IMF: Iraq has succeeded in maintaining its internal stability.
The International Monetary Fund (IMF) confirmed on Saturday that Iraq has succeeded in maintaining its internal stability despite regional tensions, while indicating that the inflation rate in Iraq has remained low.
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The Fund said in a report that "Iraq has succeeded in maintaining its internal stability despite regional tensions and unstable global conditions," noting that "the inflation rate has remained low in Iraq," stressing "the need to implement fundamental reforms to increase non-oil revenues and control the public wage bill," indicating that "current and investment spending plans for 2025 should be reviewed."
It stressed that "it is necessary and urgent to reform the public pension system by raising the retirement age and reducing accumulation and replacement rates," praising "the success of the Central Bank of Iraq in fully transitioning to the new trade finance system and its contribution to narrowing the gap between the official and parallel exchange rates."
The Fund indicated that "the Central Bank of Iraq has begun studying reform options to strengthen the private banking sector," stressing, "We encourage Iraq to accelerate its efforts to improve the issuance and collection of electricity bills."
He explained that "progress has been made in implementing the National Anti-Corruption Strategy and improving the Corruption Perceptions Index," adding that "it is essential to focus on bridging the most pressing statistical gaps and integrating pilot initiatives."
Iraq's accession to international financial institutions enhances economic development opportunities.
As part of its efforts to strengthen its financial presence on the international stage and diversify funding sources for its service and construction projects, Iraq has taken a significant step by joining two of the most prominent multilateral financial institutions: the European Bank for Reconstruction and Development and the Asian Infrastructure Investment Bank. Although the direct repercussions of this step are still in the developmental stage, economists see it as a prelude to attracting long-term financing, bolstering development efforts in vital sectors such as energy, infrastructure, and transportation, and opening the doors to international partnerships for Iraq in the post-crisis phase.
Projects and bridges
Economic expert Dr. Majid Al-Baydani explained to Al-Sabah regarding Iraq’s accession to the Asian Development Bank: “The projects currently underway in Baghdad, such as bridges and others, have no connection to the Asian Development Bank’s projects, as their funds are allocated by the state in the project budget according to the investment portion of the budget. The Asian Development Bank has no role in implementing or establishing the aforementioned projects, as the contractor may be Chinese, the implementing company may be Chinese, or another international nationality.”
He added, "The implementation of projects by the Asian Development Bank is subject to certain conditions, including that the bank selects the implementing companies, along with their own mechanisms and engineering efforts, unlike what some might imagine. Furthermore, the bank's projects are implemented through loans from the bank and on its own terms."
long term
Economic expert Ahmed Makalaf believes that “there has not yet been any direct benefit from Iraq’s joining the Asian Infrastructure Investment Bank. Rather, the benefit is long-term, not immediate. The real benefit is in giving Iraq an international standing and a good reputation from an economic perspective.”
“The development road will be a gateway for the Asian Development Bank to enter Iraq with projects,” the official added in an interview with Al-Sabah. “It is likely that the country will borrow from the bank to implement projects related to the road, and will likely build cooperation through this bank in financing parts of the activity for major projects related to the development road, contributing to strengthening the economy within the international environment and building strong international relations in the future.”
Membership shares
For his part, Dr. Mazhar Mohammed Saleh, Advisor to the Prime Minister, stated that as far as the distribution of capital among the participating countries in the Asian Infrastructure Investment Bank is concerned, the bank's total capital amounts to $100 billion, with 20% allocated as paid-in capital and the remainder as callable capital. Each country is obligated to contribute its share of the paid-in capital upon joining.
sustainable development
He added: "The Asian Infrastructure Investment Bank (AIIB) is an international institution that aims to support infrastructure projects and sustainable development in Asia and beyond. The bank, headquartered in Beijing, provides concessional loans to finance infrastructure projects for member countries. This accession is a strategic step for Iraq to advance its development projects in areas such as transportation, energy, and water."
