Baghdad: Prime Minister Ali Faleh al-Zaidi chaired the fifteenth regular session of the Council of Ministers, where significant decisions were made concerning the country’s oil and electricity sectors, alongside measures to boost export and import capacities.
According to National Iraqi News Agency, the Cabinet approved a recommendation to purchase crude oil at a discounted rate starting September 1, 2026. This measure aims to enhance the country’s export capabilities while ensuring proceeds benefit the public treasury. The plan is contingent on lifting subsidies on petroleum products, excluding essential items like gasoline and kerosene, to optimize public finances. The proposed mechanism will be evaluated by the Federal Board of Supreme Audit to ensure compliance with revised accounting policies.
In a move to strengthen the oil sector, the Council agreed on mechanisms for exporting Iraqi oil via contracts with international and local companies beginning September 1, 2026. Exceptional approvals were granted to boost export and import capacities, empowering the Minister of Oil to expand transport routes and renew contracts as needed. Additionally, the Minister can approve the import of petroleum products to maintain a stable supply, contingent on infrastructure readiness.
The Council also endorsed advance payment mechanisms for oil sales and continued payments to Basra Gas Company. In a display of inter-ministerial support, the Ministry of Oil will donate 5 billion dinars to the Ministry of Health for medical supplies.
In the electricity sector, the adoption of Request for Proposals (RFPs) for the electricity distribution sector was approved, highlighting the government’s commitment to improving this critical infrastructure.
Efforts to enhance fee and tax collection were also discussed, with the Cabinet approving prepayment of customs duties and tax deposits on imports from October 1, 2026. Importers must comply with electronic payment systems to facilitate efficient fund transfers to the Public Treasury.
Administrative and financial reforms were addressed, with the Council voting to amend write-off procedures and accounting treatments, requiring government entities to submit relevant records for audit review before final decisions.
The Cabinet also approved funding from the Ministry of Transport to improve infrastructure at key border crossings and suspended a previous Cabinet decision for market monitoring until the end of 2026. Furthermore, the extension of the Independent High Electoral Commission’s use of school buildings until 2027 was sanctioned, contingent on a phased vacating plan.
In international relations, the Minister of Trade was authorized to negotiate agreements with Nigeria and Zambia, focusing on economic, scientific, and cultural cooperation, signaling Iraq’s intent to strengthen global partnerships.