An economist says Iraq has entered a phase of "paying the price" as a result of accumulated mismanagement and corruption - Urgent
Economic expert Ziad Al-Hashemi said on Tuesday (August 4, 2026) that Iraq has entered a phase of "paying the price" for what he described as the accumulation of failures, corruption and mismanagement over more than twenty years, considering that the current crisis is the result of the policies of successive governments, in addition to the responsibility of political parties, parliament and oversight institutions.
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Al-Hashemi said, in a statement followed by “Baghdad Today”, that financial and administrative losses and failures have accumulated during the past years without real treatment, accusing political forces of being preoccupied with “dividing the spoils”, while the regulatory and legislative bodies were unable or negligent in performing their role in accountability and reform.
He added that, in his view, the responsibility is not limited to governments, but extends to the parliament that approved large budgets, the political forces that dealt with the state according to the logic of power-sharing, as well as regulatory institutions, elites, media and the public, some of whom he said contributed, to varying degrees, to the continuation of the existing approach.
Al-Hashemi pointed out that Iraq is not facing a temporary liquidity crisis, but rather is going through the repercussions of what he described as an economic and political system that relied on quotas, corruption and buying loyalties, considering that the reform opportunities that were available during the years of financial abundance were not invested in building a diversified economy that is more capable of facing crises.
He warned that continuing to address the crisis through borrowing or postponing payments, without implementing structural reforms, could prolong the economic challenges, stressing that the cost of this would be borne by the citizens.
Economic and political experts offer differing views on the causes of the crisis and ways to address it, amid repeated calls for the implementation of financial and economic reforms, diversification of income sources, and a reduction in dependence on oil.
Iraq: Between oil wealth and a lack of economic vision
Currency printing is knocking on Iraq's door... warnings of an economic catastrophe
Al-Mada newspaper revealed in a report followed by “Al-Mustaqilla”, the escalation of the financial liquidity crisis in Iraq, after the Parliamentary Finance Committee proposed the option of resorting to printing currency to secure employee salaries and avoid a financial crisis that some MPs described as potentially leading to a “revolt of hungry stomachs”, at a time when economists warn that this option may open the door to a dangerous wave of inflation if it is not accompanied by a real increase in production.
According to the report, Jamal Kojar, a member of the parliamentary finance committee, said that printing currency has become one of the options being considered to overcome the current liquidity crisis, despite the awareness of the economic risks involved. He explained that the government is facing a time gap due to the delay in receiving oil revenues, which are received two or three months after the sales.
Kujer explained that the options available to the government have become limited, noting the difficulty of relying on recovering funds from corruption cases within a short period, as well as the fact that increasing non-oil revenues or activating other resources requires a long time.
He explained that the halt or decline in export activity as a result of security and regional developments has directly affected revenues, noting that Iraq is now facing difficulty in maintaining normal export levels, which has led to significant pressure on government liquidity.
The report indicated that the Finance Committee believes the government faces difficult choices between using part of the cash reserve or taking exceptional measures to provide the necessary funds for operational expenses, primarily employee salaries.
In contrast, economic experts warned of the dangers of printing money without real economic growth, stressing that the problem facing Iraq is not financial bankruptcy, but rather mismanagement of resources and excessive reliance on oil as a primary source of revenue.
Economic expert Jalil Al-Lami said that Iraq possesses significant financial resources, including foreign reserves, gold reserves, and a huge oil wealth, but the problem lies in the structure of the economy, which relies heavily on oil in contrast to weak non-oil revenues and high operational spending.
Al-Lami warned that issuing large quantities of currency without increasing production will lead to higher inflation, a decline in the purchasing power of the dinar, and an increase in demand for the dollar, which may be reflected in the prices of goods and local markets.
He pointed out that the experiences of countries such as Zimbabwe and Venezuela have shown the danger of resorting to printing money as a solution to financial crises, stressing that this measure could turn from an attempt to address a temporary crisis into a cause of a deeper economic crisis.
Economists have suggested other alternatives, including domestic borrowing through government bonds, reprioritizing spending, strengthening tax and customs revenue collection, increasing oil exports, and activating the private sector.
The controversy over printing currency comes at a time when the Iraqi economy is facing increasing pressure due to its heavy reliance on oil revenues and the ballooning wage bill and operating expenses, amid warnings that continuing to address crises temporarily without structural reforms could exacerbate financial challenges in the coming period.
Kurdistan Region Begins Preparations for 2027 Budget
At a Glance
- Preparations begin for Iraq's 2027 budget.
