The exchange rate is at the forefront of economic discussions as the 2027 budget is being prepared, amid escalating debate between advocates of maintaining the current monetary policy to protect citizens' purchasing power, and supporters of options that they believe may help in confronting the financial pressures resulting from the decline in oil revenues.
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Fiscal policy in Iraq faces a new test with the start of discussions about the 2027 budget. The issue of the “exchange rate of the dinar against the dollar” tops the list of concerns and the Iraqi economy.
While the government affirms its commitment to the current exchange rate to protect the purchasing power of citizens and support the poor, rumors are circulating behind the scenes about an intention to raise the exchange rate following the drop in global oil prices, in order to cover the financial deficit and secure salaries and projects. However, this will inevitably lead to an immediate increase in the prices of food, medical and basic commodities in local markets, which means a decrease in the purchasing power of employees’ and retirees’ salaries, as they will not be sufficient to cover the same previous needs. This will cause greater harm to the vulnerable and poor groups, widen the poverty gap in society, and increase inflation.
Adherence to monetary stability
The government narrative confirms that the 2027 budget will not see any change in monetary policy.
The Prime Minister’s financial advisor, Mazhar Mohammed Saleh, points out that the focus is entirely on enhancing financial sustainability and diversifying non-oil sources of income.
Saleh says that “the goal of adhering to the exchange rate is to protect the purchasing power of citizens, ensure the stability of basic commodity prices in local markets, and avoid any economic shocks that may harm vulnerable and poor groups.”
Discussions about changing the exchange rate
However, sources close to the government decision-making process confirm that “changing the exchange rate is being considered as a solution to the financial crises, along with efforts to rationalize public spending and control operational expenses.”
Sources explain that maintaining the current price may be practically difficult, as the budget relies on oil sales for over 90% of its funding. If global energy prices continue to decline, the government will face a significant shortfall in funding salaries and investment projects.
In contrast, some researchers propose “a gradual adjustment of the exchange rate in the 2027 budget as a necessary step to utilize cash liquidity in dinars and cover the trade deficit.”
They believe that slightly devaluing the dinar will provide the government with greater domestic financial resources to manage governing expenditures without the need for burdensome external borrowing.
Warnings of a shock scenario
But on the other hand, economic experts, including Dr. Mahmoud Dagher, warn of a “shock scenario” that any official change in the exchange rate could cause.
Dagher points out that Iraqi markets are already suffering from the fluctuation of the “parallel market” and its exceeding the 1500 dinar mark for the dollar, due to problems with foreign transfers and the high demand for hard currency.
Experts believe that any official increase in the dollar exchange rate will immediately cause a severe wave of inflation that will devour employee salaries and increase poverty rates.
Instead of resorting to the citizen's pocket, these experts are calling on the government to implement real reforms that include activating collection and taxes on luxury goods, controlling border crossings to increase non-oil revenues, as well as stopping financial waste in unnecessary government contracts.
The Central Bank calls for a "program-based budget".
The Governor of the Central Bank of Iraq, Ali Al-Alaq, stressed that the Central Bank’s participation in preparing the federal budget is a fundamental step to ensure harmony between fiscal and monetary policy, stressing that the absence of this coordination could lead to economic disturbances that affect monetary stability, inflation levels, and the dinar exchange rate.
Al-Alaq explained that the Central Bank possesses accurate data regarding the size of liquidity, foreign reserves, and levels of circulating cash, which makes it a pivotal partner in formulating general economic policies alongside the government and the Ministry of Finance. He pointed out that cooperation between the two institutions contributes to preparing a more realistic budget capable of confronting economic crises.
He pointed out that the Central Bank had previously called for the adoption of a “ program budget ” instead of the traditional method currently in use, with the aim of raising the efficiency of public spending and achieving clear developmental results, but this approach has not yet been implemented.
Regarding the reserves file, Al-Alaq explained that Iraqi oil revenues are deposited in dollars into the Ministry of Finance’s account at the US Federal Reserve, before being transferred to the Central Bank’s account within a short period. He indicated that the bank manages these funds through investments that include gold, bonds, and some international banks, which enhances financial returns and maintains monetary stability.
The governor of the Central Bank denied any intention to amend the exchange rate of the dinar against the dollar, stressing that the current monetary policy focuses on stabilizing financial stability and enhancing the confidence of local markets and investors in the Iraqi economy.
