THE 2025 BUDGET SCHEDULES WILL BE FINALIZED BY THE END OF MAY.
MP Baqir Al-Saadi stressed that “the existence of 2025 budget schedules is important to ensure project funding and provide financial support for local governments, enabling them to proceed with implementing service projects across all sectors.”
Al-Saadi indicated in a press interview seen by (Al-Masry Al-Youm, Sunday 5/11/2025) that “the 2025 budget schedules will be decided by the end of this May.”
He said, “Despite talk of the possibility of postponing the budget resolution until after the November 2025 elections, there are indications that the budget schedules may be finalized by the end of this month
. Thus, after the end of the legislative recess, the parliament will have the opportunity to finalize it or hold extraordinary sessions to discuss and vote on it.”
He explained that “the delay in finalizing these schedules and the Cabinet’s failure to send them to the Parliamentary Finance Committee for review before submitting them to the Parliament Presidency for a vote has negative repercussions on the funding of service projects in ministries and local governments.”
(Kind of weird how they worded this last statement since the Finance Committee is part of Al Sudani’s cabinet. Do these reporters even know how the government is structured?)
For many Iraqis, banks are not seen as safe havens but as unreliable or even risky institutions. And for countless others, personal experiences of fraud and failed investments have reinforced the instinct to hide money away rather than let it work.
In a country long battered by war, corruption, and economic volatility, a new crisis is quietly suffocating Iraq’s prospects for recovery: the nation’s wealth is being locked away behind household doors.
Recent figures reveal that only 20 trillion Iraqi dinars are in actual market circulation out of a staggering 105 trillion dinars in total monetary volume—a sign that Iraqis are overwhelmingly choosing to hoard their savings at home rather than invest or deposit them. This growing phenomenon not only reflects deep societal mistrust but also poses a formidable obstacle to economic growth.
The roots of this behavior run deep. For many Iraqis, banks are not seen as safe havens but as unreliable or even risky institutions. And for countless others, personal experiences of fraud and failed investments have reinforced the instinct to hide money away rather than let it work.
Ahmad Alaa, a young Iraqi man, shared his own story with Kurdistan24’s correspondent Seif Ali—a cautionary tale that mirrors the fears of many. “After saving a significant amount, I tried investing in the car trade through a partnership. I was defrauded. Even after two years in court, and a confession from the person who stole our money, he walked free,” Alaa said. “After that experience and others like it, people are too scared to invest.”
Ahmad Alaa, a young Iraqi man, shared his own story with Kurdistan24’s correspondent Seif Ali.
But fear of fraud is only part of the equation. Experts point to a fragile banking system, unpredictable exchange rates, and mounting economic pressures as factors pushing citizens further into financial isolation.
Economic analyst Arkan Al-Shammari explained to Kurdistan24, “The economic downturn and instability of the dollar discourage citizens from launching small businesses. Even those who want to invest face high operational costs—particularly rent—which make ventures unfeasible from the outset.”
Economic analyst Arkan Al-Shammari talking to Kurdistan24’s correspondent Seif Ali.
With banks offering little in the way of guarantees or incentives, and with Iraq still lacking a secure and modern banking infrastructure, citizens are left with few appealing options for managing their money.
Al-Shammari argued that revamping the financial system and offering substantial incentives could be key to drawing hoarded funds back into the economy. “Without an encouraging banking environment, it’s unrealistic to expect people to trust the system with their life savings,” he said.
The consequences are stark. As Iraq faces pressing needs in reconstruction, job creation, and diversification of its economy, massive reserves of personal wealth remain immobilized—kept in cash, hidden in homes, and denied to the markets and sectors that need them most.
In the absence of sweeping financial reforms, Iraq risks falling further behind in its efforts to build a resilient and modern economy. For now, the country’s future remains shackled not only by visible challenges, but also by the invisible weight of idle cash—locked in fear, distrust, and lost opportunity.
Iraq is actively working toward implementing ASYCUDAWorld across all its customs sites by mid-2025, as part of a broader effort to modernize customs processes and boost trade efficiency.
The Ministry of Finance is making progress with automating its programs, and is currently implementing the ASYCUDA (Automated System for Customs Data) system within its customs sector. This system aims to modernize customs operations, improve revenue collection, and facilitate trade.
ASYCUDA is a computerized customs management system that covers various foreign trade procedures, including declarations and accounting.
Iraq’s adoption of ASYCUDAWorld at key shipping ports like Umm Qasr and other customs sites is a transformative step toward modernizing its trade infrastructure.
The system is already yielding significant results, such as increased customs revenue and higher import volumes, and is poised to expand nationwide by mid-2025. By aligning with international standards and improving efficiency,
ASYCUDAWorld enables Iraq to strengthen its position in global trade, attract investment, and reduce economic reliance on oil. The sources cited provide robust evidence of the system’s implementation and its positive impact on Iraq’s international trade capabilities.