- Kurdistan Region seeks salaries and investment funding.
- Finance Ministry holds high-level coordination meeting.
- Census data to guide budget allocations.
The Kurdistan Region has officially begun preparations for Iraq's 2027 federal budget, seeking allocations for salaries, operational expenditures, and investment projects.
Key Statements and Focus Area
- The Kurdistan Region is preparing its 2027 budget requests.
- A high-level meeting was held at the Ministry of Finance to coordinate preparations.
- Budget discussions will rely on the latest population census data.
- Separate meetings will be held with ministries to determine funding requirements.
Finance Ministry Launches Budget Preparations
At the recommendation of the caretaker Council of Ministers, the Kurdistan Region's Ministry of Finance held a high-level meeting on Sunday to begin preparations for Iraq's 2027 federal budget.
The meeting was chaired by Finance Minister Awat Sheikh Janab and attended by Planning Minister Dara Rashid, Electricity Minister Kamal Mohammad, Council of Ministers Secretary Amanj Rahim, Head of the Coordination and Follow-up Department Abdulhakim Khusraw, along with advisers and directors-general.
Region Seeks Constitutional Budget Entitlements
According to the Ministry of Finance, discussions focused on the Kurdistan Region's financial rights and entitlements under the constitution and relevant laws, using the latest general population census as the basis for calculating allocations.
The ministry said the Region is seeking funding for salaries, operational expenditures, investment projects, and other financial obligations.
The meeting decided that individual sessions will be held with all ministries and government institutions in the coming days.
According to the Ministry of Finance, the consultations are intended to determine each institution's financial needs so the Kurdistan Region's requests can be incorporated into Iraq's 2027 budget.
Salary and Investment Needs Under Review
The Ministry of Finance said it has spent several months estimating funding requirements for salaries, operational costs, investment spending, civil service employment positions, and the restoration of employee entitlements that were affected by the absence of a federal budget and the continuing financial crisis.
At the end of last month, Council of Ministers Secretary Amanj Rahim told Channel8 that, based on the latest population census, the Kurdistan Region should receive 14% of Iraq's federal budget.
He added that sovereign expenditures should be reviewed and that the Region should receive its share of operational spending, investment allocations, and provincial development funds.
FYI
The Kurdistan Region's share of Iraq's federal budget has remained a longstanding point of dispute between Erbil and Baghdad. Since 2014, the federal government has not consistently transferred the Region's budget allocations, despite annual budget laws specifying a share. Discussions over salaries, operational funding, investment spending, and revenue-sharing continue to play a central role in negotiations between the two governments.
Financial expert: The liquidity crisis in Iraq is temporary... borrowing may begin after October!
Financial expert Mustafa Hantoush said that the Iraqi state’s revenues during the first five months of this year amounted to about 27 trillion dinars, stressing that the government is working to manage the liquidity crisis through a set of financial measures, foremost among them treasury transfers, to ensure the continued payment of employee salaries.
Hantoush explained in televised statements followed by “Al-Jarida”, that the Central Bank of Iraq has entered the crisis line through measures aimed at providing liquidity parallel to the reserves, expecting that the current liquidity will be sufficient to secure the salaries of employees until next month, stressing that maintaining the stability of the dollar exchange rate represents a positive step to protect the value of the local currency.
Regarding the oil file, Hantoush pointed out that exporting Iraqi oil through the Strait of Hormuz costs Iraq about five dollars per barrel, noting that the strait crisis caused Iraq to lose about 90% of its oil revenues during the crisis period.
Hantoush blamed what he called "corruption within the Ministry of Oil" for Iraq's lack of an oil tanker fleet, explaining that this issue, along with restrictions on insurance companies and the private sector, has led to increased crude oil export costs. He added that Iran has permitted the passage of chartered oil tankers, provided they do not belong to countries it considers hostile.
He also criticized the mechanisms for importing oil products, considering that the ministry imports them at prices higher than global prices, while he saw that investment in the energy sector focused on oil and neglected investment in free Iraqi gas, which exacerbated the challenges in the energy sector.
He added that some of the imported refineries suffered malfunctions after they were put into operation as a result of being injected with contaminated water, which led to them going out of service, as he put it.
Regarding the financial situation, Hantoush explained that non-oil revenues amount to about four trillion dinars, while the government needs about 7.5 trillion dinars to cover basic obligations, noting that the draft borrowing law is before the House of Representatives, with expectations of resorting to borrowing after October, in addition to adopting a savings policy targeting high-salary earners.
