Finance minister declines comments on Iraq’s political deadlock affecting salary distribution

Iraq’s Minister of Finance Ali Allawi speaks during an interview at his residence in the capital Baghdad, on June 22, 2020. – Iraq’s economy could reach irreversible lows within the next year unless urgent reform measures are adopted, its finance minister warned in an exclusive interview with AFP. (Photo by AHMAD AL-RUBAYE / AFP)

SULAIMANI (ESTA) — Iraq’s minister of finance Ali Allawi on Sunday declined the comments on the government’s failure to provide monthly salaries for employees as the country’s political deadlock hit a record, leaving the country without a new cabinet, and weakening the country’s caretaker government.    

Allawi in a statement declined the comments on the suspension of salaries distribution or obstacles in front of the process due to ongoing political turmoil in Iraq which left the country in a record of 300 days without a new government since the October 2021 election.

The government vacuum compelled Prime Minster Mustafa al-Kadhim to continue as head of the caretaker Cabinet but was unable to pass laws or issue the budget.

The 10-month-old political deadlock, which is the longest since the 2003 U.S. invasion reset the political order has abandoned the country without the budget law. Rumors circulated that it would probably threaten the employees’ salaries to be received on time.

The deadlock has further weakened the country’s caretaker government and its ability to provide basic services.

“If Iraq entered 2023 without passing new budget law, we should rely on the 2021 law,” Allawi said.

Iraq’s political unrest deepened when supporters of Muqtada al-Sadr stormed the legislative building and camped outside of the assembly, refusing to leave until their demands are met. Hampering the MPs to elect the new cabinet and recover from a decade of conflict and economic hardships.

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