“Iraq 2035”: A government plan to raise non-oil revenues to 46%
On Friday, Mazhar Muhammad Salih, the Prime Minister’s economic advisor, confirmed that the government program has laid its strategic foundations in the field of financial and economic diversification, with the aim of achieving Iraq’s sustainable development goals.
Saleh told Shafaq News Agency that “the program will be implemented by building an integrated relationship between developing the structure of non-oil revenues within the framework of public finance for the coming years, and diversifying the non-oil GDP.”
He added that “this ambitious time vision, which was named (Iraq 2035), and whose foundations and principles were laid by the Prime Minister on May 23, 2026, combines public finance reform and the activation of the social market economy, in order to ensure a gradual structural transformation in the structure of the national economy.”
He pointed out that “implementing this vision requires restructuring fiscal policy to raise the contribution of non-oil revenues to the annual general budget to no less than 46% of total public revenues, which enhances financial sustainability and reduces fluctuations resulting from excessive reliance on oil revenues.”
Saleh continued, saying that “the parallel goal is to enable the market and the private sector to raise their contribution to the gross domestic product to 53% by 2035, compared to the current percentage which does not exceed 37%, which reflects a clear trend towards making the private sector a key partner in the economic development process, through the actual implementation of the national strategy for developing the private sector and what it includes in terms of institutional and regulatory reforms.”
He explained that “the Market Development Council will play a pivotal role in regulating market institutions in accordance with the principles of good governance, creating an attractive investment environment capable of providing financial and strategic leverage for private sector-led development projects in the areas of manufacturing, agriculture, logistics and the digital economy.”
Saleh concluded his remarks by emphasizing that “this approach represents a complementary framework for diversification between the financial and real sectors, leading to abandoning the rentier nature of the Iraqi economy and establishing a development model based on productivity, competitiveness, and a balanced partnership between the state and the market, ultimately leading to a more diversified and sustainable economy by 2035.”
Earlier last week, a report issued by the International Monetary Fund showed that Iraq will be among the economies most affected by regional turmoil during 2026, with clear repercussions on inflation rates, external accounts and public finances.
Iraq faces increasing financial challenges as a result of the closure of the Strait of Hormuz due to the war, as it is the main passage for its oil exports, at a time when the Iraqi economy is heavily dependent on oil revenues as a primary source of public revenues and budget financing.
Shafaq.com