Iraqi Prime Minister Orders Government-Wide Cost-Cutting Measures

Iraqi PM's media office

Prime Minister’s Media Office logo.

Iraqi Prime Minister Mohammed Shia' al-Sudani has called on all government institutions to implement Cabinet decisions aimed at achieving substantial reductions in expenditure.

In a press release from the Prime Minister’s Media Office, obtained by PUKMEDIA, the office outlined steps already taken to consolidate and reorganise its departments and units, with the dual aims of reducing costs and improving operational efficiency.

“These measures have included ending the contracts of several advisors and experts responsible for managing key government programmes, which have now achieved an overall completion rate of 88 per cent,” the statement said. “The contributions of these individuals, and of all those working across government institutions on these programmes, are highly appreciated.”

The statement added that the Prime Minister’s Office had implemented further cost-cutting initiatives, reducing spending across most areas of its operational budget. The Prime Minister emphasised the importance of all government bodies following Cabinet decisions to maximise resource utilisation and achieve significant savings.

The measures follow the Iraqi Cabinet’s approval on 7 January of a set of financial and administrative recommendations from the Ministerial Council for the Economy. The package includes selling vehicles over 15 years old, except those used for official business, across ministries and non-ministerial entities, and cutting fuel allocations by 50 per cent.

Other directives include recognising only the academic qualifications held at the time of initial appointment for government employees, suspending recognition of qualifications for those not granted study leave from 2 January 2026, and halting all government-funded scholarships and study leave for five years. Transfers to ministries that would increase budget allocations are also suspended.

The Cabinet said these measures are part of a broader effort to streamline government operations, improve efficiency, and strengthen financial discipline across the public sector.


PUKMEDIA