Iraq: No threat to salaries despite oil price drop

Shafaq News/ Iraq has secured funding for public sector salaries despite a recent drop in global oil prices, a senior government adviser said on Sunday.

According to Mudher Mohammed Saleh, financial and economic adviser to Prime Minister Mohammed Shia Al-Sudani, the salaries for civil servants, retirees, and social protection recipients are fully covered in the 2025 federal budget and will not be affected by fluctuations in oil prices.

“The government’s top priority is ensuring the payment of salaries, and they are fully secured for the coming period,” he added.

Iraq relies on oil exports for more than 90% of its revenue. A drop in oil prices can significantly impact its budget, prompting concern among economists over the state’s ability to meet payroll obligations without borrowing.

Analysts have also warned that external pressures, including recent US import tariffs affecting Iraqi goods, could worsen fiscal pressures. Iraq has previously turned to borrowing during similar downturns.