Yes, many countries are exploring and implementing the use of their own currencies within the banking system to align with evolving international standards and potentially move away from the dominance of the US dollar.
This is happening through the development of Central Bank Digital Currencies (CBDCs) and the increasing use of national currencies in cross-border payments.
It remains to be seen if the dinar will replace the dollar in these shipping port transactions. The current trend would say so, but many geopolitical tensions are still in flux. And, it is too early to tell what is about to happen in Iraq at this time.
GOVERNMENT ADVISOR: CONTRACTING WITH INTERNATIONAL AUDIT FIRMS IS A KEY STEP TOWARD MODERNIZING THE ECONOMIC STRUCTURE.
Mazar Mohammed Saleh, an advisor to the Prime Minister, confirmed on Friday that contracting with international audit firms to evaluate the banking sector is a key step toward modernizing the economic structure. While explaining that these firms are independent and unaffected by pressures and interests, he indicated that this modernization contributes to strengthening confidence in the Iraqi financial market and reform in this sector, and encourages a shift away from the informal cash economy.
Advisor to the Prime Minister, Mazhar Mohammed Salih, told the Iraqi News Agency (INA): “The statements made by Prime Minister Mohammed Shia al-Sudani during his recent important meeting with the chairmen of the boards of directors of private banks in Iraq or their representatives are consistent with the banking reform policy in Iraq,
particularly highlighting the importance of contracting with international firms for financial auditing and assessing the status of the banking market in our country.
This represents a fundamental step and a foundation towards comprehensively modernizing the economic structure, while simultaneously reflecting a drive to rebuild trust and cohesion within the financial sector in general and the banking market in particular.” He added,
“Prime Minister Mohammed Shia al-Sudani’s statements undoubtedly represent reform axes that do not deviate from the principles of the government’s approach that state institutions have followed over the past few years. The primary goal of banking reform is to modernize it to align with international standards in governance, compliance, and transparency, particularly in providing confidence and efficiency in the provision of banking services to society with a broad framework of integrity and credibility in banking work.” He noted that “the Prime Minister’s speech
focused on the need to encourage investment by ensuring a reliable banking system that supports financial inclusion and efforts to transition to a digital economy, electronic payments, and all digital transactions.
”
He explained that “the Prime Minister’s speech focused on the importance of contracting with international auditing firms to re-evaluate the conditions of banks, both private and government-owned, based on a single premise: ensuring their institutional capabilities to uncover any financial loopholes in the country’s banking system,
verify the integrity of accounting and administrative procedures within local banks, and provide an accurate assessment of the financial suitability of banking institutions. This supports reform plans with real data to take effective steps to build a long-awaited, integrated and efficient banking system.” He indicated that “these international companies possess advanced auditing expertise and technologies, undoubtedly supported by local competence.
In addition, the international auditing and accounting firms currently undertaking the banking sector evaluation process are independent entities, unaffected by pressures and interests, and provide greater credibility to the international community and investors, which enhances confidence in our country’s financial market.”
He continued, “Prime Minister Mohammed Shia al-Sudani’s speech did not depart from the fundamental principles of financial and banking reform, which are based on encouraging citizens and companies to deposit funds and engage in credit transactions with banks instead of the informal cash economy. This is achieved by creating an attractive investment environment based on transparent and stable banking institutions, with the goal of supporting the private sector with effective loans and financial services.
This contributes to creating job opportunities and sustainable development within the aforementioned private sector, which is the true partner of the state in economic progress and prosperity in Iraq.” Prime Minister Mohammed Shia al-Sudani chaired a meeting of the heads of the boards of directors of Iraqi banks, during which mechanisms for implementing the banking reform plans prepared by the government were discussed as part of comprehensive reforms of the economic sector.
During the meeting, according to an official statement, the Prime Minister emphasized that “all state sectors are linked to the existence of an effective and flexible banking system that relies on modern technologies.” He noted that “the government has adopted comprehensive plans for banking reform and contracted with private financial auditing companies, including all banks, and has made significant progress in implementation.”
He explained that “the work of the First Rafidain Bank will launch with a new look and vision, in partnership with specialized and well-known banks.” He pointed to “the formulation of a clear roadmap to address the conditions of the private banking sector, as a partner in development.” He emphasized the need for cooperation during the next phase to take effective steps in economic reform.
He pointed to “the state’s distancing from detailed intervention in sectors and assuming a regulatory role,” indicating efforts to “engage the private sector and foreign companies in all mega-projects, as well as support local productive sectors and absorb the imported cash flow.” Providing domestic goods and services to citizens as an alternative to imports and ensuring support for local investment. The Prime Minister directed “banks to simplify procedures and participate broadly in the development process, as well as to participate as investors in all available opportunities, move toward partnerships with foreign companies, and work to build trust with citizens, which will help ensure they feel confident depositing their money in banks.”