Liquidity Crunch Forces Iraqi Government into Austerity Measures and Ration Card Adjustments

The Iraqi government is considering a series of austerity measures to rationalize public spending amid a liquidity crunch caused by falling oil revenues following the halt of exports through the Strait of Hormuz. Official sources indicated that securing salaries and core monthly obligations, exceeding 10 trillion IQD, remains the top priority despite a widening gap between actual revenues and commitments. Proposed measures include reducing trade ministry allocations, streamlining ration card beneficiaries, limiting food basket distributions to two quotas for the remainder of the year, and cutting diplomatic mission budgets. These decisions come amid rising public concern regarding delayed salary disbursements and living conditions.