In a significant move to modernize financial services, Prime Minister Muhammed S. Al-Sudani has directed the implementation of multiple measures aimed at enhancing and developing electronic payment systems across Iraq. This initiative aligns with the government’s broader financial and economic reform plan, which stands as a top priority for the administration.
Transition to Electronic Payments
In a statement from the PM Media Office, Al-Sudani emphasized the importance of adopting electronic payment methods in the private sector, akin to those already established in the public sector. The Ministry of Labor and Social Affairs, in collaboration with the Central Bank of Iraq, is tasked with working alongside selected private sector institutions to devise a suitable mechanism for this transition.
Government-Wide Implementation
As part of this strategic initiative, all ministries and government institutions are required to shift from cash payments to electronic payment systems for all collections and transactions. Each ministry is mandated to submit a comprehensive plan detailing this transition by December 31, 2024. The full implementation of electronic payment systems is set to commence by July 1, 2025.
Expected Outcomes
This transition is expected to enhance the efficiency and transparency of financial transactions within Iraq, reduce cash dependency, and promote financial inclusion among the populace. By streamlining payment processes, the government aims to foster a more robust and modern economy that can better serve the needs of its citizens.