Hantoush concluded by saying that Iraq's oil exports could reach 1.5 million barrels, with continued pressure on spending in the coming months, stressing that the government has tools to combat corruption, and that solutions to the financial crisis remain viable and implementable.
MP: Maliki's coalition is firm on its candidates for the vacant ministerial posts
Former State of Law Coalition MP Hussein Mardan confirmed that his coalition remains firm on its candidates for the vacant ministerial portfolios in Ali al-Zaidi’s cabinet, noting that there are no reasons or justifications for rejecting the names submitted by his coalition.
Mardan told Al-Maalomah that "the State of Law Coalition has not made any changes to its candidates that it presented in the session to grant confidence to the ministerial cabinet, as the same names are still nominated for ministerial positions."
He added that "the State of Law Coalition, as well as other alliances, did not change the names of their candidates for the vacant ministerial positions, as Amer al-Khazai and Qasim Atta are still candidates nominated by the State of Law Coalition, despite it having other competent figures."
He explained that "the State of Law Coalition's rejection of the nominated candidates lacked any convincing reasons or justifications, especially since the candidates are experienced, competent, and professional figures with a history in the Iraqi government. The reasons for the rejection remain unclear."
Currency printing is knocking on Iraq's door... warnings of an economic catastrophe
Al-Mada newspaper revealed in a report followed by “Al-Mustaqilla”, the escalation of the financial liquidity crisis in Iraq, after the Parliamentary Finance Committee proposed the option of resorting to printing currency to secure employee salaries and avoid a financial crisis that some MPs described as potentially leading to a “revolt of hungry stomachs”, at a time when economists warn that this option may open the door to a dangerous wave of inflation if it is not accompanied by a real increase in production.
According to the report, Jamal Kojar, a member of the parliamentary finance committee, said that printing currency has become one of the options being considered to overcome the current liquidity crisis, despite the awareness of the economic risks involved. He explained that the government is facing a time gap due to the delay in receiving oil revenues, which are received two or three months after the sales.
Kujer explained that the options available to the government have become limited, noting the difficulty of relying on recovering funds from corruption cases within a short period, as well as the fact that increasing non-oil revenues or activating other resources requires a long time.
He explained that the halt or decline in export activity as a result of security and regional developments has directly affected revenues, noting that Iraq is now facing difficulty in maintaining normal export levels, which has led to significant pressure on government liquidity.
The report indicated that the Finance Committee believes the government faces difficult choices between using part of the cash reserve or taking exceptional measures to provide the necessary funds for operational expenses, primarily employee salaries.
In contrast, economic experts warned of the dangers of printing money without real economic growth, stressing that the problem facing Iraq is not financial bankruptcy, but rather mismanagement of resources and excessive reliance on oil as a primary source of revenue.
Economic expert Jalil Al-Lami said that Iraq possesses significant financial resources, including foreign reserves, gold reserves, and a huge oil wealth, but the problem lies in the structure of the economy, which relies heavily on oil in contrast to weak non-oil revenues and high operational spending.
Al-Lami warned that issuing large quantities of currency without increasing production will lead to higher inflation, a decline in the purchasing power of the dinar, and an increase in demand for the dollar, which may be reflected in the prices of goods and local markets.
He pointed out that the experiences of countries such as Zimbabwe and Venezuela have shown the danger of resorting to printing money as a solution to financial crises, stressing that this measure could turn from an attempt to address a temporary crisis into a cause of a deeper economic crisis.
Economists have suggested other alternatives, including domestic borrowing through government bonds, reprioritizing spending, strengthening tax and customs revenue collection, increasing oil exports, and activating the private sector.
The controversy over printing currency comes at a time when the Iraqi economy is facing increasing pressure due to its heavy reliance on oil revenues and the ballooning wage bill and operating expenses, amid warnings that continuing to address crises temporarily without structural reforms could exacerbate financial challenges in the coming period.
Al-Bayati: Four files are on the table for hosting the Minister of Finance, most notably employee salaries.
MP Mohammed Al-Bayati predicted on Tuesday that the Minister of Finance would be hosted next week, noting that four issues would be on the agenda for the meeting.
Al-Bayati explained in his interview with Al-Maalouma that "the financial situation in the country needs an objective reading to identify its challenges and propose solutions and alternatives, especially securing the salaries of Iraqi state employees and all ministries and institutions, especially with the delay in distributing the salaries of some ministries and bodies."
