Iraq downplays impact of falling oil prices on public sector salaries
Shafaq News/ On Sunday, Iraq'seconomic advisor to the prime minister, Mudher Mohammed Saleh, dismissedconcerns that declining global oil prices would affect the payment of monthlysalaries for the country’s public sector workers.
In a statement to Shafaq News, Salehsaid, "Talk of a financial liquidity crisis and delayed salaries forpublic sector employees is nothing more than rumors and political distortion,and it is not true."
"Iraq has faced declining oilprices before, and this does not affect the salaries of state employees."
Saleh reassured the approximately4.5 million public employees in Iraq that their salaries are fully secured andwill be paid on time.
Earlier, economic experts had warnedof a potential salary crisis for Iraqi workers due to falling oil prices.Iraq's continued reliance on oil as the sole source of revenue for the nationalbudget is seen as a risk, especially amid global crises affecting oil markets.This often forces the country to cover budget shortfalls through external orinternal borrowing.
Economic expert Nabil al-Marsoumi recentlywarned that the current oil price and reduced export volumes could lead to ashortfall in government revenue. Al-Marsoumi estimated that the government maystruggle to cover the full cost of public sector salaries in the coming months,potentially leading to delayed or reduced payments.
Iraq, OPEC's second-largestproducer, is heavily dependent on oil revenues. The hydrocarbons sectoraccounts for the vast majority of export earnings and some 90% of staterevenue.
