Iraq will not seek foreign borrowing to ease fiscal pressure, PM spokesman says

BAGHDAD, Iraq — The Iraqi government will not turn to foreign borrowing to address the country's current fiscal pressures, Prime Ministry spokesman Haydar al-Abbudi said at a press conference in Baghdad. He said the government has prepared alternative plans to manage the crisis, with the Oil Ministry working on new financial options. Abbudi said a newly discovered oil well in northern Iraq could provide significant support to the state treasury. He added that Prime Minister Ali al-Ziyadi backs the private sector and that conditions will be maintained for companies operating in the Kurdistan Region to continue their activities. On the federal budget, Abbudi said the appointments file is linked to the general budget and that the 2027 budget will be prepared on a "program budget" basis to cover salary payments and rationalize public spending. He said the Integrity Commission and executive bodies are tracking all files and contracts in the government's anti-corruption efforts, and that the Prime Minister has ordered the suspension of some projects whose progress does not match the funds spent. Abbudi stressed that the planned administrative changes are aimed at restructuring institutions, not at imposing penalties. He said the electricity sector remains a government priority and that the 2027 budget will give special attention to energy and power.