In­dus­trial bud­get is sig­nif­i­cantly higher in 2013

Trade and in­dus­try sec­tors have devel­oped rapidly in the past eight years

The Kurdish Globe - - EDITORIAL -

Dler Mah­moud, mem­ber of the fi­nance com­mit­tee at the Kur­dis­tan Par­lia­ment states that the Kur­dis­tan Re­gional Government (KRG) has al­lo­cated 600 bil­lion IQD (ap­prox­i­mately half a mil­lion dol­lars) in the draft bud­get law of 2013 for im­prov­ing the Trade and In­dus­try sec­tor of the re­gion.

Ac­cord­ing to MP Mah­moud, part of this bud­get will be used for im­ple­ment­ing nine new projects this year, while an­other part of the bud­get will be used in com­plet­ing eleven con- cur­rent long-term projects that were started in pre­vi­ous years. MP Mah­moud ex­plained that the government will re­ceive “180 Mil­lion IQD of loan re­pay­ment from bor­row­ers”. MP Mah­moud ar­gues that the in­dus­trial bud­get is rea­son­able, and it would be un­fair to deem it as too low. He said, “If par­lia­ment mem­bers com­plain about the bud­get sec­tor or an­other, we need to ask our­selves from where the money is gen­er­ated. Some po­lit­i­cal groups sim­ply refuse to ac­knowl­edge that this Re­gion’s bud­get is lim­ited”.

The KRG does not cre­ate its own rev­enue but re­ceives it from Bagh­dad. Ac­cord­ing to the ex­plana­tory report of the government for the bud­get draft, the num­ber of fac­to­ries have in­creased by more than 25% from 2004 un­til 2012. The report ex­plains that in 2004 there were only 1069 fac­to­ries while by the end of 2012 this num­ber has reached 2749. Fur­ther­more, the report in­di­cates an even larger in­crease in the Trade and In­dus­try sec­tor’s bud­get. In 2004, the Trade and In­dus­try's bud­get was only 688 mil­lion IQD (ap­prox­i­mately US$ 570,000), while in 2012 it was a to­tal of 2.3 bil­lion IQD (ap­prox­i­mately US$ 1.9 mil­lion), i.e. more than 3 times as the 2004 bud­get.

MP Mah­moud ex­plained that he sup­ports KRG’s Trade and In­dus­try pol­icy, and ar­gued that the government or­ga­nizes trade through mon­i­tor­ing. “The government has sig­nif­i­cantly sup­ported the busi­ness ac­tiv­i­ties in the re­gion’s mar­ket”, MP Mah­moud told the Kur­dish Globe. He went on to ex­plain that, “The pri­vate sec­tor has been given fa­cil­i­ties such as government sup­port and tax ex­emp­tions, which will help them with busi­ness”.

In 2004, there were only 1,871 lo­cal com­pa­nies and 258 for­eign com­pa­nies in the re­gion, but in 2012 the num­ber of com­pa­nies reg­is­tered in Kur­dis­tan reached 12,348 lo­cals, and 2,028 for­eign com­pa­nies, which shows around 6.5 times and 8 times in­crease in the lo­cal, as well as for­eign com­pa­nies re­spec­tively. The in­crease of com­pa­nies has led to a huge in­crease in the trade vol­ume be­tween Kur­dis­tan Re­gion and the rest of the world. In 2004, the to­tal trade vol­ume was US$ 4.2 bil­lion while this num­ber has reached US$ 14.9 bil­lion in 2012, more than 3.5 times higher.

Newspapers in English

Newspapers from Iraq

© PressReader. All rights reserved.