On 4 October 2026, Prime Minister Ali Al-Zaidi ordered a package of about 3.5 trillion dinars (roughly $2.67 billion), according to Shafaq News. One of its five measures sets aside 500 billion dinars ($382 million) from the Ministry of Finance for overdue contractor dues. The others cover housing finance, industrial lending through the Trade Bank of Iraq and the Industrial Bank, farmer payments, and a top-up to the Future Generations Fund. The Prime Minister called for rapid implementation, and the Central Bank said it was ready to support the financing conditions.
The status matters. As reported, this is a directive from the Prime Minister. No payment schedule, eligibility list, ranking of creditors or implementing circular has been published. It is not a payment date, and it is not an admission of any individual claim.
What a foreign contractor or supplier should check
First, whether your invoices and certificates are in the form your contract requires. A payment pool, if it is released, will normally be applied to claims that are documented, certified and undisputed. Second, which public entity owes you, and whether it is funded from the Ministry of Finance, a state company’s own revenue, or a project account. A central allocation may not reach every counterparty. Third, the currency and payment mechanics in the contract: dinar or dollar, transfer route, and who bears delay or conversion risk. Fourth, your notice and interest provisions. Late-payment rights and suspension rights often depend on notices given on time, and silence can weaken them.
Do not treat the headline as a reason to relax a notice deadline. Keep a clean record of invoices, acceptance documents and correspondence, and wait for the implementing text before assuming how the money will be allocated.
Iraq Gate Legal Consulting advises foreign companies on commercial contracts, payment disputes and dispute resolution in Iraq. To discuss an overdue receivable, contact us at iraqgatelegalconsulting.com/contact/.
Sources: Shafaq News, “PM Al-Zaidi orders $2.5B+ economic support package” (4 October 2026).
This article is for general information only. It is not legal advice, does not create an attorney-client relationship, and does not guarantee any outcome. Facts and legal status may change; seek advice on your specific situation.
