Iraq salary delays reach 37 days as liquidity crisis deepens economic slowdown

BAGHDAD, Iraq — Salary delays for large numbers of Iraqi public-sector workers have stretched into a 37th day, with the Finance Ministry acknowledging a liquidity crisis that is weighing on daily commerce. The ministry said the total monthly payroll obligation stands at roughly 7.8 trillion Iraqi dinars, of which about 3.2 trillion has so far been disbursed. Baghdad Chamber of Commerce spokesman Rashid al-Saadi said the late payments, combined with disruptions along import routes, have produced a clear slowdown across food, construction, chemicals, jewelry, and fruit and vegetable sectors. In central Baghdad, a shopkeeper identified as Abu Mohammed said consumers are buying only essentials, while many small traders are selling at a loss in order to preserve their capital. In Karbala, Umm Ghudayr, a mother of five, said she cannot cover back-to-school costs for stationery, bags and tuition ahead of the academic year and has been forced to postpone bill payments. Hussein Arab, a member of parliament sitting on the parliamentary finance committee, said Finance Minister Faleh al-Sari has proposed distributing salaries in installments, with priority given to social welfare and pension recipients as well as lower-paid employees. Arab added that a possible agreement between Iran and the United States over the Strait of Hormuz could restore balance to oil exports and remove the need for installment-based salary payments. Separately, Iran announced that its negotiations with Oman on navigation arrangements in the strait have advanced and that the establishment of a joint management center is under discussion.