Iraq’s parliament has formed Prime Minister Ali al-Zaidi’s government after approving vacant cabinet positions and three deputy prime ministers, including one under US sanctions.
On Thursday, lawmakers green-lighted 11 portfolios, appointing Nayef al-Shammari as defence minister and Yasir al-Maliki as interior minister. Other key posts include a minister for planning, culture, and higher education. However, a vote on the migration and displacement minister was postponed due to disagreements among parties.
The three deputy prime ministers include Laith al-Khazali, a leader of the Iran-backed Asaib Ahl al-Haq movement, whose group was designated a terrorist organisation by the US in 2020. The US Treasury had previously sanctioned both Laith and his brother, Qais al-Khazali, for their roles in violence against US forces and protesters.
Following the cabinet approval, al-Zaidi expressed gratitude to parliament and urged his ministers to “fulfil their responsibilities with commitment and integrity.” He noted the government will face significant economic and security challenges stemming from the ongoing US-Israel conflict with Iran.
Iraq is currently grappling with severe liquidity shortages due to the war. Prior to the conflict, the country produced about 3.5 million barrels of oil daily, which accounted for 90% of government revenue. Al-Zaidi stated that the war has created substantial economic difficulties for Iraq.
To address essential public spending and salaries, al-Zaidi, a former banker, has devalued the dinar by nearly 15% against the US dollar. He revealed that his administration inherited over 208 trillion Iraqi dinars ($139 billion at the new exchange rate) in public debt from the previous government. Al-Zaidi also highlighted that approximately 10 trillion dinars ($6.7 billion) are needed each month to cover state expenses.
He pledged to tackle corruption, disarm non-state armed groups, and enhance national sovereignty by completing the withdrawal of US forces from Iraq.
