Latest news with #al-Obaidi
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
05-05-2025
- Business
- Shafaq News
Foreign banks under fire: Iraqi economist slams limited role
Shafaq News/ Foreign banks in Iraq are focused solely on 'profiting from money transfers,' offering little to no contribution to the country's economic development, head of the Iraq al-Mustaqbal Foundation Manar al-Obaidi told Shafaq News on Monday. 'Despite restrictions imposed on some Iraqi banks, money transfers abroad have not declined. The same channels and beneficiaries remain active,' al-Obaidi said. He rejected claims that continued transfers reflect the superiority of foreign banks over Iraqi ones, asserting instead that these institutions 'do not offer any developmental plans for underserved or remote areas. Their activity is concentrated in commercial hubs for the sole purpose of facilitating transfers.' Al-Obaidi noted that the combined credit portfolios of foreign banks account for less than 30% of the lending provided by Iraqi banks. 'There are no real financing programs in place for various economic sectors,' he added. He also accused staff at some foreign banks of engaging in questionable practices to ease transfers. 'Banking decisions are dominated by the managing director or board chairman, with limited institutional oversight,' he said, describing weak governance across several institutions. In addition to their narrow operational focus, al-Obaidi said the banks lack meaningful digital platforms and have not participated in any vital national projects. 'Foreign banks have not contributed to any initiatives like oil refineries or infrastructure,' he said. He concluded with a warning, 'These banks rely solely on their links to US correspondent banks. Their operations are built around generating profit from money transfers. If that avenue is closed, they will pack up and return home with profits in hand.'