Regarding external borrowing, Al-Alaq explained that resorting to loans usually occurs when local resources are unable to cover development requirements or bridge the financial deficit, noting that international institutions, including the International Monetary Fund, impose economic and structural reforms in exchange for granting financing.
He warned that the budget deficit is no longer a temporary numerical deficit as it was in the past, but has turned into an actual and structural deficit related to the Iraqi economy’s almost complete dependence on oil revenues, at a time when most expenditures are concentrated on salaries and basic operational obligations, which reduces the flexibility of investment spending.
Is this an investment development fund possible?
In this context, Iraqi government spokesman Haider al-Aboudi announced that the cabinet decided to establish an investment development fund independent of the general budget, relying on international contributions and guarantees ranging between $100 billion and $150 billion, with the aim of achieving economic stability and supporting investment.
Despite the ambitious nature of the development fund project, talk of international contributions and guarantees reaching $150 billion raises fundamental questions about the realism of these figures and their feasibility. To date, the international entities contributing, the nature of the guarantees, and the financing mechanisms have not been announced, making the project seem more like a preliminary economic concept than a fully-fledged investment program.
Attracting this level of funding also requires a stable investment environment, highly efficient financial and administrative institutions, and long-term legal and security guarantees. Given the ongoing challenges facing Iraq, including economic instability, political disputes, and administrative complexities, it may prove difficult to persuade international investors to make investments or provide guarantees of this magnitude.
Furthermore, past experiences with international pledges and initiatives launched to support the Iraqi economy have not fully achieved their stated goals, whether due to political shifts, weak implementation, or changing priorities of donors. Therefore, the success of the fund remains contingent on transparently disclosing its details, revealing the actual supporting entities, and providing genuine guarantees to investors, rather than simply announcing large sums or ambitious targets.
How is the economy being managed? Iraq is without a budget for the fourth time since 2003.
Iraq is entering an unprecedented financial phase, with increasing indications that the federal budget for 2026 will not be approved, at a time when the country is facing double pressures represented by the decline in oil revenues and the continuation of regional turmoil that has affected the movement of oil exports, which puts the government before the challenge of managing the economy through temporary spending rules for the fourth time since 2003.
Iraq is almost entirely dependent on oil revenues, which constitute more than 90% of public revenues, while public finances are facing increasing pressure after the failure to approve spending and revenue schedules, amid fears of the repercussions of this on investment projects, infrastructure, job opportunities and economic growth.
temporary spending
In this context, the financial advisor to the Prime Minister, Mazhar Muhammad Saleh, says that the financial policy during the year 2026 is still managed in accordance with the provisions of the Federal Financial Management Law No. 6 of 2019, especially Article 13, which allows spending at a rate of (1/12) per month of the expenses of the previous year in the event of a delay in approving the budget.
Saleh explained to Shafaq News Agency that this mechanism "enabled the continuity of public spending, especially salaries, wages, pensions and social welfare, in addition to financing basic investment expenditures and ongoing projects according to completion rates and available liquidity."
But Saleh acknowledges that public finances are facing increasing pressure as a result of geopolitical developments and fluctuations in global energy markets, which has impacted oil revenues as the main source of funding for the public treasury.
He indicates that the government is currently moving towards preparing the 2027 budget within a reform framework that focuses on the efficiency of public spending, rationalizing operational expenses, protecting social programs, and giving priority to economically viable projects, as well as diversifying revenues and promoting digital transformation and administrative reform.
This comes after about 16 months of no budget schedules being approved, at a time when the three-year budget for the years 2023, 2024 and 2025 represented the last integrated financial framework for government spending before it effectively ended at the end of 2025.
Suspended projects and postponed development
For his part, economist Diaa Al-Mohsen believes that the greatest impact of the absence of a budget will fall on investment spending, because the budget is not just a financial document, but a tool for managing the state’s economic and investment activity.
Al-Muhsin tells Shafaq News Agency that the absence of a budget practically means difficulty in launching new development projects or expanding infrastructure projects, including roads, bridges, schools, hospitals, electricity and water networks, as well as delays in government contracts.
