Washington: Prime Minister Ali Faleh Al-Zaidi met with the President of the World Bank Group (WBG), Ajay Banga, and his delegation, which included IFC Managing Director Makhtar Diop and several senior World Bank officials. The meeting took place yesterday evening, Baghdad time, and focused on Iraq's economic stability and reforms.
According to Iraqi News Agency, the Prime Minister emphasized that Iraq is currently experiencing a high level of stability, which is anticipated to positively affect the country's economic and investment climate. He highlighted that the Iraqi economy is expected to grow due to the reforms and policies the government has started to implement.
The Prime Minister's statement underscored the government's focus on reforming the banking sector and embracing program-based budgeting as a strategy to ensure efficient resource allocation. He reiterated the commitment to crafting a new economic identity for Iraq, rooted in diversification, reform, and sustainability. This includes increasing oil production to meet development needs while simultaneously developing non-oil sectors to enhance their contribution to the national economy.
Further, Al-Zaidi detailed the government's progress in establishing the Development Fund, aimed at financing investment projects across all governorates and expanding financial support to qualified Iraqi banks. This initiative is intended to bolster Iraq's private sector, positioning it as a significant partner in the nation's development journey.
World Bank Group President Ajay Banga expressed appreciation for Iraq's advancements in stability and peace. He noted that Iraq has substantial resources and capabilities that could lead to extensive economic transformation if effectively harnessed. Banga also affirmed the World Bank's readiness to offer technical and advisory support in areas such as program-based budgeting and restructuring of the banking sector. Additionally, he proposed exploring the creation of a major Iraqi bank holding company through the merger of several state-owned banks to enhance the financial sector's efficiency and support economic reforms.