MP Bassem al-Gharabi has warned that Iraq could face serious economic challenges if tensions in the Middle East continue to escalate.
Speaking about the situation, Al-Gharabi said Iraq remains highly exposed to regional and global crises because the country’s economy depends heavily on oil revenues. Since oil provides the majority of government income, any disruption in energy markets can quickly affect Iraq’s finances.
He said that successive governments have failed to build a more balanced economy by developing other sources of income and strengthening productive sectors such as industry, agriculture, and investment. As a result, Iraq remains vulnerable whenever oil prices fall or international crises emerge.
According to Al-Gharabi, the current regional tensions could create financial pressure on the government, forcing it to look for alternative ways to fund spending and cover budget needs.
He warned that domestic borrowing may become one of the few available options if financial conditions worsen. At the same time, obtaining loans from abroad could become more difficult because of growing international instability, disruptions in energy markets, and ongoing problems in global supply chains.
Al-Gharabi stressed that Iraq cannot continue relying almost entirely on oil revenues. He called on the government to speed up economic reforms and take serious steps to diversify sources of income before the country faces a deeper financial crisis.
He concluded by saying that strengthening non-oil sectors and reducing dependence on crude exports are essential for protecting Iraq’s economic stability and ensuring the country is better prepared for future shocks. salaries
