Iraq Pushes for Full Electronic Payment Transition by 2025

In alignment with Iraq’s ongoing financial and economic reform agenda, Prime Minister Mohammed S. Al-Sudani has directed the government to implement key initiatives aimed at advancing and modernising electronic payment systems and services across the country. This move comes as part of broader efforts to streamline economic processes, reduce reliance on cash, and foster greater financial inclusion.

A significant step in this reform involves the domiciliation of salaries for private sector employees, a model already in practice within the public sector. To achieve this, the Prime Minister has mandated the Ministry of Labor and Social Affairs and the Central Bank of Iraq to engage with selected private sector institutions to devise a mechanism that will facilitate this transition. The aim is to enhance the financial stability of private sector workers and integrate them more effectively into the formal financial system.

Furthermore, in a bid to modernise public sector financial operations, Prime Minister Al-Sudani has instructed all ministries and government institutions to transition from cash-based payment methods to electronic payment systems for all transactions, including payment collections. To ensure a smooth implementation, each ministry and institution is required to present a comprehensive transition plan by December 31, 2024. The full shift to electronic payments is expected to commence by July 1, 2025.

These initiatives mark a substantial effort to modernise Iraq’s financial infrastructure, reflecting the government’s commitment to economic growth, transparency, and technological advancement.

The Prime Minister’s Media Office continues to emphasise that these measures are pivotal for economic stability and will contribute to more efficient government operations and improved public services.