An economic expert outlines the most prominent solution to free Iraq from oil price fluctuations.
An economic expert outlines the most prominent solution to free Iraq from oil price fluctuations.
2025-09-15
Oil and economic affairs expert Ahmed Askar confirmed on Sunday (September 13, 2025) that Iraq’s financial and economic situation will remain subject to “global fluctuations,” while offering solutions to address this issue.
Askar said in a press interview, “The economic situation in Iraq will remain directly linked to fluctuations in global oil prices, and any decline in prices could put pressure on the general budget and the ability to finance services and investment projects.”
He explained that “the near-total dependence on oil revenues makes the Iraqi economy vulnerable to these fluctuations, which requires the adoption of flexible, pre-planned fiscal policies, not just immediate reactions.”
The expert added that Iraq could face challenges related to financing expenditures, stabilizing the exchange rate, and rising inflation rates if oil prices decline.
Proposed solutions to enhance economic stability
Askar pointed out that the next phase requires real reforms, most notably:
Develop budgets based on multiple oil price scenarios.
Establish a savings fund or financial stability mechanism to cover expenses when revenues decline.
Diversifying sources of income by developing non-oil sectors.
Enhancing transparency in spending and directing resources towards economically viable projects.
Askar concluded by saying, “Iraq urgently needs clear policies that ensure economic stability in the near term and pave the way for sustainable diversification that reduces dependence on oil as the primary source of revenue.”
Iraq’s seaborne oil exports varied in the first quarter of this year. Exports rose by 29,000 barrels per day (bpd) year-on-year in January, but declined by 57,000 bpd in February. March saw the largest decline, declining by 200,000 bpd compared to the same month last year.
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