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Significant challenges face Kadhimi’s economic reform project

The economic reform project that Mustafa al-Kadhimi's government is supposed to propose soon faces great challenges related to the need to get parliament’s approval before taking any step.
Iraq's Prime Minister Mustafa al-Kadhemi, mask-clad due to the COVID-19 coronavirus pandemic, looks on during a joint press conference with the French president in Baghdad on September 2, 2020. - French President Emmanuel Macron landed in Baghdad on his first official trip to Iraq, where he hopes to help the country reassert its "sovereignty" after years of conflict. (Photo by GONZALO FUENTES / POOL / AFP) (Photo by GONZALO FUENTES/POOL/AFP via Getty Images)

Mustafa al-Kadhimi’s government is working on presenting an economic reform plan in the coming days, at a time when Iraq faces complex economic crises most notably related to the need to secure $3.6 billion per month in salaries for about 6.5 million employees and retirees, a government source told Al-Monitor.

Iraqi Finance Minister Ali Allawi was supposed to present the economic reform proposal to the House of Representatives on Sept. 15, but he did not, arguing that he is awaiting the approval of the domestic and foreign borrowing law. He promised to submit the proposal by the end of this month.

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