European Bank
Regarding the benefits of Iraq joining the European Bank, Saleh said: “There is a positive correlation between building a development strategy, which is embodied today by the government’s philosophy of launching a development initiative with comprehensive sectoral economic links, called the “Development Road” project, which is the corridor and strategic project that links the European Union countries with Asia via Iraq and the Gulf maritime corridors and vice versa, on the one hand, and the requirements for implementing the various stages of the development road through the role that Iraq’s membership in the European Bank for Reconstruction and Development occupies, on the other hand, especially in terms of the advantages of obtaining European technology and ensuring the role of companies from European Union countries in implementing the development road in all its aspects, whether in infrastructure, industrial production projects, or various logistical services.”
For the first time in the Arab world, an Iraqi bank has been awarded the Leadership Award.
The World Union of Arab Bankers presented the first Leadership and Excellence Award for Supporting the Growth of Small and Medium Enterprises in Iraq for 2025 to Mosul Bank for Development and Investment.
The union stated in a statement, "This award was given to Mosul Bank in recognition of its prominent role in supporting the Iraqi economy, particularly in financing small and medium-sized enterprises. It is considered one of the oldest banks in Iraq."
He added, "Mosul Bank is distinguished by the quality of its services and its effective contribution to developing the Iraqi economy. For the second year in a row, the bank has received this award, a testament to its successful track record."
This achievement is the first of its kind in the Arab world, as hundreds of banks in 22 Arab countries and 76 Iraqi banks competed and were compared.
This came during an official ceremony held in the Lebanese capital, Beirut, on the evening of Friday, July 18, 2025, in the presence of a number of banking figures and representatives of financial institutions from various Arab countries.
The award was received by the Chairman of the Mosul Bank for Development and Investment, Dr. Tamkeen Abdul Sarhan Al-Hasnawi. This recognition comes in light of the bank's initiatives to promote financial inclusion and adopt flexible financing policies aimed at stimulating the Iraqi economy and opening new horizons for the private sector.
For his part, Dr. Tamkeen Abdul Sarhan Al-Hasnawi expressed his "appreciation for this honor," emphasizing the bank's "continued expansion of its development programs and support for economic initiatives that contribute to job creation and sustainable growth for the Iraqi economy."
Parliament decides to hold an extraordinary session next Monday.
Extraordinary session Monday, July 21
Affairs!
Representatives reading verses from the Holy Quran
First: A general topic for discussion regarding the Kut fire incident.
Second: A general topic for discussion regarding the terrorist attacks with explosive drones on infrastructure in the Kurdistan Region.
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Strengthening the national economy... Parliament prepares to approve the industrial investment law.
Representative Firas Al-Maslamawi, spokesman for the Reconstruction and Development bloc in parliament, confirmed on Saturday that there is a clear desire among most political blocs to pass several important laws during the final legislative session, most notably the Popular Mobilization Forces Law and the Industrial Investment Law.
Al-Maslamawi told Al-Maalouma News Agency, “The Industrial Investment Law has a significant impact on developing the industrial sector, and its passage will bring a qualitative leap forward for this vital and important sector.”
He added, "The House of Representatives is determined to make up for the missed passage of important laws during the previous legislative session, which saw a number of political blocs boycott the sessions, in addition to the regional security challenges in the region."
He pointed out that "the majority of political blocs support the passage of laws related to reconstruction and the development of vital sectors that generate high financial revenues, in addition to the insistence of many political forces on passing the Popular Mobilization Forces law."
Al-Maslamawi explained that “the Industrial Investment Law is one of the most prominent laws to be passed during the final legislative session, due to its pivotal role in strengthening and developing the industrial sector in Iraq.”
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A Kurdistan Regional Government official identifies the launch site of the drones that targeted the region's oil fields.
Aziz Ahmed, Deputy Director of the Office of Kurdistan Regional Government Prime Minister Masrour Barzani, revealed on Saturday, July 19, 2025, the launch site of the drones that targeted oil fields in the Kurdistan Region.
In a brief post on the X platform, followed by Al-Jabal, Ahmed said, "The suicide drones that targeted oil fields in the Kurdistan Region last week were launched from the Dibis district in Kirkuk," without providing further details.
