Millions of Iraqis without salaries: The Hormuz crisis hits families
More than a week after the scheduled payment date for July salaries, millions of public sector employees, retirees, and welfare recipients in Iraq have yet to receive their wages. Senior officials admit that the liquidity crisis, exacerbated by the impact on oil revenues, makes it difficult for the government to meet its financial obligations.
With the Iraqi government admitting difficulties in paying July salaries, which have been delayed for public sector employees for over a week, Iraqi families are facing a new social reality: an inability to meet financial obligations and living needs. This is accompanied by difficulties in planning monthly expenses and growing fears that the country's financial crisis will persist indefinitely. Iraqi officials have acknowledged that the country has entered a liquidity crisis that complicates regular salary payments.
Millions of Iraqis depend directly on government salaries for their livelihood, so any delay in payment dates quickly affects family and social life. The state pays approximately 8 trillion Iraqi dinars (about 5 billion dollars) each month to public sector employees, retirees, and welfare recipients.
The sharp decline in Iraq's oil revenues following the closure of the Strait of Hormuz has led to an acute and unprecedented liquidity crisis, set against the backdrop of ongoing service shortages, primarily in electricity.
Basem Ali, an employee at the Ministry of Environment in Baghdad, told the newspaper Al-Araby Al-Jadeed: "The problem is no longer a delay of a few days, but the inability to know when payment will arrive. Families can no longer plan their monthly expenses. All payments—from rent to utility bills—were tied to the salary date. Today, we are forced to rely on temporary loans from relatives and friends."
Maha Karim, an employee at the Ministry of Higher Education and a mother of two, noted: "For a week now, I have been buying only basic necessities. The lack of economic stability directly affects the family's mental well-being and creates constant tension at home."
Taha al-Marsumi, a grocery store owner in Baghdad, reported that demand has dropped significantly: "During the salary period, the market would come to life as families stocked up for the month. Now, the crisis has hurt both families and business owners. If these delays continue without a fixed payment date, it will lead to a severe crisis affecting people's livelihoods."
Wafaa al-Mahdawi, a social researcher, stated that many families are currently living in anxiety due to their inability to meet financial obligations.
These developments come as the government faces increasing financial pressure due to rising expenditures alongside declining oil revenues. Experts warn that ensuring regular salary payments is becoming increasingly difficult, and are discussing the possibility of foreign loans as a forced solution to overcome the crisis.