He adds that ministries and governorates will gradually lose the ability to plan in the medium and long term, while the contribution of government spending to stimulating economic activity will decline, which will directly affect the contracting, industry, transport and services sectors.
These concerns coincide with previous parliamentary data that spoke of more than 4,500 stalled projects across Iraq, some of which have been halted for years, at a time when experts believe that the absence of a budget will add new projects to the long list of stalled projects.
Recruitment under pressure
The impact of the lack of a budget is not limited to investment projects, but extends to the government employment file, which represents one of the most prominent outlets for absorbing graduates in Iraq.
Al-Muhsin confirms that appointment opportunities will be very limited, with exceptions likely to be restricted to specific sectors such as health, education, and security services, warning that this will lead to increased social pressures in light of rising unemployment rates among young people.
For his part, economic researcher Ahmed Eid says that spending according to the (1/12) rule ensures the continuation of salaries and basic services, but it does not provide the necessary flexibility to launch new projects or expand investment spending.
Eid adds to Shafaq News Agency that the absence of a budget imposes a state of financial uncertainty and limits the government’s ability to implement its economic plans efficiently. It also negatively affects companies contracted with the state and local and foreign investors due to the lack of a clear vision for future projects.
Accumulating risks
Experts believe that the absence of a budget presents a financial paradox. On the one hand, it leads to a decline in investment spending, which may reduce the financial deficit in the short term, but on the other hand, it weakens economic growth and leads to a decline in non-oil revenues related to economic activity.
Al-Muhsin explains that the deficit may improve numerically as a result of lower capital expenditures, but the economy will pay the price later through a decrease in productive capacity, a decline in job opportunities, and the continued dominance of operating spending at the expense of productive investment.
This comes at a time when public finances are facing additional challenges related to declining oil exports and regional market turmoil, which increases the likelihood of resorting to domestic borrowing to finance essential expenditures.
difficult economic situation
Financial expert Mahmoud Dagher believes that the absence of a 2026 budget is different from previous cases witnessed by Iraq, explaining that the House of Representatives did not approve the spending and revenue schedules during 2025, which is an issue he describes as having great technical and legal importance when applying the (1/12) rule.
Dagher told Shafaq News Agency that the country is currently going through "the most difficult economic situation," adding that talking about appointments or expanding spending seems difficult at the present stage, because the priority is focused on securing salaries and some governing expenses by financing the deficit through the Central Bank.
He emphasizes that the main challenge is no longer achieving rapid economic growth, but rather reaching the highest levels of efficiency in spending and controlling expenditures to protect foreign reserves, which represent the primary line of defense for the stability of the Iraqi dinar and the financing of imports.
Public debt and borrowing
Concerns are growing about the impact of the absence of a budget on public debt levels, especially with continued pressure on oil revenues.
In this regard, Ahmed Eid says that the government may be forced to expand its domestic financing tools through levies, taxes and borrowing from local banks, warning that this path raises financial risks in the medium term if it is not accompanied by real reforms to control spending and enhance non-oil revenues.
These concerns are consistent with previous warnings issued by economic experts regarding the widening gap between revenues and expenditures, in light of the rise in domestic debt during the past months and the government's reliance on exceptional financing tools to cover its basic obligations.
Managing the economy without a budget
In theory, experts say the government can manage the country through temporary spending rules, but with limited efficiency.
Al-Muhsin asserts that these rules allow for the payment of salaries, the continuation of public services, and the financing of some ongoing projects, but they do not provide an effective framework for managing economic development, because investment decisions become restricted and economic planning loses its clarity, while investors and governorates face an increasing state of uncertainty.
He summarizes the matter by saying: "The state can be managed, but development is difficult to manage."
In contrast, economist Safwan Qusay calls for finding alternative sources of funding for investment projects outside the framework of the traditional budget.
Qusay tells Shafaq News Agency that continuing to spend according to the (1/12) rule is practically limited to operational expenses, which requires finding special mechanisms to finance investment projects through borrowing laws or partnerships with the private sector and investors.
It is proposed to expand the role of investment portfolios and investment bodies by offering infrastructure and service projects to investors in exchange for investment opportunities in the commercial, tourism and real estate sectors, in order to ensure the continuity of project funding and prevent its interruption.
Cash versus digitalization: Will Iraq succeed in its financial transformation?
