Iraq is banking on the private sector to increase spending on projects to diversify its economy away from volatile oil export earnings, a deputy has said.

Parliament’s Finance Committee will discuss measures to provide more incentives to the private sector when it meets Central Bank Governor Ali Al-Allaq shortly, the Committee’s Chairman Atwan Al-Atwani told the official news agency INA on Wednesday.

“There is an urgent need to expend spending on development projects because Iraq is producing a fixed quantity of oil and crude prices are not stable,” he said.

“This means there is no scope for a considerable increase in this spending…we will soon host the Central Bank Governor to discuss proposals to encourage the private sector to invest more in such projects…we believe the private sector is the only means to achieve sustainable development and economic stability in Iraq.”

(Writing by Nadim Kawach; Editing by Anoop Menon)


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