This July witnessed intensive drone attacks targeting oil fields and military sites in the Kurdistan Region, including the Sarsink field in Zakho, the Hand Oil field in the Sheikhan district of Dohuk, the DNO field in the Fishkhabur area of Zakho city, and other vital areas.
On Friday, the spokesman for the Commander-in-Chief of the Armed Forces, Sabah al-Numan, revealed the findings of investigations into the targeting of Iraqi radars and drone attacks.
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Al-Numan said in a statement that, “Based on the directives of the Commander-in-Chief of the Armed Forces, Mohammed Shia al-Sudani, to form a high-level investigative committee that includes senior officers and specialists, to look into the targeting incidents that affected a number of radar sites belonging to the Iraqi Armed Forces, through the use of suicide drones at simultaneous times, targeting defense systems in several military bases inside the country, and after precise and intensive security, intelligence and technical efforts, the investigations resulted in reaching important and decisive results, the most prominent of which are :
- Identifying the origin of the drones used in the attacks, which were found to carry warheads of varying weights and were manufactured outside Iraq .
The launch locations of these aircraft were accurately monitored, and it was proven that they launched from specific locations within Iraqi territory .
- Disclosing the parties involved in implementing and coordinating these hostile operations .
- Conducting a comprehensive technical analysis of the control and communication systems used in operating the aircraft, which enabled intelligence agencies to collect accurate data that supported the investigation results .
The investigative committee confirmed that all suicide drones used in the targeting were of the same type, clearly indicating that the perpetrator was a single party.
He added, "Based on the above, the security and military leadership affirms that it will not tolerate any threat targeting the security and safety of our armed forces and the capabilities of the Iraqi state. Legal action will be taken against all those involved, and they will be referred to the fair Iraqi judiciary to receive their punishment in accordance with the law."
He stated that "these cowardly, aggressive attacks constitute a blatant violation of national sovereignty, and no party, internal or external, will be allowed to undermine Iraq's security and stability."
Earlier today, US Chargé d'Affaires in Iraq, Stephen Fagin, stressed the need to halt drone attacks in the Kurdistan Region and called on the Iraqi government to hold the perpetrators accountable. Fagin met with Kurdistan Democratic Party (KDP) leader Masoud Barzani and Kurdistan Regional Government (KRG) Prime Minister Masrour Barzani in Erbil today.
"Fagan stressed the United States' commitment to its security partnership with the Kurdistan Region, along with mutual efforts to find a solution regarding salaries and oil exports," the statement said .
Al-Sudani: We plan to open Baghdad to a larger network of internal and provincial connections via two ring roads.
Prime Minister Mohammed Shia Al-Sudani confirmed, on Saturday, that the government plans to open Baghdad to a larger network of internal connections and with the governorates via the fourth and fifth circular roads.
His office said in a statement received by (IQ), "Prime Minister Mohammed Shia Al-Sudani received, on Saturday, the sheikhs and dignitaries of the Kadhimiya, Al-Shu'la, Al-Hurriyah, Al-Tobji, Al-Atifiyah and Al-Adl areas, during which he listened to an explanation from the sheikhs and dignitaries about the status of services in their areas, their proposals for addressing them, and the most prominent problems and requirements.
" Al-Sudani stressed that "such meetings are an opportunity to learn about the concerns of the citizen and clarify what the services government is working on." He praised the role of the authentic Iraqi tribes, which are relied upon as a safety valve for Iraq, and their awareness and responsibility in supporting the people of the country who have risen to the occasion in the legislative and executive institutions." He pointed out "what the capital, Baghdad, has suffered from in terms of a lack of and delays in services, in addition to terrorism, which has been defeated irrevocably, despite the increase in its population to 9.5 million people."
He explained, "The government has drawn up three tracks for services. The first is through the rapid delivery of services, through the Service and Engineering Effort Team. The second includes resuming work on stalled projects, especially hospitals, roads, bridges, water and sewage, and school buildings. The third track includes implementing new projects in Baghdad and the governorates, including easing traffic congestion."
He continued, "We plan to open Baghdad to a larger network of internal connections and with the governorates, via the fourth and fifth circular roads, which are connected without dividing borders from Diyala, Kut, Salah al-Din, and Abu Ghraib. The districts and areas surrounding Baghdad (Sabaa al-Bour, al-Nahrawan, al-Wahda neighborhood, and al-Rashid) have been included in all infrastructure projects."