He added that "the Minister of Finance may be hosted next week, and four files will be presented during it, most notably the financial balance, what alternatives are available, what the ministry's approved plan is for the coming period, and solutions to it will be presented."
He stressed that "this file is very important, and the Ministry of Finance's assessment of the country's financial situation is crucial, as it will provide a roadmap for the nature of the current challenges."
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“Iraq is not bankrupt”... Economist: Printing “currency” is the most dangerous solution to the liquidity crisis
Economic expert Jalil Al-Lami confirmed that the Iraqi economy is experiencing a severe liquidity crisis, but at the same time it reveals a structural flaw in the management of public finances. He stressed that Iraq is not a bankrupt country, but rather possesses foreign reserves estimated at about $97 billion, in addition to more than 130 tons of gold, as well as an oil reserve exceeding 140 billion barrels, making it the fifth largest oil reserve in the world.
Al-Lami said that the main problem lies in the fact that the Iraqi economy depends on oil to finance more than 90% of the budget revenues, while non-oil revenues constitute less than 10%, noting that more than 70% of public spending goes to salaries, pensions and social welfare, amounting to approximately 80 trillion dinars annually.
He added that lower oil prices or a decline in exports due to regional tensions leads to a decrease in cash flows, resulting in a liquidity crisis despite the continued presence of oil wealth and foreign reserves.
He explained that there are realistic options available to the government to secure salaries if the decline in oil revenues continues, the first of which is internal borrowing through treasury transfers and government bonds, which is the option that the government used during the 2020 crisis.
He pointed out that the second option is to rearrange spending priorities and postpone non-essential projects while ensuring the continued payment of salaries and basic services, while the third option is to increase non-oil revenues through taxes, customs and electronic collection.
Al-Lami stressed that resuming oil exports through the Ceyhan port represents an important resource, explaining that exporting 300,000 barrels per day at a price of $70 per barrel generates about $21 million per day, or more than $630 million per month, and more than $7 billion annually.
He added that every increase of 100,000 barrels per day in oil exports provides about $2.5 billion annually, stressing that these revenues are sufficient to greatly alleviate the liquidity crisis.
He stressed that these measures might keep the government away from the option of printing money, explaining that issuing currency is not a solution but rather an exceptional means that could turn into a bigger crisis.
He explained that printing money does not increase production or create wealth, but rather increases the amount of money in circulation, noting that if the government, for example, needed 10 trillion dinars and issued them without any real revenue or production, this would lead to inflation and higher prices.
He pointed out that this is what happened in Zimbabwe and Venezuela, where inflation led to the collapse of the national currency, stressing that rentier economies dependent on imports, such as Iraq, are more vulnerable to the effects of printing money than industrial and productive economies.
He added that resorting to printing currency will lead to an increase in the money supply without an increase in production, which will raise the demand for the dollar because Iraq imports most of its food and industrial needs, which will be reflected in a decrease in the exchange rate of the dinar in the parallel market, an increase in the prices of imported goods, an increase in inflation, and a decline in the purchasing power of the citizen.
Al-Lami cited what happened at the end of 2020 when the exchange rate of the dinar was reduced from 1,182 dinars to 1,460 dinars per dollar in order to boost government revenues, which led to a significant increase in the prices of basic commodities, warning that any resort to printing money could reproduce the crisis on a larger scale and lead to a loss of confidence in the national currency.
He stressed that the Iraqi economy needs urgent financial reforms to avoid a recurrence of this crisis in the future, starting with reducing dependence on oil from more than 90% to lower levels, through the development of tax, customs, industrial and agricultural revenues.
He added that it is necessary to restructure public spending, because the total amount of salaries, pensions and social welfare exceeds 80 trillion dinars annually, which consumes most of the state’s resources.
He also called for reducing privileges and unproductive spending, and curbing waste and corruption, which has cost tens of billions of dollars in recent years.
He pointed to the importance of establishing a sovereign wealth fund into which oil surpluses are deposited during years of high prices, citing the experience of Norway, whose sovereign wealth fund exceeded $1.8 trillion, as well as the experiences of Kuwait, Saudi Arabia and the UAE.
Al-Lami concluded by emphasizing that revitalizing the private sector, increasing local and foreign investment, and developing industry and agriculture will make the Iraqi economy less vulnerable to fluctuations in oil prices and prevent future liquidity crises.
“If the liquidity crisis continues,” Kujer says, “printing money has become the most likely option to secure salaries.”