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Economic experts believe that reforming the Iraqi banking sector and accelerating the shift towards electronic payments are two essential pillars for addressing many of the financial and economic challenges facing the country, from the loan and advance crisis to enhancing transparency, combating corruption, and stimulating investment.
Economic researcher Ahmed Al-Tamimi affirms that the success of any banking reform process requires a comprehensive program that is not limited to traditional administrative procedures, but extends to modernizing the legislative, regulatory and technological structure of government and private banks.
Al-Tamimi explained that the loan and credit crisis is not only related to the amount of money available for lending, but also to the mechanisms for granting financing, monitoring borrowers, and assessing their creditworthiness.
He pointed out that addressing this crisis requires the creation of unified databases for borrowers and the development of a modern credit rating system that contributes to reducing default rates and ensuring that financing reaches eligible borrowers who are able to repay.
Controlling liquidity and promoting financial inclusion
He added that achieving fairness in granting loans requires adopting clear and transparent standards, free from interference and mediation, while expanding the base of financial inclusion and increasing reliance on official banking instruments instead of cash transactions outside the banking system.
He explained that this transformation contributes to enhancing financial stability and improving liquidity management within the banking sector, as well as raising the efficiency of the financial performance of economic institutions.
He also pointed out that weak oversight in recent years has contributed to higher default rates on some loans due to inadequate auditing and follow-up procedures and the absence of early warning systems for credit risks.
He stressed that strengthening governance and activating control and compliance tools within banks are essential steps to reduce these problems and improve the quality of banking services.
Electronic payment is an economic necessity.
For his part, economic researcher Sadiq Al-Azraqi believes that the shift towards electronic payment is no longer just a technical option or a modern means of payment, but has become an economic and administrative necessity imposed by the nature of the modern economy and the requirements of transparency and financial stability.
He explained that the Iraqi economy still relies heavily on cash liquidity stored outside the banking system, which limits the state’s ability to monitor the movement of funds and manage economic activity efficiently.
He added that expanding the use of electronic payment tools would bring a large portion of circulating funds into the formal economic cycle, which would help regulate financial activity and reduce the risks of money laundering and tax evasion.
He pointed out that electronic systems also reduce the costs associated with cash management, including transportation, protection, manual inventory and counterfeiting risks, as well as making it easier for citizens to access various banking services such as loans, savings and investment.
Challenges of digital transformation
Despite the significant benefits expected, Al-Azraqi emphasizes that digital transformation still faces a number of challenges in Iraq, most notably the lack of confidence in the banking sector as a result of accumulated crises and past experiences, in addition to problems related to the stability of electricity and internet services.
He also noted that small and medium-sized business owners have concerns that electronic payment methods could become a means of pursuing them for tax purposes or imposing additional financial burdens on them.
He added that Iraqi society still tends to deal with direct criticism, which constitutes a cultural barrier that needs time and extensive awareness programs to overcome.
Combating corruption and promoting transparency
Al-Azraqi believes that one of the most important gains of digital transformation is the reduction of financial and administrative corruption, because electronic transactions leave a digital trace that can be tracked and reviewed, unlike cash transactions which are difficult to monitor.
He explained that the digital economy provides the state with a huge database that helps it understand consumption patterns, manage markets, predict supply crises, and monitor prices more accurately.
He added that the success of this transformation requires simultaneous administrative and legislative reforms, as well as providing incentives that encourage citizens and business owners to use electronic payment methods.
Minister of Finance: We are proceeding with preparing the program budget and modernizing banking systems.
The Ministry of Finance stated in a statement received by Al-Furat News that "the Minister of Finance received the Australian Ambassador to Iraq, Glenn Miles, to discuss ways to strengthen economic relations and expand cooperation in the financial and banking fields between the two countries."
According to the statement, Sari emphasized "the Ministry's keenness to develop sound international partnerships and benefit from Australian expertise in supporting sustainable development projects and diversifying the national economy."
He pointed out that "the ministry is proceeding with updating banking, tax and customs systems, and developing mechanisms for preparing program budgets, in order to enhance the efficiency of financial management and raise the level of institutional performance."
For his part, the Australian ambassador affirmed his country’s desire to strengthen joint cooperation and exchange experiences, in order to support economic reform efforts and the development of the financial sector in Iraq.
