Iraq's liquidity crisis delays public sector salary payments

BAGHDAD, Iraq — Iraq is facing a financing and liquidity crisis driven by lower oil revenues and export difficulties, leading to delays in salary payments for state employees, according to government officials. The officials said the decline in income from oil sales has disrupted budget disbursements. The Ministry of Finance is coordinating with the central bank to ensure regular payment of public salaries, while the Baghdad administration is working on alternative funding sources to address the delays. Officials attributed the pressure on Iraq's fiscal balance to fluctuations in global markets and energy prices. Rising public spending and the country's import-dependent economy have further strained cash flow, forcing some ministries to postpone personnel expenditures due to insufficient resources. No timeline has been provided for when salary delays will be resolved.