Iraqi PM Launches Ambitious Banking Sector Reform
Prime Minister Mohammed Shia' Al-Sudani addressed the Conference on Reforming the Iraqi Banking Sector on Monday, outlining an ambitious agenda to modernise Iraq's financial infrastructure and promote sustainable economic development.
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Key initiatives and achievements highlighted in the Prime Minister's address include:
- Implementation of a three-year national budget, enabling long-term planning and strategic investment in health, education, and infrastructure.
- Efforts to diversify revenue sources by automating customs with the Automated System for Customs Data (ASYCUDA) system and improving tax systems, resulting in a 128% increase in customs revenues and 22% rise in tax revenues.
- Structural reforms of Rafidain, Rasheed, Industrial, and Agricultural Banks, supported by an international consultancy firm.
- Enhancement of digital payments infrastructure and partnerships with leading fintech companies, facilitating broader access to financial services.
- Expansion of financial inclusion, with rates rising from 10% to over 40% in two years-an achievement recognised by the World Bank and IMF.
- Updated legislation on e-commerce and digital payments and nationwide campaigns to foster a digital payment culture.
- Continued support for SMEs through financing and resource allocation, contributing to job creation and economic growth.
Al-Sudani reaffirmed that banking reform is a central pillar of his government's broader economic reform programme. He confirmed the launch of a comprehensive strategic initiative in collaboration with the Central Bank to align Iraq's banking system with international standards, strengthen global engagement, and attract new partnerships.
He concluded by reiterating the government's readiness to support both local and international stakeholders in transforming the banking sector to drive economic progress and financial stability.
Full statement from the Media Office of the Prime Minister:
Prime Minister Mohammed S. Al-Sudani attended the Conference on Reforming the Iraqi Banking Sector, held today, Monday.
His Excellency expressed appreciation for all efforts that contributed to organizing this conference, which presents visions and ideas aimed at developing Iraq's banking sector, promoting sustainable development, and enhancing Iraq's economic standing and its regional and international roles. He also commended the efforts of the Central Bank of Iraq, the banks, and the teams from international and local consulting firms for their ongoing work in strengthening and advancing Iraq's financial and banking sectors.
Prime Minister Al-Sudani noted that the government assumed responsibility during a complex economic period, which required decisive actions to achieve stability and ensure growth. He outlined the achievements realized in financial, banking, and economic fields as positive steps toward establishing solid foundations for development and capitalizing on prevailing stability.
Key highlights from the Prime Minister's speech include:
- The government prepared a three-year budget that allocated resources to key sectors such as health, education, and infrastructure.
- The three-year budget has enabled a long-term financial planning framework to help achieve the strategic and developmental objectives of the state.
- The government worked to boost revenues by improving the taxation and customs systems and enhancing non-oil revenues, helping reduce dependence on oil exports.
- Full automation of the customs system is underway through the implementation of the global ASYCUDA platform, developed under the United Nations.
- Customs revenues increased by approximately 128%, while tax revenues rose by about 22%-both higher than previous years.
- Ambitious projects have been launched to reform state-owned banks and improve their capacity to deliver financial services to individuals and businesses.
- Over the past two years, the Cabinet issued several decisions to restructure the Rafidain, Rasheed, Industrial, and Agricultural Banks with the support of a reputable international consultancy.
- The government enhanced the infrastructure for digital payments and transactions by strengthening protocols and systems to facilitate electronic payments across sectors.
- Partnerships were established with leading fintech companies to offer innovative digital payment solutions, enhancing the efficiency of the financial system.
- The financial inclusion rate rose to over 40%, up from just 10% two years ago-an achievement recognized by institutions like the World Bank and the International Monetary Fund.
- E-commerce and digital payment legislation has been updated.
- Awareness campaigns have been launched to promote digital payment culture among citizens.
- Support was extended to small and medium enterprises through financing and resources, resulting in job creation and economic stimulation.
