Parliamentary warnings about the economic exhaustion of the Iraqi street... Are lean years looming on the horizon?
MP Duha Laibi, from the Coordination Framework, sounded the alarm regarding the deteriorating living and service conditions in the country, stressing that the Iraqi street has become “completely exhausted” from the burden of the recent economic measures and reforms that have negatively affected its daily strength and future livelihood, at a time when large segments of citizens lack the most basic necessities of life and essential services.
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Laibi told Al-Maalomah that “the ongoing waves of demonstrations and protests in various governorates are nothing but a natural reflection of the deep-rooted unemployment crisis,” explaining that “thousands of graduates continue to flock to the streets to demand their legitimate rights to appointment and job opportunities, coinciding with a state of overwhelming public discontent fueled by the continuation of corruption files and the waste of public money without decisive solutions.”
She added that “the successive wars and conflicts in the region have cast a heavy shadow on the joints of the national economy and levels of national income, leading to a direct erosion of the purchasing power of citizens and exacerbating the harshness of living conditions.”
Laibi revealed “an anticipated parliamentary movement that includes proposals and legislative actions aimed at curbing inflation and ensuring the stability of the Iraqi dinar exchange rate to protect the purchasing power of the citizen,” while stressing the need for the government to adopt flexible economic policies that take into account the human and livelihood dimension, and avoid burdening vulnerable classes with additional burdens that they cannot bear.”
The MP explained that “despite the House of Representatives being in its current legislative recess, this temporary stagnation will not disrupt oversight mechanisms,” emphasizing that “the relevant parliamentary committees and MPs concerned with oversight are closely and continuously monitoring all new government decisions and measures, especially those related to the pressing economic situation and exchange rate policies, to ensure that the situation does not deteriorate further.”
An economist warns: Tampering with salaries will ignite the Iraqi street.
The head of the General Syndicate of Money Exchange and Mediation, Diaa Al-Tai, stressed that Iraq needs a package of urgent measures to address the liquidity and revenue crisis, warning that any tampering with employees’ salaries could lead to widespread protests and major social repercussions.
Al-Ta’i added in a statement to “ Al-Jarida ” that “the fastest and safest solution at the present stage is to obtain a quick loan that guarantees the continued payment of salaries and covers the state’s financial obligations,” indicating that “protecting citizens’ salaries must remain a priority to avoid disturbances that may affect general stability.”
He explained that Iraq is currently facing a crisis in revenues and cash liquidity, calling for reform of the banking system and activating the role of other financial institutions, especially exchange companies, in order to contribute to increasing the volume of cash in circulation and attracting funds to the economic cycle.
He pointed out the need to review the salary file by addressing cases of dual employment, canceling undeserved salaries, and eliminating what is known as “ghost employees,” in addition to stopping new appointments in all their forms, with the exception of ministries and sectors that are imposed by urgent necessities.
Al-Ta’i believed that it was necessary to form a specialized youth team working in the field to diagnose economic problems and develop quick, implementable solutions within a period not exceeding 90 days, with a focus on stimulating investment in its various forms and finding practical mechanisms to attract the large amount of cash held in homes to the formal financial sector.
He added that the reform should include the Ministry of Finance itself by transforming it from an entity whose mission is limited to managing salaries and accounts into an institution that leads financial and economic planning and formulates the state’s financial policy, stressing the importance of maximizing revenues without burdening the private sector, by reducing taxes in exchange for implementing a comprehensive and strict collection.
He pointed out that among the urgent solutions is also the launch of industrial, agricultural and commercial projects through licensing rounds, and the reorganization of the labor market by obligating foreign companies operating in Iraq to employ a larger percentage of Iraqi workers, noting that there are other reforms that require a longer timeframe and can be implemented after overcoming the current crisis.
Economist: External borrowing is the best solution to bridge the financial deficit in Iraq
Al-Mashhadani told Al-Furat News Agency that: “The best current option that helps to bridge the financial gap is external borrowing to compensate for non-financial revenues in dollars.”
He added that "external borrowing can maintain the balance of the central bank's financial reserves," explaining that "these loans are characterized by long repayment periods compared to treasury bills and transfers that need to be renewed every 180 days."
