Cash Liquidity Shortage Delays Salaries of Employees and Retirees in Iraq

Iraq’s economy is facing growing uncertainty as a persistent cash liquidity shortage continues to disrupt the timely payment of salaries for employees, retirees, and beneficiaries of social protection programs.

This situation has directly affected the livelihoods of many citizens who rely heavily on regular income.

Financial experts note that the cash liquidity crisis is primarily driven by declining public revenues, which has led to delayed salary disbursements across several government departments, as well as postponed payments for retirees and social welfare recipients.

They warn that the issue is no longer temporary but reflects deeper fiscal pressures.

Economic estimates show a noticeable drop in oil revenues compared with the previous year, reducing the funds available to the state treasury.

Combined with rising government spending, this decline has tightened cash liquidity and increased the difficulty of meeting financial obligations.

Analysts also caution that the ongoing situation could widen the budget deficit, particularly as the national budget has yet to be finalized or submitted to parliament.

Without swift corrective measures, the liquidity shortage may intensify social and economic challenges, placing additional strain on income-dependent groups.