- The initiatives proposed aim to address current challenges in the banking sector and enhance its international competitiveness.
- Banking reform forms a vital part of the economic reform pillar in the government program.
- The government, in cooperation with the Central Bank of Iraq, launched a comprehensive initiative for integrated strategic banking reforms.
- These reforms aim to align with global developments, open new partnerships, and enhance engagement with the global financial system.
- The government is fully prepared to support all local and international entities and institutions in efforts to develop the banking sector and promote economic growth and financial stability.
- Tangible results have already been achieved, with successful expansions and advancements in Iraq's banking industry.
The Central Bank of Iraq sets new controls for the use of bank cards abroad.
The Central Bank of Iraq has announced a set of new regulations and instructions regulating the use of bank cards outside Iraq, which will go into effect on April 8, 2025.
According to a document issued by the Central Bank and obtained by Al-Eqtisad News, the financial limits for travelers and residents outside Iraq when using debit and credit cards are distributed as follows:
1. Retirees: $10,000 per month or its equivalent in foreign currencies.
2. Travel: $20,000 per month for travel purposes, such as hotel bookings, flights, and car rentals.
3. Treatment abroad: $50,000 per month.
4. General uses outside Iraq: $5,000 per month.
The document indicated that "the maximum limit for the use of merchant bank cards outside Iraq was set at $20,000 per month."
The bank emphasized that "these controls are intended to ensure the integrity of the financial system and support economic growth. Banks will be provided with relevant merchant category codes at a later date, while the new cards will be activated for international use 30 days after their issuance."
The bank stressed "the necessity for banks and payment service companies to adhere to these instructions," warning against "imposing restrictions on any violating party."
He pointed out that the card replenishment process will be carried out exclusively in dollars at the official exchange rate, in accordance with robust procedures within the "e-governance" platform.
The Central Bank announces reform plans aimed at modernizing the Iraqi banking sector.
The Central Bank of Iraq revealed details of its private banking sector reform project on Monday.
The Central Bank of Iraq stated in a statement received by the Iraq Observer that, “With the full support of the government and in cooperation with Oliver Wyman Consulting, reform plans have been developed to modernize the Iraqi private banking sector and build a robust, modern, and flexible banking sector that drives economic growth, enhances financial inclusion, and generates stimulating and sustainable returns for shareholders.”
He added, "This plan is the result of joint efforts between the Central Bank of Iraq, the government, and the private banking sector, in cooperation with Oliver Wyman Consulting. Its success depends on the active participation and cooperation of all stakeholders."
The bank continued, "The Central Bank of Iraq and the government will lead projects aimed at modernizing the sector and meeting the evolving needs of a rapidly growing economy. These projects focus on three objectives: enhancing and deepening financial inclusion in Iraq, increasing the efficiency and productivity of the private banking sector, and creating a fair and healthy competitive environment in the market, while enhancing the sector's resilience and ability to withstand risks."
He explained that “this project will contribute to enhancing the protection of depositors and creditors, along with financial education campaigns to restore confidence in dealing with banks. The base of financial inclusion will also be expanded by establishing legal and regulatory frameworks and implementing them effectively. With the aim of enhancing access to services, payment systems will be updated to conduct efficient and reliable transactions for both companies and individuals, in addition to expanding the financial infrastructure, including increasing the network of branches and ATMs. Compliance procedures for anti-money laundering and counter-terrorism financing measures will also be simplified and assessed through the digital identity system.”
He pointed out that "a prerequisite for the success of the plans is requiring all banks to comply with a set of standards and actively participate in the sector's transformation process. Banks must move towards business models that add value to the Iraqi economy, while providing distinguished services to customers, ensuring their financial stability, and combating fraud and financial crimes."
