The 2027 budget is at the mercy of fluctuations… Borrowing and grants are alternatives to bridge the funding gap.

In a move revealing a strategic shift in the management of the country’s finances, the outlines of a new phase are beginning to take shape within the corridors of economic decision-making in Iraq. This phase is based on rearranging funding priorities and bridging financial gaps through alternative mechanisms. The governmental and legislative compass is now directly pointing towards adopting a law on internal and external borrowing, alongside activating the grants and donations portfolio, as key tools for managing current obligations.

This financial shift is inseparable from a broader and more forward-looking movement; behind-the-scenes efforts are accelerating to prepare a draft budget for 2027 well in advance. These intensive moves aim to put an end to haphazard spending policies and define a clear structural path for public spending, while securing sustainable funding sources capable of withstanding the fluctuations of global markets, thus ensuring the formulation of a clear financial roadmap for the coming years.

In this context, economic expert Dr. Safwan Qusay explained the nature and form of next year’s budget in the event of continued tension and escalation in the region due to the American-led war against Iran.

Qusay told Al-Maalomah that “the 2026 budget will be replaced by a law governing internal and external borrowing, grants, and donations, while efforts are underway to prepare the 2027 budget with the aim of establishing a clear path for public spending and funding sources.”

He added that “there are multiple assumptions regarding next year’s budget, with everyone hoping that the existing disputes and tensions in the region related to the Strait of Hormuz will be resolved before October 15th, given that Iraq relies on oil revenues collected from its southern ports for 90 percent of its income.”

He explained that “if the tensions persist and the problem remains unresolved, Iraq will move towards spending governed by permanent laws, with the necessity of bolstering the revenues of government units so they can finance themselves independently of the Ministry of Finance.”

For his part, economist Abdul Rahman al-Mashhadani asserted that the government will be unable to finalize and implement the 2027 budget given the ongoing regional tensions, the US aggression against Iran, and the continued closure of the Strait of Hormuz. He explained that the plans and programs developed by the Ministry of Finance will become mere “ink on paper” without sufficient financial resources.

Al-Mashhadani told the Al-Maalomah news agency, “The government has set an estimated price of $60 to $70 per barrel of oil for next year, a figure that is difficult to rely on given the war, low export rates, and the fact that oil is being sold at the port.”
He added, “The initial estimates for the total budget amount to 150 trillion dinars, of which 135 trillion will go to the operational budget (salaries and daily expenses), and a meager 15 trillion dinars to the investment budget, thus deepening the financial deficit to dangerous levels.”

Al-Mashhadani explained that “these challenges and others will be the primary obstacle to finalizing the 2027 budget.” He also pointed out that “the crisis coincides with a frightening decline in the reserves of the Central Bank of Iraq as a result of its continued sale of foreign currency to the private sector to finance imports, without any corresponding compensatory dollar inflows.” He revealed that “what has recently reached the Central Bank has not exceeded one billion dollars.” Financialmarket updates

Almaalomah.me

Iraqi factions have made their decision: sovereignty in exchange for weapons.

On Tuesday, armed factions in Iraq affirmed that the issue of restricting weapons cannot be separated from achieving full sovereignty for Iraq, while considering that the September 30th deadline represents a test of the seriousness of the United States and the international coalition in implementing their commitments to the Iraqi government. Dailynews subscription

The spokesman for the Sayyid al-Shuhada Brigades, Kazem al-Fartousi, told Shafaq News Agency that the issue of restricting weapons was discussed through a committee formed from the coordination framework and another from the resistance factions, indicating that the discussions witnessed the determination of priorities regarding this issue.

Al-Fartousi explained that “the principle put forward by the factions, which cannot be divided or negotiated, is that this weapon is in exchange for sovereignty,” stressing that they will not give up the weapon unless there is full sovereignty in the country.

He added that this requires protecting the Iraqi people, land, and skies, as well as national gains, in addition to protecting political decision-making and economic independence, noting that the ten demands put forward by the factions are “national and concern all of Iraq from north to south.”

He explained that these demands are not related to the interests of the resistance factions, but rather represent, in his words: “a definition of sovereignty, an expression of it, and how to achieve full sovereignty for this nation.”

Regarding the government’s ability to respond to these demands, Al-Fartousi pointed out that “part of these demands are included in the government program,” stressing that the issue is not only about whether the government responds or not, but is related to “where Iraq’s interest lies.”

He pointed out that the Iraqi government represents the executive administration of the Iraqi people and the country’s interest, while the coordinating framework, as the owner of the principle and political action, bears the responsibility of considering, establishing and engineering the work of the government.

