The Iraqi Deputy Prime Minister and Minister of Finance, Ali Abdul-Amir Allawi, is on a Gulf tour that started yesterday from Saudi Arabia, in an effort to secure sums that avoid the country from paying the salaries of millions of employees in the wake of the collapse of crude oil prices.
Allawi met the Saudi finance, energy and foreign ministers in Riyadh, and appealed to them "for immediate financial support for Iraq so that the government can fulfill its promises to its employees."
An Iraqi government official told the French press before leaving Allawi, that the latter, who also performs the functions of the agency's oil minister, will also visit Kuwait and the UAE to collect financial aid.
Another Iraqi official pointed out that his country needs the largest possible amount of liquidity to be able to pay the salaries of eight million civil and retired employees who earn about four billion dollars a month.
Iraq stands - the second largest oil producing country in OPEC - on the brink of a financial disaster that may lead it to take austerity measures, due to the drop in global oil prices and the outbreak of the Corona virus, especially as its economy depends more than 90% on oil sales revenue, which fell five times during one year.
Iraq still depends on its draft budget for 2020, which it has not yet voted on, on an expected oil price of $ 56 a barrel.
The Saudi Press Agency "SPA" reported that Saudi Energy Minister Abdulaziz bin Salman met with Allawi and discussed the stability of the oil market and issues of common interest between the two countries in the energy fields.
She pointed out that the Iraqi official carries with him a message to the Saudi monarch, King Salman bin Abdulaziz, from the Iraqi Prime Minister, Mustafa Al-Kazemi.
Allawi also met with Saudi Foreign Minister Prince Faisal bin Farhan bin Abdullah, where the latter stressed his country's keenness on the unity of the Iraqi people, and the importance of cooperation with the new Iraqi government to achieve common interests and enhance bilateral relations between the two countries in the interests of achieving security and stability in the region.
During my meeting with Prince Abdulaziz bin Salman, it was agreed to
activate the electrical connection between Iraq and Saudi Arabia, and to develop the energy market in addition to investment and participation in financing projects for the generation, transmission and distribution of electrical energy (renewable and conventional) in Iraq. pic.twitter.com/XmEloH8Qrk
- Ali Abdulameer Allawi (@alimofiq) May 23, 2020
Electrical Link
Allawi announced today his country’s agreement with Saudi Arabia on the bilateral electrical connection between the two countries and the development of the energy market, this was stated in a tweet via Twitter.
"During my meeting with Prince Abdulaziz bin Salman (Saudi Energy Minister), it was agreed to activate the electrical connection between Iraq and Saudi Arabia," Allawi said.
He added that it was also agreed to develop the energy market in addition to investment and participation in financing projects for the generation, transmission and distribution of renewable and conventional electrical energy in Iraq.
Iraq has been suffering a crisis of electric power shortages for decades, as the country produces about 13 gigawatts while the country needs more than 23 gigawatts to meet the needs of residents and institutions without interruption.
Allawi's foreign visit to Saudi Arabia is the first for an Iraqi official since the government of Mustafa Al-Kazemi was given confidence in Parliament on May 7, succeeding the government of resigned Prime Minister Adel Abdul-Mahdi.