The World Bank may sanction Iraq for non-compliance, Iraqi economist Manaf al-Sayegh said on Monday.
In a statement, Sayegh said that the World Bank cannot halt or impede voting on 2018 budget as it is considered Iraqi internal affair, adding it only can punish Iraq by preventing it from borrowing.
It may also impose a special fiscal policy that makes it financially burdensome for Iraq and it may suffer for years because of sanctions
Al-Sayegh stressed that it is better for Iraq to submit its new financial policy to the bank after the approval of the budget.
The World Bank in Iraq manager Yara Salem has criticized the mismanagement of Iraqi economy due to the increase of public servants who are redundant.
She stressed the importance of the partnership between the private and public sectors amid the challenges facing public corporations.
Salem confirmed that Iraqi economy is suffering from many problems including unemployment and high production costs of the public companies.
These problems are main obstacles that contest reform and reconstruction process.
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