Regarding the date of September 30, and whether it represents a date for resolving the issue of restricting weapons, Al-Fartousi explained that there is “confusion about dates,” and that this is the date of the withdrawal of coalition forces from Iraq.

According to him, this date represents “the first test of the seriousness of the Trump administration and the coalition in implementing their commitments to the Iraqi government,” noting that “after September 30, the discussion will begin about the issue of weapons, their presence and use.”

Al-Fartousi concluded his remarks by saying that some of the issues raised “need time,” while other issues “only need a political decision and do not need much time.”

Sources revealed two days ago that a preliminary agreement had been reached to hold a meeting that would include official government military and security parties, along with leaders from the coordination framework, representatives of the Popular Mobilization Forces, and representatives of armed factions, to discuss the mechanism for restricting weapons to the state, before the deadline of September 30, before it was postponed due to the absence of the Al-Nujaba Movement.

According to the sources, the meeting “does not mean reaching a final agreement on the mechanism for restricting weapons,” but rather comes within the framework of efforts to calm tensions and prevent any possible escalation, and to try to reach solutions and understandings regarding the process of restricting weapons.

A source told Shafaq News Agency last Sunday that the armed factions will not hand over their weapons on September 30, while also mentioning the second option being discussed in the negotiations, which is to regulate or freeze the weapons.

Two weeks ago, the coordination framework formed a tripartite committee comprising Mohammed Shia al-Sudani, Nouri al-Maliki, and Hadi al-Amiri, in order to contain the repercussions of restricting weapons to the state, especially after the media escalation and scaremongering witnessed in the Iraqi arena regarding this issue.

Over the past few days, the tripartite committee has held many dialogues and discussions with the factions concerned with the issue of restricting weapons.

It is worth noting that the state’s monopoly on weapons does not have the consensus of the Iraqi factions, as the Al-Nujaba Movement, Kataib Hezbollah, Kataib Sayyid al-Shuhada and other factions announced their refusal to give up their military capabilities on September 30, the date set by the Iraqi government, which coincides with the end of the international coalition’s military presence in Iraq, as these factions link the future of their weapons to the withdrawal of foreign forces.

The State Administration Coalition, which includes the most prominent Shiite, Sunni and Kurdish political forces in Iraq, had warned that any armed activity outside the framework of the state after September 30 would be dealt with according to the anti-terrorism law.

Shafaq.com

From 40 to 42 years old… Parliament completes amendment to the Internal Security Forces Service and Retirement Law

On Tuesday, the Parliamentary Committee on Security and Defense completed the draft of the second amendment to the Internal Security Forces Service and Retirement Law. Dailynews subscription

Committee member MP Othman Al-Shaibani said in a statement to Shafaq News Agency that the age for optional retirement will be from 40 to 42 years, provided that the actual service is not less than 15 years.

Al-Shaibani added that the Retirement Authority objected to the Ministry of Interior employees going into voluntary retirement due to the lack of financial allocations, explaining that the committee intervened to resolve the issue, and that the first reading of the draft law will be during the current legislative session.

He indicated that the Parliamentary Security and Defense Committee will host all the first-line leaders of the various security agencies, including the Interior Minister of the Kurdistan Region, to assess the readiness of the Iraqi armed forces and security agencies, especially after September 30 and the withdrawal of US forces from Iraq.

Al-Shaibani pointed out that the committee is directly monitoring the application and admission process at the Higher Institute, the Police College, and the Commissioners Institute affiliated with the Ministry of Interior, to ensure that admission procedures proceed according to clear and transparent standards, and away from exceptions and favoritism.

Shafaq.com

Workers at the West Qurna 2 oil field are protesting and threatening a strike that could endanger oil production in Basra.

Dozens of engineering, technical and administrative staff working at the West Qurna 2 field in Basra Governorate, in the far south of Iraq, demonstrated on Tuesday to demand the settlement of their contractual status and the disbursement of their financial dues, warning that they would resort to a general strike if their demands were not met within a week. Financialnews alerts

The protest representative, Mashreq Abdul-Munim, told Shafaq News Agency that the protesters are demanding the signing of legal employment contracts that guarantee their rights, similar to the previous contracts in place with the Russian company Lukoil, as well as the disbursement of all financial dues owed by the Basra Oil Company without delay or procrastination.

Abdul-Munim explained that the Basra Oil Company and the consortium of operating companies were informed of the requests and the deadline letter, noting that failure to reach solutions would cause an immediate halt to production and export operations within the field.

He added that the field’s current production is about 324,000 barrels per day, while exported quantities reach about 347,000 barrels per day, stressing that the continuation of the crisis without addressing it could put one of the most prominent producing fields in the country in front of major repercussions.

