Iraq Seeks Financial Regulation Overhaul Amid Economic Uncertainty

Introduction

Iraq is undergoing a period of significant transformation, with its financial landscape facing major changes. The government recognizes the urgent need to modernize its public finance system and reduce its reliance on oil exports, which account for nearly all of its state revenue.

Challenges Facing the Iraqi Economy

The Iraqi economy faces several challenges:

• Weakened public finance systems
• Underdeveloped private sector
• Lack of trust in financial intermediaries such as state and private banks
• Dominance of state actors in private sector activity, hindering economic growth

Proposed Solutions

To address these issues, a new project aims to improve public finances by:

• Drafting tax reform
• Modernizing the taxpayer registration system
• Strengthening the supreme audit institution’s role in monitoring financial resources and preventing money laundering

The project is also working with various stakeholders to:

• Conduct risk analyses to identify vulnerabilities in the financial sector
• Improve lending to small and medium-sized enterprises through collaboration with the Central Bank, banks, and digital financial intermediaries

Goals and Objectives

The ultimate goal of this project is to reduce Iraq’s dependence on oil exports and promote economic diversification. The government hopes that its efforts will create a more stable and sustainable financial system that benefits all Iraqis.

Conclusion

Iraq’s financial landscape is undergoing a significant overhaul in response to the country’s economic uncertainty. With its efforts, the government aims to modernize public finances, reduce dependence on oil exports, and promote economic diversification, ultimately creating a more stable and sustainable financial system for all Iraqis.