The Oil Committee warns of an impending disaster and calls for the immediate passage of the oil law.
The Oil Committee warns of an impending disaster and calls for the immediate passage of the oil law.
4-12-2025
Information/Exclusive…
Aso Faridon, a member of the parliamentary Oil and Gas Committee, confirmed on Saturday that the ongoing political disputes over the oil and gas law pose a serious threat to Iraq’s economic future. He warned of the repercussions of the decline in global oil prices for a country that relies almost entirely on oil revenues to finance its annual budget.
“Iraq is going through a very critical phase, amid global economic challenges and a continued decline in oil prices, which represents a dangerous indicator for the country’s economic security,” Faridoun told Al-Maalouma News Agency. He noted that “the delay in passing the oil and gas law, as a result of political conflicts between blocs, could push the country toward economic disaster.”
He added that “the law has been neglected on parliament’s shelves for many years, despite its importance in regulating the relationship between the federal government and the governments of the productive regions and governorates,” calling on political blocs to “set aside their differences and move toward enacting this law as quickly as possible.”
Faridoun explained that “Iraq relies on oil for more than 90% of its budget financing, and any sharp decline in prices will lead to a large financial deficit, potentially negatively impacting employee salaries, investment projects, and basic services.”
An American newspaper warned that Iraq faces the specter of “economic collapse” if global oil prices continue to decline, noting that the absence of genuine reforms and the country’s complete dependence on oil revenues could push it toward a stifling financial crisis that threatens its entire economic entity.
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