Muzhir Muhammad: The Iraqi economy is fragile and the budget is highly vulnerable.
Muzhir Muhammad: The Iraqi economy is fragile and the budget is highly vulnerable.
6-7-2026
Information/Special..
The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, warned today, Sunday, against the continued dependence of the Iraqi economy on oil as an almost sole source of revenues, stressing that this reality makes the general budget highly susceptible to fluctuations in global prices.
In response to a question about the risks of falling oil prices, Saleh told Al-Maalomah News Agency, “Oil revenues represent more than 90% of the state’s total income, while the general budget depends directly on crude oil prices in global markets.”
He added that “the breakeven oil price in the Iraqi budget is often between $70 and $80 per barrel, which means that any drop below this level puts pressure on the financial deficit and increases the need to borrow or draw from the reserve.”
He pointed out that “Iraq relies on daily exports of approximately 3.3 to 3.5 million barrels of crude oil to finance its budget, which makes any disruption in prices or production a factor that directly affects financial stability.”
He explained that “Iraq’s foreign currency reserves exceed $100 billion according to Central Bank estimates, but continued reliance on oil without real diversification of revenues keeps the economy vulnerable to external shocks.”
He explained that “the government is working to boost non-oil revenues, but their contribution is still below 10% of total public revenues, which requires broader economic reforms to reduce future risks.”
Former Finance Committee member Mu’in al-Kadhimi, in a statement to Al-Ma’luma News Agency, called for genuine solutions to strengthen the independence of economic and financial decision-making in Iraq, thereby contributing to the protection of national interests and reducing the impact of external pressures on the local economy.
almaalomah.me
