Al-Mashhadani: Iraq is not facing the risk of bankruptcy despite economic challenges.
Al-Mashhadani: Iraq is not facing the risk of bankruptcy despite economic challenges.
4-12-2025
Al-Maalouma/Baghdad…
Economic expert Abdul Rahman Al-Mashhadani confirmed on Saturday that Iraq is not facing the risk of bankruptcy despite the recurring economic crises it has experienced, noting that the reason for this is its abundant natural and human resources.
Al-Mashhadani said in a statement to Al-Maalouma Agency, “Iraq has gone through many crises over the decades, most notably in 2015 and 2016, when ISIS took control of some western provinces. The situation at the time was a three-dimensional crisis (security, political, and economic). However, Iraq was able to overcome these crises thanks to its own capabilities and international support.”
He added, “Despite the decline in oil prices, they are still within reasonable levels. Although the general budget was approved based on $70 per barrel, this decline does not pose a real threat as long as prices remain close to this level, as Iraq can adapt to these conditions.”
He pointed out that “the biggest challenge at the present time lies in the significant expansion in operating spending,” stressing that “this spending can be controlled and reduced as part of a plan to overcome the current financial crisis, especially since oil price fluctuations are usually temporary, and prices usually return to stability within months.”
Al-Mashhadani continued, “Iraq has gone through four major oil crises over the past twenty years, beginning in 2008 with the collapse in prices, followed by the 2015 crisis, then the 2020 crisis linked to the Corona pandemic, and finally the current crisis, expecting this crisis to continue for several months before prices recover again.”
He explained that “the real crisis facing Iraq lies in mismanagement, which can be easily corrected by taking effective reform measures.”
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