He pointed out, "Without service projects, it will not be possible to move to building new cities and bringing about development. We have contracted with real estate developers and companies to build integrated cities, to ensure proper construction and the provision of services."
He continued, saying: "We have started in some areas with rapid rehabilitation and the addition of basic services, including Kadhimiya due to its special status in receiving millions of visitors annually," stressing that "the rehabilitation of the site (formerly the Fifth Division) in Kadhimiya will witness a qualitative shift for the city, and a new bridge will be added towards Al-Krayat to relieve congestion and pressure."
He stressed, "Stability must be maintained in order for development and reconstruction to continue, and there is a heavy price we paid to achieve this goal, and we say with confidence that terrorism is no longer capable of any threat, and the security services control all areas."
He pointed out, "Iraq is in the midst of a region inflamed with conflicts, and the criminal government of the entity has persisted in aggression and assault on the countries of the region without oversight or accountability. We maintain our principled position towards what is happening, and we work wisely and responsibly to avoid slipping into war and conflicts while we are in a construction phase, and we are consolidating our development, economic and service capabilities, to be a strong state capable of facing difficulties."
He explained, "Our security institutions enjoy the community's support in confronting all challenges, from the threat of drugs to preserving the state's achievements."
Kurdistan and the salary crisis... when the budget is managed by the oil quota equation
The winds of an agreement are blowing again between the Kurdistan Regional Government of Iraq and the federal government in Baghdad. This time, however, it is conditional, fragile, and tied to the immediate delivery of the region’s oil to the State Oil Company (SOMO), amounting to no less than 230,000 barrels per day, in exchange for a promise to pay long-awaited dues and salaries. This appears to be a familiar repetition of the pattern of short-term “functional” agreements.
This announced deal demonstrates the mechanics of a conditional exchange that are not without a utilitarian edge. The agreement stipulates that Baghdad will pay an advance of $16 for each barrel received, whether paid in kind or in cash, based on an amendment to the general budget law. This indicates the persistence of a calculating mentality in managing the relationship between the central government and the region, especially given a legacy of mutual apprehension and a history of previous agreements collapsing at the first political turning point.
The oil quota system continues under the "temporary solution" formula, with the region deducting 50,000 barrels of its 280,000 barrels of production for domestic consumption. The revenues generated from the sale of this quantity will go to the federal treasury, after deducting operating costs, in an attempt to subject every drop of oil to political and financial scrutiny. It appears that this time, re-refining is not just about oil, but also about the language of the agreements themselves, which have remained consistent with the recurring vocabulary: commitment, advance, joint committee, audit, and down payment.
Non-oil revenues emerge as a secondary area of controversy, with Erbil receiving 120 billion dinars as an initial payment for Baghdad's share, pending a "subsequent settlement" following an audit. This appears to be a deferred accounting ledger governed by the language of accountability rather than integration. These indicators raise doubts about the credibility of both parties' commitments and open the door to the possibility of new setbacks in this temporary structure.
Baghdad has reiterated its pledge to pay the salaries of the region's employees for the past month, provided that full oil shipments are confirmed at the port of Ceyhan. This recycles the relationship based on the "oil for salaries" principle, reflecting the continued lack of trust and the entrenchment of a political landscape in which wealth is managed based on the logic of conditions and gambles, rather than a stable constitutional framework.
President Barzani, Top U.S. Diplomat in Iraq Reaffirm Commitment to Regional Peace and a Strong Kurdistan Region
Ambassador Fagin commended the Kurdistan Region for its stabilizing role in Iraq and the broader region. He emphasized that the United States supports a strong and stable Kurdistan Region.
President Masoud Barzani received U.S. Charge d’Affaires to Iraq, Ambassador Stephen Fagin, on Saturday, at the Barzani headquarters in Erbil, to discuss key regional developments and the Kurdistan Region’s role in fostering peace and stability.
Also in attendance was the U.S. Consul General in Erbil, Stephen Bitner.
