Peregraf- Iraq plans to increase non-oil revenues from less than 10% of total public revenue to 45% over the next decade as part of a long-term strategy to reduce dependence on oil and strengthen fiscal stability, according to Prime Minister's financial adviser Mudher Mohammed Saleh.
Speaking about Iraq's public finances, Saleh said the country's total public debt remains within internationally accepted limits despite concerns over the budget deficit and reliance on oil income.
He said Iraq's total public debt currently amounts to around 36% of gross domestic product (GDP), below the 60% threshold commonly used by international institutions to assess debt sustainability.
Saleh noted that Iraq's external debt due by 2028 does not exceed $9 billion, while the majority of the country's debt is domestic, which has surpassed 100 trillion Iraqi dinars (approximately $80 billion).
"The real challenge is not the volume of debt itself but Iraq's heavy dependence on oil revenues," Saleh said, warning that declines in global oil prices place significant pressure on public finances and increase fiscal deficits.
According to Saleh, the government aims to gradually raise the contribution of non-oil revenues to 45% of total public income over the next ten years.
He said the plan will rely on improving tax and customs collection, expanding electronic financial systems, broadening the tax base, encouraging private-sector growth and investment, and reforming Iraq's banking sector.
Saleh added that while these reforms will take time to produce results, they represent the most sustainable path toward reducing Iraq's dependence on oil and strengthening the economy against external shocks.
He also revealed that Iraq has outstanding financial obligations to contractors, farmers, and other private-sector entities. If these arrears cannot be settled, they will be converted into internal public debt under official procedures.
Saleh said the International Monetary Fund (IMF) considers Iraq's principal economic challenge to be reducing the fiscal deficit and diversifying sources of government revenue rather than the current level of public debt itself.