The Iraqi government is advancing a comprehensive economic strategy aimed at strengthening fiscal sustainability and reducing dependence on oil revenues through financial reforms, while simultaneously implementing strategic energy projects to eliminate gas flaring and expand renewable energy production.
Government Targets Higher Non-Oil Revenues
Financial Adviser to the Prime Minister Mazhar Mohammed Salih said Iraq’s public debt remains within internationally manageable levels, emphasizing that the country’s primary fiscal challenge is its heavy reliance on oil revenues and vulnerability to fluctuations in global oil prices.
He noted that the government aims to increase the share of non-oil revenues from around 10% to 45% of total public revenues over the next decade through tax and customs reforms, financial digitalization, expansion of the tax base, private sector development, and banking sector reforms.
Public Debt Remains Within Safe Limits
Salih explained that Iraq’s total public debt stands at approximately 36% of GDP, remaining below internationally recognized risk thresholds. He stressed that fiscal reforms are focused on containing budget deficits while diversifying government income sources to enhance long-term financial stability.
Ministry of Oil Expands Strategic Energy Projects
Alongside the government’s fiscal reforms, Iraq’s Ministry of Oil announced the implementation of several strategic projects designed to eliminate gas flaring and maximize natural gas utilization as part of its zero-flaring objective.
Key initiatives include the Artawi and Bin Omar gas projects, the expansion of Basra Gas facilities, and a 1,000-megawatt solar energy project at Artawi aimed at supporting Iraq’s transition toward cleaner energy sources.
Cleaner Energy and Infrastructure Development
The ministry also highlighted ongoing efforts to reduce carbon emissions, adopt advanced technologies across the oil sector, and support national infrastructure projects through the Iraq-China Framework Agreement, which finances development initiatives using revenues from allocated daily oil exports.
Integrated Reforms to Strengthen Iraq’s Economy
The government’s financial reforms and energy initiatives reflect a broader strategy to build a more diversified and resilient economy by reducing reliance on crude oil revenues, increasing investment in energy infrastructure, and promoting sustainable development capable of withstanding external economic shocks.
Conclusion:
Iraq’s fiscal reform agenda and strategic energy investments represent complementary efforts to strengthen the national economy. By expanding non-oil revenue streams, investing in cleaner energy, and improving resource management, the government aims to achieve greater economic resilience and long-term financial sustainability.
