Iraq’s Finance Committee: Budget at risk without oil price revision

Shafaq News/ On Wednesday, Iraq’s parliamentary finance committee warned of potential financial instability if the government fails to revise the projected oil price in the federal budget amid falling global crude prices.

Committee member Jamal Kocher told Shafaq News that the 2023–2025 budget law set the oil price at $70 per barrel, while global prices at the time exceeded that figure, noting, “It is still unclear whether the government has adjusted the oil price assumption in the budget.”

“Iraq’s operational budget amounts to 90 trillion dinars (around $68.7 billion) and if oil prices drop below $60 per barrel without corrective action, the country could face a financial crisis,” he pointed out.

Regarding the status of the 2025 budget tables, Kocher said they are still pending in the Council of Ministers and no date has been set for submitting them to parliament.

Earlier, Prime Minister Mohammed Shia al-Sudani’s economic adviser, Mudhhir Mohammed Salih, told Shafaq News that the delay stems from revisions involving extraction and transportation costs for oil from the Kurdistan Region.

Iraq’s economy is heavily dependent on oil exports, with petroleum revenues accounting for over 90% of the federal budget. In 2023, Iraq passed an unprecedented three-year budget (2023–2025) based on an average oil price of $70 per barrel and a daily export target of 3.5 million barrels. However, global oil prices have dropped significantly in early 2025, raising concerns that Iraq may face revenue shortfalls if budget assumptions are not adjusted.