Iraq rows back on reform plan

Iraq's Governing Council has backtracked on part of a sweeping economic reform plan announced by its finance minister Kamel al-Kilani at the weekend, according to reports.

A statement from the US-backed body issued on Wednesday said only the council president could announce policy changes, adding that the measures outlined by Mr al-Kilani at the weekend "cannot be considered official," the AFP news agency reported.

At a meeting of the International Monetary Fund in Dubai on Sunday, Mr al-Kilani had unveiled a string of reforms, including the sale of all state industries except oil.

Under the reforms, foreign investors would have been allowed to buy Iraqi firms and set up joint ventures, while foreign banks would also have been given the green light to set up in the country.

The governing council is planning to set up a committee of experts to carry out a fresh study of how foreign investment in Iraq should be managed, AFP reported.

The committee is tasked with drawing up a "precise, scientific version that will guarantee the rights of the Iraqi people and serve the interests of the country," AFP quoted the council's statement as saying.

The scale of rebuilding needed in Iraq is likely to attract many investors hoping to secure multi-million dollar contracts, not least from the construction industry.

But the reforms put forward by Kamel al-Kilani were widely criticised as excessively favourable to foreign businesses within Iraq.