Finance Minister: Iraq will lay off its employees within ten years if it continues to depend on oil


Posted 1 hour ago UTV – Baghdad 

Ali Abdul-Amir Allawi, Minister of Finance, said that Iraq will have to lay off its employees within ten years if it continues to depend on oil.

Allawi said in press statements that “60% of global oil consumption goes to the transportation sector,” noting that “after 2030, the gasoline-powered car industry will be stopped globally, and until 2040 all cars will run on electricity.”

Allawi added that “the threat level is very high in the medium term,” noting that “pension obligations within 5 years will rise to 25 trillion dinars annually, while it now amounts to 19 trillion dinars.”

He explained that “the oil market will collapse and sales will decline within ten years,” noting that “Iraq at that time will have no choice but to lay off employees, which will cause major political problems.”

The Minister of Finance indicated that “the supply and demand for electricity in Iraq and the large gap between the costs of generating electricity and recovering it through collection is very large and is increasing year after year.”

And he indicated that “when preparing for the 2022 budget, the Ministry of Finance is required to provide very large sums for the electricity sector, reaching 20 trillion dinars next year.”

Allawi added, “On the other hand, we do not have any system for obtaining the cost of production and recovering it through tariffs and collection, and only 10% of the total cost is recovered.”

وزير المالية: العراق سيسرح موظفيه خلال عشر سنوات إذا استمر اعتماده على النفط

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