No doubt Iraq has vast natural resources like other countries in the region but successive wars, dishonest saddam government and Salfi terrorism had not only made the lives of people utterly miserable but economy was also totally collapsed. With fall of the Baathists regime in 2003 and successful containment of terrorism in Mosul region, the Shia dominated country is now set to move on, writes M Hasan
Karbala/Najaf (Iraq): Violence-struck Iraq is on path of revival. Decades of loot under Saddam Hussein and rampant Wahabi terrorism, which had pushed the country to the brink of disaster, it is now looking forward to match with other West Asian nations.
No doubt Iraq has vast natural resources like other countries in the region but successive wars, dishonest saddam government and Salfi terrorism had not only made the lives of people utterly miserable but economy was also totally collapsed. With fall of the Baathists regime in 2003 and successful containment of terrorism in Mosul region, the Shia dominated country is now set to move on.
However, it cannot be denied that disruptive and anti-Shia forces are still active in the country as we encountered during our “Karwane Noor” tour (January-Feb 2025) of the Karbala, Najaf and other areas. But the Iraqi government seems to determined to leave the past behind and move on. Najaf and Karbala appear to be model of development of the country. Significantly despite years of war and other civil disturbances and economic hard life the cities reflect prosperity and development. While the mainstay of city’s economic activities appear to be massive religious tourism, the boom in infrastructural development after the fall of terrorist Saddam government after decades of brutalities against Shias of the country has transformed it into most modern city of Iraq.
In 2006, the government had started massive reconstruction of sites, which were demolished by Baathist goons. The city of Najaf has become a model of development in Iraq. Apart from experiencing economic boom with considerable investment, the major thrust is in housing and religious sector. People are affable and love Indians. Alongside Iraqi Dinar, Indian rupee is welcomed with smile. However, Iraqis for some mysterious reasons have reservations with Pakistanis and their currency. Even though after the departure of Rough Saddam Hussein, western countries have started looking towards the country with interest, Chinese and Japanese consumer goods seem to have captured markets. Najaf has excellent night life with pilgrims,.be it around the Shrine of Imam Ali or in any other part of the city moving around. Shops are always open. “We never close down our establishment” commented a Najafi shop owner near the Shrine.
The International Monetary Fund (IMF) in its annual report has projected a 4.1 percent GDP growth rate for Iraq in 2025. In fact this forecast aligns with a stable global growth rate of 3.2% across 195 countries, although developing countries, including Iraq, are expected to experience a higher growth trajectory, from a low 0.1% to a notable 4.1%. The IMF seems to be optimistic because of commitment of the present Iraqi government to peace and prosperity. No doubt still sectarian and communal odds are there with the present regime.
In Iraq, expenditures on both consumption and investment have consistently risen each year. This increase indicates higher individual incomes, with approximately 23% of Iraq’s population—or 9.5 million people, excluding the Kurdistan Region—receiving monthly salaries directly from the state. This figure represents one-fourth of the population, marking Iraq as the country with the world’s highest proportion of citizens reliant on government salaries. Nearly 75% of Iraq’s annual budget is allocated to these payments. However, Iraq is to go a long way to effectively catch with other Middle East countries. In rural areas, which is agriculture based, efforts are being made to retrieve the lives of the people from poverty and miseries.
All hopes for prosperity are based on Iraq remaining unaffected by regional conflicts and successfully implementing its three-year budget, enacting meaningful reforms, encouraging foreign investment, completing infrastructure projects, and generating job opportunities beyond government roles. Additionally, Iraq must work to reduce its domestic and foreign debt, currently over $60 billion, for the IMF forecast to hold true.
(M Hasan is former Chief of Bureau Hindustan Times)
