Iraq Economic News and Points To Ponder Late Friday Evening 7-24-26
Iraq Accelerates Journey Towards WTO Membership
Business Iraq Iraqi News July 24, 2026 The WTO headquarters at the Centre William Rappard in Geneva, Switzerland Baghdad – Iraq has increased its attempts to join the World Trade Organization (WTO), with the new administration advancing a process that officials regard as part of a larger agenda of economic reform and diversification.
Iraq’s accession to the WTO would bring it into the rules-based global trading system, compelling the country to match its trade policies with international norms for market access, transparency, and regulation.
While membership does not ensure economic development, many observers regard it as a significant step toward building a more predictable climate for trade and investment.
Iraq’s WTO entrance is part of broader attempts to promote private sector growth, attract international investment, and boost non-oil economic activity. The process also requires considerable legal and institutional changes, such as modernizing trade laws and improving regulatory frameworks.
Last week, a team from Iraq’s Ministry of Trade traveled to Geneva to finalize technical documents with the WTO Accession Division and the International Trade Centre (ITC), marking another step forward in the country’s accession discussions.
Since 2020, the ITC has been supporting Iraq’s WTO accession process through a European Union-funded program.
Its work has focused on providing technical assistance to Iraqi institutions as they prepare for negotiations and implement the reforms required by the accession process.
Beyond the discussions, WTO admission is usually seen as a long-term reform goal.
The process promotes greater transparency, more predictable trade policies, and stronger institutions, while assisting countries in aligning domestic regulations with internationally recognized trade rules.
These measures might help Iraq diversify its economy, enhance its business environment, and integrate more effectively into regional and global value networks.
Their success, however, will be dependent on ongoing political commitment and execution after admission.
As negotiations continue, Iraq’s accession process remains both a trade negotiation and a larger exercise in economic modernization, with assistance from the WTO Secretariat, the ITC, the Ministry of Trade, and the European Union.
https://www.iraqinews.com/iraq/iraq-accelerates-journey-towards-wto-membership/
US Sanctions Fall Short Of Disrupting Iraq’s Parallel Economy
2026-07-24 / 06:00 Shafaq News- Baghdad Washington's current sanctions has failed to significantly curb Iraq's parallel economy, as sanctioned entities continue to benefit from state institutions, government contracts, and domestic financial networks despite international restrictions, according to an analysis published by the Middle East Forum.
While US sanctions have raised the cost of international financial transactions for individuals and entities linked to Iran-backed armed groups, the analysis argued, they have not prevented those actors from operating within Iraq's economy through legal recognition, licensing, and access to public funds.
It contends that the absence of complementary reforms inside Iraq has limited the effectiveness of Washington's pressure campaign. https://www.shafaq.com/en/Iraq/US-sanctions-fall-short-of-disrupting-Iraq-s-parallel-economy
Iraq Hunts For $77bn Missing Funds In Corruption Crackdown
By Nadim Kawach July 24, 2026 4:11 PM
Amount lent over 22 years
Finance watchdog says loans not repaid
Former officials arrested
Iraq has launched a probe to trace ID100 trillion ($77 billon) allegedly lent to government officials, ministries and other public entities over the past 22 years.
The Federal Board of Supreme Audit (FBSA), the Iraqi government’s top financial watchdog, said the loans have not been paid back although some were provided as early as 2004 by the finance ministry, central bank and other official bodies.
“There are nearly ID100 trillion in outstanding loans that have not been settled… We have referred thousands of cases to the judiciary and the integrity commission,” FBSA chairman Ammar al-Mashadani was quoted by the state news agency as saying.
“The board’s report reveals that no loan has been paid back… These funds have accumulated since 2004 and have been provided to many parties,” al-Mashadani said.
A group of lawmakers, appearing on local TV, called on parliament to investigate the disappearance of the funds as part of an anti-corruption crackdown launched by prime minister Ali Al-Zaidi after he took office in May.
“A hundred trillion Iraqi dinars are missing and this federal report proves it… This report has been sent to all members of parliament,” Bassim al-Ghorabi, one of the legislators, said.
