95% of Iraqi revenues still come from oil

Shafaq Information/ On Monday, the Iraqi Ministry of Finance issued the February 2022 statistics, which confirmed the numerous contribution of oil to the federal price range.

Based on the official knowledge, the Iraqi economic system continues to be overly depending on oil, accounting for 95 p.c of presidency price range revenues after 94% final January.

“The overall oil revenues for February amounted to 21,047,174,260,393 dinars, whereas the full non-oil revenues is 1,028,095,602,691 dinars, which represents 5% of the full revenues.

Hilal Al-Tahan, an financial professional, stated in an interview with Shafaq Information Company, “The numerous rise in international oil costs is the primary cause for the excessive proportion of oil’s contribution to the federal price range.

Al-Tahan added, “We’ve not observed any severe governmental steps to beat the financial disaster. That may symbolize an financial danger if the oil costs dropped globally, which is anticipated and can result in monetary crises just like what occurred in 2020.”

“If Iraq needs to keep away from future shock, it should develop the opposite sectors comparable to agriculture and trade,” noting that “the electrical energy sector is significant and retains the financial wheels turning.”

It’s value noting that Iraq is the second-largest crude oil producer within the Group of the Petroleum Exporting International locations (OPEC) after Saudi Arabia, and it holds the world’s fifth-largest proved crude oil reserves. [1] Most of Iraq’s main recognized fields, all positioned onshore, are producing or are in improvement.

Iraq’s crude oil manufacturing grew by about 300,000 barrels per day (b/d) from 2013 via 2017, and it averaged 4.4 million b/d in 2017. Throughout the first half of 2018, Iraqi crude oil output stood at about 4.5 million b/d. These manufacturing estimates embrace oil produced within the Iraqi Kurdistan Area, the semiautonomous northeast area in Iraq ruled by the Kurdistan Regional Authorities (KRG).

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