ERBIL, Kurdistan Region — Leading Kurdistan Regional Government (KRG) officials convened virtually on Tuesday to discuss the future of the Region’s economic development. On the second day of the virtual conference on “Post-Covid-19 Economic Priorities in the Kurdistan Region of Iraq” organized by US Chamber of Commerce and Kurdistan Regional Government Representation in the US, KRG Deputy Prime Minister Qubad Talabani and Principal Deputy Assistant Secretary at Bureau of Near Eastern Affairs of the US Department of State Joey Hood discussed potential ways for the Kurdistan Region to achieve economic growth. The panel was moderated by Steve Lutes, President of the US-Iraq Business Council. Talabani expressed his amazement at the fact that the Kurdish economy did not collapse during the coronavirus lockdown. “The economy did not come to a complete stop because these little businesses are enduring," he said. “We are resilient people.” Talabani mentioned that a barrier to the private sector flourishing in the Kurdistan Region is the red-tape businesses have to go through to establish themselves. He noted they are trying to fix this. “We are cutting the bureaucracy; we want to set up a company in 24 hours,” he said. Talabani further addressed the importance in encouraging local investment and strengthening the private sector in the region, but noted that the KRG lacks the tools to do so and that is among the biggest challenges the government is facing. Joey Hood also expressed his support for the KRG and said, “I assure you that we are going to stay engaged with Iraqi Kurdistan, partly because of the great investment opportunities that are there...but also there is the security...we appreciate the cooperation.." Hood encouraged reducing the regional government’s bureaucracy and said that they have been working to change the KRG from a regulatory government to a process institution. The two day virtual conference hosted several major figures on different panels. In a panel attended by the KRG’s minister of Finance and Planning, the Chairman for the Kurdistan Board of Investment and moderated by the President of Middle East Research institute, the four discussed the “Economic Priorities for 2021 and beyond” in the Kurdistan Region. Minister of Planning Dara Rashid showed his support for reform and the diversification of the Kurdistan Region’s economy. “We’ve made reforms in customs and taxation. KRG believes that diversification of economy and revenue is essential because Kurdistan in particular, and Iraq, in general, rely on oil for revenue,” he said. “Diversification of our economy is part of KRG’s agenda, along with development plans in agriculture and industrial zones,” he added in response to what the KRG’s plans are in order to tackle the current financial crisis, which he notes has been partially caused by the drop in oil prices. KRG’s Minister of Finance Awat Shikh Janab spoke later on about the steps the KRG has taken towards reform and their attempt at further developing the economy of the region. “The KRG’s reform program has started its reform plan in increasing revenue, decreasing operational expenditure, reducing red tape, increasing transparency, and digitizing departments,” he said. He also emphasized the KRG’s willingness to encourage local production and increase employment opportunities for locals by restructuring the tax and customs system and in return, increase revenue. Mohammed Shukri, head of Kurdistan Board of Investment, praised the KRG’s support for foreign investment in the region. “The current investment law and the draft investment law provide the foreign investor the same rights as local investors. In the definition, the law says both foreign and local investors, according to the law, are equal,” he said. The KRG’s minister of Agriculture and Water resources also took part in the conference, where she addressed their efforts in increasing job opportunities and providing more local products. “We’ll lay a foundation for building a sugar beet company, estimated to create 8,000 job opportunities,” she said. “The KRG has decided to waive taxes and fees on imports on big companies, bringing in modern agriculture machinery to the Kurdistan Region.” This conference is among the long-standing relationships between the KRG and US Chamber of Commerce. The US Chamber of Commerce in June 2019 signed a number of memoranda of understanding with the Kurdistan Region, with a view to expand investment and trade relations with Erbil. The memoranda of understanding were signed in the areas of agriculture, health, finance, energy, logistics, telecommunications, and many other fields.