Shafaq.com

With an increase of one ton, Iraq strengthens its gold reserves and continues its global progress.

Data from the World Gold Council for August 2026 showed that Iraq maintained its position among the world’s largest gold holders, with an increase in its holdings compared to its last data. Financialnews alerts

According to data seen by Shafaq News Agency, Iraq’s gold reserves amounted to 175.6 tons, ranking it 28th globally, with gold constituting about 24.8% of its total reserves. The latest data for Iraq dates back to May 2026.

Compared to previous data, Iraq’s holdings increased from 174.6 tons to 175.6 tons, an increase of one ton.

Iraq comes in third place in the Arab world in terms of gold holdings, after Saudi Arabia, which has 323.1 tons, and Algeria, with 173.6 tons.

Globally, the United States topped the list with reserves of 8,133.5 tons, followed by Germany with 3,349.5 tons, then the International Monetary Fund with 2,814 tons, Italy with 2,451.8 tons, and France with 2,437 tons.

Shafaq.com

Al-Hakim: The date for the withdrawal of the international coalition remains unchanged, and the security of Kurdistan is part of the security of Iraq.

The head of the National State Forces Alliance, Ammar al-Hakim, confirmed on Tuesday that the agreement on the withdrawal of the US-led international coalition forces against ISIS from Iraq will come into effect at the end of September. Dailynews subscription

Al-Hakim told reporters on the sidelines of his visit to Dohuk province that this withdrawal “is a message of Iraqi recovery, revealing that the country has managed to overcome terrorism with the help of international and regional partners and primarily through the efforts and sacrifices of its people.”

Regarding the bombing that the Kurdistan Region was subjected to during the escalation of security tensions in the Middle East region, Al-Hakim stressed that the security and safety of the Kurdistan Region is an integral part of the security and safety of Iraq in general, adding: “We are very keen to keep away any targeting that affects all Iraqi lands, including Kurdistan, and we have known in the past and will work in the future to spare Iraq any consequences or targeting from any party.”

Shafaq.com

Spectrum Bank’s guardianship: Will people’s deposits be lost after the Central Bank’s intervention?

The decision by the Central Bank of Iraq to place Al-Taif Islamic Bank for Investment and Finance under guardianship and appoint a guardian to manage it for 18 months due to the presence of “serious violations” that affected its financial position and the depositors’ funds, according to a letter from the bank that was circulated, has led to concerns, especially from the bank’s customers, about their deposited funds.

Immediately, gatherings took place in front of bank branches, where the crowds demanded their deposits. The sudden panic led to a number of depositors gathering in front of branches (such as the Karrada branch) and even in some governorates to demand their money and deposits for fear of losing them.

What is the reality of the crisis, and is there a fear of people losing their deposits and rights, as happened in Lebanon, for example?

Experts point out that imposing guardianship is a legal step stipulated by banking laws, and its main objective is to intervene to protect depositors’ funds and stabilize the bank’s financial position when a serious administrative or financial defect is detected, and it does not necessarily mean declaring final bankruptcy.

Is there a fear of a scenario similar to the Lebanese crisis? Legal experts agree that comparing Iraq to the Lebanese model is structurally and banking-wise inaccurate for fundamental reasons. In the Lebanese crisis, the collapse resulted from the complete entanglement of the banking sector with a crisis of financial sovereignty and statehood, and a massive deficit that permeated the entire system. In Iraq, however, the intervention is limited to a single private bank (or specific banks) found to have deficiencies or violations related to its individual management. The central bank’s intervention is primarily aimed at preventing the bank’s collapse, not covering it up. Furthermore, the Iraqi central bank enjoys a strong foreign reserve position, which differs radically from the structural and monetary collapse that Lebanon experienced.

Guardianship committees usually aim to audit accounts and restructure assets and liabilities to ensure rights, as official statements emphasize that depositors’ funds are protected by law and the guarantees of the central bank, which will either correct the bank’s course or arrange precise settlement operations to ensure that deposits are not lost.

The nature of the events surrounding Al-Taif Bank may typically trigger a temporary wave of anxiety among some customers of the private banking sector, given the sensitivity of the issue of financial trust in the Iraqi market in general and the public’s memory of past experiences. A segment of depositors, growing impatient, may resort to monitoring their accounts or inquiring about the financial soundness of their private banks, especially given the occasional lack of complete transparency in promptly disclosing details of irregularities before they escalate.

