Member of the Parliamentary Finance Committee Mudar Al-Karawi confirmed on Thursday that curbing corruption at border crossings will raise the percentage of their revenues in the state budget to at least 10%.
In an interview with , Al-Karawi stated that the fast-paced changes in the energy sector entail certain risks for the Iraqi treasury if it continues to solely rely on oil as its primary resource. The most significant of these risks include price fluctuations, which directly impact the government’s ability to secure salaries and other benefits. Al-Karawi suggests that diversification of revenues should be reconsidered to mitigate these risks.
As per his statement, border crossings can be a major financial resource for the country. However, due to widespread corruption, the revenues generated from these crossings have drastically reduced. This is unfortunate because the crossings have the potential to contribute significantly towards the country’s overall budget revenue and could play an essential role in securing it.
“If corruption at the borders was curbed by adopting government frameworks for the import calendar, the revenue generated from the borders could account for up to 10% of the country’s budget. This would provide the country with greater flexibility in dealing with any fluctuations in crude oil prices,” he pointed out.