Baghdad (IraqiNews.com) – The Prime Minister’s Advisor for Financial Affairs, Mazhar Saleh, said on Friday that the government’s agenda prioritizes economic diversification to fulfill Iraq’s long-term development goals.
In a statement to local news outlet Shafaq News, Saleh explained that the initiative would be undertaken by establishing an integrated link between improving the structure of non-oil revenues within the framework of state finances and diversifying non-oil GDP.
The ambitious goal, known as ‘Iraq 2035,’ created by the Iraqi cabinet in May, comprises both public finance reforms and social market economy policies, enabling a steady structural change of the national economy, according to Saleh.
The vision transforms fiscal policy to ensure that non-oil income accounts for at least 46 percent of total governmental revenues. This will improve budgetary sustainability and reduce the volatility caused by overreliance on oil earnings.
The move will also enable the private sector to expand its contribution to the country’s GDP to 53 percent by 2035, up from the present rate of 37 percent, making it an important player in the economic growth process.
According to a report released last week by the International Monetary Fund (IMF), Iraq will be one of the economies most affected by regional instability in 2026, with major implications for inflation rates and public budgets.
Iraq faces significant financial issues as a result of the closure of the Strait of Hormuz, which is the major route for its oil exports, at a time when the Iraqi economy is heavily dependent on oil earnings as a key source of public revenue and budget finance.