Azm Alliance proposes internal borrowing law to cover public spending

BAGHDAD — The Azm Alliance announced Monday that it has submitted a proposed law on internal borrowing to finance public expenditures, citing delays in approving the federal budget.

In a statement, the alliance said the proposal was submitted “to secure financial stability and ensure the regularity of the state’s obligations toward citizens.”

The alliance added that it had obtained approval from the Presidency of Parliament to include the draft law on the agenda of an upcoming session.

According to the statement, the proposal aims to address “the repercussions of the delay in approving the general budget” by enabling the Ministry of Finance to use internal borrowing tools within set limits.

The alliance said the funds would be directed to “ensure the continued payment of salaries and entitlements to various groups,” including public employees, retirees, security personnel and social welfare beneficiaries.

The statement said the measure is intended to support sectors linked to citizens’ livelihoods and to proceed with legislative steps “to address the current financial situation.”

Oil accounts for roughly 90 percent of Iraq’s government revenue. Since U.S. and Israeli strikes on Iran began Feb. 28, Tehran has effectively halted most commercial traffic through the Strait of Hormuz, pushing oil prices above $100 per barrel.

Iraq resumed Kirkuk crude exports through the Kurdistan Region pipeline to Turkey’s Ceyhan port earlier last month at 250,000 barrels per day, one of several alternative routes Baghdad is pursuing alongside planned truck exports through Syria and Jordan.