Iraq’s $300B black hole: Customs crisis exposed

 Shafaq News/ Iraq has funneled over $300 billion abroad in official import-related transfers over the past five years, while customs revenues have stayed alarmingly low, the Iraq Future Foundation for Economic Studies and Consultancy reported on Tuesday.

Manar al-Obaidi, head of the foundation, disclosed that between 2019 and 2024, Iraq transferred 415 trillion dinars (about $311 billion) for imports, citing Central Bank figures. Over the same period, the Ministry of Finance collected just 8.5 trillion dinars in customs duties—less than 2% of the total outflows.

“ This return is strikingly low,” al-Obaidi observed, estimating that under a standard 7% tariff, even with exemptions, Iraq should have brought in at least 29 trillion dinars. The shortfall tops 21 trillion dinars, or approximately $14.5 billion. “This estimated loss is conservative; the actual figure could be much higher.”

Al-Obaidi also cautioned that tariff waivers don’t fully explain the gap, blaming entrenched flaws in the customs system. “The scale of lost revenue points to pervasive loopholes and systemic inefficiencies.”