Iraq's public finances are facing a critical test with the emergence of clear revenue gaps, prompting decision-makers to seek sustainable financing alternatives to prevent the stalling of development initiatives. In this context, the Prime Minister's Economic Advisor clarified that the government is seriously considering internal borrowing options as a financial tool to absorb the deficit, relying on the substantial cash reserves and liquidity available at the Central Bank and major state-owned banks. This approach highlights efforts to maintain continuous funding for major investment projects and secure operational expenditures without immediate recourse to external borrowing, which could burden the state with high future debt service. Although this option represents a temporary lifeline, experts emphasize the necessity of accelerating structural reforms and diversifying national income sources to ensure local liquidity is not depleted and to enhance the economy's immunity against oil price fluctuations.
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Editor at Dijlah Point News, writing about Eco.