He explained that “the main banking standards to be implemented are divided into four main categories: ownership structure and governance, which include setting a maximum ownership limit to prevent excessive control (concentration) by any single entity or related parties, ensuring the existence of competent and independent boards of directors, applying suitability tests (qualification) for all key leadership positions, in addition to conducting intensive due diligence processes on all major shareholders.”
He pointed out that "the second point focuses on business model sustainability, requiring banks to adopt sustainable and viable business models by submitting detailed, compatible business plans, strategic plans, financial forecasts, organizational structure, technology implementation plans, and operations management, ensuring that core services and products align with market needs to support the Iraqi economy and citizens."
The Central Bank emphasized that "the third point relates to financial metrics and includes maintaining capital adequacy and liquidity ratios in line with global best practices to ensure banks' resilience in the face of financial crises."
He pointed out that "the fourth point relates to risks and regulatory compliance, as it works to keep pace with global best practices in the field of compliance, including comprehensive measures to combat money laundering and terrorist financing, ensuring the sector's protection from financial crimes. It also aims to enhance transparency in reporting and audits by accredited auditors to reduce conflicts of interest, including transactions with related parties."
He explained that "the reform process will be a multi-stage journey, during which private banks will be assessed for their compliance with the required standards at various stages of the reform process. The first evaluation cycle is expected to begin in the first quarter of 2026."
The statement concluded, "In the coming months, detailed criteria and timelines for implementing the reform process will be shared with the private banking sector through official circulars. Support channels will be activated and technical assistance workshops will be held to ensure readiness before the evaluation process begins. All licensed private banks will be asked to officially confirm their participation in the reform process. The Central Bank of Iraq is fully committed to achieving this transformation by working closely with all relevant parties to pave the way for a strong and inclusive financial system."
Staggering 87% of Iraqi Money Kept Out of Banks: Expert
Around 87% of money in Iraq is kept outside of banks due to widespread distrust in the financial system, an expert in economics and banking has revealed.
Siamand Shekha, speaking to BasNews, explained that this lack of trust is holding back the country’s economic growth and banking development.
According to the economic advisor to the Iraqi Prime Minister, approximately 95 trillion dinars out of a total of 109 trillion dinars are not in the banking sector.
Shekha emphasized that political instability, sectarian conflict, terrorism, and the fluctuating value of the dollar and dinar are the main factors contributing to this distrust.
He also indicates that Iraqis prefer to keep their money themselves rather than depositing it in banks.
The banking system in Iraq has long struggled with issues such as outdated infrastructure, limited digital banking services, and a lack of transparency.
Furthermore, the ongoing political and security challenges, including corruption within the financial sector, have made it difficult for citizens to feel confident in the safety of their savings.
The lack of access to modern banking services, particularly in rural areas, has further compounded the problem, leaving much of the economy operating outside formal financial channels.
Al-Sudani opens the Iraqi banking sector reform conference.
Prime Minister Mohammed Shia Al-Sudani inaugurated the Iraqi Banking Sector Reform Conference
Parliamentary Finance Committee: Launching the banking reform plan is the beginning of economic reform.
Launching a private banking reform plan in partnership with Iraqi and international institutions.
The Governor of the Central Bank of Iraq, Ali Al-Alaq, announced the launch of a comprehensive plan to reform private banks, in partnership with local and international institutions. He emphasized that the next phase will witness a qualitative shift in the nature of banking services, based on innovation and digital transformation.
During the Iraqi Banking Sector Reform Conference, which was attended by an Al-Eqtisad News correspondent , Al-Alaq said that Iraqi banks have made significant strides in developing their banking services, but they are required to further embrace modern technology. He emphasized that artificial intelligence must be at the core of future investments in the banking sector.
He added: "The world is witnessing a broad transformation in the financial structure and banking systems, which requires traditional banks to keep pace with this radical change by offering innovative services that meet customer aspirations amidst the tremendous technological acceleration."
The Central Bank Governor indicated that digital currencies will play a vital role in accelerating payment and money transfer transactions, requiring banks to develop their digital infrastructure.
