Latest news with #IraqFutureFoundation
Shafaq News
3 days ago
- Business
- Shafaq News
Iraqi salary bill set to soar, economist warns
Shafaq News/ Iraqi government spending on salaries is set to surge, potentially doubling to 5% over the next five years and putting the country's economy at serious risk, economist Manar al-Obaidi, head of the Iraq Future Foundation, warned on Tuesday. In a Facebook post, al-Obaidi forecast a 27% increase in Iraq's public sector salaries in 2024, surpassing 60 trillion IQD ($42.37 billion) for the first time—an amount equal to 40% of total government expenditures. 'Salaries have reached dangerous levels that will have catastrophic consequences for Iraq's economy,' he cautioned. He noted that salary expenses have risen by 50% over the past five years, without a corresponding increase in non-oil revenues or improvements in public services, questioning, 'What's the benefit of raising the salary bill?' Meanwhile, the ongoing salary dispute between Baghdad and Erbil has fueled persistent tension, with the federal government's recent decision to halt salary disbursements to the Region's employees sparking criticism in Kurdistan. The Kurdistan Democratic Party (KDP) condemned the federal government's decision calling it a violation of constitutional rights and a form of political exploitation.
Shafaq News
02-05-2025
- Business
- Shafaq News
Billions lost in trade: Iraq's shrinking demand for Turkish imports
Shafaq News/ Iraq's imports from Turkiye dropped 13.7% in the first quarter of 2025 to $2.59 billion, down from $2.94 billion in the same period last year, the Iraq Future Foundation revealed on Friday. The foundation's head, Manar al-Obaidi, reported that 49 of 97 product categories recorded declines. Precious metals and gold showed the largest decrease, which he listed as 490%. Imports of wheat-based products fell 75%, meat 74%, iron 33%, flour 17%, and electrical appliances 8%. Grain imports rose 93%, fuel 76%, fruit 24%, mechanical equipment 9%, and furniture 8%. Al-Obaidi linked the drop to Turkish export restrictions, Iraq's product protection laws, border control measures, and new import delivery systems. Data from the Turkish Statistical Institute (TURKSTAT) placed Iraq as the fifth-largest importer of Turkish goods in the first quarter. Turkiye's total exports reached $65.32 billion, up 2.5% year-on-year, while imports rose 4.5% to $87.81 billion.
Shafaq News
09-03-2025
- Business
- Shafaq News
Lack of management: expert slams Iraq's "runaway" spending
Shafaq News/ Iraq's annual government spending has outpaced several stronger economies despite its continued reliance on oil and ongoing economic stagnation, according to Manar Al-Obaidi, head of the Iraq Future Foundation. Over the past decade, Iraq's total revenues reached 1,028 trillion Iraqi dinars ($784.4 million), with 92% derived from oil and only 8% from taxes, customs, and other sources. Meanwhile, government spending during the same period amounted to 1,007 trillion dinars ($768.4 million), along with unsettled advances ranging between 100-150 trillion dinars ($114.5 billion), pushing total expenditures beyond 1,100 trillion dinars (approximately $1 trillion). Despite its immense wealth, Iraq's $100 billion annual budget surpasses the expenditures of several diversified economies. The UAE spends $65 billion annually, Malaysia $82 billion, and Singapore $77 billion, yet all three nations have expanded their economies to achieve a GDP of $500 billion per year. Al-Obaidi noted that unlike Iraq, these countries lack vast natural resources and a large population, yet they have built thriving economies with significantly lower budgets. Iraq, by contrast, remains trapped in an oil-dependent economy, chronic financial mismanagement, and worsening unemployment. 'The problem has never been a lack of resources but rather how they are managed,' Al-Obaidi stressed, warning that Iraq's reliance on a rentier economy will continue to deepen its financial challenges unless urgent reforms are implemented. He called for diversification, efficient spending, and an end to financial waste to ensure long-term stability. He concluded that Iraq's success hinges on 'a stable government to improve development management.' Removing any element of that balancing act, he warned, would lead to systemic failure.
Shafaq News
07-03-2025
- Business
- Shafaq News
Iraq's bank deposits drop by over $7B in 2024
Shafaq News/ Iraq's banking sector total deposits declined by 9% in 2024, according to a report released on Thursday by the Iraq Future Foundation for economic studies and consultations. The report indicated that deposit values fell from 133.5 trillion Iraqi dinars at the end of 2023 to 123.5 trillion dinars, marking a loss of 10 trillion dinars ($7.6 billion.) Breaking down the decline, the report highlighted a significant 14% drop in government sector deposits, which decreased from 47.3 to 42.8 trillion dinars, attributed to reduced government revenues or shifts in liquidity management policies. Deposits from public institutions fell by 7.4%, sliding from 29.6 to 27.4 trillion dinars. The private sector also saw a 6.52% decrease in deposits, from 56.5 to 53.2 trillion dinars, potentially reflecting waning confidence in the banking system. By deposit type, current accounts recorded a sharp decline, falling 11.6% from 107.5 to 97.4 trillion dinars, posing the most significant impact given their dominant share of total deposits. Fixed-term deposits remained relatively stable, edging down slightly from 9.67 to 9.62 trillion dinars. In contrast to the overall downward trend, savings deposits increased marginally by 0.7%, rising from 16.3 to 16.43 trillion dinars, suggesting a modest shift toward savings.
