The Main Revenue Secret of Iraq

The Iraq is ninety percent dependent on its oil and gas industry and generates most of its revenue from this industry. For more than six months, the oil production in Iraq was affected by the leakage and repair issues in the different areas of Iraq. The Infrastructure of the Iraq is badly damaged by the severe war with the United States of America and more than 40% of its area is left to drill.

This leakage and repair impacted the Iraq and its oil revenue. The Iraqi budget of 2014 will be announced in March and the government is preparing for this since the beginning of the year. The economists are thinking about its impact on the budget. On the other hand the finance committee of Iraq is not worried about this reduction in the production of oil and the government is planning to distribute its 25% profit of oil in the common people of Iraq in the annual budget of Iraq.

On the other hand, the imports of Iraq are also being affected by decreasing value of the gold in the global market. Like many other countries, Iraq is also trading in gold in the global market instead of dollars or any other foreign currency. Iraq will have to pay more than before the value of gold to buy things from international market and it will also cause inflation in the country which is always a bad thing when happens more than demand. However, the central bank of Iraq is not worried about this issue and thinks that its impact on the economy of Iraq will be minor.

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