Peregraf- The Iraqi government has prepared six draft laws aimed at increasing state revenue, attracting investment, reducing public spending, and diversifying the economy as Baghdad seeks to lessen its dependence on oil income, according to copies of the proposed legislation obtained by Peregraf.
The draft laws come as Iraq faces mounting fiscal pressure following the suspension of oil exports through the Strait of Hormuz, which disrupted the country's primary source of revenue.
Last week, the Ministry of Finance submitted the six draft laws to the Parliamentary Finance Committee to be introduced as legislative proposals before being presented to the Iraqi Parliament for discussion and approval.
Dilan Ghafour, a member of the Iraqi Parliament's Finance Committee, told Peregraf that Iraq has suffered significant revenue losses because of the disruption to oil exports, prompting the government to pursue measures to increase non-oil income.
She said Parliament supports the proposed legislation and will study each draft law after receiving them, while continuing efforts to reduce Iraq's heavy reliance on oil revenues by diversifying sources of income.
Six Draft Laws
According to the documents obtained by Peregraf, the legislative package includes:
1. Multi-Activity Projects on Agricultural Lands
The bill would allow industrial, commercial, residential, educational, agricultural, food-processing, and service projects to be established on agricultural land that is unsuitable for cultivation and has approved water allocations. Projects would require approvals from the Ministries of Agriculture, Water Resources, and Environment.
2. Third Amendment to the Investment Law
The proposal revises land pricing for housing investment projects. Land inside approved master plans would continue to be allocated at symbolic prices, while projects outside those plans would pay 50% of market value, generating additional government revenue while preserving investment incentives.
3. Borrowing, Grants and Aid Law (2026)
The draft establishes new rules governing foreign borrowing, grants, aid, and sovereign guarantees. The bill also regulates government guarantees and the management of foreign grants and donations.
4. Law on Appointing Relatives of Agricultural Land Donors
The proposal encourages citizens to donate agricultural land for public projects by granting two government jobs to the families of donors after ownership is transferred to the state.
5. Sale of the State's Share in Land to Holders of Disposal Rights
The bill allows individuals who legally hold disposal rights over state-owned land to purchase the government's ownership share under regulated valuation and payment mechanisms. Authorities say the measure would resolve long-standing land ownership disputes while generating additional public revenue.
6. Five-Year Leave Law for Employees
The proposal would allow eligible permanent government employees to take unpaid leave or leave with basic salary for up to five years while permitting them to work in the private sector.
According to the explanatory memorandum, the measure aims to reduce government payroll costs, address overstaffing, encourage private-sector employment, and reduce dependence on public-sector hiring.
Taken together, the six draft laws represent one of the Iraqi government's most comprehensive economic reform packages in recent years.
The proposals seek to stimulate investment, strengthen public finances, improve land management, encourage infrastructure development, reduce the state's wage bill, and diversify government revenue sources beyond oil.