MP: Debt accumulation, mismanagement, and corruption are behind Iraq’s economic crisis
MP: Debt accumulation, mismanagement, and corruption are behind Iraq’s economic crisis
9-6-2026
Information/Baghdad…
Member of Parliament Murtadha Afween confirmed on Sunday that Iraq is experiencing a severe and complex economic crisis. He explained that the exacerbation of this crisis is primarily due to the accumulation of external and internal debts, continued mismanagement, and the rampant financial and administrative corruption within the state apparatus.
Afween told Al-Maalouma that “the country’s economic reality is witnessing a sharp decline and increasing pressures that have negatively impacted the living conditions of citizens.” He added that “the accumulated debt has become a heavy burden that is draining the state’s financial resources without achieving tangible development on the ground.”
He further stated that “the absence of sound economic planning and the ongoing mismanagement for years have intensified the decline, in addition to corruption cases that have squandered enormous sums that should have been directed towards investment and productive projects.” He pointed out that “the excessive reliance on a rentier economy has made the country vulnerable to any financial fluctuations.”
Afwin stressed “the necessity of adopting radical economic and structural reforms that ensure a firm fight against corruption, debt rescheduling, and the revitalization of vital sectors such as agriculture and industry to overcome this suffocating crisis.”
These criticisms come at a time when Iraq faces increasing challenges in managing its public debt, with domestic debt rising to 106.072 trillion dinars by the end of June 2026, amidst a persistent gap between spending and revenues. This increase raises questions about the ability of Ali Faleh al-Zaidi’s government, which has been in office for over 100 days, to develop a clear strategy to curb the escalating debt and address the fiscal deficit.
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