During the meeting, Ambassador Fagin commended the Kurdistan Region for its stabilizing role in Iraq and the broader region. He emphasized that the United States supports a strong and stable Kurdistan Region, describing its security and prosperity as beneficial to the entire region.
The talks also touched on the peace process in Turkey and the situation in Syria. Ambassador Fagin expressed appreciation for President Barzani’s efforts in supporting the Turkish peace process and his role in promoting unity among Kurdish political factions in Syria.
President Barzani affirmed his continued commitment to peace, stressing that the resolution of the Kurdish issue in Turkey serves the interests of all parties involved and the region as a whole. He pledged to continue supporting initiatives that advance dialogue and reconciliation.
The discussion further addressed ongoing efforts to form the Kurdistan Region’s tenth cabinet and the state of relations between the Kurdistan Regional Government (KRG) and Iraq’s federal government in Baghdad. The U.S. delegation welcomed the recent agreement between the two governments regarding financial entitlements and salary payments to the Kurdistan Region.
The meeting underscored Washington’s continued engagement with the Kurdistan Region as a reliable partner in promoting stability, democratic governance, and peaceful coexistence in the region.
May salary... a faint pulse in the tired Kurdish market
Economic expert Othman Karim commented on Saturday (July 19, 2025) on the disbursement of May salaries and the possibility of it revitalizing the Kurdistan Region markets after the major recession.
Karim told Baghdad Today, "Disbursing a single month's salary won't revive the markets, but it will contribute somewhat to their momentum, as Kurdish citizens need six months to regain their economic health."
He added, "Kurdish employees lack confidence that this agreement will continue, so it will take a long time to regain that confidence and begin spending on a large scale. Many employees have significant debts that they are trying to repay, so that the economy can recover."
He pointed out that "disbursing a single month's salary could revive the markets for basic commodities and food, but luxury goods such as real estate, cars, and electronics will take a long time to recover."
The Kurdistan Region's markets are suffering from a continuing economic recession due to financial crises and delayed payment of employee salaries, which has led to a decline in purchasing power and the postponement of many spending projects.
With the start of May salaries, citizens are hoping for a gradual recovery, although a full recovery will require more time and continued confidence in financial stability.
KRG to start salary payments Sunday
The Kurdistan Regional Government (KRG) will begin distributing public sector salaries on Sunday as part of the first phase of a new revenue-sharing agreement with Baghdad.
Speaking on condition of anonymity, a source from the KRG Ministry of Finance and Economy told Shafaq News that the KRG will transfer 120B IQD (about $85.3M) in local revenue to the Federal Ministry of Finance via the Central Bank’s Erbil branch. In exchange, Baghdad is expected to release 960B IQD ($682.3M) on Monday to cover May salaries, which will be disbursed between Tuesday and Thursday.
The same process, the source noted, will apply to June wages: another 120B IQD will be sent to Baghdad next Sunday, triggering a second 960B IQD transfer to fund that month’s salaries later in the week.
Regarding July payments, the source confirmed the KRG aims to begin partial disbursements in early August, pending the outcome of further talks with Baghdad on long-term revenue transfers, oil exports, and salary scheduling.
The agreement follows a high-level meeting last Thursday between Prime Minister Mohammed Shia al-Sudani and President Abdul Latif Rashid, where both reviewed plans to end the financial standoff with the Kurdistan Region.
The KRG Council of Ministers had previously endorsed the framework, paving the way for implementation.
parallel market rate
On Saturday, the exchange rates оf the US dollar against the Iraqi dinar edged lower in Baghdad and Erbil.
According to Shafaq News Agency's survey, the dollar's rates decreased with the closure оf the central Al-Kifah and Al-Harithiya stock exchanges in Baghdad, settling at 140,550 dinars for every 100 dollars, while they recorded 140,750 dinars in the morning.
The selling and buying rates at currency exchange stores in Baghdad were set at 141,500 IQD and 139,500 IQD per 100 USD, respectively.
Erbil's selling price reached 140,100 dinars for every 100 dollars, and the buying price was 139,975
Kurdistan Salaries Set to Arrive — Baghdad Acts!
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