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Finance minister criticises Iraq’s absolute dependence on oil revenues

October 20, 2020 at 9:34 am

Iraq’s Minister of Finance Ali Allawi listens during an interview at his residence in the capital Baghdad, on 22 June 2020. [AHMAD AL-RUBAYE/AFP via Getty Images]

Iraq’s finance minister criticised on Monday his country’s “absolute” and sole dependence on oil revenues, saying that the strategy has caused Iraq financial hardship.

“The mismanagement and absolute dependence on oil revenues have brought us to the situation we are currently witnessing” Finance Minister, Ali Allawi said in a statement, adding that “addressing economic challenges is not an easy task,” while the current crisis did not emerge today and is not related to this government and its measures, because it needs “real and radical reform and long-term plans to overcome it”.

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He pointed out that “the reform paper adopted by the current government aims to restore balance to the Iraqi economy, and put it on a path that allows the state to take appropriate steps in the future to develop it into a diversified, dynamic economy that creates opportunities for citizens to live a decent life”.

He also stressed the need for increased cooperation between the executive and legislative authorities, in a way that serves the interests of the country and its citizens.

Iraq suffers from a financial crisis due to the decline in oil prices and the reduction of its oil production under the OPEC + agreement.