Baghdad, October 07 (QNA) - Iraqi industry plays a vital role in supporting domestic production, creating jobs, and reducing import reliance, but faces major hurdles from high energy, transport, and raw material costs alongside weak infrastructure, administrative delays, and cheap imports.

Addressing these issues requires updating factories, improving basic services, regulating imports, and prioritizing local goods in government procurement.

Chairman of the Iraqi Businessmen Union in Basra Sabeeh Habib Al Hashemi said in a statement to Qatar News Agency (QNA) that protecting the local product was one of the most prominent demands raised by the Union during its meetings with successive governments, with the aim of increasing the local production's market share, creating job opportunities, and curbing the drain of hard currency resulting from the high import bill.

He explained that supporting domestic industry requires customs tariffs, stricter quality controls, and mandatory priority for Iraqi goods in government institutions.

He stressed the importance of balancing protection with competition, warning that excessive protection creates monopolies and price hikes, while emphasizing the need to supply power and fuel to factories at competitive rates.

President of the Dhi Qar Chamber of Industry Abdul Wahab Al Tarsheh told QNA that the main challenge facing Iraqi producers and manufacturers is the high cost of production.

He explained that industrial operations depend on energy, raw materials, transport, and services, and rising input costs directly raise final prices, weakening competitiveness against imports.

He noted that unstable electricity forces reliance on costly generators, while high transport costs and weak infrastructure impose extra burdens.

He highlighted administrative bottlenecks and called for establishing integrated industrial cities to lower service, transport, and maintenance costs. 

Member of the General Assembly of the Private Sector Development Council in Iraq Wafiqa Al Mu'min stated to Qatar News Agency (QNA) that the 'Made in Iraq' slogan requires practical economic policies that allow local manufacturers to compete in the market.

She stressed that local products face fierce competition from low-cost imports and noted that supporting industry relies on lowering production expenses, particularly electricity, taxes, and raw materials, alongside strictly regulating imports and quality standards.

She added that supporting the national product should begin by creating an environment that enables manufacturers to produce efficiently, rather than relying solely on promotional campaigns.

Member of the Iraqi Federation of Industries in Baghdad Engineer Mustafa Nazzal told QNA that supporting local products has become one of the primary issues facing Iraqi industry amid competition with low-cost imported goods.

He explained that domestic goods bear heavy costs for raw materials, power, transport, labor, and regulatory fees, placing them at a disadvantage against low-priced or non-compliant imports entering through unofficial channels.

He advocated for enforcing import compliance and establishing clear timeframes for procedures while cautioning that support for Iraqi industry should not turn into permanent protectionism, but rather be linked to developing production, improving quality, and increasing efficiency.

Manufacturers conclude that revitalizing Iraq's industrial sector requires a balanced framework combining regulated imports, a supportive production environment, and fair competition.

Unlocking Iraq's abundant natural and human resources demands stable economic policies, infrastructure investments, and regulatory reforms to help diversify the economy away from oil dependency. (QNA)