Iraq to restructure financial policy

An aerial view of the new headquarters of the Central Bank of Iraq (CBI). Photo: Zaha Hadid Architects Baghdad (IraqiNews.com) – Iraqi Prime Minister Ali al-Zaidi confirmed on Tuesday that the government is moving forward with restructuring the country’s financial policy. Al-Zaidi’s remarks took place during his meeting with the Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF), Jihad Azour, on the sidelines of his participation in the 81st session of the United Nations General Assembly, which opened on Tuesday in New York. The meeting addressed developments in the global economy and the repercussions of the crisis currently affecting the region, according to a statement released by the Prime Minister’s Office (PMO). The discussions also addressed the effects on markets, supply chains, and inflation rates, in addition to the impacts on energy consumption and oil prices. Al-Zaidi highlighted that the government is focused on expanding automation systems and is gradually shifting toward a program-and-performance-based budget as part of the 2027 budget initiative. Azour reaffirmed the IMF’s willingness to continue working with Iraq and support the path of economic and fiscal reforms, contributing to the country’s financial and economic stability. The IMF projected in July that the Iraqi economy will be the most hit by oil and transportation disruptions in the Middle East and Central Asia in 2026. The IMF also predicted a robust economic rebound in 2027, when energy market conditions improve and commerce resumes. The anticipated fall in 2026 will mainly result from the disruption in oil production and distribution, especially by countries that depend heavily on energy exports, but the recovery in 2027 will be brought about by a reduction of these shocks and resumption of business activities.