Iraqi Govt. Faces Political, Popular Pressure over Financial Crisis

Demonstrators in Baghdad in November 2019. (Reuters)
Demonstrators in Baghdad in November 2019. (Reuters)
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Iraqi Govt. Faces Political, Popular Pressure over Financial Crisis

Demonstrators in Baghdad in November 2019. (Reuters)
Demonstrators in Baghdad in November 2019. (Reuters)

The Iraqi government is in crisis after failing to pay the salaries of public servants on a regular basis since it was formed back in May.

Iraqi families are still waiting to receive their wages for the month of October.

The government has been pressing the parliament to approve a new loan in order to resolve the payroll crisis and other financial problems.

These efforts have, however, been met with political blocs that are setting their conditions for the approval of the lending law.

In addition to the political pressure, hundreds of public sector employees staged rallies in the Karbala, Babel, Maysan, Dhi Qar and Diwaniyah provinces in protest against the delays in receiving their salaries.

On Sunday, the Fatah Coalition called on the government to take “real” actions to address the salary crisis, expressing its readiness to support such steps at parliament.

“We are continuously following all measures that must be taken to address the salary crisis and provide the necessary allocations. The government should provide realistic practical solutions that, on one hand, secure salaries and at the same time do not burden the Iraqi Treasury with more loans,” it said.

The bloc said it would be supportive of such actions, and will vote on them quickly.

The Ministry of Finance said it was forced to ask for a new loan of around $40 billion from parliament to pay the deficit in government expenditures and salaries.

On Saturday, the parliamentary finance committee decided to reconsider the amount of the government borrowing, in order to avoid burdening the state with debts.

The committee stressed the need to limit the loan to the necessary expenditures, such as salaries of employees and retirees, social welfare dues and farmers, medicines to confront the coronavirus pandemic and the ration card. Funds must also be allocated to investment projects to boost the economy and provide job opportunities.



‘War Ruined Me’: Lebanon’s Farmers Mourn Lost Season

This photo shows burnt agricultural fields that were hit during Israeli shelling in the southern Lebanese area of Marjeyoun, on October 30, 2024, amid the ongoing war between Israel and Hezbollah. (AFP)
This photo shows burnt agricultural fields that were hit during Israeli shelling in the southern Lebanese area of Marjeyoun, on October 30, 2024, amid the ongoing war between Israel and Hezbollah. (AFP)
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‘War Ruined Me’: Lebanon’s Farmers Mourn Lost Season

This photo shows burnt agricultural fields that were hit during Israeli shelling in the southern Lebanese area of Marjeyoun, on October 30, 2024, amid the ongoing war between Israel and Hezbollah. (AFP)
This photo shows burnt agricultural fields that were hit during Israeli shelling in the southern Lebanese area of Marjeyoun, on October 30, 2024, amid the ongoing war between Israel and Hezbollah. (AFP)

Lebanese farmer Abu Taleb briefly returned to his orchard last month to salvage an avocado harvest but ran away empty handed as soon as Israeli air raids began.

"The war broke out just before the first harvest season," said Abu Taleb, displaced from the village of Tayr Debba near the southern city Tyre.

"When I went back in mid-October, it was deserted... it was scary," said the father of two, who is now sheltering in Tripoli more than 160 kilometers to the north and asked to be identified by a pseudonym because of security concerns.

Abu Taleb said his harvesting attempt was interrupted by an Israeli raid on the neighboring town of Markaba.

He was forced back to Tripoli without the avocados he usually exports every year.

Agricultural regions in Lebanon have been caught in the crossfire since hostilities between Israel and Hezbollah ramped up in October last year, a full-scale war breaking out on September 23.

The UN's agriculture agency, FAO, said more than 1,909 hectares of farmland in south Lebanon had been damaged or left unharvested between October last year and September 28.

The conflict has also displaced more than half a million people, including farmers who abandoned their crops just when they were ready to harvest.

Hani Saad had to abandon 120 hectares of farmland in the southern region of Nabatiyeh, which is rich in citrus and avocado plantations.

"If the ceasefire takes place within a month, I can save the harvest, otherwise, the whole season is ruined," said Saad who has been displaced to the coastal city of Jounieh, north of Beirut.

When an Israeli strike sparked a fire in one of Saad's orchards, he had to pay out of his own pocket for the fuel of the fire engine that extinguished the blaze.

His employees, meanwhile, have fled. Of 32 workers, 28 have left, mainly to neighboring Syria.

- 'Worst phase' -

Israeli strikes have put at least two land crossings with Syria out of service, blocking a key export route for produce and crops.

Airlines have suspended flights to Lebanon as insurance costs soar.

This has dealt a deadly blow to agricultural exports, most of which are destined for Gulf Arab states.

Fruit exporter Chadi Kaadan said exports to the Gulf have dropped by more than 50 percent.

The supply surplus in the local market has caused prices to plummet at home, he added.

"In the end, it is the farmer who loses," said Saad who used to earn $5,000 a day before the war started. Today, he barely manages $300.

While avocados can stay on the tree for months, they are starting to run out of water following Israeli strikes on irrigation channels, Saad said.

Citrus fruits and cherimoyas have already started to fall.

"The war has ruined me. I spend my time in front of the TV waiting for a ceasefire so I can return to my livelihood," Saad told AFP.

Gaby Hage, a resident of the Christian town of Rmeish, on the border with Israel, is one of the few farmers who decided to stay in south Lebanon.

He has only been able to harvest 100 of his 350 olive trees, which were left untended for a year because of cross-border strikes.

"I took advantage of a slight lull in the fighting to pick what I could," he told AFP.

Hage said agriculture was a lifeline for the inhabitants of his town, which has been cut off by the war.

Ibrahim Tarchichi, president of the farmers' union in the Bekaa Valley, which was hit hard by the strikes, believes that agriculture in Lebanon is going through the "worst phase" of its recent history.

"I have experienced four wars, it has never been this serious," he said.