An economist says domestic borrowing has risen to 117 trillion dinars, and Iraq is in a financial emergency situation.
Al-Mashhadani told Al-Furat News Agency that “the Central Bank’s financing of the government through treasury bonds is considered a debt on the state,” indicating that “the size of the internal debt has increased from 92 trillion dinars to 117 trillion dinars.”
Al-Mashhadani explained that "continuing this path means the government will remain in a cycle of borrowing," noting that "Iraq may be forced to print currency after September, and this may take place outside the country in several countries."
He added that "talk about printing currency has not yet been reflected in market prices and commodities," noting that "if that liquidity had been injected previously, prices would have risen by at least 15%."
Al-Mashhadani stated that "prices are still relatively stable, with a slight decrease recorded in some of them," stressing that "Iraq is going through an emergency financial situation and there are no options other than continuing to borrow from the Central Bank."
Development Bank: Integrated financing solutions for localization employees and financing up to 60 million dinars
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Barrack heads to Iraq as US presses Baghdad on Iran-backed militias
Barrack visits Baghdad to pressure for the implementation of Washington's demands to "dismantle a...
It is expected that the US Special Presidential Envoy to Iraq, Tom Barrack, will visit Baghdad for separate meetings there. This is his first visit of its kind since President Donald Trump expanded his mandate to include the Iraqi file in addition to Syria, due to their close personal relationship.According to the American website Al-Monitor, citing informed officials familiar with the visit, Barrack will meet in Baghdad with Prime Minister Ali Al-Zaidi and a number of senior Iraqi officials. He will exert pressure toward implementing the American demands related to the dismantling and disarming of the Shiite factions supported by Iran.The visit comes within the framework of US efforts to strengthen the Iraqi state’s control over weapons and to reduce the influence of armed factions aligned with Tehran, especially in light of the current regional changes and understandings between Washington and Tehran.
Behind the scenes with spokesperson Haider Al-Aboudi
Al-Zaydi re-establishes the Popular Mobilization Forces and threatens to reveal the names of corrupt officials.
The government of Ali al-Zidi reveals its intention to leave the “traditional spending budget” and move to a “program budget,” which will be done in direct coordination with the World Bank, whose delegation will arrive in Baghdad next week, as the official spokesman for the government, Haider al-Aboudi, says in an interview with journalist Hossam al-Hajj, which was followed by the 964 network .
Al-Aboudi emphasized that this profound economic transformation necessitates decisive action on internal issues, foremost among them the "weapons control" process, which has already begun. Regarding the control mechanisms, he explained that the forces affiliated with the Popular Mobilization Forces (PMF), whether factions or other groups designated within the organization as brigades with numerical designations, will not remain affiliated with these brigades due to the political disassociation process. Instead, these human resources will be redistributed within the PMF according to a new vision.
Regarding the fight against corruption, Al-Aboudi says that Al-Zidi’s government will move to strike corruption networks forcefully, vowing to reveal the names of those involved and the political entities protecting them to the public, if the looted funds are not quickly returned to the state treasury.
Al-Zaydi and the state's monopoly on weapons
Regarding the issue of loose weapons, Al-Aboudi said, “When Prime Minister Ali Al-Zidi was assigned his task, the political forces viewed him as a solution and approach to an economic crisis. This solution, which Al-Zidi personally adopts, stems from the vision that the economy is what leads the state, and the economy needs a safe environment in which investment is attracted and economic partnerships flourish. This climate needs a preceding step related to internal security.”
He continued: “The current government is 28 days old, and has not completed a month, but it has begun to unravel complex files, foremost among them being the restriction of weapons to the state. Here we do not mean the mere weapons that are placed in warehouses. The point is not to collect these weapons in warehouses and inventory them, but the point is that those who possess these weapons comply with the state’s decision only, far from any external political directives related to the extension of this element that possesses the weapons.”
Regarding the mechanisms for restricting weapons, he added: “Forces associated with the Popular Mobilization Forces, whether they are factions or other groups named within the organization under the names of brigades in the form of numbers, the process of severing political ties with their authorities does not allow, according to the adopted mechanism, for individuals to remain affiliated with these brigades. Rather, these human resources will be redistributed within the Popular Mobilization Forces according to a new vision.”