He also noted that central bank digital currencies (CBDCs) could reshape the global banking landscape, adding: “Successful banks of the future will be those that embrace digital transformation tools and integrate artificial intelligence into their daily operations.
Al-Sudani: We hope the banking sector reform conference will present ideas for achieving sustainable development.
Prime Minister Mohammed Shia Al-Sudani stressed: "The government is looking forward to the banking sector reform conference to present ideas to achieve sustainable development."
Al-Sudani said in a speech at the banking sector reform conference: "Iraq is facing challenges in the financial and banking fields, and the government has taken, in a complex economic situation, measures to achieve stability and ensure growth," noting: "The government has prepared a three-year budget that includes allocating resources to various sectors."
He added: "We are working to fully automate customs through the ASYCUDA system, which is the United Nations' automated global system for customs procedures," indicating: "Customs revenues increased by about 128%, and tax revenues increased by about 22%, which are higher rates than previous years."
The Prime Minister continued: "We have launched ambitious projects to reform the government banking system, ensuring increased capacity to provide financial services to individuals and companies. Over the past two years, the Council of Ministers issued several decisions to restructure the Rafidain, Rasheed, Industrial, and Agricultural banks, with the assistance of a reputable international consulting firm. We have worked to strengthen the infrastructure for electronic payments and trading, by enhancing systems and protocols to facilitate electronic payments across various sectors."
He pointed out: "The government has established partnerships with the best financial technology companies to provide innovative payment solutions, with the aim of enhancing the efficiency of the financial system," indicating: "The financial inclusion rate has reached more than 40%, compared to its rate two years ago, which did not exceed 10%, a development praised by international organizations such as the World Bank and the International Monetary Fund."
He continued, "Laws related to e-commerce and payments have been updated. Awareness campaigns were organized for citizens on the benefits of electronic payments, which enhanced the culture of digital payments in society. We provided support to small and medium-sized enterprises by providing financing and resources, which reflected in job creation and economic revitalization. Through the proposed initiatives, we seek to address current challenges in the banking sector and enhance its competitiveness on the international stage."
Al-Sudani explained, "Banking reforms constitute an important pillar of the economic reform adopted in the government program. The government, in cooperation with the Central Bank of Iraq, has embarked on a comprehensive initiative that includes an integrated strategic banking reform process."
He stated that the comprehensive reforms aim to keep pace with international developments and contribute to opening partnerships and prospects for communication with the outside world in modern banking and financial transactions. He expressed the government's readiness to support all local and international entities, institutions, and companies to develop the banking sector, enhance economic growth, and achieve financial stability.
Al-Sudani commended all the efforts that contributed to holding this conference, including its visions and ideas for developing the Iraqi banking sector, and its presentation of ideas for achieving sustainable development, enhancing Iraq's economic standing, and its regional and international role. He also commended the efforts of the Central Bank, banks, and the working groups of international and local consulting firms, which continue to strengthen and develop the Iraqi financial and banking sector.
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Al-Alaq: Digital currencies will reshape the traditional banking system.
The largest US trade delegation, representing 60 companies, arrives in Baghdad to enhance economic cooperation.
The US Embassy in Baghdad announced on Monday the arrival of a 101-member US trade delegation representing 60 companies from various sectors. The visit aims to strengthen economic and investment relations between the United States and Iraq.
The embassy confirmed in a statement monitored by the Iraq Observer that this visit represents one of the largest US trade missions to Iraq and reflects American companies' interest in expanding opportunities for cooperation and partnerships with their Iraqi counterparts in various fields, most notably energy, infrastructure, technology, and healthcare.
She noted that the delegation's agenda includes meetings with government officials and private sector representatives to discuss investment opportunities and ways to support the business environment in Iraq, which will contribute to job creation and stimulate economic growth.
The largest US trade mission to Baghdad, comprising 101 individuals, arrives.
