for Iraq to build protective margins in finance to cope with fluctuations in oil revenues and the further strengthening of the institutional framework.
The report urged the Iraqi Government to accelerate the pace of reforms to develop the non-oil private sector, to assist in job creation and overall growth, according to the radio free Iraq and obtained by "twilight news.
Shubaikat said that the report of the Fund has been positive because of the improved oil production, as production this year rose 3.3 million barrels a day, as well as oil prices somewhat stable.
The report came up with a set of recommendations for action by the Iraqi Government to reform its economy mainly; how to manage the oil wealth and the need for reforms in the financial sector, and adjust the current expenditures and direct expenditures towards priority aspects, and increased investment spending.
The implementation rates for the investment budget for 2013 were less than required, as well as building fiscal surpluses in the Development Fund for Iraq can be used in the event of low oil prices.
According to shubaikat, the report of the International Monetary Fund recommended the liberalization of the foreign exchange market to encourage investment and strengthen laws against money laundering, and reform of the financial and banking sector in Iraq, which remains weak in the course of development in the country, in addition to the need for Iraq to reforms in agriculture wehikilih of State-owned enterprises.
Shubaikat said the main risks facing Iraq and the economy, de promotion are poor implementation of political reforms, the level of the political and security situation and the delays in increasing oil production and falling oil prices globally.
The UNFPA representative underlined the need for Iraq to have the private sector able to production, and direct investment in non-oil sectors, particularly electricity and agriculture where Iraq has a significant competitive advantage, adding that Iraq needs years of work to rebuild his fortune.
The President said the Iraqi Business Council n_ziimez the IMF assessment of the economic situation in Iraq very painless, despite some positive aspects.
He stressed the need to take the private sector role in development and economic growth, through the establishment of investment projects to support the investment budget to lighten the burden borne by.
The report is a summary of the so-called article IV report of the Convention establishing the International Monetary Fund, the Convention sets out obligations on Member States, including appropriate economic policies and is an annual report after gathering data from the States and numerous visits.