Iraq Moves to Transform Finance Ministry Beyond Salary Distribution, Says Adviser

Iraqi PM’s media office

Iraqi PM’s meeting with Ministry of Finance.

The Prime Minister’s Financial Adviser, Mazhar Mohammed Salih, confirmed on Wednesday that Prime Minister Ali al-Zaidi has directed the Ministry of Finance to develop a long-term strategy and move beyond its traditional role of merely distributing salaries. He also stressed that the ministry is playing a key role in reshaping Iraq’s economic system.

Speaking to the Iraqi News Agency, Salih said that Prime Minister Ali al-Zaidi’s decision to appoint the Finance Minister as his deputy in chairing the Ministerial Council for the Economy reflects the vision of the modern state and the new government. He noted that the Ministry of Finance is “not an ordinary ministry”, but a sovereign institution tasked with planning and building Iraq’s economic future while strengthening cooperation between the public and private sectors.

He added that the Ministerial Council for the Economy serves as the driving force behind economic policy, with fiscal policy working alongside other policies within the framework of what he described as a smaller cabinet structure. Salih explained that Iraq is witnessing an institutional shift towards a new state philosophy, in which the Ministry of Finance is taking a leading role in reforming the economic system and creating a partnership between the state and the market.

Salih stated that Iraq is expected to undergo significant changes, revealing that the Prime Minister had instructed the Ministry of Finance to prepare a long-term plan that would transform its role from simply distributing wages and managing state funds into a ministry focused on reforming economic policy and adapting to the country’s economic challenges under Iraq Vision 2035.

He further explained that the ministry’s plans are being implemented through the Ministerial Council for the Economy, which has become an important mechanism for addressing Iraq’s exceptional circumstances. According to Salih, efforts are underway to transform the council from a body that merely responds to crises into one that formulates and implements policies aimed at restructuring the Iraqi economy.

Salih noted that implementation efforts extend across a wide range of institutions, beginning with the Federal Board of Supreme Audit and including major ministries such as Industry and Agriculture, as well as oversight of financial markets. He stressed that improving citizens’ living standards and ensuring the prosperity and wellbeing of the Iraqi people remain the central goals of sustainable development.

He also emphasised that the Central Bank of Iraq operates independently and does not take instructions from the government, though it coordinates with the Ministerial Council for the Economy, chaired by the Finance Minister. He added that the Council for Economic, Monetary and Financial Stability provides a platform where economic matters are discussed with the participation of all relevant economic ministries.


PUKMEDIA