Private banks in Iraq vary greatly in their financial situations, the size of their liquidity, and their compliance with international and local regulatory standards. The Central Bank’s action is a remedial measure directed at an exceptional case in which the defect has been proven, and does not necessarily mean the existence of a structural infection that includes all private banks, as the statements indicate.

The extent of the spread of concerns depends entirely on the speed and transparency of the central bank in containing the crisis, providing practical reassurances to depositors, and confirming the ability of the banking system as a whole to meet its obligations in order to avoid the crisis of one bank turning into a general panic that harms monetary stability.

Legal experts point out that the rights of those affected and depositors are legally protected, and in extreme cases or when any licensed bank is permanently insolvent, there are clear regulatory and institutional mechanisms for compensation and to ensure that funds do not evaporate, as legislation requires all licensed banks to participate in the “Iraqi Deposit Guarantee Company,” which was established with supporting capital between the public and private sectors, and it is the entity legally responsible for paying compensation to depositors within specific limits in the event that the bank is proven to be insolvent or bankrupt.

Appointing a “trustee” does not signify immediate liquidation or bankruptcy, but rather a proactive measure preceded by legal control over the bank’s assets and its real estate and financial holdings to ensure that they are used first to cover the obligations and rights of depositors before any other party. The official data of the Central Bank indicates that the ratio of liquid assets, which are cash or financial resources that can be converted into cash quickly and easily without a significant loss in their value, to short-term liabilities in the banking system as a whole, exceeds the required hypothetical ratio, and is exceeded by 60%, which means that there is sufficient financial cover to contain individual shocks and prevent them from turning into a comprehensive liquidity crisis.

While many depositors wonder why they were surprised by the decision, and why a statement should have been issued before it was released, specialists say that legal obligation and regulatory secrecy usually prevent banks from issuing such individual statements before the Central Bank intervenes. Decisions to impose guardianship and appoint a guardian are made suddenly and immediately to ensure that funds are not smuggled out or assets are not manipulated by the management that has been found to have committed violations.

Issuing a statement of reassurance on its own initiative contradicts supervisory mechanisms due to the nature of the violations. If the management is implicated in financial irregularities or suspicions that prompted the Central Bank’s intervention, it is unlikely to be transparent with depositors and may even attempt to conceal the truth to avoid public backlash. Once the trusteeship decision is issued, executive powers are immediately withdrawn from the bank’s management and board of directors and transferred to the trustee appointed by the Central Bank. This renders any previous or subsequent statements outside the purview of the former management. Crisis management and the dissemination of reassuring messages become the exclusive responsibility of the Central Bank of Iraq and the new legal trustee, who is tasked with accurately assessing the financial situation and addressing the public with facts, rather than empty promises that might be made by a compromised or complicit management.

Shafaq.com

Iraq awaits its 2027 budget… assurances that it will focus on securing expenditures and addressing some economic issues.

The Iraqi people are awaiting the 2027 budget to address the country’s financial crisis and to determine the government’s ability to secure operational expenses. These expenses are a major concern for government employees and other groups receiving government payments. Many other sectors, such as farmers, contractors, and companies operating in Iraq, are also waiting for this budget to learn the fate of their dues.

Meanwhile, the government continues to borrow money to pay salaries and secure essential supplies. Parliamentary assurances indicate that the upcoming budget will focus on securing expenditures and implementing some economic reforms in light of the current situation.

Economic expert Dr. Safwan Qusay told Al-Maalomah, “Iraq still lacks a specialized company that purchases debt at a discount, while most countries in the world have such companies that buy debt, whether governmental or otherwise.”

He added, “Iraq needs to establish a clear mechanism for repaying internal and external debts. While borrowing is not difficult and can be undertaken by government ministries, the repayment process requires a defined mechanism.”

He explained that “alleviating the financial crisis requires collecting taxes from companies operating within Iraq and recovering their outstanding debts, in addition to utilizing the credit portfolios offered by the Central Bank.”

For his part, economic expert Abdul Rahman al-Mashhadani told Al-Maalomah that “the government has set an estimated price for a barrel of oil next year between $60 and $70, a figure difficult to rely on given the war and low export rates, as well as the fact that oil is being sold at the port.”

He added that “the initial estimates for the total budget amount to 150 trillion dinars, of which 135 trillion will go to the operational budget (salaries and daily expenses), and a meager 15 trillion for the investment budget, thus deepening the financial deficit to dangerous levels.”

Al-Mashhadani explained that “these challenges and others will be the primary obstacle to finalizing the 2027 budget.” He pointed out that “the crisis coincides with a frightening decline in the reserves of the Central Bank of Iraq as a result of its continued sale of foreign currency to the private sector to finance imports, without any corresponding compensatory dollar inflows.” He revealed that “what has recently reached the Central Bank has not exceeded one billion dollars.”