Jamal Kojar, a member of the parliamentary finance committee, said that the proposal to resort to printing currency to secure employee salaries represents a personal opinion that he puts forward in light of the limited options available to the government, stressing that the decision in this regard is up to the Central Bank of Iraq and the Ministry of Finance as they are the two competent executive bodies.
Kujer explained that the government faces very limited options to provide the necessary liquidity to cover salaries during the next three months, indicating that among these options is the recovery of looted funds from corrupt individuals, but this path faces great difficulties, pointing to the case of the accused Adnan al-Jumaili as an example of this, in addition to the fact that maximizing revenues requires a long time.
He added that increasing oil revenues is not in the hands of the Iraqi government, noting that projects to restart old export lines, such as the Banias line and the Aqaba line, face security challenges, saying that even oil tankers have been targeted.
He pointed out that the other options are raising taxes, which means increasing the burdens on citizens, or selling state properties to pay off bank debts that have reached large levels, considering that the option of printing money remains the closest, despite the risks it carries, but it is less harmful than the failure to pay salaries.
Kujer stressed that addressing the current crisis is not within the purview of the House of Representatives or its committees, explaining that the matter falls under the responsibility of the executive authority, while the role of Parliament is limited to oversight and enacting laws requested by the government to help overcome the crisis, in addition to exercising its oversight role in combating corruption.
Regarding the new borrowing law, he explained that this law will not contribute to solving the salary crisis, because the loans that can be obtained from the International Monetary Fund are exclusively allocated to financing investment projects, and not for operational expenses. He also pointed out that the Qatari and Emirati investment funds are still, as he described them, “ink on paper,” adding that the security situation and the influence of armed groups limit the attraction of investors.
He pointed out that the central bank is pushing towards maximizing state resources, but he believes that if the choice becomes limited to the collapse of the state or drawing from the reserves, the central bank will agree to draw to avoid the collapse of state institutions or the outbreak of protests due to delayed salaries.
Kujer explained that the oil export crisis has exacerbated the financial situation, clarifying that the government will remain in a severe crisis for at least two months even if exports resume, because oil revenues do not reach the treasury until two or three months after the date of sale.
He stressed that printing currency represents, in his view, the “safe option” compared to other alternatives in the event of the crisis continuing.
Kujer revealed that the Minister of Finance informed the Finance Committee, during his hosting in the House of Representatives, that Iraq has not been able to sell any barrel of oil through the Strait of Hormuz and the port of Umm Qasr since August 2, indicating that the quantities currently exported do not exceed about one million barrels per day, at a time when the budget was already suffering from a deficit even with the export of about 3 million and 250 thousand barrels per day, noting that production levels are witnessing fluctuations between rising and falling.
Government advisor: The liquidity crisis does not mean the state is bankrupt, and salaries are
guaranteed.
The government’s financial advisor, Mazhar Muhammad Saleh, confirmed that the liquidity crisis facing Iraq does not mean a shortage of funds or the bankruptcy of the state, stressing that the government possesses the financial and administrative tools necessary to ensure the continued funding of salaries and to meet its basic obligations.
Saleh explained that the current pressures are due to the imbalance between the timing of oil revenues entering the treasury and the monthly spending obligations, primarily employee salaries, in addition to the increase in public spending, the expansion of appointments, and the weakness of non-oil revenues.
He pointed out that these challenges, along with regional tensions that may affect trade and oil exports, do not mean that Iraq is entering a severe financial crisis, stressing that the country has multiple options to manage the situation and maintain financial stability.
He explained that the government is able to ensure the payment of salaries by managing liquidity efficiently, prioritizing essential expenditures, with the possibility of rescheduling some non-urgent investment expenditures when needed, as well as improving collection, reducing financial waste, and enhancing non-oil revenues.
He added that resorting to internal or external financing remains an available option when necessary, provided that it is used within the safe limits of public debt, in a way that ensures the continued financing of basic obligations without harming financial stability.
Saleh stressed that the next phase requires accelerating projects to diversify oil export outlets and developing infrastructure in the transport and energy sectors, in order to reduce the risks of relying on a single source of revenue and enhance the ability of the Iraqi economy to cope with regional and international changes.
He concluded by emphasizing that achieving sustainable financial stability requires proceeding with economic reforms, diversifying income sources, and building an economy that is more resilient to external shocks, rather than relying solely on oil revenues.
