Prime Minister Mohammed Shia’ Al-Sudani recently presented a bold agenda at the Conference on Reforming the Iraqi Banking Sector. His plan focuses on modernizing Iraq’s financial infrastructure and promoting long-term economic stability.
One of the primary initiatives discussed was the introduction of a three-year national budget. This comprehensive plan aims to enable better long-term financial planning and strategic investments in vital sectors like health, education, and infrastructure.
Additionally, the government has made significant progress in diversifying Iraq’s revenue streams. The implementation of the Automated System for Customs Data (ASYCUDA) has automated customs processes, resulting in a remarkable 128% increase in customs revenues. Simultaneously, reforms in the tax system led to a 22% rise in tax revenues, marking a shift away from Iraq’s reliance on oil exports.
Prime Minister Al-Sudani also outlined efforts to reform key state-owned banks, including Rafidain, Rasheed, Industrial, and Agricultural Banks. These reforms, supported by an international consultancy firm, aim to improve these institutions’ ability to deliver efficient financial services to individuals and businesses.
The government has also made substantial investments in digital payments infrastructure. By partnering with leading fintech companies, Iraq has increased the accessibility of financial services. This is part of the broader push to promote financial inclusion, with the rate rising from just 10% to over 40% in two years, a milestone recognized by the World Bank and the IMF.
Moreover, Iraq has updated its legislation on e-commerce and digital payments. Nationwide campaigns are now underway to encourage a culture of digital payments, helping to facilitate the transition to a more modern financial system.
Support for small and medium-sized enterprises (SMEs) remains a priority for the government. By providing financing and other resources, Iraq is fostering job creation and boosting economic growth.
In conclusion, the Prime Minister reaffirmed that banking reforms are crucial to the government’s overall economic strategy. In collaboration with the Central Bank of Iraq, the government has launched a comprehensive initiative to align Iraq’s banking system with global standards. These banking sector reforms are vital for fostering sustainable economic development and ensuring Iraq’s financial stability.
