Government Financial Institutions Study IMF Report and Prepare Plans to Mitigate Contraction Effects

The Ministries of Finance and Planning, along with the Central Bank of Iraq, are engaged in a comprehensive study of the findings from the latest report issued by the International Monetary Fund, which projected a decline in national economic growth due to force majeure geopolitical circumstances. Government sources confirmed that the report is receiving utmost official attention, as an economic crisis cell has been formed with the mandate to develop alternative plans to limit the negative impacts of the anticipated contraction, estimated by the Fund at roughly 6.8%. Government plans focus on maximizing non-oil revenues, rationalizing government consumer spending, and providing rapid tax incentives to support the productive private sector. Official bodies clarified that the international assessment, despite its short-term severity, represents an opportunity to accelerate the pace of structural reforms outlined in the White Paper, and that the government is prepared to address these challenges with economic solutions that ensure the preservation of social protection networks.