The US Embassy in Baghdad announced on Monday the arrival of the largest US trade mission to Iraq, comprising representatives from 60 companies across various sectors.
"The American Chamber of Commerce, headed by Steve Lutes, is leading a 101-member delegation from approximately 60 American companies in the energy, technology, and healthcare sectors to Iraq this week," the embassy said in a statement received by Shafaq News Agency.
She added, "This is the first US Department of Commerce-approved trade mission to Iraq and the largest US trade mission to Iraq in the Chamber's history."
She confirmed, "During the visit, which will extend from April 7 to 9, the delegation will meet with high-level Iraqi officials, engage with Iraqi companies, and sign a number of agreements."
"The U.S. Chamber of Commerce provides a platform for creating and implementing new ideas aimed at establishing partnerships and trade policies that influence the thinking of governments and business leaders in both countries. For more than a decade, the Chamber has regularly visited Iraq and hosted Iraqi government delegations in the United States," she explained. "During this visit, the U.S. Chamber of Commerce will sign a memorandum of understanding with the Federation of Iraqi Chambers of Commerce to strengthen relations between the American and Iraqi private sectors."
The embassy also announced that "the American Chamber of Commerce and the Federation of Iraqi Chambers of Commerce signed a pivotal memorandum of understanding to strengthen relations between the American and Iraqi private sectors. This partnership will enhance long-term economic cooperation between the two parties."
Uncertainty surrounds the fate of the 2025 schedules: administrative measures or veiled austerity?
The fate of the current year's budget schedules remains shrouded in mystery, amid government silence and repeated delays. This comes at a time when parliamentary pressure and popular demands are mounting to submit the schedules, determine the fate of stalled projects, and determine the salaries of vulnerable groups.
For months, economic and parliamentary circles have been anticipating the arrival of the budget schedules from the federal government, with no clarity on when they will be sent or the nature of the expected amendments. This is particularly true given the significant decline in oil prices and shrinking revenues, which has prompted many to warn that the country is entering a real financial vacuum.
No budget discussions.
Member of Parliament Baqir al-Saadi said, "The continued delay in the government's submission of the 2025 budget tables to parliament is one of the main reasons hindering the progress of the budget legislation and its inclusion on parliament's agenda."
Al-Saadi told Al-Mada that, "Parliament has not yet officially received the budget tables, which are the basis for determining the details of public spending and financial allocations to ministries and government institutions." He explained that, "The absence of these tables makes it difficult to engage in any serious discussions regarding the budget or set a precise date for voting on it."
He added, "The disruption of parliamentary sessions over the past weeks has further complicated the issue and contributed to the postponement of the budget presentation," noting that, "The legislative authority is waiting for the required tables to be sent so that the parliamentary finance committee can begin studying the details and make the necessary amendments to serve the public interest." MP Jawad Al-Yassari, for his part, confirmed that Parliament "knows nothing about the 2025 budget schedules, the size of the deficit, or the date by which the government intends to submit it." He added in a statement that "the government had promised to submit it after Eid al-Fitr, but nothing has happened yet."
He added that "the significant collapse in oil prices will have a direct impact on the shape of the budget and may push the government to make extensive changes to the schedules, which means we are facing a new potential delay that could extend for weeks to come."
Disguised Austerity!
While the schedules are the executive cornerstone of the three-year budget approved in 2023, their absence so far raises questions about the government's commitment to implementing the financial plan. It also delays important procedures, such as the disbursement of project allocations, employee promotions, and social assistance.
The Ministry of Labor announced that more than 1.3 million new social assistance beneficiaries are ready to be enrolled, but indicated that the rollout is solely linked to parliamentary approval of the schedules and the availability of financial allocations.
Experts believe that the delay in submitting the schedules is not isolated to the government's disguised austerity policy, which leaves executive and legislative bodies in a state of confusing waiting, given the state's administrative and financial processes being disrupted.
