Iraq's oil-dependent economy is a fragile model says Planning Ministry official
Baghdad (IraqiNews.com) – A top official at Iraq's Ministry of Planning has described the country's near-total dependence on oil revenues as a fragile model that needs to be replaced. The statement came from Sabah Jundi Mansour, Director-General of the Economic and Financial Policies Department, during a specialized consultative session on Maximizing Non-Oil Revenues in Iraq held on Tuesday (June 17, 2025).
Mansour explained that with the oil sector comprising over 90% of the public budget's revenues, the national economy faces significant structural challenges. 'The repeated crises in the oil markets… have revealed the fragility of this model,' he stated, emphasizing the urgent need to 'transition to a more diverse and sustainable economic model.'
The report noted that this over-reliance exposes Iraq to global market shocks, often forcing the state to cover deficits by borrowing. This indicates a weakness in public financial management and an inability to find alternative solutions.
The consultative session is part of the Iraqi government's strategic efforts to confront these challenges and reduce its dependency on oil, a key obstacle to sustainable development.
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