In a related matter, Member of Parliament’s Finance Committee, Muhammad al-Shammari, told Al-Maalomah that “there is ongoing communication between the Finance Committee and the Ministry of Finance regarding the date for submitting the 2027 budget, and it is expected to reach Parliament in mid-October.” He emphasized that “salaries are secured and there are no concerns about their disbursement.”

He added that “the upcoming budget will be distinctly economic and will focus on economic and financial aspects in line with the requirements of the current phase.” He explained that “the Finance Committee is continuously monitoring the details of preparing the draft budget and the expected date for its submission to Parliament with the relevant government agencies.”

Al-Shammari pointed out that “the early arrival of the draft budget to Parliament would give the Finance Committee ample time to study its articles and allocations, and to discuss the financial and economic sections contained therein, thus contributing to making the necessary amendments and approving it within the specified deadlines.”

He stressed “the importance of expediting the completion of the budget preparation procedures and sending it to the House of Representatives, given its significance in regulating government spending and determining the financial and economic priorities for the next phase.”

Almaalomah.me

Al-Saadi: An agreement to finalize the nine ministerial portfolios may be reached next week.

Former MP Baqir al-Saadi confirmed on Friday that a final agreement on nominating candidates for the remaining ministerial portfolios may be reached during the next week, while noting that there will be important meetings and encounters during the next three days.

Al-Saadi explained in his interview with Al-Maalouma that “there are important consultations and meetings being held between the forces of the Coordination Framework and the rest of the political forces in order to proceed with completing the formation of what remains of the government, in light of the existence of nine ministerial portfolios, including security portfolios that are run by an acting minister.”

He added that “a final agreement to resolve this issue within the next week is very likely, according to the information available to us,” noting that the next three days will witness intensive meetings in Baghdad, and may lead to an agreement that sets a date for a session of the House of Representatives to vote on the candidates for the nine ministerial portfolios.

Al-Saadi pointed out that “it is not yet possible to say for certain that some of the candidates will proceed, as the matter is subject to political consultations, and therefore the ball will remain in the court of the House of Representatives to determine the names that will proceed to assume the nine ministerial portfolios.”

Almaalomah.me

MP holds financial and legal oversight bodies responsible for oil corruption: Recovered funds will not solve the crisis

On Friday, Abu Turab al-Tamimi, a member of the Iraqi parliament, held the financial and legal oversight departments of the Ministry of Oil responsible for the “corruption” linked to the Deputy Minister of Oil, Adnan al-Jumaili, and the Director General of the Oil Products Distribution Company, Hussein Talib, who was arrested on corruption charges.

Al-Tamimi told Shafaq News Agency that “the two departments bear responsibility for corruption because the former Prime Minister, Muhammad Shia Al-Sudani, when he granted Al-Jumaili conditional powers, stipulated that they be consistent with the regulations and laws of the Financial and Legal Control Departments in the Ministry of Oil.”

He added that “the corruption of the Director General of the Oil Products Distribution Company, who was arrested on charges of involvement in corruption cases, exceeds the cases of Adnan al-Jumaili, given that the latter does not have a support base.”

Regarding the possibility that funds recovered from those convicted of corruption cases could contribute to addressing the country’s financial crisis, Al-Tamimi pointed out that recovering these funds could be an important resource, but it is not enough on its own to address the financial crisis.

He continued, saying that “corruption in the Ministry of Electricity is more widespread and significant, but it has not received the same level of attention as corruption in the Ministry of Oil,” noting that there are “numerous corruption cases in some institutions.”

It is worth noting that the case of the Undersecretary of the Ministry of Oil for Refining Affairs, Adnan al-Jumaili, has been ongoing for more than two months, and has affected deputies and officials, a number of whom were arrested in various areas of Baghdad, including the Green Zone, as part of what was known as the “Dawn Charge”.

According to government data and statements, the subsequent measures resulted in the seizure of billions of Iraqi dinars and millions of dollars, as well as jewelry and gold bullion, in homes and farms belonging to Iraqi officials and politicians.

Last July, Iraqi security forces in Baghdad arrested Hussein Talib Aboud Marouh Al-Fadhli, the general manager of the Oil Products Distribution Company, hours before he was scheduled to be sworn in as a replacement member of the Iraqi parliament.

Meanwhile, the judiciary and the Integrity Commission vowed to continue pursuing and arresting those accused of corruption, as part of a campaign launched by Prime Minister Ali Faleh al-Zaidi to combat corruption.

Shafaq.com