Shafaq News- Baghdad
Iraq’s non-oil revenues reached a record 16% of total government incomeduring May and June, marking the highest contribution from sources outside theoil sector in years, the Echo Iraq Observatory reported on Saturday.
Non-oil revenues had previously accounted for less than 5% of state incomebefore rising to around 10% during the government of former Prime MinisterMustafa al-Kadhimi (2020-2022), a level that remained largely unchanged underformer Prime Minister Mohammed Shia al-Sudani (2022-2025).
‘’Revenues transferred by Iraq’s Kurdistan Region accounted for around5.5% of total non-oil revenues,’’ the Observatory noted, attributing non-oilrevenues to several sources, including taxes on goods, production fees, generalservice charges, taxes on income and wealth, transfer revenues and other stateincome streams.
Despite the increase in non-oil income, Iraq, OPEC’s second-largest oilproducer, remains heavily dependent on crude exports. This reliance has comeunder growing pressure following disruptions to shipping through the Strait ofHormuz, which carries roughly 20% of global oil supplies. In late March,economic expert Nabil Al-Marsoumi estimated that Iraq had cut production byabout 2.9 million barrels per day, the largest reduction among OPEC members.
: No exit but Hormuz: Iraq's economic vulnerability exposed
