Iraqi Prime Minister Ali Faleh Al-Zaidi met with World Bank Group President Ajay Banga in Washington to discuss economic reforms, banking sector modernization, and expanding cooperation to support Iraq's long-term development agenda.

Talks Focus on Economic Growth and Reform

Al-Zaidi met with Banga and a World Bank delegation that included International Finance Corporation (IFC) Managing Director Makhtar Diop and senior bank officials.

During the meeting, the prime minister said Iraq is experiencing a period of growing stability, which he said is creating favorable conditions for investment and economic growth. He added that the government's reform policies are expected to strengthen the country's economic performance.

Government Prioritizes Banking and Budget Reforms

Al-Zaidi said the government is prioritizing banking sector reform and the adoption of program-based budgeting to improve public spending and direct resources toward development projects.

He also emphasized Iraq's strategy to build a more diversified and sustainable economy by strengthening non-oil sectors while increasing oil production to support national development needs.

The prime minister said the government is continuing efforts to establish the Iraq Development Fund, which will finance investment projects across the country's governorates.

He added that the fund will expand financing opportunities for qualified Iraqi banks and strengthen the role of the private sector as a partner in Iraq's economic development.

World Bank Pledges Technical Support

Banga praised Iraq's recent progress in improving stability and said the country has significant economic potential if its resources are effectively managed.

He reaffirmed the World Bank's readiness to provide technical and advisory support for Iraq's banking reforms and implementation of program-based budgeting.

Banga also proposed examining the creation of a major Iraqi banking holding company through the merger of several state-owned banks to improve the efficiency of the financial sector and support Iraq's broader economic reform efforts.