Al-Zaydi directs the adoption of "pre-audit" for government contracts
Prime Minister Ali Faleh Al-Zaidi directed the adoption of the principle of pre-auditing contracts before their signing, as a preventive measure aimed at addressing problems before they occur, because it represents immunity for institutions. He also directed the formation of a specialized team from the Financial Control Bureau to undertake the task of pre-auditing contracts, within a period not exceeding ten working days, with the determination of ceilings and values of contracts that are subject to this type of audit.
On Tuesday, the Prime Minister visited the headquarters of the Federal Board of Supreme Audit, where he chaired a joint meeting that included the head of the Federal Board of Supreme Audit and the head of the Integrity Commission, in the presence of the Minister of Finance. The meeting was dedicated to discussing mechanisms for strengthening preventive oversight, protecting public funds, and developing procedures for auditing government contracts.
A statement from the Prime Minister’s Media Office, received by Al-Sabah, indicated that Al-Zaydi stressed that responsibility requires hard work, achievement, and completing the duty in the best possible way, emphasizing the need for everyone to bear their legal and national responsibilities.
The Prime Minister directed the adoption of the principle of pre-audit of contracts before their signing, as a preventative measure aimed at addressing problems before they occur, as it represents a safeguard for institutions. He called upon the Federal Board of Supreme Audit and the Integrity Commission to act as the state's eyes and ears in detecting and addressing loopholes before they escalate into problems or corruption cases. In this regard, Al-Zaydi directed the formation of a specialized team from the Federal Board of Supreme Audit to undertake the pre-audit of contracts within a period not exceeding ten working days, while specifying the ceilings and values of contracts subject to this type of audit, in order to achieve both speed of completion and efficiency of oversight.
The Prime Minister also stressed the need for government contracts to be legally and technically sound, and to be based on fair and reasonable prices, indicating that exaggeration in costs is one of the most prominent avenues for corruption, which requires addressing it firmly, while ensuring that projects are implemented according to the specifications and quality stipulated in the contracts.
Al-Zaydi called for establishing a preventive mindset in oversight work, alongside the traditional oversight role, stressing that the Financial Control Bureau and the Integrity Commission represent the state’s shield in protecting public funds and ensuring citizens’ rights, which is a national and moral responsibility.
The Prime Minister pointed out the importance of keeping the Financial Control Bureau away from any political considerations or quotas, and that the standards of competence, integrity, professionalism and impartiality should be the basis of its work, reiterating the government’s commitment to providing all forms of support and assistance to the Bureau and the Integrity Commission to enable them to perform their tasks efficiently and independently.
The Kurdistan Region is demanding 14.1% of the federal budget.
- The Kurdistan Region is demanding 14.1% of the federal budget based on the new population census.
- The 2027 budget will include promotions and the hiring of 100,000 people.
- The Kurdistan Region's requirements for salaries, investment, and oil expenditures amount to 25 trillion dinars.
- Ministries have been instructed to submit reports on their expenditure and revenue estimates by the end of this week.
Channel 8 has obtained information indicating that the Kurdistan Regional Government has begun preparations for the 2027 budget and is seeking to increase the Kurdistan Region's share from 12.6% to 14.1%.
This step, based on the general population census data, is not limited to salaries, but also includes promotions that have been pending since 2016, as well as spending by oil companies and development projects in the provinces. A technical delegation is scheduled to visit Baghdad next month to confirm these demands.
- The Ministries of Finance and Planning in the Kurdistan Region:
- The call to increase the Kurdistan Region’s share of the Iraqi general budget to 14.1%.
- The aim is to appoint 100,000 employees, including 81,000 contract workers and teachers who will be made permanent staff.
The federal government and the budget proposal
Iraq is preparing its 2027 budget with a new classification of revenues and expenditures that differs from what it was in previous years.
Although the Kurdistan Region’s budget has not been fully disbursed since 2014, Baghdad will only set a general classification of data for the coming year; in return, the Kurdistan Regional Government insists on the need to review government and provincial expenditures and provide the Kurdistan Region’s provinces with their share of the development and investment budget.
The financial allocations for promoting civil servants are estimated at 1 trillion and 150 billion dinars. Annual salary expenditures in the budget are set at 14 trillion dinars. The Kurdistan Region's total share is 25 trillion dinars, including investments, oil revenues (petrodollars), and oil company expenditures.
With the escalation of US-Iranian tensions, will Iraq enter the circle of conflict?
Writer and political analyst Mustafa Al-Obaidi suggested that Iraq would enter the conflict if the confrontation between Washington and Tehran escalated, predicting that it would be in a manner similar to what happened during the previous war between the United States and Israel on one side, and Iran on the other.
