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Iraq parliament approves al-Zaidi's full cabinet as economic crisis deepens

Lawmakers approved 11 cabinet posts and three deputy prime ministers, including a leader of the Iran-backed group Asaib Ahl al-Haq, who is under US sanctions.

Iraq parliament approves al-Zaidi's full cabinet as economic crisis deepens
Image: Al Jazeera

At a glance

  • Iraq's parliament approved 11 cabinet posts and three deputy prime ministers, completing PM Ali al-Zaidi's government.
  • Deputy PM Laith al-Khazali is a leader of the Iran-backed Asaib Ahl al-Haq; the US sanctioned him in 2019.
  • Al-Zaidi says Iraq faces severe liquidity shortages, has devalued the dinar by 15% and inherited over $139bn in debt.

Iraq's parliament voted on Thursday to approve 11 cabinet posts and three deputy prime ministers, completing the formation of Prime Minister Ali al-Zaidi's government.

Among the approved ministers were Nayef al-Shammari as defence minister, Yasir al-Maliki as interior minister, and new holders of the planning, culture, and higher education and scientific research portfolios. Lawmakers postponed a vote on the nominee for migration and displacement minister because of disagreement among parties.

The deputy prime ministers approved include Laith al-Khazali, a senior leader of the Iran-backed Asaib Ahl al-Haq movement and brother of its leader, Qais al-Khazali. The United States designated Asaib Ahl al-Haq as a foreign terrorist organisation in 2020 and named both brothers "specially designated global terrorists", citing attacks including a 2007 assault that killed five US soldiers. The Treasury Department had sanctioned the brothers in 2019 over the killing of protesters in Iraq.

Economic pressure

In a statement after the vote, al-Zaidi thanked parliament and called on his deputy prime ministers and ministers to "fulfil their responsibilities with the highest levels of commitment, competence and integrity". He said the government was embarking on a phase of accelerated, diligent work to address the economic and security challenges imposed by the US-Israel war on Iran, which began on February 28.

Iraq is facing severe liquidity shortages stemming from the conflict. Before the war, the country exported roughly 3.5 million barrels of oil per day through the Strait of Hormuz, generating 90 percent of government revenue. Al-Zaidi said the war "has imposed, and continues to impose, extraordinary economic challenges on Iraq."

To cover essential public spending and government salaries, al-Zaidi, a former banker, devalued the dinar by almost 15 percent against the US dollar.

Debt and pledges

He said his government inherited public debt exceeding 208 trillion Iraqi dinars ($139bn at the new exchange rate) when it took office in May, raising questions about former prime minister Mohammed Shia al-Sudani's administration. The state needs about 10 trillion dinars ($6.7bn) a month to cover salaries and critical spending, he added.

Al-Zaidi also vowed to fight corruption, disarm non-state armed groups and strengthen sovereignty by completing the withdrawal of US forces from Iraq.

Source: Al Jazeera.

Questions and answers

Who is Iraq's prime minister?
Ali al-Zaidi, a former banker, took office in May. Parliament completed the formation of his government by approving 11 cabinet posts and three deputy prime ministers.
Why did Iraq devalue its currency?
Al-Zaidi devalued the dinar by almost 15 percent against the US dollar to cover essential public spending and government salaries during severe liquidity shortages linked to the war with Iran.
Who is Laith al-Khazali?
He is a senior leader of the Iran-backed Asaib Ahl al-Haq movement and brother of its leader, Qais al-Khazali. The US named both men specially designated global terrorists in 2020 and sanctioned them in 2019.
Original reporting: Al Jazeera (aljazeera.com)
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