Hussein al-Karawi, head of the organizing committee for the popular movement supporting the Belt and Road Initiative, has warned against using the dollar exchange rate to cover Iraq’s budget shortfalls.
Speaking to dinaropinions.com, al-Karawi said Prime Minister al-Zaydi was moving toward raising the dollar exchange rate to help ensure public-sector salaries could be paid. He argued that the government was also facing a growing number of employees, far beyond the actual needs of ministries and government departments.
Al-Karawi said many government offices were operating without making full use of their staff and resources. He described Iraq as a consumer state rather than a productive one and called for greater investment in agriculture, industry and tourism, alongside the oil sector.
He also criticized Iraq’s reliance on imported oil products, arguing that a country among the world’s leading oil producers should not have to depend so heavily on neighboring countries for fuel supplies.
Al-Karawi urged officials to recognize the seriousness of the country’s financial situation and take responsibility for addressing its underlying problems. He warned that continuing with the same policies could lead to an uncertain future.
He added that even if raising the dollar exchange rate helps ease the current crisis, Iraq will still need lasting economic reforms. In his view, the government should focus on strengthening productive sectors and increasing revenue rather than repeatedly using the exchange rate to cover budget shortfalls.
