Between denials of printing and declining revenues, Iraqis are asking: Where will the salaries come from?
Between denials of printing and declining revenues, Iraqis are asking: Where will the salaries come from?
6-10-2026
Information / Report..
The measures that the government intends to adopt to address the worsening financial deficit after the cessation of about 90% of oil revenues are shrouded in mystery, especially with regard to securing the salaries of employees and retirees, which represents the most prominent challenge at the present stage.
Official statements regarding the mechanisms for addressing the crisis have been contradictory. While Foreign Minister Fuad Hussein spoke of printing approximately 25 trillion dinars to secure financial obligations, the government, through its official spokesperson, quickly denied any currency printing.
Amid this discrepancy, questions are mounting among the public and economic circles about the sources of funding for salaries and basic expenditures, amidst widespread anticipation of the government’s expected measures and their potential impact on the country’s financial and living conditions.
Economic expert Mazen Al-Ashqar, in a statement to Al-Maalomah, warned of “real dangers threatening the stability of the Iraqi dinar and its purchasing power should the government resort to printing money to cover the budget deficit and the salary crisis resulting from the decline in oil exports.”
Al-Ashqar stated that “current financial indicators place the country at a critical economic crossroads, especially with the accumulation of sovereign debt nearing $100 billion.” He pointed out that “any move towards borrowing or issuing new currency without a comprehensive reform vision and a genuine approach to addressing the structural roots of the crisis will deepen the economic recession and cause direct inflationary repercussions that affect citizens’ livelihoods.” He explained that “sustainable solutions to the financial crisis do not lie in recycling debt or increasing the money supply, but rather in adopting a serious national strategy to recover wasted and looted public funds.”
For his part, former MP Abdul Qadir Muhammad, in a statement to Al-Maalouma, affirmed that “combating corruption is not achieved through statements alone, but rather by referring those involved to the judiciary and revealing names and facts to the public, especially if the case involves huge sums that affect public funds and the prestige of the state.” He noted that “the Iraqi public is looking forward to opening the major files that have squandered billions of dollars over the past years and holding all those involved accountable, regardless of their positions or political affiliations.”
Economic concerns are escalating in Iraq following the Strait of Hormuz crisis, which revealed the extent of the country’s reliance on limited export routes and exposed the fragility of government solutions and approaches to dealing with emergencies. Experts assert that successive governments have failed to build an integrated oil pipeline network that would allow for diversification of export outlets. Furthermore, Iraq lacks a national fleet capable of transporting large quantities of crude oil, making the Iraqi economy more vulnerable to regional developments and disruptions that threaten trade and energy flows.
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