Al-Obeidi said in a special statement to Al- Sa’a Network that “the Iraqi government is unable to stop the activities of the armed factions that are loyal to Tehran, and it does not have the authority to prevent them from declaring war unilaterally, which is something that the countries of the region have come to know and understand well, as evidenced by the warnings sent from Saudi Arabia, Jordan, Syria and Kuwait to Iraq that any targeting launched from Iraqi territory will be met with a response from those countries.”
He added that "what is expected in the next stage, in the event of a renewed conflict and its entry into a new and severe stage of escalation, is that the armed factions will enter into it on the orders of the Revolutionary Guard, in order to expand the arena of conflict and relieve the pressure on the Islamic Republic of Iran."
He pointed out that "this participation will be limited, so that it is restricted to missile and drone strikes launched by the factions from inside Iraq towards targets in Iraq or neighboring countries, in exchange for responses from those countries and from the American side."
He pointed out that "Washington is well aware that the Iraqi government is completely unable to impose its authority on the Iranian-backed factions, yet it expects them to disarm within a limited period, which is something that is impossible to happen soon."
He explained that “Washington will place the blame on the Iraqi side if it is officially unable to control the weapons and restrain the factions, which will lead to a new tension in the relationship between Baghdad and Washington, as the latter will seek to impose economic and financial sanctions on Iraq, in addition to military strikes and ending political support for Iraq.”
Baghdad tightens measures to prevent missile and drone launches
Security and political sources revealed on Tuesday that the Iraqi government has begun implementing strict security measures to deal with the possibility of a military escalation that could affect the country, while continuing its efforts to prevent the use of Iraqi territory to launch attacks targeting neighboring countries.
Al-Mada newspaper quoted sources as saying that “Washington is closely monitoring the measures taken by Prime Minister Ali al-Zubaidi following his meeting with US President Donald Trump, particularly regarding the issue of restricting weapons and preventing the use of Iraqi territory to launch missiles and drones towards neighboring countries.”
The sources explained that "the security services have begun implementing field measures aimed at preventing the launching of missiles and drones, despite the government's continued denial that the recent attacks originated from within Iraq," stressing that "severe penalties will be imposed on any security official who proves that missiles or drones were launched from within his area of responsibility."
She added that "the security plan includes tightening control over the areas of Basra, the Najaf desert, Samawah, and Anbar, with a focus on the areas adjacent to the Iraqi borders with Saudi Arabia and Jordan, to prevent the recurrence of any cross-border attacks."
Despite these measures, the sources indicated that “Baghdad may not be able to completely prevent the launching of drones or prevent any possible responses from the Gulf states or Jordan, given American concerns about some factions continuing to possess ballistic missiles that Washington believes they obtained from Iran and are still hidden inside Iraq.”
In this context, the newspaper quoted a member of one of the Shiite parties, who asked not to be identified, as saying that "the factions have, for the time being, backed down from the option of using ballistic missiles, following the decision of the American president to halt what he described as a surrender strike against Iran."
The sources also pointed out that "the state of security anticipation was reflected in the movements of some armed formations, as the Nineveh Operations Command of the Popular Mobilization Forces issued directives to evacuate a number of headquarters and military formations in the province, in anticipation of any possible American air strikes."
US military: The southern route in the Strait of Hormuz remains open
AnnouncedUS ArmyThe southern route inStrait of HormuzIt remains open to all ships.
“He didn’t see his face in the car”... Details of Pezeshkian’s meeting with Mojtaba Khamenei
A new account published by the “Iran International” platform regarding the behind-the-scenes relationship between Iranian President Masoud Pezeshkian and Iranian Supreme Leader Mojtaba Khamenei has sparked widespread controversy, after it included unprecedented details about a meeting that it said took place between the two men under exceptional security circumstances, based on what it described as “private information” from its sources.
Iran International said it had obtained information indicating that Pezeshkian met Khamenei in the back seat of a commercial vehicle with tinted windows, at a secret location in the capital, Tehran, contrary to the account Pezeshkian had given in mid-May, when he said that a meeting he had with Khamenei lasted two and a half hours and took place in a “friendly atmosphere.”
According to the platform, Mojtaba Khamenei’s office agreed to hold the meeting after repeated requests from Pezeshkian and his threat to resign, but he was informed that the meeting would not be held at the Supreme Leader’s permanent headquarters, as was customary.
She added that security guards took Pezeshkian to an unknown location inside Tehran, where he met Khamenei inside a car, and the conversation between them lasted only a few minutes before the Iranian president was asked to leave the place.