For
his part, economic researcher Dawood Al-Halfi confirmed that "the delay in approving the general budget has become a common occurrence in Iraq, as it has not been approved on time for years, despite the importance of its issuance at the beginning of each year to ensure project funding and the smooth running of state affairs."
Al-Halfi told Al-Mada, "The budget is supposed to be approved at the beginning of the year, specifically in the first or second month at the latest, but it is often postponed until the fifth or early sixth month due to political conflicts and disagreements over interests and benefits between influential parties."
He added, "The budget has never been a priority for political forces, even though it represents the cornerstone for economic development and the implementation of service and investment projects, in addition to being a major source of stimulating the domestic market through salaries."
He pointed out that the structure of the Popular Mobilization Forces (PMF) represents another reason for the delay, as officially approving its structure means adjusting its financial levels and salaries. He warned that "investment and service projects are the most affected by the delay, especially since investors, whether local or foreign, require a financially and economically stable environment."
Reports indicate that vital projects in the education, health, and municipal services sectors across various governorates have been temporarily frozen pending the arrival of funding from Baghdad, amid increasing complaints from local administrations about the lack of coordination and the difficulty of planning for any development phase without a clear financial ceiling.
Report: US-Iran talks to be held in Oman
Three Iranian officials familiar with the matter told The New York Times that representatives from Tehran and Washington are scheduled to meet in Oman on Saturday for indirect talks.
This comes as US President Donald Trump told reporters at the White House that his country is holding direct talks with Iran, revealing a "high-level" meeting will be held on Saturday, without specifying its location.
However, Iranian officials explained that Tehran's understanding of the nature of these talks differs somewhat from what Trump stated, stressing that the two sides will sit in separate rooms, with Omani diplomats responsible for relaying messages between them.
The newspaper quoted Iranian officials as saying that Tehran is open to direct talks with Washington if indirect negotiations make tangible progress.
No significant barriers left to resume Kurdish oil exports: Baghdad
Iraq’s oil ministry said on Monday that there are no major obstacles remaining to resume Kurdish oil exports via the Iraq-Turkey pipeline and only minor technical issues remain to be resolved between Erbil and Baghdad.
“The issue of restarting oil exports from the Kurdistan Region is tied to the interests of the people,” Iraqi oil ministry spokesperson Abdulsahib al-Hasnawi told Rudaw, adding that both Baghdad and Erbil are “rushing” to resume exports and that “they need to do so.”
Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been suspended since March 2023 after a Paris-based arbitration court ruled in favor of Baghdad against Ankara, saying the latter had violated a 1973 pipeline agreement by allowing Erbil to begin exporting oil independently in 2014.
Despite ongoing talks between Erbil, Baghdad, Ankara, and oil producers - with added pressure from the United States - the exports remain stalled, with their suspension costing Iraq billions of dollars in revenue.
“Certainly, meetings to resume oil exports will take place in the coming days, and they will be productive,” Hasnawi affirmed, emphasizing that there are “no major disagreements” between Erbil and Baghdad regarding their resumption.
Only “a few specific points to reorganize the exports” remain, according to Hasnawi - points he expects to be resolved “soon.”
In late March, the Association of the Petroleum Industry of Kurdistan (APIKUR), a coalition of eight international oil companies operating in the Kurdistan Region, accused the Iraqi government of being "unwilling" to negotiate a solution that honors their contracts with Erbil, claiming Baghdad was instead attempting to unilaterally alter the terms.
APIKUR shared another statement on Thursday, saying that their investments have been “fundamentally harmed” by the closure of the pipeline and that they are in a “hurry” to resume the oil exports - for which they have been “at forefront to push negotiations with Baghdad.”
“Investments will continue when the ITP reopens and IOCs [international oil companies] are ensured of their contractual rights,” their statement read.
In response, Baghdad’s oil ministry on Friday said it “regrets the publication of this erroneous and misleading statement.”