Al-Mashhadani pointed out that “treasury transfers are renewed every five years and there is a problem with the existence of debts on the government since 2016 that have not been paid yet,” noting that “external loans are paid in installments when they are due and their interest is less than the interest on internal debts.”
Activating the work of the Development Fund
When the establishment of the Iraq Development Fund was announced in 2023, we were all optimistic about the goals included in the announcement statement, which aimed to promote economic and social development in Iraq by supporting projects and programs of strategic importance.
Our optimism was further enhanced by what was stated in the Fund’s eight objectives, in line with the investment opportunities presented in cooperation with the National Investment Authority across all economic sectors. These ranged from giant strategic projects and their supporting projects, such as the Development Road project, which was said to provide investment opportunities with a future value of $150 billion, including the construction of industrial cities, logistics centers, and advanced connectivity networks, to housing sector projects under the partnership and investment financing system, passing through infrastructure, education, and electricity projects, in addition to renewable energy and associated gas recycling projects. It was said at the time that the total investment opportunities exceeded 120, which would achieve sustainable development in various economic sectors in the country, in addition to the enormous job opportunities that it would provide.
However, the steps in this direction were somewhat slow, for reasons that may be procedural, and reasons related to the financing of the fund. Apparently, the financing was limited to the allocations of the general budget, as announced, without real activation of what was stated in “Sixth of the paragraphs of the objectives of the fund,” which stipulates “attracting the financial mass available to the private sector that is looking for investment outlets to employ it in strategic, environmental and service projects.”
It is worth mentioning here what was said about the Fund opening up to the public after the previous government officially announced its intention to open the door to public subscription to citizens based on the official value of the Iraqi dinar, to ensure the stability of the value of their savings and protect them from market fluctuations. This measure could have created an important economic change in the movement of the market and in the work of the Fund, and contributed to withdrawing the hoarded cash mass with the public, which is estimated at about 70 percent of the issued currency, while the wheel of development turns and a state of monetary stability is achieved. However, this did not happen according to our monitoring of the work of the Fund, even though the official data indicates that the participation of citizens through the purchase of shares is a fundamental pillar in the adopted work strategy.
Today, in support of the current government’s directions regarding activating the fund’s work, the Central Bank of Iraq announced financial support of up to about $10 billion for private sector projects and securing a future subscription environment, which gives the fund a good funding base. This support can contribute to increasing public confidence in the fund and motivate those in charge of it to expedite the presentation of investment opportunities and open the door for public subscription at this particular time, in order to achieve economic and development goals and avoid the expected recession resulting from the decline in oil revenues. Everyone is waiting.
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Trump's new agreement: 60 days to test the seriousness of disarmament and cutting off funding to factions
Tom Barrack's team is developing a plan to support the economy and electricity sector and end Iran's influence.
Shiite parties and armed factions are preparing to receive Tom Barrack, the US President's envoy to Iraq and Syria, with a different version of their traditional rhetoric. The most prominent theme is demonstrating their readiness to engage in a new phase, one less reliant on weapons and more aligned with the logic of the state.
Simultaneously, a special team associated with the US envoy is working on proposals and plans related to ending Iranian influence in Iraq and advancing economic reforms. This comes at a time when the anticipated US-Iranian understanding offers Baghdad a new opportunity to test its ability to implement long-awaited commitments.Politicians and analysts believe that the expected agreement between Washington and Tehran opens a 60-day window, representing a simultaneous test for Iran, Iraq, and the armed factions. The most significant obstacle to this phase appears to be the refusal of some factions to surrender their weapons.Under increasing US pressure, the government of Ali al-Zaidi had begun simultaneously addressing three interconnected issues: consolidating weapons under state control, pursuing networks of influence and finance linked to the factions, and launching broad economic reforms.