Iran International, citing its sources, reported that Pezeshkian was not allowed to shake hands with Khamenei or see his face, as their communication was limited to exchanging words without direct confrontation, which the Iranian president considered, according to the sources, “humiliating treatment that provoked his displeasure.”
The sources added that Pezeshkian wondered, upon his return, whether the person he spoke to inside the car was indeed Mojtaba Khamenei, noting that he only heard his voice, without being able to see him.
The platform also stated that Pezeshkian recently requested a new meeting with Khamenei at his residence, but the request has been rejected so far.
In a related context, Iran International noted that no audio or video recording of Mojtaba Khamenei has been published since he was chosen as the third Supreme Leader of the Iranian regime about five months ago, adding that the Hamshahri newspaper website published a video clip that spoke about the ability of foreign intelligence agencies to determine his whereabouts through the analysis of audio recordings, which increased speculation about his situation.
The platform also quoted Iranian Foreign Minister Abbas Araqchi as saying, in an interview conducted on July 9, that he had not met Mojtaba Khamenei during that period, and that only a few had been able to meet him, while Pezeshkian had announced the following day that the number of his meetings with Khamenei had increased.
In another development, Iran International quoted Mohammad Baqer Kharrazi, the head of the Iranian Hezbollah, as saying that Mojtaba Khamenei had informed Pezeshkian that if he submitted his resignation again, it would be accepted, also indicating that there was a trend to make changes in the Iranian Supreme National Security Council and the negotiating team.
India Condemns Attack After Indian-Flagged Ship Sinks in Red Sea
According to a local official in the Yemeni city of Mokha, coast guards rescued the crew of the MSV Faize Noore Oliya after the vessel was attacked south of the Yemeni port city of Hodeida. The crew consisted of 13 Indian nationals and one Yemeni.
An Indian-flagged commercial vessel sank in the Red Sea on Tuesday after coming under attack, with all 14 crew members rescued and India condemning what it described as an "unprovoked" act of aggression.
According to a local official in the Yemeni city of Mokha, coast guards rescued the crew of the MSV Faize Noore Oliya after the vessel was attacked south of the Yemeni port city of Hodeida. The crew consisted of 13 Indian nationals and one Yemeni.
Yemen's internationally recognized government blamed the Iran-backed Houthi rebels for the attack, according to the state-run Saba news agency.
Indian Shipping Minister Sarbananda Sonowal said on X that the vessel was "hit by a projectile near Yemeni waters."
"India strongly condemns this unprovoked attack," Sonowal said.
Indian Foreign Ministry spokesperson Randhir Jaiswal also denounced the incident, stating that "the targeting of commercial shipping in the region must end."
The attack comes after the Houthis last month announced a maritime blockade in the Red Sea targeting Saudi Arabia, the world's largest crude oil exporter. Since then, the group has claimed responsibility for several attacks on oil tankers and energy infrastructure.
India is one of the world's largest suppliers of merchant seafarers, with more than 320,000 active sailors in 2025, according to the country's shipping ministry.
The latest attack underscores growing concerns over maritime security in the region. Iran's blockade of the Strait of Hormuz following the outbreak of the Middle East conflict has increased the strategic importance of the Red Sea shipping routes. Saudi Arabia has continued exporting crude through its Red Sea port of Yanbu, allowing shipments to reach global markets without transiting the Strait of Hormuz.
Al-Hamidawi rejects dismantling the "resistance" weapons: We will develop them and expand our arsenal.
In a statement received by Shafaq News Agency, Al-Humaidawi stressed "the continuation of jihad in the path of God, and deterring every aggressor, so that he pays double the price for his aggression, especially the crime committed by the American-Saudi enemy against our sons, in a dangerous precedent that portends repercussions that may establish a new phase in the region."
He considered that “this is a reason for us to hold on to the weapon of resistance, and not to give it up, but rather to develop it and increase its arsenal, and to strive to purify our security space, while stressing the need for full commitment to security procedures and the preservation of secrets, in a manner that is commensurate with the size of the challenges, to deter anyone who wants to harm us in the wars of this stage; those wars that have not ceased to align military jihad with media jihad to confront the enemies and their henchmen with great strength and unwavering steadfastness.”
The Popular Mobilization Forces announced on July 29 that at least 20 of its members were killed and 32 others were wounded as a result of attacks launched by American and Saudi fighter jets targeting official Popular Mobilization Forces headquarters in a number of Iraqi provinces.
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