Iraqi economist warns salary delays have become recurring economic crisis

BAGHDAD, Iraq — An Iraqi economist has warned that repeated delays in public-sector salary payments are no longer isolated fiscal events but have turned into a recurring crisis weighing on the country's economy and society. Nasser al-Tamimi said on Tuesday, August 4, 2026, that the disruptions were directly affecting commercial activity and household purchasing power, as salaries remain Iraq's main source of liquidity. Al-Tamimi cautioned that continued delays would erode purchasing power, shrink economic activity and push more citizens into personal borrowing. He added that the slowdown was also weighing on the performance of state institutions and could weaken the quality of public services. The economist called on authorities to set up the financial and administrative mechanisms needed to ensure salary payments are made on time. Public-sector employees make up the largest share of Iraq's workforce, with many households relying on state salaries for their livelihoods. No official government response to al-Tamimi's remarks was immediately available.