Economic expert calls for diversifying Iraq's revenues away from oil

An economic expert called for accelerating tax and customs reforms to reduce Iraq's reliance on oil revenues, which constitute most of the state budget.

Ahmed Al-Askar, a specialist in oil and economic affairs, said that diversifying public revenues has become a strategic necessity to ensure financial stability, noting that taxes, customs, and investment can help reduce the economy's exposure to global oil price fluctuations.

He added that recent tax reforms have contributed to improving collection, but they remain below the required level due to the informal economy and weak automation.

Al-Askar pointed out that customs represent a major source of non-oil revenues, but they need tighter control of border crossings and the adoption of modern electronic systems to curb smuggling and corruption.

He also affirmed that the tourism, industry, and agriculture sectors have great potential, but they suffer from weak infrastructure and the absence of a stable investment environment.

Al-Askar revealed that bureaucracy, corruption, and weak long-term planning hinder efforts to diversify the economy, calling for comprehensive structural reforms and encouraging the private sector to attract local and foreign investments.

He emphasized that historical reliance on oil has weakened the contribution of other sectors to gross domestic product.

"Success for Iraq in building a diversified economy requires comprehensive structural reforms, encouraging the private sector, and stimulating local and foreign investment, which will ensure the creation of sustainable jobs and enhance non-oil revenues."

Dependence on oil: Iraq relies on oil to finance most of its general budget, making its economy vulnerable to global price fluctuations, amid calls to accelerate economic reforms and diversify income sources.