2026-08-03T05:48:42+00:00
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Shafaq News- Diyala
Thousands of government employees and retirees in Iraq’s
Diyala province are waiting for delayed salary payments, forcing families to
postpone purchases, rely on credit and reduce daily spending as uncertainty
over payment schedules spreads across local markets.
The delay is already visible in Baqubah, the provincial
capital, where commercial activity rises after salaries are released and slows
when payments are postponed. Shop owners closely monitor customer movement, as
public-sector wages remain one of the main drivers of local spending.
For government employee Qaisar al-Azzawi, the delay has
turned the end of the month into a constant calculation of which obligations
can be postponed and which cannot, telling Shafaq News, “Reorganizing
family obligations has become a reality after salary delays turned into an
additional burden. The salary itself is no longer enough to cover what
accumulates during the waiting period amid rising living costs.”
The uncertainty surrounding payment dates has become a major
concern for employees because families cannot plan their expenses without
knowing when their income will arrive. “Every additional day means a new
debt or a postponed need, while landlords, banks and service providers continue
to demand their payments,” he added.
Among retirees, concerns are also growing that repeated
delays could leave families with little room to adjust. Retired police officer
Hadi al-Abadi noted that many households have already reduced non-essential
spending.
“A delay once can be managed, but if it happens
repeatedly in the coming months, there will be nothing left to cut.”
Read more: 2026 budget: Iraq confronts unprecedented fiscal strain
Across Diyala, families have begun changing how they manage
monthly expenses. Instead of buying household supplies in one trip, some are
purchasing smaller quantities and delaying purchases that are not considered
essential.
Teacher Ali al-Rubaie described how the pressure has changed
daily shopping habits for his family and others around him. “My family and
many families I know have stopped buying their needs for the entire month and
now purchase food in smaller quantities that last only two or three days,”
al-Rubaie told Shafaq News, cautioning that children do not understand what a
liquidity crisis or delayed salary means.
“They only see that their classmates have things their
families cannot buy for them,” he added.
The slowdown has quickly moved from homes into markets. At a
grocery store in central Baqubah, owner Ali al-Qaisi has noticed fewer
customers buying larger quantities and more people requesting credit.
He pointed to the difference between periods of delayed
payments and salary release days, explaining, “When salaries arrive,
customers return to repay debts and buy their household needs. When payments
are delayed, sales decline and debt records increase.”
The same pattern is affecting businesses selling goods that
families can postpone, including clothing, household appliances and mobile
phones. At a home appliance store, employee Mortada Hussein observed that
customers are focusing more heavily on essential expenses before considering
larger purchases.
“Most people prioritize food, rent and services before
thinking about buying appliances or other goods,” Hussein told Shafaq
News, pointing out that some regular customers who previously bought household
items have disappeared for months.
Read more: Liquidity shortage delays Iraqi salaries: Experts warn of prolonged financial strain
The salary delays have also raised concerns about the
government’s ability to meet its monthly financial commitments.
Officials, including Finance Minister Faleh Sari and Health
Minister Abdul Hussein al-Mousawi, have estimated that securing monthly salaries
requires around 8 trillion Iraqi dinars (about $6.15B), while available
liquidity had fallen to about 3 trillion Iraqi dinars (about $2.31B), forcing
payments to be released in stages based on available funds.
Economic researcher Abdullah al-Jubouri told Shafaq News
that the situation reflects a shortage of available cash rather than state
bankruptcy.
“A liquidity crisis does not mean the state has lost
its resources. It means there is not enough cash available at the required time
to meet obligations because of regional pressures,” he remarked, adding
that because Iraq’s economy depends heavily on government spending, delayed
salaries quickly affect businesses and private-sector workers.
The longer-term concern, according to al-Jubouri, is whether
delayed payments become a repeated pattern that changes consumer behavior, as
employees lose confidence in the timing of salaries and become more cautious
even when they have money because they worry about what the next month may
bring.
The Iraqi government is considering borrowing options to
help finance salary payments, including domestic borrowing, while external
borrowing could be considered if financial pressures linked to the Strait of
Hormuz crisis continue.
Warning that borrowing could provide temporary relief,
al-Jubouri cautioned that this step would create additional obligations for
state finances. He maintained that longer-term solutions would require reducing
waste, increasing non-oil revenues and improving public finances.
Read more: Iraq’s budget paralysis: How the 1/12 rule reduced state finances to salary payments