Iraq Economic News and Points To Ponder Saturday Morning 8-28-26
Iraq's Appointments Are On Shaky Ground... The 2027 Budget Will Determine The Fate Of Thousands Of Job Positions.
August 29, 2026Last updated: August 29, 2026 The Independent/- The Federal Public Service Council has brought the issue of government appointments back to the forefront of attention, after confirming that determining the number of job grades, creating them, and the necessary financial allocations for them are directly linked to what will be decided in Iraq’s 2027 budget and the relevant government agencies.
The official spokesman for the council, Fadel Al-Gharawi, said that the council’s role in the appointments file comes within the powers specified by the amended Federal Public Service Council Law No. (4) of 2009, noting that initiating the appointment procedures requires the availability of the necessary legal and financial requirements.
This position means that the appointments file is not linked to a single decision by the Civil Service Council, but rather depends primarily on the size of the job grades that will be included in next year’s budget, as well as the financial allocations and the actual needs of state institutions.
A wide segment of graduates and the unemployed are waiting to see what the 2027 budget will include, especially with the increasing number of applicants for government job opportunities and the growing demands to find real solutions to the unemployment issue.
Conversely, the government faces the challenge of striking a balance between providing job opportunities for graduates and maintaining the state’s financial stability, given the rising current expenditures and the costs of salaries and wages.
Thus, the 2027 budget appears to be the most important milestone in determining the shape of future government appointments, whether in terms of the number of newly created positions, the beneficiary entities, or the mechanisms for distributing them, while the Civil Service Council remains waiting for the completion of the legal and financial cover to begin its role in this matter. https://mustaqila.com/تعيينات-العراق-على-صفيح-ساخن-موازنة-2027-ت/
Sources: Ali Al-Zaidi Is Considering Dismissing The Finance Minister Due To The Failure To Address The Financial Crisis.
Last updated: August 29, 2026 Al-Mustaqilla - Well-informed political and media sources told Al-Mustaqilla that Prime Minister Ali Falih al-Zaidi is seriously considering making a change in the Ministry of Finance that may include the dismissal of Minister Falih al-Sari, amid escalating criticism of the way the liquidity shortage crisis and the delay in funding state employees’ salaries have been managed.
The sources, who asked not to be named, said that Al-Zaydi expressed his dissatisfaction with the level of support provided by the Ministry of Finance during the past months, especially with the continued pressure on the treasury and the failure to reach stable solutions to secure salaries and ongoing obligations.
There has been no official comment yet from the Prime Minister's office or the Ministry of Finance regarding the possibility of a cabinet reshuffle.
Al-Sari took over the Ministry of Finance on May 14, 2026, after the House of Representatives unanimously voted to grant him confidence within Al-Zidi’s government.
On July 30, Al-Sari acknowledged a financial deficit that was hindering the completion of salary payments for employees, retirees, and social welfare beneficiaries. He stated that the monthly salary obligations amounted to approximately 7.8 trillion dinars, and that the ministry was working to provide the necessary liquidity to complete the payments.
Pressures increased during August, as the parliamentary finance committee said that the minister had requested to be hosted in the House of Representatives to explain the financial situation and discuss a draft law for borrowing, while it spoke of the lack of final solutions to the salary crisis.
Local reports also showed that the government resorted to borrowing from local banks to cover part of its obligations, in light of declining oil revenues and a shortage of available liquidity, in an economy that relies heavily on crude oil revenues to finance public spending.
Published financial data indicates that government revenues amounted to approximately 35.9 trillion dinars in the first half of 2026, compared to expenditures of approximately 54.7 trillion dinars, reflecting a large funding gap that increased the pressure on the Ministry of Finance.
Al-Zaidi had placed economic reform and building a more robust financial and banking system among the priorities of his government program when he gained confidence, so the liquidity crisis and the regularity of salaries became one of the most prominent tests facing his government during its first months.
Under Article 78 of the Constitution, the Prime Minister has the right to dismiss ministers with the approval of the House of Representatives, which means that any decision to dismiss Al-Sari, if taken, will require parliamentary approval.
https://mustaqila.com/مصادر-علي-الزيدي-يدرس-إقالة-وزير-المال/
Atroushi Calls For A "Legal Revolution" In The Federal Parliament To Overturn The Decisions Of The Previous Regime And Enact The Oil And Gas Law.
Erbil (Kurdistan 24) - Deputy Speaker of the Federal Parliament, Farhad Atrushi, stated on Thursday, August 27, 2026, that the atmosphere within the Federal Parliament has witnessed a marked improvement compared to previous months, stressing the existence of efforts to unify the positions of the Kurdish parties, and emphasizing Iraq’s need for a “legal revolution” to cancel the decisions of the former regime and enact the postponed basic laws.
