The IMF chief in Iraq expects better economic growth in the private sector. The private sector of Iraq shows too many disappointing figures that indicates lack of interest of Iraq rulers. The private sector of Iraq was ruined by the negligence of authorities because of all their focus on oil sector. Looking all these facts, International Monitoring Fund launched a program to develop private sector according to new norms. The program was started in November 2015 under the direct supervision of IMF monitoring team. The key elements of this program were:
- The first element of this program was to control the budget spending by enhancing public finance. To gain this element, the debt stabilization was the key element to consider. Iraq can only make progress if budget spending would be controlled through this program.
- Social front is the major concern of this project. The program is designed to protect poor people in the country along with special attention to the internally displaced people living in the camps. The focus of this program is to provide food, shelter, clean drinking water and medicine. Representatives of this program will contact different organizations of the world to support Iraq in the recent situation.
- The program will design policies to protect public finance and also manage it in the expert manners. The strategies will be designed to improve public financial management.
- The program will redesign the banking system to support international banking system operating in the world.
The committee is working with total commitment and devotion to achieve its targets by the end of 2016. They are bringing reforms in the banking system of Iraq to enhance private sector transactions in the country. Carrying money in the bag on the roads of Iraq is never being the safe.
Therefore; too many companies hesitate to invest in Iraq. The reforms and development in the banking sector are necessary to enhance trade in the country. The online transfer and payments via check are necessary to secure payments in private sectors. The security problems are also there to stop the way of progress. Too many banks and were attacked and robbed in last couple of years in Iraq. That’s why; international banks are not willing to open any bank branch in the country.
However, many international banks and monetary institutes have started working in the Baghdad after complete security assurance from Iraq government. The central bank of Iraq now provide guarantee of any loss to the commercial banks in the case of any security collapse. Central bank is also inviting different telecommunication companies to start their business in Baghdad and many other safe cities and enhance their company sales.