“These funds have been disbursed to officials, ministries, government agencies, projects and other official parties… these officials and parties have not settled the outstanding funds over the past years,” he said.
Authorities have reported the arrest of a number of former officials and public servants and the recovery of millions of dollars in allegedly stolen funds since the start of the anti-corruption drive.
Corruption and malpractice have been widely blamed for the delay of various projects and relatively low investment flow into Iraq, a country of 48 million people.
Opec member Iraq, which controls the world’s fifth-largest extractable oil deposits of 145 billion barrels, has not scored well in global corruption indices over recent years.
Last year, the country ranked 136 out of 182 countries in the corruption index of Berlin-based Transparency International.
In a study this month, the head of an Iraqi think tank said official estimates show that funds stolen by corrupt officials and agencies could reach $1 trillion.
“The scale of financial offences poses a significant challenge given official estimates indicating enormous financial losses,” said Gazi Faisal, chairman of the Baghdad-based Iraqi Centre for Strategic Studies, as reported by Al Bawaba News.
https://www.agbi.com/finance/2026/07/iraq-hunts-for-77bn-missing-funds-in-corruption-crackdown/
Billions Of Dollars... Iraq's Losses Since February 28
Localities2026-07-24 |Alsumaria News– Economy: The Prime Minister's financial advisor revealed,Mazhar Muhammad Salih losses Iraq Since the outbreak of war in the region, losses have ranged between $40 and $45 billion, as a result of the sharp decline in oil exports and the disruption of development projects that the government was counting on.
Al-Hurra quoted Saleh as saying that "the figure represents what economists call opportunity cost, that is, lost revenues and projects."Iraq From February 28th until mid-June 2026."
He warned that "the cost will rise the longer the war lasts and the more difficult it becomes to resume exports at their previous levels."
Iraq relies on oil to finance the majority of its public spending. Before the war, it exported about 3.3 million barrels per day, generating annual revenues of approximately $88 billion.
However, Saleh stated that "exports have declined since February 28th to less than 10 percent of their usual level and now only pass through a limited number of outlets, including..."Türkiye And Jordan.”
Saleh said that “the government has set what he described as red lines that cannot be crossed, including salaries, wages, pensions, grants, and social safety nets.”social welfareThe cost
of these payments is approximately eight Trillions of Iraqi dinars are spent monthly, equivalent to approximately $5.9 billion at the official exchange rate of 1,320 dinars to the dollar.
This monthly expenditure rises to around 11 trillion dinars when other expenses are included, such as those related to the electricity sector, medicine, food subsidies, and external debt servicing.
According to Saleh, approximately nine million Iraqis directly benefit from these payments. Including dependent family members, the number of those affected reaches around 40 million out of Iraq's population of approximately 50 million.
To finance the deficit , and with declining oil revenues, the government has resorted to domestic borrowing to secure the necessary liquidity.
Saleh stated that "Ministry of Finance Treasury bills are sold at interest rates between 3 and 5 percent to state-owned banks, which can then discount them at the central bank when they need liquidity.
This method was described as "facilitation"Quantitative, the Iraqi way," he said, comparing it to the tools used by the European Central Bank to support economies during crises.
The increased reliance on this type of financing has led to a rise in domestic public debt to over 106 trillion dinars.Central Bank of Iraq According to Saleh,
the central bank's reserves, which stood between $105 billion and $106 billion before the war, distributed among gold, foreign currencies, and credit-rated government bonds, have declined by more than 60 percent.
Saleh did not specify the current value of the reserves, but said the decline remained below 50 percent.
He added that "during the first few months, Iraq continued to receive delayed revenues from oil shipments exported before the war, as export proceeds usually arrive after about two months, which eased the pressure during the third and fourth months."
He said that "the ratio of local currency coverage by foreign reserves is still close to 90 percent, or slightly below it, while the minimum acceptable level according to the monetary standards cited is 75 percent."
Saleh believes that "this ratio indicates a degree of monetary stability, despite the pressures the war has placed on public finances and dollar inflows." https://www.alsumaria.tv/news/localnews/571257/