Iraq: Selected Issues
IMF Staff Country Reports, February 3, 2023
Source details
- Canonical URL
- Iraq: Selected Issues
Other formats
Bibliographic details
- Published: February 3, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400231759.002
Summary and scope
- This Selected Issues paper assesses Iraq’s national pension system by examining the fiscal burden of budget-financed pensions and providing a sustainability analysis of the contributory pension scheme for public sector workers.
- The paper outlines reform options that can assist the authorities in containing the fiscal burden of the pension system, improving its adequacy, and reducing labor market distortions to remove barriers to private sector growth.
- The fiscal costs of budget-financed pension schemes are expected to remain elevated.
- A well-crafted transition plan will be key to the success of pension reforms.
- A gradual transition to a system with rules that are in line with international social security standards and best practices will loosen political economy constraints.
- Ensuring that the reform has the buy-in of a large group of stakeholders across the bureaucracy, political leadership and employees will increase credibility and protect it from political pressures during electoral cycles.
Key findings and projections
- Fiscal burden: budget-financed pension schemes are expected to remain elevated.
- Sustainability focus: includes a sustainability analysis of the contributory pension scheme for public sector workers.
- Labor market effects: reform options target reducing labor market distortions and removing barriers to private sector growth.
Policy recommendations and reform design
- Contain fiscal burden of the pension system through reform options identified in the paper.
- Improve pension adequacy while reducing labor market distortions.
- Implement a well-crafted, gradual transition plan aligned with international social security standards and best practices.
- Secure buy-in across bureaucracy, political leadership, and employees to increase credibility and protect reforms during electoral cycles.
Content in this bundle
- Iraq: Selected Issues; IMF Country Report No. 23/76; January 9, 2023