Iraqi parliament approves al-Zaidi cabinet amid growing economic concerns

The Iraqi parliament finalized the appointment of key ministers five months after the al-Zaidi government took office.

The Iraqi parliament completed the formation of Iraqi Prime Minister Ali al-Zaidi's government after approving the vacant positions of the cabinet and three deputy prime ministers, including one of them who is under US sanctions.

Lawmakers voted on Thursday and approved 11 positions, including Nayef al-Shammari as defense minister, Yasser al-Maliki as interior minister, planning minister, culture minister and minister of higher education and scientific research.

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The end of the list of MPs postponed the vote on the candidate for the Minister of Immigration and Migration due to disagreements between the parties.

Lawmakers also approved three deputy prime ministers, including Layth al-Khazali, a senior leader of the Iran-backed Asaib Ahl al-Haq movement, and the brother of Qais al-Khazali, the group's leader.

The United States designated Asaib Ahlul Haq as a foreign terrorist organization in 2020, naming both brothers as "Specially Designated Global Terrorists" citing attacks including a 2007 attack that killed five American soldiers. The Ministry of Treasury sanctioned these brothers in 2019 due to the killing of protesters in Iraq.

In a statement after the cabinet's approval, Al-Zaidi thanked the parliament and asked his fellow deputy prime minister to "perform their duties with the highest levels of commitment, competence and integrity." He said that the government is starting a phase of fast-paced and diligent work to address the exceptional economic and security challenges caused by the US-Israeli war against Iran, which began on February 28.

Iraq is facing a severe lack of liquidity due to the ongoing conflicts. Before the war, Iraq exported approximately 3.5 million barrels of oil per day through the Strait of Hormuz, providing 90 percent of the government's revenue. Al-Zaidi said the war "imposed and continues to impose tremendous economic challenges on Iraq."

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

He said his government inherited more than 208 trillion Iraqi dinars ($139 billion at new exchange rates) in public debt when it took office in May, raising questions about the government of former prime minister Mohammad Shia al-Sudani. Al-Zaidi added that the government needs about 10 trillion dinars ($6.7 billion) a month to cover salaries and vital expenses.

Al-Zaidi promised to fight corruption, disarm non-state armed groups and strengthen his sovereignty by completing the withdrawal of American forces from the country.