Financial expert identifies tools to "save Baghdad" from the liquidity crisis - Urgent

[RJG]

economy Yesterday, 20:30 | 570

Financial expert identifies tools to "save Baghdad" from the liquidity crisis - Urgent

 

 

Baghdad Today - Special Report

Iraq's public finances are under increasing pressure due to declining oil revenues and the continued near-total reliance on crude oil as the primary source of budget funding. This has impacted liquidity levels and the government's ability to meet its growing obligations. Amid these challenges, economic calls are mounting for a review of the public revenue structure, expanding the tax base from non-oil sectors, reforming financial collection systems, combating corruption, and reducing waste in government spending. These measures aim to enhance financial stability and mitigate the severity of recurring crises. Financial expert Saleh Rashid outlined several tools Baghdad could adopt to successfully manage the liquidity crisis, given the alarming decline in the country's treasury revenues for the third consecutive month.

Rashid told Baghdad Today that “Baghdad is facing a major, sensitive and complex financial crisis, especially after losing an important part of its crude oil export revenues as a result of the disturbances in the Strait of Hormuz, which has made Iraq one of the most affected countries in the region, as it depends on oil for more than 90% of its resources.”

He explained that "the government has limited options for addressing the financial gap, foremost among them developing non-oil revenues, which has multiple dimensions, most notably the issue of collecting money from services provided to citizens, as this issue is witnessing high levels of corruption that require a comprehensive review."

He added that "the introduction of modern technologies in collecting money, especially in the electricity and water sectors, has become an urgent necessity, provided that the collection is fair and equitable, takes into account the conditions of the poor and the simple, and contributes to reducing losses, as well as developing the collection of the rest of the other services."

Rashid pointed out that “warnings against relying on oil as a primary resource for Iraq’s treasury were issued more than 30 years ago, while many oil-producing countries, especially in the Arabian Gulf, realized the danger of this approach and began to change it, but successive governments in Baghdad did not give this issue sufficient attention.”

He added that "the picture today is clearer than ever before, which necessitates changing the economic view of oil and moving to a diversified economy in which oil is a part but not the whole," stressing "the importance of controlling the pace of spending in state institutions and strengthening efforts to combat corruption."

He concluded by saying: "A large part of Iraq's wealth is being drained due to corruption, and addressing this issue is a fundamental step for any real financial or economic reform."

The Iraqi economy is heavily dependent on crude oil export revenues, which constitute more than 90% of the country's resources, making it highly vulnerable to fluctuations in oil prices and geopolitical conditions in the region.

In recent years, warnings about the dangers of this unilateral reliance have increased, especially with the recurrence of financial crises and delays in paying salaries and government obligations at certain times.

https://baghdadtoday.news/300574-.html

[3n1]

29 minutes ago, RJG said:

Rashid pointed out that “warnings against relying on oil as a primary resource for Iraq’s treasury were issued more than 30 years ago

 

welp better late than never i guess , the IMF was telling iraq repeatedly to diversify away from oil and to start a free market economy years ago when maliki was stealing as much iraqi wealth as himself and all his cohorts could get , oil will always be the driver of the bus for them imo but a developed market economy puts the tires on the bus lol ... thanks RJG 

[screwball]

59 minutes ago, 3n1 said:

 

welp better late than never i guess , the IMF was telling iraq repeatedly to diversify away from oil and to start a free market economy years ago when maliki was stealing as much iraqi wealth as himself and all his cohorts could get , oil will always be the driver of the bus for them imo but a developed market economy puts the tires on the bus lol ... thanks RJG 

with the new PM giving all MP's seven days to divulge all their assets, Milki could be toast...something tells me he already has the names and numbers! 

[screwball]

1 hour ago, RJG said:

"the government has limited options for addressing the financial gap, foremost among them developing non-oil revenues, which has multiple dimensions, most notably the issue of collecting money from services provided to citizens, as this issue is witnessing high levels of corruption that require a comprehensive review."

He added that "the introduction of modern technologies in collecting money, especially in the electricity and water sectors, has become an urgent necessity, provided that the collection is fair and equitable, takes into account the conditions of the poor and the simple, and contributes to reducing losses, as well as developing the collection of the rest of the other services."

electronic is the only way, everything is traceable....