He pointed out that “in September of this year, the presence of the international coalition in Iraq will end, and with this timeframe, some reasons will end, and other reasons will be born after it, which is that everyone is required to maintain and participate in protecting Iraq. After September, there will be no presence of the international coalition, and there will be no requirements for resistance as there were previously.”
Al-Zaydi strikes at corruption: Return the money or we will expose you
As for the anti-corruption file, Al-Aboudi revealed that “the government of Prime Minister Ali Al-Zidi, since it was granted confidence until this moment, has submitted to the Integrity Commission and the regulatory authorities clear corruption files in the fields of oil, transportation and electricity, and this work is continuing to identify the sources of corruption.”
He explained that “the Prime Minister said it verbatim in more than one Cabinet session, that he would not hesitate to reveal those involved, whether they were shareholders or beneficiaries in full, unless they returned the money to the state clearly, otherwise we will be forced to announce the names.”
He stressed that “the decision has been made not to look at the party that protects the corrupt, but rather to implement the decision immediately, and the Prime Minister’s directives in this regard are that there should be no hesitation, because the man (Al-Zaydi) is entrusted with managing the stage and saving what can be saved in these days that are witnessing complexity at the economic level.”
The era of spending is over, and program budgeting has arrived.
Regarding the economy, Al-Aboudi explained that “there is a trend to move away from the mentality of sustainable spending towards a budget of programs that cover the requirements of the state’s developmental areas, by providing a climate for the private sector, achieving partnerships and a productive economy, as well as providing space to introduce an economic vision based on the Development Fund.”
He added: “This fund, along with the budget for programs that cover the needs of development sectors, is essential. The state cannot rely on its full weight and functional apparatus to secure salaries for nearly 4 million employees, as if this is all that is required of the Iraqi state. The development aspect requires that we open a clear line with the private sector, and we also need international contributions.”
Al-Aboudi concluded his remarks by saying: “The budget for the programs that the current government is moving towards adopting is being done in coordination and cooperation with the World Bank, and next week an international delegation from the bank will come to complete and set the starting line for implementation, in cooperation with the Finance Committee in the Iraqi Parliament.”
Al-Aboudi pointed out that “it was not in my mind to be assigned the task of the spokesperson for the Iraqi government, due to the contexts that there are prerequisites that require being part of certain political environments or specific affiliations, but when I was contacted and met with Prime Minister Ali Al-Zaidi, I confirmed that I am an independent man, and he told me: That is what is required.”
Al-Saadi: International companies have apologized for not transporting Iraqi oil through the Strait of Hormuz for security reasons.
Economic expert Rashid al-Saadi revealed on Friday that international companies specializing in transporting petroleum products have apologized for not being able to transport Iraqi oil through the Strait of Hormuz due to security concerns and increased fuel costs.
Al-Saadi told the Information Agency, "The international companies specializing in exporting petroleum products from Iraq to other countries have apologized to the relevant authorities for their inability to continue this task due to the dangerous security situation in the Strait of Hormuz."
He added, "Iraq's exemption from the embargo imposed on the Strait of Hormuz remains in effect, but foreign companies have refused to continue transporting Iraqi oil through the Strait of Hormuz due to increased insurance costs, fuel expenses, and the risks associated with using the strait." He pointed out that "Iraq relies on the Strait of Hormuz for 90% of its oil exports," and emphasized that "Iran's facilitation of Iraq's use of the Strait of Hormuz to export its oil to various countries around the world remains in effect without imposing any security or navigational restrictions."
Sudani: Coordination Framework backs PM to implement weapons restriction plan
Mohammed Shia al-Sudani, head of the Reconstruction and Development Coalition, said the Coordination Framework has authorized Prime Minister Ali al-Zaidi to move forward with implementing the government program on restricting weapons to state control, following a meeting with U.S. Embassy Chargé d’Affaires Joshua Harris.
Sudani said “the Reconstruction and Development Coalition and the rest of the Coordination Framework forces authorized the prime minister to implement what was stated in the government program regarding restricting weapons to the hands of the state,” stressing continued support for “the plan in place to facilitate the implementation of this path, in a way that enhances the authority of the state and preserves security and stability.”
He also stressed the need to legislate laws regulating the rights of the PMF and its members “in a way that guarantees preserving their sacrifices and strengthens their presence within the legal and institutional frameworks of the state.”
