Iraq PM advisor says public salaries are guaranteed amid liquidity crunch

BAGHDAD, Iraq — A prime ministerial advisor said Iraqi public-sector salaries are guaranteed and that the government is working to ensure they are paid on time. Mazhar Mohammed Salih, an advisor to the prime minister, said the current problem is a liquidity crisis tied to regional political instability and tension in the Persian Gulf. Salih said about 85% of Iraqi oil is shipped through the Strait of Hormuz, with Asian markets buying roughly 70% of the country's exports. He noted that 90% of budget revenue is oil-dependent, and that a monthly bill of 8 trillion dinars for public salaries, pensions and social assistance payments has created a large financing gap when oil revenues fall. The payments cover roughly 10 million people across federal and regional administrations, Salih said, adding that a food ration package for 40 million Iraqis is also tied to the budget. He described securing the salaries as a moral and national obligation and said the government is determined to continue meeting the payments each month.