It also called for an “urgent meeting with the parties concerned” to negotiate the resumption of the exports “in accordance with the modified budget law” as well as to reach an agreement that “protects Iraq’s rights and guarantees its commitments to investors.”
The ministry further stated that the “primary challenge” to negotiations stems from “non-constructive steps” and “unrealistic demands” made by other parties operating outside the existing legal framework.
In early February, the Iraqi parliament approved amendments to the federal budget law, authorizing a $16-per-barrel fee for production and transport costs in the Kurdistan Region - a move seen as a crucial step toward restarting exports.
The amendments also require both the federal government and the KRG to establish an international technical consultancy within 60 days to assess production and transportation costs for oil fields in the Kurdistan Region. If an agreement cannot be reached, the federal council of ministers will appoint the consultancy.
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Challenges facing the Iraqi government
To the observer, it appears that the Iraqi government is attempting to act with a high degree of realism and pragmatism regarding domestic and regional issues. Perhaps the most striking evidence is that it is operating from within the Arab axis regarding the Syrian issue, and is not adopting a hostile position, unlike the parties that sit in the back seats of the Iraqi political and security scenes. Herein lies the paradox: There are major parties in the Iraqi political scene, from which the current Iraqi government emerged, issuing statements and adopting explicit positions that resonate with the Iranian position. The question here is: Is it a division of roles? And which position is more authentic: that of the government, or that of the parties forming the government?
In recent television interviews, Prime Minister Mohammed Shia al-Sudani revealed practical visions that focus on development and service provision rather than adopting strident political positions. Many commented that the prime minister was conducting an early election campaign, an assumption reinforced by his appearance in Arab attire on the morning of Eid al-Fitr among the people of his hometown of Amara in Maysan Governorate, southern Iraq, where he distributed gifts to tribal sheikhs.
Accordingly, some are counting on the political movement represented by al-Sudani to win the upcoming elections and form an alliance that will guarantee him a second term and reinforce the realistic, practical path he appears to be taking today. But is this a realistic vision or overly optimistic? Despite his calm smile and the confident, reassuring tone he displays, the prime minister and his government have been experiencing, in recent days, two serious threats from the two most influential poles in the Iraqi arena: America and Iran. The former continues to send warnings against siding with the Iranian regime. Representative Joe Wilson even introduced a bill to Congress to pass a law that would free Iraq from Iran's grip. Meanwhile, reports have carried serious threats from Iran that Iraq will be treated as an enemy state if American military threats are issued from its territory. This comes amid the ongoing escalation between Iran and the Trump administration, and the possibility of a US strike on Iranian nuclear facilities if a political agreement is not reached between the two parties.
The Iraqi government is unable to meet both demands simultaneously, and it does not have the luxury of declaring itself neutral. Iraq will be drawn (willingly or unwillingly) into the potential conflict. Therefore, many are praying that the verbal skirmishes between America and Iran will pass peacefully, and that a new settlement will be reached that will spare the region the consequences of a war whose extent no one knows.
On a "third" front, teachers and educators have been demonstrating for days in Baghdad and several other governorates, demanding increased financial allocations and equal pay scales with their peers in other sectors. The atmosphere hasn't heated up significantly so far, and the power outages haven't become a major problem, as they do every summer, the likely date for the outbreak of demonstrations. It appears that teachers preempted events and took to the streets early.
The Prime Minister spoke extensively in his television interviews about investment and diversifying sources of national income, but the reality is that we are still a rentier country, and societal culture still views the state as the source of spending. Every "state employee" feels entitled to demand a wage increase, even if the productivity of state institutions is very low.
Some commented on the new crisis, arguing that the prime minister's response to the teachers' demands might send them home, but this would alert other sectors to the effectiveness of this tool (protests), and they would take to the streets in turn. If he refuses to respond, the protests could escalate into embarrassing clashes for the government.