On bilateral relations, Sudani said Iraq seeks to develop ties with the United States in economic development, energy, investment and infrastructure, describing Iraq as moving “seriously toward providing a safe and attractive investment environment.” He added that Iraq aims to achieve independence in the gas and energy sectors through local production and diversified oil export outlets, and called for shifting the U.S.-Iraq military relationship toward bilateral cooperation rather than the international coalition formula.
Harris expressed U.S. appreciation for efforts to restrict weapons to the state and reaffirmed Washington’s readiness to support Iraq’s energy sector and proceed with projects tied to bilateral memorandums of understanding signed by U.S. companies.
Iraq formally began integrating Saraya al-Salam into the state security structure at a ceremony in Samarra last Thursday, following Muqtada al-Sadr’s May 27 announcement that the group would come under state authority. The precise command structure for compliant factions has not been publicly detailed, with official statements using broad terms such as “integration” and “restructuring” without specifying whether fighters will be absorbed individually into army units or remain as intact formations.
Harakat al-Nujaba, Kataib Hezbollah and Kataib Sayyid al-Shuhada have rejected disarmament, describing their weapons as “a trust and a duty.” The U.S. State Department’s Rewards for Justice program has offered up to $10 million each for information on Harakat al-Nujaba’s Akram al-Kaabi, Kataib Hezbollah leader Ahmad al-Hamidawi and Kataib Sayyid al-Shuhada secretary-general Abu Ala al-Walaei.
Since the regional war began in late February, Iran-aligned factions under the Islamic Resistance in Iraq umbrella have carried out repeated drone, rocket and missile attacks on U.S. military and diplomatic targets in Baghdad and the Kurdistan Region, while the United States has struck PMF-linked positions across multiple governorates, killing dozens of fighters.
Barzani refuses to hand over Peshmerga and Asayish weapons to the federal government.
Independent Kurdish politician Didar Haval revealed on Friday that Masoud Barzani informed a US official of his refusal to hand over the Peshmerga and Asayish weapons to the federal government.
Haval told the Information Agency, “A US envoy asked Masoud Barzani to hand over the Peshmerga weapons to the federal government, but he refused this request. Washington’s move comes as it seeks to dissolve these forces and integrate them into a single security system.”
He added, “Masoud Barzani emphasized to the US envoy that the Peshmerga weapons represent the identity and symbol of the history and sacrifices of the Kurdish people, and are not merely a fighting arsenal. He also stressed that the region’s forces and security institutions are not subject to any plans to dissolve or merge the factions.”
He explained that “disagreements arose between the Trump administration and Masoud Barzani following the theft of a shipment of advanced American weapons intended for the Iranian opposition and their distribution to the Peshmerga forces, in addition to the fact that the Peshmerga forces did not participate with the Iranian opposition in striking inside Iran to overthrow its regime,” noting that “Barzani refused to include these forces in the “weapons control” projects of the federal government in Baghdad.”
He confirmed that "these are regular forces under the supervision of the regional presidency."
Iraq reaffirms ties with Arab, Gulf neighbors as anticipation for US-Iran deal grows
Iraq is continuing its efforts with Arab and Gulf neighbors to bolster cooperation and safeguard shared interests, the country’s national security advisor stated, shortly after Baghdad’s foreign ministry condemned attacks on neighboring Arab states launched by Iran against what it claims are US targets in those countries.
“Iraq believes that de-escalation, dialogue, and constructive partnership constitute the most effective path to safeguarding shared interests and enhancing opportunities for progress across the region,” Qasim al-Araji said in a late Thursday statement on X.
Accordingly, he said that “Iraq continues to work with its Arab and Gulf partners, as well as neighboring countries, to foster an environment based on mutual understanding, cooperation, and respect for sovereignty.”
The effort aligns with Baghdad’s “comprehensive vision aimed at strengthening national resilience and contributing to a more stable, balanced, and prosperous regional environment,” Araji concluded.
The top security official’s remarks came shortly after Iraq’s foreign ministry expressed its “condemnation of the attacks on the territories of the Hashemite Kingdom of Jordan, the Kingdom of Bahrain, and the State of Kuwait,” launched by Iran.
