Economic Warnings of Severe Liquidity Crisis Threatening Public Sector Salaries in Iraq

rafidainscope - Serious economic warnings have emerged regarding a potential financial liquidity crisis that could soon hit the Iraqi economy, threatening the government's ability to secure salaries for public employees and retirees in the coming months. Economic experts emphasized that the widening gap between revenues and expenditures is pushing the country toward unprecedented challenges. They noted that any delay in salary disbursements would lead to a collapse in purchasing power and severe stagnation in local markets, which rely heavily on government spending. The repercussions could extend to a decline in commercial activity and a loss of confidence in financial policies. To avert this scenario, experts called for urgent measures, including securing sustainable funding sources, reprioritizing spending to reduce waste, activating non-oil revenues, and adopting transparent fiscal policies to reassure the public, warning against continued reliance on borrowing and temporary fixes.