An American Deadline and an Iranian Test:Former politician and MP Mithal al-Alusi says that the American-Israeli-Iranian crisis, conflict, and war are “far greater, deeper, and more dangerous than a mere declaration of agreement, goodwill, or extension of a ceasefire.”He adds to Al-Mada that what was announced between Washington and Tehran amounts to nothing more than an extension of the ceasefire, while the core issues remain under scrutiny and study.According to al-Alusi, the United States has granted the Iranian regime an additional 60-day grace period to prove its good faith and demonstrate its ability to be “a legitimate regime within Iran, in the Middle East, and for the international system and regional security.”He affirms that American demands remain unchanged and include the Iranian nuclear program, missiles, human rights, the nature of the internal security apparatus, as well as Iran’s regional role in Iraq, Lebanon, Yemen, and the Gulf.Al-Alusi believes that this same deadline represents a test for the new Iraqi government to prove its ability to disarm militias, combat corruption, activate the judiciary, and consolidate the foundations of a federal state.
He adds that the US-Iranian agreement gives Baghdad an opportunity to provide practical evidence of the success of its reform programs, while simultaneously giving Iran a chance to demonstrate that its interference in Iraq will not return to its pre-war levels.These assessments coincided with statements by US President Donald Trump, who confirmed that an agreement with Iran was scheduled to be signed on Sunday, asserting that it would pave the way for the resumption of normal navigation in the Strait of Hormuz.Trump wrote on the Truth Social platform that signing the agreement would mean "opening the Strait of Hormuz to everyone," emphasizing that the understanding would not involve any exchange of funds between the two sides.He added that the United States would address the Iranian nuclear issue later, once the situation stabilized, saying, "When things are calm, we will go in and take the nuclear materials and destroy them, whether in Iran or in the United States."Trump's statements reinforce the prevailing impression among observers that Washington views the anticipated agreement as a new test of Tehran's regional behavior, not a final settlement of contentious issues, primarily the nuclear program and Iranian influence in the region, including Iraq.
Barrack's visit... a direct message from Trump.Al-Alousi believes that the anticipated visit of Tom Barrack to Iraq represents a significant political test, especially since Barrack is handling the Iraqi and Syrian files with a direct mandate from US President Donald Trump.He says that the Iranian file is "in Trump's hands personally," and that Barrack's selection reflects the US president's desire to keep Iraq under direct White House supervision.According to Al-Alousi, Trump links the Iraqi file to the Iranian one, making the coming months a test for both Iraq and Iran, as well as for the new government in Baghdad.He adds that Washington and Barrack's office have already begun developing plans to support the Iraqi government, the economy, and the electricity sector, but are waiting for "proof after proof" that Baghdad is distancing itself from Iranian influence and moving closer to a model of an institutionalized state.Al-Alousi goes even further, stating that the United States has thrown its weight behind al-Zaidi's government and will not allow Iran to undermine it or armed factions to impose their will, as happened with previous governments.He points out that the available information confirms that the Iraqi government, along with several political forces and faction leaders, is seeking, through Tom Barrack's visit, to signal that it has indeed entered a new phase, one based on turning a new page in its relationship with Washington.Information obtained by Al-Mada indicates that Trump's unannounced strategy for Iraq, entrusted to his special presidential envoy Thomas Barrack, will not be limited to the military dimension but also aims to cut off the financial and economic support flowing to Tehran.Behind the scenes, Tom Barrack had been managing the Iraqi file for months before his official appointment. Since last February, with the mysterious disappearance of the previous envoy, Mark Savva, from the Iraqi scene, Barrack has been quietly moving to the forefront of managing this file.When his appointment was officially announced last May, he had already effectively taken control of the relationship with Baghdad, indicating that the White House had restructured its approach to Iraq. This reflects a shift towards managing the issue from a higher level and directly linking it to Washington's broader calculations regarding Iran and the region.
Sanctions are ready.Alousi emphasizes that what is required of Baghdad is to activate the Iraqi constitution and solidify the parliamentary and federal system, asserting that the United States will defend this path.He warns that Washington may resort to measures more stringent than traditional sanctions if it perceives attempts to undermine its project in Iraq, including asset freezes, prosecutions, and the issuance of international arrest warrants.He says that the United States wants the Iraqi state to succeed and for the partnership between Baghdad and Erbil to be strengthened, and that relevant American institutions have already begun developing plans and mechanisms to assist Iraq and protect its institutions from Iranian interference.Al-Alousi concludes by saying that the US-Iranian agreement could present a positive opportunity, but it could also become the beginning of the end for the existing political system if Iran or the armed factions prove, within the 60-day period, to continue interfering in and influencing Iraq's stability.
