Iraqi Prime Minister Mohammed Shia al-Sudani has voiced concerns about the country’s heavy reliance on imports, disclosing that Iraq spends $70 billion annually on imported goods. He made this announcement during the opening of a new shopping center in Baghdad focused on food and consumer products.
“Iraq imports $70 billion worth of goods and products each year, and this trend must be halted and reevaluated,” al-Sudani stated, stressing the need to overhaul the nation’s import policies.
The Prime Minister emphasized the critical role of the Ministry of Commerce, which, he noted, should go beyond managing trade to actively support and develop local industries. He called for strengthening domestic production to meet the needs of the Iraqi market and reduce reliance on foreign imports.
A key driver of Iraq’s import dependency is its oil-centric economy. Oil exports account for over 99% of the country’s export revenue and roughly 85% of the government’s budget. This overreliance on oil has stifled diversification, leaving the agricultural and industrial sectors underdeveloped.
The Prime Minister’s comments come amid fiscal challenges triggered by volatile oil prices. In September 2024, Mudher Saleh, the Prime Minister’s economic adviser, warned of a potential fiscal crisis in 2025 if oil prices continue to fall. This highlights the urgent need for Iraq to diversify its economy and reduce its exposure to oil market fluctuations.
Tackling the $70 billion import bill is viewed as a crucial move toward economic stability. By boosting local industries and cutting import dependence, Iraq aims to create jobs, drive economic growth, and build a more self-reliant future.
(Source: basenews.com)
