Shafaq News/ On Saturday, Prime Minister Mohammed Shia al-Sudani announced a notable uptick in Iraq's non-oil Gross Domestic Product (GDP), reaching 6%.
Speaking at the inauguration of a rolling mill in Basra, part of the State Company for Iron and Steel, Al-Sudani pointed out the significance of this growth as recorded by international financial institutions.
"The transformative role of Basra is no longer just a hub for Iraq's ports and oil production but emerging as a robust industrial center encompassing both public and private sector industries. This evolution warrants the title "Iraq's Economic Capital for the city."
The rolling mill, inactive since 2003, is part of a larger initiative to revitalize Iraq's iron and steel sector, with plans including refurbishing key facilities and associated engineering services, such as the rolling mill and the steel mill.
With a production capacity of up to 500,000 tons annually, the rolling mill is poised to meet the nation's domestic demand for reinforcement steel while adhering to the latest international standards. Its modernized processes, including automation and programmed electronic control, signify a step forward in Iraq's industrial modernization efforts.
Notably, Iraq's unwavering reliance on oil as its primary revenue source exposes the country to the vicissitudes of global crises that impact oil prices, thus posing significant risks to the national economy.
Last February, the Iraqi Ministry of Finance revealed that Iraqi revenues in the federal budget over 12 months exceeded 135 trillion dinars, representing a decline in the oil contribution to the budget to 93%.
In February 2023, the ministry reported that oil contributed to 96% of Iraq's 2022 budget.
During a symposium on Energy Security and its Future in Iraq held last January, Iraqi President Abdul Latif Rashid expressed the Iraqi authorities' commitment "to diversifying sources of income and developing work in a wide array of fields as part of Iraq's policy to reduce its rentier reliance on oil and in terms of financial management.