policy
The Council of Ministers held its regular session today, Tuesday, chaired by Prime Minister Ali Faleh Al-Zaydi, where it discussed the general situation in the country, reviewed the topics on the agenda, and adopted a series of important decisions. The Council voted on special mechanisms for exporting Iraqi oil through specialized international and local companies and via various outlets, with contracts to be for three months of operation, starting from September 1, 2026. As part of the government's efforts to increase export and import capacities, a special recommendation was approved regarding the purchase of crude oil according to the price of the State Oil Marketing Organization (SOMO) or the price specified in the general budget, whichever is lower, with a discount of thirty percent to be determined annually, starting from September 1, 2026. These amounts are to be paid to the General Treasury, with a detailed review of their financial implications. The implementation of this study includes lifting subsidies on oil product prices for all sectors, with the exception of essential products supplied exclusively to citizens: gasoline, gas oil, kerosene, and liquefied petroleum gas, effective from September 1, 2026. The Council affirmed that any subsidy granted to any sector would reduce the General Treasury's share, with the proposed mechanism to be submitted to the Federal Board of Supreme Audit for approval of the modified accounting policy and to avoid future supervisory observations. The Council also approved the recommendation for exceptional approvals to increase export and import capacities, authorizing the Minister of Oil to establish additional transport axes for existing and active contracts, and to renew those contracts. Furthermore, the Minister was authorized to approve the import of oil products when needed to ensure stable supply and prevent crises, provided that the Oil Pipelines Company completes the expansion work of loading platforms. The Council also approved commencing work before contract signing for projects to rehabilitate the IT2A station and an auxiliary unloading station for IT1 with a capacity of three hundred thousand barrels per day, ensuring the rapid provision of imported raw materials without affecting principles of competition and transparency. In the context of regulating oil sales mechanisms, the Council approved the recommendation related to advance payment mechanisms for Iraqi oil sales, and the procedures for purchasing companies to deposit the value of shipments and advance payments into specialized accounts belonging to the Ministry of Finance and the Central Bank of Iraq. It also approved the continued payment of dues to Basra Gas Company for the value of its products delivered to South Gas Company, as it is a self-financing company, and amended Council of Ministers Decision No. 308 of 2026. As an initiative to support the health sector, the Council approved a donation by the Ministry of Oil of five billion Iraqi dinars to the Ministry of Health, to be allocated for the purchase of medicines, medical supplies, and laboratory equipment. In the electricity sector, the recommendation of the Central Committee for Review and Approval of Award in the Ministry of Electricity was approved, regarding the adoption of Request for Proposal (RFP) documents in the electricity distribution sector. To enhance customs and tax collection procedures, the Council approved the principle of advance collection of customs duties and estimated tax deposits for imported goods, starting from October 1, 2026. This decision stipulates that importers must deposit foreign transfer amounts for import purposes with licensed banks, and funds shall not be transferred until the importer pays the estimated customs duties and tax deposits through the ASYCUDA system and approved electronic payment mechanisms, transferring them to the General Treasury accounts and specialized accounts in the Ministry of Finance within fifteen days. The calculation of estimated customs duties and tax deposits shall be based on preliminary data provided by the importer, including the commercial invoice, shipping or import documents, customs classification, type of goods, origin, and value according to approved customs tariff schedules. Within the framework of government efforts for administrative and financial reform, the Council voted on amending the instructions for regulating write-off procedures and accounting treatments. The amendments include obliging all government entities to send debt and asset write-off minutes to the Federal Board of Supreme Audit for auditing before the authorized entity makes a write-off decision. The Ministry of Finance will amend the instructions for regulating write-off procedures and accounting treatments No. 1 of 2022 to ensure the mentioned amendment. The Council of Ministers also approved the Ministry of Transport, represented by the Air Navigation Company, to fund the Ministry of Finance with fifteen billion Iraqi dinars, to be allocated to border crossings for the development of infrastructure at the Rabia, Waleed, and Safwan crossings. The Council approved the suspension of Council of Ministers Decision No. 963 of 2025 until the end of 2026, with local market monitoring to be conducted during the suspension period. The Council voted to approve the extension of the Independent High Electoral Commission's occupation of school buildings until December 31, 2027, provided that the Commission submits a plan detailing the timelines for phased evacuation of occupied classrooms and school buildings. As part of the government's efforts to strengthen international relations, the Minister of Trade, or whoever he authorizes, was empowered to negotiate and sign a draft agreement for economic, commercial, scientific, cultural, technical, and sports cooperation between Iraq and the Republics of Nigeria and Zambia.
