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Iraqi Newspapers Spotlight Power Sector Overhaul, Political Stalemate, and Hormuz Risks


Baghdad: Iraqi newspapers published on Sunday highlighted remarks by Prime Minister Mohammed Shia Al-Sudani, who affirmed that the government will evaluate officials at the Ministry of Electricity based on their performance in revenue collection, while also following political developments related to naming the President of the Republic.

According to National Iraqi News Agency, Al-Sudani chaired a meeting to review electricity sector collections, attended by advisers and senior ministry officials. He stressed that the collection file is a top priority due to its role in reducing waste and ensuring sustainable service delivery. He also directed ministry staff and distribution companies to intensify efforts during the holy month of Ramadan to maintain stable supply.

The meeting reviewed previous measures, including plans to fully shift high-load industrial and commercial consumers to electronic billing starting early March. Distribution companies presented detailed reports on collection rates, meter readers,
subscriber numbers, and geographic coverage.

Al-Sudani reiterated that officials’ evaluations will be tied to collection performance. Discussions also addressed network violations, faulty meters, the installation of smart meters and their compatibility with the (HES) system, as well as government institutions’ payment compliance across provinces.

Meanwhile, amid growing concerns over a potential summer electricity crisis, members of Parliament called for urgent legislative and financial action to support the energy sector, particularly through laws promoting renewable energy and addressing funding and fuel challenges to ensure grid stability and ease the burden on citizens.

MP Ziyad Ali Fadhel stated that his previous experience at the Ministry of Electricity has driven his efforts in Parliament to advance supportive legislation, noting that the ‘Ministry of Electricity and Renewable Energy Law,’ which has completed its second reading, represents a key step in addressing upcoming challenges, especially dur
ing the summer season.

The proposed ‘Ministry of Electricity and Renewable Energy Law’ aims to establish a clear coordination mechanism between solar energy system users and the Ministry of Electricity, ensuring the regulated and expedited integration of solar installations into the national grid. This step is expected to boost production and ease pressure on the overall power system.

MP Ziyad Ali Fadhel noted that the coming phase presents significant challenges, foremost among them the financial crisis, which has negatively affected maintenance projects and funding for vital initiatives-particularly the overhaul of generation units that had been scheduled for completion before summer to increase production capacity. He explained that financial shortfalls have led to the suspension of several projects, including congestion-relief initiatives that had previously contributed to improved supply hours but are now nearly halted due to funding constraints.

He added that the fuel challenge is equally critical, a
s the halt in Iranian gas supplies directly impacts electricity generation hours, raising concerns about the grid’s ability to meet summer demand if the financial crisis persists. This could result in reduced supply hours and the re-emergence of bottlenecks in several provinces.

Fadhel stressed that addressing the crisis requires clear financial backing, the swift passage of supportive legislation, and the development of sustainable alternative fuel sources to ensure grid stability and alleviate citizens’ suffering in the coming months.

On the political front, Al-Zawraa, published by the Iraqi Journalists Syndicate, highlighted ongoing efforts to resolve the presidency file. It quoted Kurdistan Democratic Party leader Wafaa Mohammed Karim as confirming that the issue remains unsettled due to both sides’ adherence to the position.

Karim explained that the formation of the Kurdistan Regional Government is directly linked to the presidency. He noted that the Patriotic Union of Kurdistan prefers to finalize bo
th the regional government and the presidency in one package, while the Kurdistan Democratic Party insists on forming the regional government first, with no agreement reached so far.

Meanwhile, political forces intensified consultations to expedite constitutional entitlements, particularly the election of the President, nomination of the Prime Minister, and formation of the new government. A delegation from the Islamic Dawa Party, headed by Abbas Al-Bayati, met KDP leader Masoud Barzani in the Kurdistan Region to discuss forming a capable government and accelerating constitutional procedures.

Separately, Qais Al-Khazali, Secretary-General of Asaib Ahl al-Haq, met Ammar Al-Hakim, head of the National Wisdom Movement, to discuss breaking the political deadlock in line with constitutional frameworks.

In addition, Hadi Al-Amiri, Secretary-General of the Badr Organization, held talks with Al-Hakim on the Coordination Framework’s vision for the current phase and the completion of constitutional requirements, str
essing the importance of unified national efforts to safeguard political stability.

