What is the relationship between the leave law and the conditions of the International Monetary Fund?
What is the relationship between the leave law and the conditions of the International Monetary Fund?
10-26-2026
Information/Special…
Former Minister Wael Abdul Latif confirmed on Monday that the economic crisis Iraq is experiencing, with its worsening budget deficit and heavy reliance on oil revenues, presents the government with increasing challenges in securing its financial obligations. This comes as the government moves towards borrowing from the International Monetary Fund (IMF), raising concerns about the loan’s associated procedures.
Speaking to Al-Maalouma, Abdul Latif said, “The government’s resort to loans reflects the magnitude of the pressures facing the general budget at a time when operational expenses and financial obligations are increasing.” He explained that “continued reliance on oil without diversifying revenue sources makes the Iraqi economy vulnerable to crises whenever prices decline or exports decrease.”
He added that “the conditions and procedures associated with IMF programs raise questions about their impact on government employment and public spending, especially with the talk of seven conditions that include limiting appointments. This raises concerns about narrowing job opportunities for young people in a country already suffering from economic challenges and rising unemployment.”
He explained that “the House of Representatives’ vote on the extended leave law comes at a time when discussions are escalating regarding reducing the burdens on the public sector and managing government spending, in line with the conditions imposed by the International Monetary Fund. This raises questions about the nature of the solutions the state is adopting to address the deficit, and their impact on employees and the labor market.”
Abdul Latif pointed out that “addressing the financial crisis should not be limited to borrowing or reducing employment, but requires reviewing government spending, combating waste and corruption, enhancing non-oil revenues, and reforming productive sectors to ensure sustainable resources for the treasury and reduce the recurrence of financial crises.”
He noted that “continuing to rely on loans to address financial imbalances may exacerbate future obligations if it is not accompanied by genuine economic reform,” emphasizing “the importance of establishing a clear fiscal policy that balances controlling spending, protecting job opportunities, and reducing the burdens borne by citizens.”
almaalomah.me
