Baghdad: Prime Minister Ali Faleh Al-Zaidi chaired the 15th regular session of the Council of Ministers, where significant decisions were made to enhance Iraq’s economic and administrative landscape. The session involved discussions on the country’s general situation, review of agenda items, and necessary decision-making to address pressing issues.
According to Iraqi News Agency, one of the crucial decisions was the approval of a recommendation concerning the purchase of crude oil at favorable prices, effective September 1, 2026. This involves a 30% discount on oil prices set by the State Organization for Marketing of Oil (SOMO) or those specified in the federal budget, whichever is lower. The initiative requires lifting subsidies on petroleum products, excluding those supplied directly to citizens, to ensure economic sustainability. Furthermore, the Council approved mechanisms for exporting Iraqi oil through specialized companies over a three-month period starting September 2026.
In a bid to bolster export and import capacities, the Council authorized the Oil Minister to establish additional transportation routes and renew existing contracts. The Oil Pipelines Company has been tasked with expanding loading platforms, with approval granted to begin work on rehabilitating key stations to ensure timely supply of imported raw materials.
The Council also sanctioned advance payment mechanisms for Iraqi oil sales, requiring purchasing companies to deposit payments into designated accounts of the Ministry of Finance and the Central Bank of Iraq. Additionally, continued financial support to Basrah Gas Company was approved, alongside an IQD 5 billion donation from the Ministry of Oil to the Ministry of Health for medical supplies.
In the electricity sector, the Council approved the adoption of Request for Proposal (RFP) documents for the electricity distribution sector. To improve fee and tax collection procedures, an advance collection of customs duties and tax deposits on imported goods will commence from October 1, 2026.
Administrative reforms included an amendment in write-off procedures, mandating all government entities to submit records for audit before a decision. The Ministry of Finance will incorporate these changes into the existing regulations. Moreover, funding was allocated for the development of infrastructure at key border crossings, and the suspension of a 2025 resolution was extended to monitor market conditions.
The Council also approved extending the Independent High Electoral Commission’s use of school buildings until the end of 2027 and authorized the Minister of Trade to negotiate and sign agreements with Nigeria and Zambia for various cooperation areas.