Iraq has reported strong financial results for the first seven months of 2025. According to the Ministry of Finance, federal oil revenues surpassed 72 trillion Iraqi dinars. That equals more than $50 billion, driven mostly by oil income.
Oil revenues made up the bulk of this figure. They reached nearly 65 trillion dinars, or about $46 billion. Non-oil revenues contributed a smaller amount of just over 7 trillion dinars. Oil’s share stood at around 90 percent of total revenues. This confirms Iraq’s heavy dependence on crude sales.
On the spending side, government salaries formed the largest portion of expenses. They consumed more than 38 trillion dinars, or nearly $27 billion. In addition, social welfare salaries accounted for over 3 trillion dinars. Pension payments reached close to 11 trillion dinars, or about $7.7 billion. Current expenditures as a whole exceeded 64 trillion dinars.
Observers warn about the risks linked to this structure. Iraq’s economy relies heavily on oil revenues, making the state budget vulnerable to global oil market shocks. Sharp price drops or falling demand can directly harm government income. When this happens, Iraq often covers the gap by borrowing. This creates long-term financial pressure.
Therefore, experts urge the government to expand non-oil revenues. Agriculture, industry, and tourism could play a bigger role. Developing these sectors would reduce Iraq’s dependence on oil and create jobs. Diversification would also stabilize state income during volatile periods in energy markets.
Moreover, Iraq’s rising salary expenses highlight another challenge. With almost 40 trillion dinars spent on wages, public sector costs remain high. Social programs and pensions add further strain. Analysts suggest reforms to control spending while still protecting citizens. Better fiscal management would allow more investment in infrastructure, education, and healthcare.
The revenue growth shows Iraq’s strength in oil exports, but the risks are clear. Heavy reliance on one sector keeps the economy exposed. By investing in new industries and building strong financial tools, Iraq can secure more balanced growth.
In summary, Iraq earned over $50 billion in revenue within seven months. Oil sales generated most of the money, but expenses also grew. The economy needs diversification to protect against future shocks.