Baghdad (IraqiNews.com) – Iraq’s Finance Minister Falih Al-Sari met with top International Monetary Fund officials in Bangkok as the government confronts mounting economic strain from the regional conflict and disruptions to oil shipments via the Strait of Hormuz.
Al-Sari is attending the annual meetings of the International Monetary Fund (IMF) and the World Bank Group, where talks have centered on Iraq’s financial outlook, economic reforms, and attempts to develop the private sector.
The discussions occur at a crucial juncture for Iraq, whose economy is highly reliant on oil income to fund government expenditures. The disruption to shipping via Hormuz has generated worries about export profits, state finances, and the country’s capacity to maintain economic activity amid the regional crisis.
According to the Finance Ministry, Al-Sari recognized the economic ramifications of the Hormuz situation and said that the government was developing both immediate and long-term strategies to mitigate its effects.
The Minister expressed optimism that Iraq could accomplish critical financial changes over the next two years, emphasizing the need for working with foreign financial institutions.
During the meetings, Al-Sari spoke with IMF executive director Mohamed Maait, who represents Iraq and other countries in the region, as well as incoming executive director Ali al-Hosni.
Nizar Nasser Hussein, Governor of the Central Bank of Iraq, also attended.
The conversations focused on Iraq’s economic and budgetary situation, reform goals, and potential for stronger collaboration with the IMF.
Separately, Al-Sari met with Ali Abbas, an IMF technical assistance officer, to discuss ways to improve Iraq’s financial policies and institutional capacities.
The Finance Minister also emphasized the need to relieve pressure on Iraqi firms and stimulate private investment as the government works to lessen the economy’s reliance on state expenditure and oil income.
The discussions emphasize the necessity of bolstering public finances and growing non-oil economic activity in Iraq, since the conflict and interruptions in regional commerce have exposed the country’s susceptibility to external shocks.
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