The United States has pledged stronger economic cooperation with Iraq as Baghdad moves ahead with a broad reform programme aimed at restructuring public finances and improving long-term economic stability.
During talks held on Wednesday between Iraqi Finance Minister Faleh Al-Sari and US Chargé d’Affaires Joshua Harris, both sides discussed efforts to address Iraq’s financial challenges and expand cooperation on economic policy.
Al-Sari said the Iraqi government is preparing a series of measures in coordination with state institutions and international partners to tackle longstanding economic issues. He highlighted plans to gradually replace the traditional budgeting system with a programme-based model designed to improve spending efficiency and connect financial allocations to measurable objectives.
The proposed reforms form part of a wider government strategy aimed at modernising Iraq’s financial management and encouraging sustainable investment-led growth.
Harris reaffirmed Washington’s support for the new Iraqi government, saying the United States remains ready to assist Iraq in overcoming financial difficulties and building a more stable economic future.
The discussions came shortly after the Iraqi government announced plans to draft a new programme budget in cooperation with the World Bank and the parliamentary finance committee. Iraqi officials say the initiative will support broader reform efforts and help attract international investment.
Baghdad is also preparing an independent development mechanism backed by international guarantees estimated between $100 billion and $150 billion. According to Iraqi officials, the initiative will operate separately from the state budget and focus on promoting economic stability through investment rather than direct government spending.