In the same context, political forces intensified consultations to expedite constitutional entitlements, particularly the election of the President, the nomination of the Prime Minister, and the formation of a new government.

A delegation from the Islamic Dawa Party, headed by Abbas Al-Bayati, met Masoud Barzani, leader of the Kurdistan Democratic Party, during an official visit to the Kurdistan Region. Discussions focused on completing constitutional processes and forming a capable government able to meet citizens’ aspirations and enhance political stability, with emphasis on adhering to constitutional and legal frameworks.

Both sides stressed the importance of strengthening their shared political foundations and historical ties, building on past cooperation to reinforce national partnership and institutional stability.

Separately, Qais Al-Khazali, Secretary-General of Asaib Ahl al-Haq, received Ammar Al-Hakim, head of th
e National Wisdom Movement, in Baghdad.

Talks addressed political developments, government formation, and ways to overcome the current deadlock in line with constitutional requirements.

Meanwhile, Hadi Al-Amiri, Secretary-General of the Badr Organization, discussed with Al-Hakim the Coordination Framework’s vision for the current phase and completing constitutional obligations, underscoring the need for unified national efforts to safeguard political stability and advance effective governance.

In the same context, the media office of the Secretary-General of the Badr Organization announced that Secretary-General Hadi Al-Amiri received Ammar Al-Hakim, head of the National State Forces Alliance, in Baghdad, in the presence of the organization’s leadership.

According to the statement, both sides exchanged Ramadan greetings and discussed current political developments, ongoing efforts regarding the presidency and government formation, as well as the Coordination Framework’s vision for overcoming challenges an
d completing constitutional entitlements.

Al-Amiri also met with Qais Al-Khazali, Secretary-General of Asaib Ahl al-Haq, where they stressed the importance of continued coordination and unified political positions to advance proposed solutions within the Coordination Framework.

Separately, Abu Alaa Al-Walai, Secretary-General of Kataib Sayyid al-Shuhada, received Al-Khazali. Discussions covered political and security developments, with emphasis on supporting security forces, rejecting foreign interference, and the need for unity to safeguard Iraq’s stability amid regional and international challenges.

For his part, Humam Hamoudi, head of the Islamic Supreme Council of Iraq, and Ammar Al-Hakim, leader of the National Wisdom Movement, stressed the need to expedite the completion of constitutional entitlements.

According to a statement, the meeting-held amid exchanges of Ramadan greetings-reviewed recent political developments and ongoing efforts to finalize the remaining leadership positions. Both sides emp
hasized that swift completion of constitutional procedures is essential to ensure the smooth functioning of state institutions, safeguard citizens’ interests, and secure a stable political transition.

They also reaffirmed their commitment to preserving the unity of the Coordination Framework and sustaining constructive internal dialogue, highlighting its importance for maintaining political stability and overcoming the country’s current challenges.

On the economic front, Al-Zaman highlighted the risks associated with a potential closure of the Strait of Hormuz, citing experts’ warnings of severe consequences for Iraq’s economy due to its heavy reliance on southern maritime oil export routes.

Economist Nabil Al-Marsoumi stated that closing the strait would reduce Iraq’s oil exports from around 3.4 million barrels per day to just 210,000 barrels per day-200,000 barrels via Turkey’s Ceyhan port and 10,000 barrels per day to Jordan by tanker trucks-leading to a sharp decline in public revenues.

He noted that
even if oil prices rose to $150 per barrel, monthly revenues would drop from approximately $7 billion to less than $1 billion, covering only about 14% of public sector salaries, thus placing the government under severe financial strain. Unlike Saudi Arabia, the UAE, and Iran, Iraq lacks ready alternative export routes, making it particularly vulnerable.

Oil expert Kovand Sherwani added that any military confrontation or closure of the strait would significantly impact global trade, as about 20% of the world’s oil supply passes through it. Since over 90% of Iraqi oil exports transit this route, a month-long closure could cost Iraq more than $6 billion-around 90% of its public revenues.

Meanwhile, oil analyst Haider Abdul Jabbar Al-Battat noted that global oil prices often rise amid threats to Gulf supplies, potentially granting Iraq temporary gains. However, he warned that any actual disruption of exports through the Gulf would halt revenues despite higher global prices.