Iraqi Prime Minister Ali al-Zaidi met with World Bank Group President Ajay Banga in Washington to discuss economic reforms, investment opportunities, and ways to strengthen cooperation between Iraq and the World Bank.
The meeting was also attended by Makhtar Diop, President of the International Finance Corporation (IFC), along with several senior World Bank officials.
According to the Prime Minister’s Office, al-Zaidi outlined the Iraqi government’s economic priorities, with a strong focus on banking sector reform and the adoption of programme-based budgeting to improve financial planning and public spending.
He said Iraq is working to increase oil production while also accelerating the development of non-oil sectors in an effort to diversify the economy and reduce dependence on oil revenues.
Al-Zaidi also highlighted plans to establish a development fund that would help finance investment projects across all Iraqi governorates. The initiative is intended to support economic growth, improve infrastructure, and create new opportunities in various sectors throughout the country.
For his part, Banga reaffirmed the World Bank Group’s willingness to support Iraq’s reform agenda. He expressed readiness to provide technical expertise and advisory assistance in areas such as programme budgeting and the restructuring of the banking sector.
One of the key proposals discussed during the meeting was the possibility of creating a large Iraqi banking holding company through the merger of several state-owned banks. According to Banga, such a move could improve efficiency, strengthen financial services, and modernize Iraq’s banking system.
The proposal reflects ongoing efforts to reform the country’s financial sector, which many experts believe is essential for attracting investment, expanding access to finance, and supporting long-term economic development.
The meeting comes as Iraq continues to pursue economic reforms aimed at improving government performance, encouraging private-sector growth, and building a more diversified and sustainable economy.
Both sides emphasized the importance of continued cooperation, with the World Bank signaling its commitment to supporting Iraq’s development goals through technical assistance, policy advice, and financial-sector expertise.
