Al-Zaidi Rejects Paying Salaries Every 45 Days Amid Unannounced Economic Blockade Pressures

Prime Minister Ali Al-Zaidi affirmed the government's refusal to adopt drastic measures, such as distributing salaries every forty-five days, enforcing mandatory savings, or resorting to additional borrowing. Speaking during a parliamentary meeting, he revealed that Iraq is navigating an unannounced blockade and compelling conditions caused by war and the closure of the Strait of Hormuz, alongside halted oil exports. Al-Zaidi explained during his session with the leadership of the Parliament and heads of political blocs that authorities faced three complex choices: pursuing mandatory savings leaving employees with mere promises, disbursing public salaries every forty-five days, or plunging the country into fresh borrowing while already burdened with heavy debt. He noted that he took office with public debt exceeding two hundred and eight trillion dinars and a monthly commitment to secure ten trillion dinars, emphasizing that the government successfully secured public payrolls despite the crisis without borrowing. The Prime Minister announced plans to double payments released to farmers and contractors next month, dismissing attempts by malicious actors to create division between the government and citizens. On housing initiatives, he highlighted progress in the project allocating one million residential plots and modern city construction, announcing the groundbreaking ceremony this coming Saturday for housing projects across Karbala, Najaf, and Nineveh. Al-Zaidi stressed an ongoing decisive battle against corruption, pointing out that currency speculators previously profited from exchange rate disparities, insisting that economic management requires an authentic financial mindset. He also disclosed the establishment of the Generations Fund to finance diverse development ventures, noting that substantial quantities of US dollars will arrive soon to be injected into market circulation. The meeting aimed to review prominent political and legislative developments, foremost among them currency valuations, following the Central Bank of Iraq's decision adjusting the official exchange rate to one thousand five hundred and twenty dinars per dollar.