Parliamentary Finance Committee sounds alarm bells over Iraqi economy
Parliamentary Finance Committee sounds alarm bells over Iraqi economy
5-19-2025
Information/Exclusive:
Member of the Parliamentary Finance Committee, Moeen Al-Kadhimi, warned on Monday of the repercussions of the government’s continued resort to domestic and foreign borrowing, stressing that this move portends a potential economic collapse in light of the decline in global oil prices and the federal budget deficit.
Al-Kadhimi told Al-Maalouma News Agency that “the large financial deficit in the general budget, coupled with the decline in oil prices, is pushing the government toward dangerous choices, most notably expanding borrowing,” noting that “continued reliance on loans will lead the country into a spiral of financial and economic crises that will be difficult to escape.”
He added that “successive governments have failed to diversify the economy, but have instead continued to rely on oil as the almost sole source of budget funding, leaving Iraq hostage to global market fluctuations.” He emphasized the “need to develop a comprehensive economic strategy based on revitalizing productive sectors, such as agriculture, industry, and tourism.”
Al-Kadhimi continued, “Borrowing without real reforms to the economic structure will push Iraq to the brink of collapse and double the debt burden on future generations.”
Al-Kadhimi’s warnings coincide with growing parliamentary calls for a review of fiscal policies, while economic reports confirm that Iraq’s dependence on oil, which accounts for more than 90% of its revenues, poses a long-term strategic threat.
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