Iraqi National Investment Board Highlights Impact of Delayed 2025 Budget on Investment Projects
The 2025 budget schedule has yet to be forwarded to Iraq’s parliament. The head of the Iraqi National Investment Board has indicated that this delay in approval is adversely affecting ongoing investment initiatives. A consultant from Sudan has noted that the three-year general budget has reactivated over 50 percent of previously suspended development projects.
According to the board’s head, the hold-up in sanctioning the 2025 budget has a cascading effect on investment projects reliant on government funding. “The financial backing from the government is essential for these projects, and without the budget, their progress is stymied,” he stated.
While acknowledging an unspecified number of stalled projects, he pointed out that in the last 18 months, they successfully revitalized 249 projects at a total investment of 34 billion dinars.
In contrast, Dr. Mazhar Mohammed Salih, economic and financial advisor to the Prime Minister, expressed a more optimistic view regarding the investment landscape. “The delay in approving the 2025 budget will not significantly impact investment, as the investment expenditures for 2025 are already included in the three-year budget,” he noted.
Dr. Salih emphasized that even if some current projects are not realized, they remain part of the approved and sustainable initiatives under the Federal Financial Management Law No. 6 of 2019, which assures that they are adequately funded.
He further asserted that the three-year general budget serves as a robust financial framework, facilitating the revival of over 50 percent of the development projects that had previously ceased operations.
As of now, the status of the 2025 budget schedule remains unclear, with no confirmation on whether it resides with the Council of Ministers or the Ministry of Finance. Jamal Kochar, a member of the finance committee in the Iraqi parliament, stated, “We are uncertain when it will be submitted for parliamentary discussion and approval, but it is crucial for the budget to undergo this process.”
A source within the Iraqi parliament raised concerns about the likelihood of the 2025 budget being discussed due to the impending elections. “There is skepticism that the 2025 budget will reach parliament, as parties are wary of potential negotiations that could influence voter sentiment,” the source commented.
