Iraq’s economy “unprepared” for future pressures, ex-lawmaker says
Shafaq News – Baghdad
Iraq is moving toward a serious economic crisis, independent politician and former Najaf lawmaker Mohammed Anouz told Shafaq News on Thursday, arguing that the management system in place since 2003 has failed to adapt to the country’s shifting demographic and financial realities.
He said political actors remain preoccupied with power dynamics rather than building employment-generating sectors - current unemployment hovers around 13%, stressing that genuine recovery depends on strengthening domestic production and enforcing laws that prioritize locally made goods in government procurement.
According to Anouz, Iraq’s fiscal structure has become increasingly fragile as deficits widen, liquidity tightens, and state spending reflects political priorities instead of economic need. He criticized the gap between “digital balances” shown in official accounts and the lack of real cash available to citizens, pointing to private banks withholding deposits and government bonds left unpaid as examples of an economic system that places the burden on ordinary Iraqis.
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He called for reducing government spending, restructuring state institutions, streamlining procedures, and appointing administrators based on competence rather than patronage. Revenue collection, he added, remains one of the most neglected pillars of reform, with manual tax and customs systems allowing large portions of non-oil income to vanish before reaching the treasury, even as fees imposed on citizens continue to rise without adjustments to outdated salary scales.
Iraq enters this period of economic strain amid rapid demographic expansion and persistent unemployment challenges. The country’s first full national census in decades, conducted in 2024, found the population had reached 46.1 million, with a majority in the working-age category—placing significant pressure on an already strained labor market.
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