The Iraqi Council of Ministers has approved new measures aimed at reducing public spending, including a suspension of new investment project contracts across all ministries, government agencies, and provincial administrations.
Under the decision, no new investment projects will be contracted until further notice as the government works to control expenditures and manage financial resources more carefully.
The freeze also applies to orders for spare parts and additional project components that are not directly related to the original contract scope, particularly when the added costs exceed 25% of the project’s original value.
For projects that have already been awarded or signed but have not yet started, contractors have been given several options. They can postpone work until the government confirms that funding is available, or they can agree to begin work without making financial claims until the necessary funds are secured.
A third option allows both parties to terminate the contract by mutual agreement without any compensation or financial obligations.
The measures cover all state institutions and reflect the government’s efforts to rationalize spending amid ongoing economic and budgetary pressures. Officials say the move is intended to prioritize available resources and maintain financial stability while the country navigates current fiscal challenges.
