Shafaq News- Baghdad

Iraq's funding gap is hindering salary payments for public employees, pensioners, and social welfare beneficiaries, Finance Minister Faleh Al-Sari said on Thursday, revealing that the country's monthly payroll obligations total about 7.8 trillion Iraqi dinars (about $5.95B).

During discussions with Ishraqat Kanoon lawmaker Haider Al-Mutairi, Al-Sari said the Finance Ministry had disbursed about three trillion dinars (about $2.29B) to several ministries in recent days and currently holds liquidity of around 1.5 trillion dinars (roughly $1.15B), which it aims to increase to 1.65 trillion dinars (nearly $1.26B) to begin paying pensions. He added that the ministry would continue working to secure the funds needed to pay the remaining ministries and state institutions despite a funding shortfall estimated at about 3.3 trillion dinars (approximately $2.52B).

They also addressed the situation of top graduates and postgraduate degree holders employed by the Education Ministry, some of whom have not received salaries for nearly 10 months. Al-Sari instructed the relevant authorities to resolve the issue and address the reasons behind the payment delays.

The two sides further discussed proposals to create jobs for graduates, particularly medical graduates, postgraduate degree holders, and other job seekers, by investing state resources and expanding the role of public health clinics, universities, and government hospitals.

Read more: Degree holders stranded in Iraq's job drought

Iraq remains heavily dependent on oil revenues. According to the State Oil Marketing Organization (SOMO), the country earned $18.679 billion from crude oil exports in the first half of 2026 by selling 268.09 million barrels. However, shipping disruptions through the Strait of Hormuz during the US-Israeli war on Iran have sharply reduced exports, putting additional pressure on public finances.