“The stability of Arab and neighboring countries is an integral part of Iraq’s stability and national security, which necessitates maintaining strategic relations among regional states and safeguarding shared interests,” the ministry said.
The remarks came as Iran and the United States were locked in a three-day military escalation that ended on Thursday, the most intense after both sides agreed to a Pakistan-brokered ceasefire in early April.
The US and Israel launched a large-scale aerial campaign against Iran in late February, striking thousands of targets across the country during six weeks of hostilities.
In response, Iran carried out thousands of drone and missile strikes across the Middle East targeting alleged US assets - particularly in Gulf Arab states - as well as launching retaliatory attacks against Israel.
The warring sides agreed to a Pakistan-brokered ceasefire on April 8 to temporarily halt fighting and initiate negotiations, and held the first round of talks in Islamabad on April 11 without reaching a final agreement, though diplomatic efforts continued since.
As of late, US President Donald Trump on Thursday said that discussions have reached Iran's highest leadership and received approval from all parties involved, with a final agreement potentially to be signed "over the weekend in Europe."
IS local leader, militant killed in airstrikes in E. Iraq
BAGHDAD, June 11 (Xinhua) -- Two Islamic State (IS) militants, including a local leader, were killed Thursday in two airstrikes in Iraq's eastern province of Diyala, the Iraqi military said in separate statements.
Iraqi F-16 fighter jets carried out the airstrikes on the militants' location, following months-long tracking efforts and accurate intelligence, said the Iraqi Joint Operations Command's Security Media Cell.
Following the airstrikes, an Iraqi ground force, deployed to the site for clearing operations, found two bodies, one of whom was identified as the senior local leader Mohannad Karim Ali, it said.
While Iraq declared victory over IS in 2017, the group's remnants keep attacking security forces and civilians in cities, deserts and remote areas. Authorities have since intensified aerial and ground campaigns against suspected IS militants. ■
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Samsung opens its largest branch in Baghdad and launches exceptional offers.
Samsung has opened its largest smartphone branch in the Levant region inside "Iraq Mall" in the capital, Baghdad, in a move the company described as a historic milestone reflecting its confidence in the Iraqi market and its commitment to providing a direct global experience to consumers.
During the opening ceremony, the company confirmed that choosing Iraq to host the largest mobile phone exhibition in the region stems from its belief in the country’s economic potential and its desire to strengthen its presence and expand its services to the Iraqi user.
She explained that the choice of "Mall of Iraq" came as a result of its strategic location in the capital, Baghdad, and the modern and vibrant environment it provides, which is consistent with Samsung's identity as a leading company in the fields of technology and innovation.
Samsung indicated that the project will contribute to supporting the local economy by providing new job opportunities for Iraqi youth, as well as providing specialized training programs according to the latest global standards in the retail and technology sector, which will contribute to developing the professional skills of workers.
The new showroom offers visitors the opportunity to experience Samsung’s latest smartphones and wearable devices, learn about artificial intelligence technologies and modern features firsthand before purchasing, and receive technical advice from specialized and trained staff.
The branch also provides officially certified after-sales services, with direct warranties and guarantees from Samsung, as well as providing technical support and original spare parts, which enhances the Iraqi consumer's confidence in the products and services provided.
The company announced the launch of exceptional offers to mark the opening, stressing that the new branch represents the beginning of an ambitious expansion plan aimed at enhancing its presence in various Iraqi governorates and providing the latest technological innovations to users in conjunction with their global launch.
For his part, the regional director of Samsung Electronics Levant, Moataz Al-Aqrabawi, said that the opening of the showroom represents a fundamental turning point in the company’s strategy within Iraq, stressing that Samsung views the challenges as an incentive to continue developing and strengthening its commitment to the Iraqi consumer.
The largest mobile phone exhibition in the Levant
Al-Aqrabawi pointed out that the presence of the largest smartphone exhibition in the Levant region inside Iraq reflects the extent of the confidence that Samsung places in the Iraqi economy, and confirms its desire to provide a direct global experience for users without intermediaries.
He added that the choice of “Mall of Iraq” came after an extensive study of the location, as it represents a modern and advanced destination in the heart of the capital, Baghdad, and provides easy access for customers from different areas, in addition to its modern environment being in harmony with Samsung’s identity based on innovation and modern technologies.
