Iraq has announced a 3.5 trillion dinar ($2.7 billion) package to stimulate economic growth, with funding directed towards agriculture, industry, housing, construction, tourism and services.
Prime Minister Ali Faleh Al-Zaidi said the programme would also support public-private partnerships and create new jobs, according to the Iraqi News Agency.
The government plans to allocate 1 trillion dinars from existing Central Bank of Iraq initiatives to real estate and housing. It will also provide at least 1 trillion dinars in additional liquidity to the Trade Bank of Iraq and Industrial Bank to support industrial activity.
The finance ministry has been instructed to pay 500 billion dinars each in outstanding dues to contractors and farmers. The government will also add 500 billion dinars to the existing 1 trillion dinar Future Generations Fund Initiative.
The package comes as the European Bank for Reconstruction and Development forecasts a 12% contraction in Iraq’s economy in 2026, followed by a 14% rebound in 2027 as oil exports and economic activity recover.
Source: AGBI
