INTERNATIONAL WARNING TO IRAQ.. AN EXPERT DISCUSSES THE IMF REPORT: YOU ARE TO BLAME, TOO

INTERNATIONAL WARNING TO IRAQ.. AN EXPERT DISCUSSES THE IMF REPORT: YOU ARE TO BLAME, TOO.

Economic expert Suham Yousef discusses the latest report by the International Monetary Fund (IMF), which included significant warnings to the Iraqi government regarding the continued decline in revenues while increasing public spending, which constitutes a serious structural deficit in the economy’s structure.

The expert’s criticism of the IMF itself stems from the fact that the IMF itself is unaware of the Iraqi political and social context, which makes implementing the “ready-made recipes” it offers extremely difficult.

Its proposals clash with the spread of the deep state’s influence and its obstruction of tax reform aimed at increasing non-oil revenues, for example.

The proposal to rationalize spending also clashes with the fragile social reality and the dependence of millions of Iraqis on government salaries amid a weak private sector and the expansion of the “parallel economy.”  This situation places Iraq facing an imbalance with every barrel of oil sold, the continued depletion of financial reserves, the rise of public debt to 62%, and the decline of foreign investment to 0% of GDP.

In its latest report, the International Monetary Fund (IMF) issued a stark warning about worsening financial and economic vulnerabilities, warning that the country is heading toward a widening budget deficit amid declining oil prices, weak non-oil revenues, and ballooning current expenditures, particularly for wages and pensions.

The report presents an accurate but worrying picture of the Iraqi economy and raises fundamental questions about the government’s preparedness to contain the coming crisis.

Despite the government’s attempts to present plans to diversify the economy, the reality tells a different story. Non-oil growth slowed sharply to just 1% in 2024, according to IMF estimates, compared to 13.8% the previous year. This decline reveals that non-oil sectors remain limited in their impact and suffer from weak infrastructure, a lack of real incentives, and an unattractive investment environment.

MZ Update: Iraq Cleans Up, Banks Prepare – RV Still Brewing"

 EXCERPTS FROM MARKZ

MZ: My redemption center/wealth management folks are not working this weekend…nor are they on call. So for me I am not looking for an RV this weekend…but these folks have been working hard the last few weeks. I even have a Chase contact who said they have lifted restrictions on amounts of foreign currency in preparation …I loved hearing that one.

MZ: In Iraq: “ Among them are forgery, currency smuggling, and real estate usurpation. (CONSIOUS)opens 15 files with the Public Prosecution” They are going after old crimes from Sadaam Hussein and the Bush camp that was stealing from Iraq for years.  They are cleaning up old files. 

MZ: These are things that needed settled before they revalue. I love they are cleaning things up.

Iraq’s Latest Actions to Support the Dinar’s Value #iqd #iraqidinar

 

IMF EXECUTIVE BOARD CONCLUDES 2025 ARTICLE IV CONSULTATION WITH IRAQ

 IMF EXECUTIVE BOARD CONCLUDES 2025 ARTICLE IV CONSULTATION WITH IRAQ

Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Iraq and considered and endorsed the staff appraisal without a meeting on a lapse-of-time basis.

• Iraq has managed to uphold domestic stability despite regional turmoil and global uncertainty. At the same time, the non-oil economy slowed down in 2024 following a very strong growth in 2023. Inflation has remained subdued amid weaker demand. Financing constraints and lower oil revenues are expected to constrain fiscal spending, taking an additional toll on economic activity.

• Against a baseline of low oil prices, fiscal deficits and external accounts are projected to deteriorate further over the medium term unless significant reforms are undertaken to increase non-oil revenues, control the public wage bill, and boost non-oil growth potential through an ambitious structural reform agenda.

(This is why the budget tables for 2025 have not yet been released. The GOI does not want to complete the projects allocated for 2025 due to a drop in oil revenues.)

FRANK26: Iraq just got slapped with 30% [tariffs]!!

 Frank26   

[Iraq just got slapped with 30% [tariffs].

  You want 60%?  Of course not. 

 So, give the world and the Iraqi citizens the new exchange rate dog gone it.  

The whole world knows what the tariffs are for, to adjust your exchange rate. 

 That's why they're all in line. 

 The whole world knows everybody knows what Donald Trump is doing. 

The Three Key Phases of Iraq’s Currency Revaluation Plan #iqd

 

WHERE ARE THE 2025 BUDGET SCHEDULES? PROJECTS ARE SUSPENDED, PLANS ARE POSTPONED, AND PARLIAMENT HOLDS THE GOVERNMENT ACCOUNTABLE

WHERE ARE THE 2025 BUDGET SCHEDULES? PROJECTS ARE SUSPENDED, PLANS ARE POSTPONED, AND PARLIAMENT HOLDS THE GOVERNMENT ACCOUNTABLE.

 
Despite more than half a year having passed since the start of the fiscal year, the 2025 budget schedules remain absent from the House of Representatives, a scene that rekindles concerns about a financial paralysis that threatens service and development projects in the governorates.

This delay comes despite the country’s adoption of the “Tripartite Budget” law, which was supposed to spare Iraq the annual wait for approval of financial allocations and ensure stability in the flow of funds and project planning.

In this context, the Deputy Chairman of the Parliamentary Committee for Regions and Governorates, Jawad Al-Yasari, ruled out on Tuesday (July 8, 2025) the approval of the 2025 budget schedules during the remaining term of Parliament, holding the government responsible for the delay.

“The Iraqi government is responsible for the delay in approving the 2025 budget schedules, as it has not yet sent them to Parliament for review,” Al-Yasari told Baghdad Today. “We don’t know anything about them yet, and we don’t believe the government is serious about sending them, which is why we rule out approving them within the remaining term of Parliament.”

He added, “This delay has clear consequences, most notably the disruption of the launch of a large number of projects in the governorates, as well as the obstruction of the completion of existing projects that require financial allocations.” He noted that “the government is currently content with paying salaries and outstanding financial obligations, in the absence of schedules and a parliamentary vote on them.”

According to observers, the government’s continued delay in submitting budget schedules reflects confusion in financial planning and a lack of a clear vision regarding spending priorities. This threatens to widen the gap between the central government and the governorates and weaken the state’s ability to fulfill its service and development commitments. It also portends escalating popular discontent in some areas, particularly those that rely on investment allocations for infrastructure development and job creation, at a time when economic and living pressures on citizens are increasing.