Iraq’s government has recently enhanced its leadership structure under Prime Minister Ali al-Zaidi, as the parliament approved key cabinet roles crucial for steering the nation through challenging times. This development included the appointment of three deputy prime ministers and the filling of 11 vital ministry positions, despite ongoing political disagreements.
New Cabinet Formation
On Thursday, Iraq’s lawmakers officially confirmed the new cabinet after various vacant positions were filled. Among the ministers appointed were Nayef al-Shammari as defense minister and Yasir al-Maliki as interior minister. Additionally, other significant appointments included ministers for planning, culture, and higher education. However, the vote on the minister for migration and displacement was postponed due to factional disagreements among lawmakers.
Three deputy prime ministers were also confirmed, one of whom is Laith al-Khazali, a prominent figure within the Iran-aligned Asaib Ahl al-Haq group. This organization was designated a foreign terrorist entity by the United States in 2020, with both Laith and his brother Qais facing previous sanctions for their roles in violent incidents, including one that led to the deaths of American soldiers.
Economic and Security Challenges
Prime Minister al-Zaidi expressed gratitude to the parliament following the cabinet’s approval and urged his team to approach their roles with commitment and integrity. He acknowledged the pressing economic and security issues currently plaguing Iraq, exacerbated by the ongoing conflict involving the US and Israel against Iran, which has raised significant challenges for the nation.
The war has severely impacted Iraq’s economy, leading to a liquidity crisis. Prior to the conflict, Iraq relied heavily on oil exports, which accounted for approximately 90% of government revenue, averaging around 3.5 million barrels a day through the Strait of Hormuz. Al-Zaidi noted that the ongoing war has created extraordinary economic difficulties for the country.
Addressing Economic Hardships
To manage public expenditure and routinely cover government salaries, al-Zaidi implemented a nearly 15% devaluation of the dinar against the US dollar. This maneuver aims to stabilize financial resources amid fluctuating economic conditions. When the administration assumed office in May, it was met with an overwhelming public debt of over 208 trillion Iraqi dinars (approximately $139 billion at the devalued rate). This troubling figure has led to scrutiny of the previous administration led by Mohammed Shia al-Sudani.
According to al-Zaidi, the state requires around 10 trillion dinars ($6.7 billion) monthly to meet essential expenditures, including salaries. He also vowed to tackle corruption aggressively, disarm rogue armed groups, and reinforce national sovereignty by ensuring the complete withdrawal of US forces from Iraq.
With the new government structure in place, Prime Minister al-Zaidi’s administration is entering a critical phase aimed at achieving significant reforms in governance while ensuring economic stability and addressing ongoing security challenges. The success of these initiatives will be closely watched, as Iraq faces a precarious balance between political integrity, economic recovery, and national security.