Iraqi Prime Minister Ali Al-Zaidi on Sunday announced a package of economic measures worth at least 3.5 trillion dinars ($2.67 billion) aimed at supporting housing, industry, contractors, farmers, and long-term savings initiatives.
According to the Prime Minister’s office, 1 trillion dinars will be redirected from existing Central Bank of Iraq initiatives to support the housing and real estate sector. The move is intended to stimulate construction activity and increase financing for housing projects.
Another 1 trillion dinars will be provided to the Trade Bank of Iraq and the Industrial Bank to increase liquidity and support financing for industrial projects across the country.
The government also approved 500 billion dinars to pay outstanding dues owed to contractors. An additional 500 billion dinars will be allocated to farmers to help address delayed agricultural payments.
A further 500 billion dinars will be added to the Future Generations Fund Initiative, increasing its total balance to 1.5 trillion dinars. The fund is designed to preserve resources for future generations and strengthen long-term financial stability.
The allocation for farmers is the same amount that Finance Minister Faleh Al-Sari said would be released during September to cover overdue payments. However, the latest government statement did not clarify whether this is a new allocation or the implementation of the previously announced commitment.
Al-Zaidi instructed government agencies to move quickly in carrying out the measures. The Central Bank of Iraq also confirmed its readiness to support banking stability and provide financing conditions that encourage economic activity within its current monetary policy framework.
The announcement comes as Iraq continues to face financial pressures. Earlier reports indicated that many state-owned banks had reduced or suspended loans and salary advances because of liquidity shortages and limited funding.
Finance Ministry figures released on Sunday showed that Iraq recorded a budget deficit of 26.329 trillion dinars ($20.16 billion) through July 2026. Government spending reached 65.424 trillion dinars ($50.10 billion), while revenues totaled 39.096 trillion dinars ($29.94 billion).
The new measures are aimed at injecting liquidity into key sectors of the economy, supporting businesses and citizens, and helping maintain economic activity despite ongoing fiscal challenges.
