Al-Sudani opens banking sector reform conference in Baghdad

BAGHDAD — Iraqi Prime Minister Mohammed Shia Al-Sudani has opened the Conference on Reforming the Iraqi Banking Sector, emphasizing efforts to modernize Iraq’s financial institutions and enhance economic stability.

In his remarks, Al-Sudani praised the event as a platform that “presents visions and ideas aimed at developing Iraq’s banking sector, promoting sustainable development, and enhancing Iraq’s economic standing and its regional and international roles.”

Statement from Al-Sudani’s media office:

Prime Minister Mohammed S. Al-Sudani attended the Conference on Reforming the Iraqi Banking Sector, held today, Monday.

His Excellency expressed appreciation for all efforts that contributed to organizing this conference, which presents visions and ideas aimed at developing Iraq’s banking sector, promoting sustainable development, and enhancing Iraq’s economic standing and its regional and international roles. He also commended the efforts of the Central Bank of Iraq, the banks, and the teams from international and local consulting firms for their ongoing work in strengthening and advancing Iraq’s financial and banking sectors.

Prime Minister Al-Sudani noted that the government assumed responsibility during a complex economic period, which required decisive actions to achieve stability and ensure growth. He outlined the achievements realized in financial, banking, and economic fields as positive steps toward establishing solid foundations for development and capitalizing on prevailing stability.

Key highlights from the Prime Minister’s speech include:

🔷 The government prepared a three-year budget that allocated resources to key sectors such as health, education, and infrastructure.

🔷 The three-year budget has enabled a long-term financial planning framework to help achieve the strategic and developmental objectives of the state.

🔷 The government worked to boost revenues by improving the taxation and customs systems and enhancing non-oil revenues, helping reduce dependence on oil exports.

🔷 Full automation of the customs system is underway through the implementation of the global ASYCUDA platform, developed under the United Nations.

🔷 Customs revenues increased by approximately 128%, while tax revenues rose by about 22%—both higher than previous years.

🔷 Ambitious projects have been launched to reform state-owned banks and improve their capacity to deliver financial services to individuals and businesses.

🔷 Over the past two years, the Cabinet issued several decisions to restructure the Rafidain, Rasheed, Industrial, and Agricultural Banks with the support of a reputable international consultancy.

🔷 The government enhanced the infrastructure for digital payments and transactions by strengthening protocols and systems to facilitate electronic payments across sectors.

🔷 Partnerships were established with leading fintech companies to offer innovative digital payment solutions, enhancing the efficiency of the financial system.

🔷 The financial inclusion rate rose to over 40%, up from just 10% two years ago—an achievement recognized by institutions like the World Bank and the International Monetary Fund.

🔷 E-commerce and digital payment legislation has been updated.

🔷 Awareness campaigns have been launched to promote digital payment culture among citizens.

🔷 Support was extended to small and medium enterprises through financing and resources, resulting in job creation and economic stimulation.

🔷 The initiatives proposed aim to address current challenges in the banking sector and enhance its international competitiveness.

🔷 Banking reform forms a vital part of the economic reform pillar in the government program.

🔷 The government, in cooperation with the Central Bank of Iraq, launched a comprehensive initiative for integrated strategic banking reforms.

🔷 These reforms aim to align with global developments, open new partnerships, and enhance engagement with the global financial system.

🔷 The government is fully prepared to support all local and international entities and institutions in efforts to develop the banking sector and promote economic growth and financial stability.

🔷 Tangible results have already been achieved, with successful expansions and advancements in Iraq’s banking industry.