Weapons and money under scrutiny.For his part, Ghazi Faisal, head of the Iraqi Center for Strategic Studies, believes that any stable understandings between Washington and Tehran will have a positive impact on Iraq and Iraqi-Iranian relations.However, he points out that some Iranian leaders have sent messages to the armed factions urging them to retain their weapons and not surrender them, which raises questions about the extent to which these factions will abide by the decisions of the Iraqi state.Faisal confirms to Al-Mada that all armed factions are supposed to return their weapons to the official institutions, represented by the Ministry of Defense, the Ministry of Interior, and the Commander-in-Chief of the Armed Forces.He bases this on the provisions of the Iraqi Constitution, particularly Article 9, which prohibits the formation of militias outside the framework of the state, and Article 8, which obligates Iraq not to interfere in the affairs of other countries and not to engage in regional conflicts.He adds that some factions have become involved in regional conflicts over the past years that do not serve Iraqi national interests, considering that restricting weapons to the state is a fundamental step towards strengthening stability and building a state of institutions.Regarding Iraqi funds and Washington's conditions, Faisal says that their return to state institutions is contingent upon technical and legal procedures between Baghdad and Washington involving the Ministry of Finance, the Central Bank of Iraq, and relevant US financial authorities. He points out that the primary US concern is ensuring that these funds do not reach armed factions designated as terrorist groups.He believes the Iraqi government is capable of making progress on this issue if it provides clear and reliable guarantees regarding oversight and spending mechanisms. Faisal believes that the era of funding and arming armed factions outside the framework of the state must end, given the growing US and international reservations about the Iranian Revolutionary Guard and the Quds Force.He adds that it is essential for Iran to reconsider its relationship with these factions and cease interfering in the affairs of other countries or supporting armed groups in the region. He concludes that the future of the Middle East must be based on respect for the sovereignty of states and the promotion of cooperation, development, and stability, instead of the continuation of proxy wars and conflicts.
Abu Kalal: We are keen to support foreign companies operating in the oil sector.
A statement issued by the Media and Communications Commission (MCC) and received by Al-Furat News indicated that its Executive Director, Baligh Abu Kalal, met with Ni Chuan, President of PetroChina International in Iraq, the operator of the West Qurna/1 oil field, to discuss several files of mutual interest in the technical and regulatory fields.
During the meeting, Abu Kalal emphasized the MCC's commitment to supporting foreign companies operating in the oil sector, given the sector's importance in bolstering the national economy and promoting development. He also noted the Commission's dedication to providing a stable and flexible regulatory environment that supports investment and facilitates the operations of companies working in Iraq.
The statement added that the meeting also addressed ways to enhance cooperation in training, capacity building, and knowledge transfer, particularly in artificial intelligence and cybersecurity technologies, to develop national expertise and keep pace with rapid technological advancements.
He continued, "Opportunities for cooperation within the framework of the company's social benefit programs were also discussed, particularly initiatives related to the communications, media and information technology sectors, which contribute to supporting development projects, building capacities and enhancing the use of modern technologies in the service of society. Both sides emphasized the importance of strengthening technical partnerships and exchanging experiences in a way that serves the goals of sustainable development and supports technological development projects in Iraq."
Can Iraq control its revenues independently of American influence? A legal expert explains.
Legal expert Ali al-Tamimi explained how Iraq can control its oil revenues and funds, free from American influence and control over these funds.
Al-Tamimi told Al-Maalouma that "Iraq's oil revenues were deposited with the US Federal Reserve Bank by virtue of UN Security Council Resolution 1483, issued in May 2003, which obligated Iraq to transfer all oil and gas revenues to a special account in the name of the Central Bank of Iraq at the US Federal Reserve."
He added that "the Security Council resolution can be amended or revoked by the Council itself, but this requires the approval of a majority of its members, including the five permanent members."
He indicated that "Iraq can have greater control over its funds if it takes steps to reduce its dependence on the US dollar and increase the independence of its fiscal policy by diversifying the currencies in Iraqi reserves, developing a local payment system based on the dinar, increasing cooperation with other countries to facilitate trade in local currencies, improving the management of foreign reserves, and reducing reliance on the dollar."
