Meeting of the Ministerial Order Committee for Activating Electronic Payments in Iraq
The Ministerial Order Committee tasked with activating electronic payments in Iraq held an extensive meeting with representatives from various ministries, including the Ministry of Water Resources, Ministry of Interior, Ministry of Defense, Baghdad Municipality, Ministry of Environment, Ministry of Industry, Ministry of Electricity, Ministry of Construction, Housing, Municipalities and Public Works, Ministry of Transport, and the Ministry of Planning. The meeting was coordinated with Osoul Foundation for Economic Development and Sustainability, a committee member, in collaboration with the Iraqi Digital Transformation and E-Payment Council.
Key Discussion Points
The committee reviewed the national plan for a full transition to electronic payments, aiming for complete implementation by July 1, 2025. Several key challenges were identified, along with proposed solutions:
Government Procurement & Regulatory Framework
Challenges: Delays in preparing studies and clarifying procurement mechanisms.
Solution: The committee will coordinate with the Central Bank of Iraq to develop clear regulatory frameworks and introduce official procurement cards to ensure transparency.
Financial Settlements with the Central Bank
Challenges: Delays in financial settlements between ministries.
Solution: The adoption of a new system to accelerate settlement processes and improve efficiency.
High Transaction Fees on Government Funds
Challenges: High fees on transactions in certain government funds, such as the Housing Fund of the Ministry of Construction and Housing.
Solution: Proposals to reduce transaction fees to enhance the efficiency of these funds in financing projects.
Expanding Electronic Payment in Public Services
Challenges: A continued reliance on cash payments in many government institutions, with electronic payment adoption as low as 1% in the Ministry of Electricity.
Solution: Upgrading technical systems and providing electronic payment devices across public facilities.
Lack of Accurate Reports on E-Payment Progress
Challenges: Ministries are not providing comprehensive reports on their progress in implementing electronic payments.
Solution: Ministries will be required to submit regular reports on the status and progress of digital transformation efforts.
Limited Cash Deposit Services in ATMs
Challenges: A shortage of cash deposit ATMs, limiting financial accessibility.
Solution: A national initiative to deploy ATMs that support cash deposit functions.
Implementation Deadline
The committee emphasized that all ministries must finalize their implementation plans by the end of the year, ensuring a full transition to electronic payments by July 1, 2025. Continuous monitoring and problem-solving measures will be in place to address any challenges that arise during the transition.
The shift to electronic payments is a strategic step toward enhancing transparency, improving efficiency, and supporting sustainable economic growth in Iraq.