Specifically, the Iraq government is drawing a payroll rescue map and a replacement Horms is ready
The Prime Minister's financial and economic adviser, Mohamed Saleh, explained on Tuesday,
The Prime Minister's financial and economic adviser, Mohamed Saleh, on Tuesday explained the reasons for the continued government assurances to secure employees' salaries amid the ongoing Strait of Hormuz crisis and a halt in oil exports.
"In line with the Iraq government's affirmation and on every occasion that the salaries of employees and pensioners are secure and not at risk, despite the aftermath of the Strait of Hormuz crisis and the decline in oil exports, this means that the state, even under the current circumstances, still has liquidity and financial instruments that can meet its basic obligations".
He added that the picture does not necessarily look dark in the long run, and the continuation of the Hormuz crisis will drive Iraq, as is expected to increase reliance on alternative export routes and develop pipeline energy that can transport oil away from the strait".
He pointed out that "the Kirkukgehan line, along with other projects and plans to expand the export network north and west, is one of the most important options available to Iraq, and over time, these routes can accommodate larger amounts of oil, helping to recover a significant portion of the revenue lost to the treasury due to the disruption of the southern export route".
From this angle, al-Zaidi's adviser warned, the Hormuz crisis may push Iraq to accelerate a step it originally needed, which is diversifying oil export portals and not relying on one route. The more export routes, the more capable the Iraq's economy is of dealing with sudden regional crises".
As for wages and pensions, between Saleh, the government's ability to insure them depends not only on the continued flow of oil through the Hormuz, but also on its liquidity, other non-oil revenues, and the ability to reorganize spending and use available financial instruments".