Iraqi public sector salaries delayed amid cash crunch, official says

BAGHDAD, Iraq — Public-sector employees across multiple Iraqi government institutions have not yet received their July salaries as the month draws to a close, a source familiar with the matter said, attributing the delay to a shortage of financial liquidity and a decline in government revenues. The source linked the shortfall to the broader effects of the US–Iran conflict and the closure of the Strait of Hormuz, which the source said disrupted oil exports and reduced state income. The Finance Ministry announced on July 22 that it had begun disbursing funds for public-sector payrolls, but a large number of institutions have been unable to complete payments because of the ongoing liquidity crisis, according to the source. Officials are said to be looking for additional financing sources to ensure salaries are paid on time. No further details on the size of the funding gap or the measures under consideration were immediately available.