Massoud Barzani meets with Iraqi General
Kurdistan Democratic Party (KDP) President Massoud Barzani has said that there should be coordination between the security and military agencies between the federal government and the Kurdistan Region.
A high-level delegation accompanied the Iraqi army chief
Kurdistan Democratic Party (KDP) President Massoud Barzani met with a high-level Iraqi military delegation led by Iraqi General Lieutenant Colonel Abdul Amir Rashid Yaralla in Pirmam on Sunday, the Barzani headquarters said in a statement.
Discuss the security and political situation in Iraq and the region
The meeting focused on the political and security situation in Iraq and the region, and stressed the need for full coordination between the security and military agencies of the federal government and the Kurdistan Regional Government, in order to further maintain security, stability and prosperity throughout Iraq.
Uncertainty surrounds Washington: How will al-Zaidi's visit reshape Iraqi-American relations?
Professor of Political Science Dr. Khalifa Al-Tamimi revealed on Sunday (June 14, 2026) that any future visit by Iraqi Prime Minister Ali Al-Zaidi to the White House will focus on four main and direct issues with the American administration, foremost among them the financial file and the future of energy.
Al-Tamimi told Baghdad Today that the Prime Minister's upcoming visit to the United States will put four key issues on the table for discussion, most notably the financial situation and exploring mechanisms for developing investment, particularly in the oil and gas sectors. He added that the talks will also include the security aspect, in accordance with the terms of the Strategic Framework Agreement.
He added that "among the main issues is outlining the nature of the relationship between Baghdad and Washington for the next stage, especially since the United States has extensive vital interests in Iraq, at a time when the country is going through a sensitive and complex phase that requires the government to define its strategy in a way that preserves the supreme national interests and regulates the form of partnership with the American side."
Al-Tamimi pointed out that "the visit will consciously address how to support Baghdad in light of the financial crisis that has begun to take on critical dimensions, especially with the continuation of the Strait of Hormuz crisis, which has complicated the marketing of about 90% of Iraqi oil exports, which constitute the main nerve of the general budget."
The political expert pointed out that "the current US administration differs in its orientations from previous administrations, and the features of its policies towards Baghdad are still not entirely clear," suggesting that "this visit will provide decisive and important answers regarding how Washington will deal with the Iraqi file in all its complexities."
Al-Tamimi concluded by saying: “The Prime Minister’s visit to the United States may constitute a turning point in the course of the Iraqi financial crisis, through discussing the possibility of obtaining emergency exemptions related to energy or exports, and redrawing Iraq’s financial policies in a way that positively impacts internal economic stability.”
It is worth noting that Iraq and the United States share deep-rooted political, security, and economic ties based on the Strategic Framework Agreement signed in 2008, which governs cooperation between the two countries. These moves come at a time when Baghdad faces mounting financial challenges due to the volatility of the global energy market and the logistical pressures associated with oil exports, amidst concerted government efforts to attract foreign investment and expand international partnerships to diversify national income sources.
Finance Committee: No indications of the 2026 budget being approved, and the governmentcontinues spending according to the existing law.
Member of the Parliamentary Finance Committee, Hussein Al-Daraji, confirmed that current data does not indicate the possibility of approving the general budget during the year 2026, indicating that the Finance Committee intends to hold a series of meetings during the next legislative session to discuss the available alternatives and ensure the continued funding of state institutions.
Al-Daraji explained that the next stage requires finding financial and economic solutions that are compatible with the current circumstances, in order to ensure the continuity of implementing government commitments and covering basic and necessary expenses.
In the same context, the financial advisor to the Prime Minister, Mazhar Muhammad Saleh, explained that the state’s 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 previous year’s expenditures in the event of a delay in approving the budget.
He pointed out that this mechanism contributed to ensuring the continuity of government spending, including salaries, wages, social welfare, and financing of ongoing projects according to completion rates and available liquidity.
He added that public finances are facing increasing pressure as a result of regional developments and the volatility of global energy markets, and the resulting impact on oil revenues, which represent the main source of funding for the public treasury.
Saleh explained that the government is moving towards preparing the 2027 budget within a reform vision aimed at rationalizing spending and raising its efficiency, while preserving social programs, enhancing non-oil revenues, and supporting digital transformation and administrative reform.
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