Strengthening Public Finances and Financial Markets in Iraq
Baghdad – March 2025 — A recent KOMPAS assessment led by Business Insight has highlighted significant progress in Iraq’s efforts to strengthen its non-oil revenue systems and improve public financial management. The assessment was conducted under the “Strengthening Public Finances and Financial Markets (FFM)” project, a multi-donor initiative funded by the European Union (EU) and Germany’s Federal Ministry for Economic Cooperation and Development (BMZ), and implemented by GIZ.
Part of the Team Europe Initiative, the FFM project supports Iraq’s White Paper for Financial Reforms (2020) by promoting fiscal governance, financial market development, and macroeconomic stability. It aims to reduce Iraq’s overreliance on oil revenues and enhance its ability to fund public services and long-term economic development.
Using GIZ’s KOMPASS results-based monitoring tool, Business Insight gathered real-time feedback from government stakeholders at various government offices. The assessment focused on mobilizing non-oil revenues, specifically through policy reforms, system upgrades, and capacity building.
Key findings show early signs of improved institutional performance, better coordination across agencies, increased awareness of reform benefits, and enhanced technical capacity. However, the report also flagged persistent challenges such as limited automation, fragmented data systems, political resistance, and capacity gaps that could slow down reform momentum.
Evidence-based insights will guide the next phase of the project, helping Iraq build a more resilient, diversified, and modern financial system aligned with international standards.