Economic expert Abdul Rahman al-Mashhadani warned that Iraq may struggle to finalize and implement its 2027 budget amid ongoing regional tensions, the U.S.-Iran conflict, and disruptions affecting maritime trade through the Strait of Hormuz.
Al-Mashhadani stated that the Ministry of Finance’s plans could remain “ink on paper” if sufficient financial resources are not available to support spending commitments.
He explained that the government is reportedly considering an oil price range of $60 to $70 per barrel for next year, but said such estimates are difficult to rely on due to the current regional instability, lower export volumes, and challenges facing oil sales.
According to al-Mashhadani, preliminary projections place the 2027 budget at around 150 trillion Iraqi dinars, with approximately 135 trillion dinars allocated to operational spending, including salaries and daily expenses, while only 15 trillion dinars would be directed toward investment projects. He warned that this distribution could further widen the financial deficit.
He added that these financial and economic pressures could become major obstacles to completing the 2027 budget.
Al-Mashhadani also expressed concern about what he described as a decline in the Central Bank of Iraq’s foreign currency reserves, attributing it to continued dollar sales to finance imports without sufficient compensating inflows. He noted that recent inflows to the central bank had reportedly not exceeded $1 billion.
