Reform roadmap stalls as Iraq enters caretaker mode

Shafaq News – Baghdad

The implementation of Iraq’s “White Paper” economic reform plan is effectively off the table, a senior Iraqi official indicated on Saturday, pointing to the caretaker status of the current government and the absence of a federal budget.

Speaking to Shafaq News, Jamal Kocher, former member of the parliamentary Finance Committee and recently elected to Iraq’s 2025 parliament representing the Kurdistan Islamic Union (KIU), dismissed discussions about implementing the White Paper and advancing economic reforms as legally unfounded, noting that the current administration lacks the mandate to make major economic decisions.

That constraint stems from a November 17 ruling by the Federal Supreme Court, Iraq’s highest judicial body, which reduced the government to caretaker status and sharply curtailed its room for manoeuvre. Under Iraqi law, caretaker administrations cannot pass new legislation, approve long-term contracts, negotiate major investment agreements, or advance structural reforms, typically operating at only 20% to 30% of their full capacity.

Kocher also noted that any move to activate the White Paper would first require a detailed review and its incorporation into the Federal Budget Law, a step that remains out of reach without an approved budget.

The White Paper was adopted on October 2020, under the government of former Prime Minister Mustafa Al-Kadhimi. Drafted by the Emergency Cell for Financial Reform, it was designed as a comprehensive roadmap to tackle Iraq’s structural economic challenges.

Read more: Nearly two years after launching the White Paper, what are the achievements?