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Iraq parliament approves al-Zaidi cabinet amid economic strain AI-generated image

Iraq parliament approves al-Zaidi cabinet amid economic strain

Iraq’s parliament has finished forming the government of Prime Minister Ali al-Zaidi. Lawmakers voted on Thursday to fill cabinet posts that had been left vacant, and they also confirmed three deputy prime ministers. One of the newly confirmed deputies is under US sanctions.

In total, lawmakers approved 11 portfolios. These include Nayef al-Shammari as defence minister and Yasir al-Maliki as interior minister, along with posts covering planning, culture, and higher education and scientific research. A vote on the nominee for migration and displacement minister was postponed because parties could not agree.

Deputy prime minister linked to Iran-backed armed group

One of the new deputies, Laith al-Khazali, is a senior figure in Asaib Ahl al-Haq, an Iran-backed movement. He is the brother of the group’s leader, Qais al-Khazali.

The United States designated Asaib Ahl al-Haq as a foreign terrorist organisation in 2020. Washington also labelled both brothers “specially designated global terrorists”, pointing to attacks including a 2007 assault that killed five US soldiers. The US Treasury had sanctioned the two men in 2019 over the killing of protesters in Iraq.

Economic pressure from the Iran war and currency cuts

In a statement after the cabinet vote, al-Zaidi thanked parliament and urged his new colleagues to “fulfil their responsibilities with the highest levels of commitment, competence and integrity”. He said the government would move quickly to address economic and security challenges caused by the US-Israel war on Iran, which began on February 28.

Iraq faces severe liquidity shortages because of the conflict. Before the war, it exported roughly 3.5 million barrels of oil a day through the Strait of Hormuz, a source of 90 percent of government revenue. To meet public spending and salaries, al-Zaidi, a former banker, devalued the dinar by almost 15 percent against the US dollar.

Al-Zaidi said his government inherited public debt above 208 trillion dinars when it took office in May, a figure he said raised questions about the administration of former prime minister Mohammed Shia al-Sudani. He added that the state needs about 10 trillion dinars a month, roughly $6.7bn, for salaries and critical spending.

Al-Zaidi pledges anti-corruption drive and sovereignty push

Al-Zaidi said he would fight corruption, disarm non-state armed groups and strengthen sovereignty by completing the withdrawal of US forces from the country.

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