In statements to Kurdistan24, Atroushi pointed out that Iraq, in addition to the issues of its relationship with the Kurdistan Region, faces internal challenges related to services, salaries, the phenomenon of uncontrolled weapons, and outlaw groups, as well as the complexities of relations with neighboring countries.
The Deputy Speaker of the Federal Parliament explained that the Kurdistan Democratic Party seeks to strengthen its relations with the Shiite political forces in Iraq, indicating that work is underway to coordinate positions between the Kurdish parties in order to pass common points under the dome of Parliament.
Regarding the fuel crisis, Atroushi noted his meeting with the Federal Oil Minister, who responded positively, pointing out the need to hold a meeting with the Federal Prime Minister, Ali Faleh al-Zaidi, to demand the formation of a joint committee between the Kurdistan Regional Government and the Federal Government to address the gasoline issue.
Regarding sovereign laws, Atroushi criticized the inability of the federal parliament over the past two decades to enact vital laws such as the Oil and Gas Law, the Federal Council Law, and the Federal Court Law, saying: "We need a legal revolution; there are still about 5,000 decisions issued by the (Revolutionary Command Council) of the former regime in effect, and they do not in any way conform to the standards of a federal state."
He added that enacting an oil and gas law is a top priority, given that work is still underway on laws dating back 40 years, at a time when Iraq depends on oil wealth for 90% of its revenues.
Regarding the nature of the relationship between Erbil and Baghdad, Atroushi revealed that relations are going through a very positive phase, stressing that President Barzani, the President of the Region, and the Prime Minister of the Region are showing great support for the new federal government, as it is a real opportunity to rescue Iraq from the current crises.
The Central Bank suspends banking transactions for 14 individuals and 19 companies
About the news
The Central Bank of Iraq has decided to suspend dealings with 14 individuals and 19 companies operating in the oil, trade and transportation sectors.
The decision was made due to suspicions surrounding their dealings.
The companies named on the list operate in vital and sensitive sectors such as: oil, trade, livestock, manufacturing, transportation, and financial services.
According to an official letter issued by the Central Bank of Iraq on Thursday, August 27, 2026, the letter was addressed to all banks and non-bank financial institutions not to deal in any way with the bank accounts of these individuals and companies.
Reasons related to this procedure
The action is related to suspicions surrounding their financial transactions, and it has been decided to suspend their accounts pending a thorough and comprehensive investigation into them.
Central Bank: This measure will continue until further notice.
All banks were warned that any entity that violates this decision will be subject to legal accountability.
The list of bans and prohibitions included (14) people and (19) commercial and local companies, most notably “Al-Taif Holding Company”, “Jamal Al-Surouh Company”, “Mismar Juha Company for Manufacturing Industries”, and “Al-Masarat Company for Oil Services”, in addition to a number of individuals.
This decision is based on Article 40 of the "Central Bank of Iraq" Law, which grants the bank full powers to supervise and regulate the affairs of banks and their branches, with the aim of protecting the country's financial system and preventing any illegal transactions. https://channel8.com/arabic/news/84537
Central Bank Of Iraq To Monitor Bank Accounts Of Politicians And Officials
At a Glance
The Central Bank of Iraq issued strict new directives on August 26 targeting the bank accounts of politicians and government officials.
The regulations are designed to combat systemic corruption and illicit money laundering across national financial institutions.
Banks are required to flag anomalous wealth, unverified foreign transfers to high-risk zones, and unexplained asset spikes during or after tenure.
Compliance will be rigorously audited by central inspection teams and factored into institutional evaluations.
In an official directive issued on August 26, the Central Bank of Iraq instructed all commercial banks to enforce enhanced monitoring protocols on politically exposed persons and high-ranking government officials to curb financial crimes.
Key Monitoring Criteria
Disproportionate Wealth: Flagging sudden inconsistencies between declared monthly salaries or state incomes and total accumulated assets.
Unusual Transactions: Detecting high-value or irregular transactions executed during or immediately following an official's term in office.
High-Risk Transfers: Scrutinizing capital movements routed to high-risk foreign countries or jurisdictions lacking clear economic justifications.
Complex Structures: Identifying the use of third parties, shell companies, or intricate corporate vehicles to conceal ultimate beneficial ownership.
Family Networks: Monitoring unexplained financial flows involving relatives, close associates, or negative intelligence reports regarding bribery and financial misconduct.
The Central Bank emphasized that all banking branches must immediately implement these guidelines and brief their staff accordingly. Inspection teams will actively evaluate institutional compliance, ensuring that failure to report unverified funds or suspicious asset shifts impacts overall bank performance ratings. FYI
Politically Exposed Persons (PEPs) are individuals who have been entrusted with prominent public functions, such as senior politicians, judicial officials, or state executives. Because of their positions and influence, international financial watchdogs classify PEPs as higher-risk targets for money laundering and corruption, necessitating enhanced due diligence by commercial banks. https://channel8.com/english/news/64666