International Monetary Fund (IMF) has called on the Iraqi government to cut
spending on the electric power sector, in addition to a comprehensive reform of
the banking sector.
It also called Iraq to seize the opportunity to improve the security situation and high oil prices to implement structural policies and reforms to ensure economic stability. The IMF stressed the need to implement the reduction of subsidies to the electricity sector, considering it a priority in controlling expenditure, and to protect the poorest and lowest-income groups from being affected by the financial controls.
The IMF also requested the Iraqi government to undertake a comprehensive reform of the banking sector in order to maintain financial stability by restructuring and strengthening the control of large state-owned banks, and increasing its control on them.
The Iraqi government supports the electricity sector in the country, benefiting the various segments of society in the domestic and commercial categories. On April 30, the Iraqi government signed a contract worth more than €14 billion with the German company Siemens to develop the electric power sector in the country.