In this week’s episode of Iraqi Voices, we break down what this means for the future of Kurdish consensus politics, the risks of a KDP-only government, and how term limits and internal Barzani dynamics are shaping the timeline.

We also discuss Prime Minister Ali Al-Zaidi's recent trips around the region, with historic visits to Damascus and Manama, a reportedly underwhelming meeting with MBS in Riyadh, and whether these visits signal a genuine shift in Iraq's foreign policy or echo attempts by previous prime ministers, resulting in largely fruitless outreach to the Gulf.

The 2026 US midterm elections resulted in a victory for the Democratic Party, which won a majority in both the House and the Senate. Many around the world are interpreting the Republican Party’s defeat as an expression of dissatisfaction with President Donald Trump’s performance in the first half of his second term. A significant factor was the decision to go to war with Iran and the economic impact that decision has had on the American public. As a result, many Iraqi commentators, like others around the world, have weighed in on what these elections mean and how Iraq should respond to them.

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Regional conflict in the Middle East is impacting the ability of sporting events to take place, causing politics to creep into sports. This past week, the Saudi club Al-Ettifaq refused to travel to the Kurdistan Region to play Erbil Sports Club for their scheduled group-stage match in the Gulf Football Federation’s (GFF) Gulf Champions League on October 28, citing security concerns. The Saudi club’s request to postpone the match was rejected by both Erbil Sports Club officials and GFF officials, resulting in the Saudi club forfeiting the match.

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• Prime Minister travels to Jordan and Syria

• PMO makes significant changes

• Head of INIS dismissed

• Head of Azm sentenced to prison

• YBS integrate fighters into the state

• Iraq backs UAE’s candidate for UN Secretary-General

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The status of Yazidis in Iraq and their district of Sinjar has been in limbo for many years, despite the territorial defeat of ISIS at the end of 2017. After nearly a decade of stalling, the situation has begun moving forward at a pace that has caught the Kurdistan Democratic Party (KDP) at its weakest moment in time. As a result, the KDP is struggling to impose its will both on religious minority groups and on the future of their territory.

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When Prime Minister Ali Al-Zaidi brought back the post of deputy prime minister and won parliamentary approval for three of his four nominees, he justified the move on three grounds: the deputies would not receive a salary, no new jobs would be created to accommodate their posts, and they would reduce his need for individual advisors. Following through on this, the Prime Minister’s Office has ended the contracts of 69 advisors.

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Several significant leadership changes were made this week to minister-level positions, following parliament’s approval of the second wave of ministers. With his cabinet nearly complete, Prime Minister Ali Al-Zaidi has replaced both his chief of staff and his intelligence chief, five months into his term.

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• OIC holds foreign ministers meeting in Baghdad

• IHEC announces new MPs

• Tensions flare over Ministry of Migration and Displacement

• Prime Minister appoints new advisor

• Kufa proposed as new province

• Government formation deadlock in the Kurdistan Region reaches two years

• CBI bans IDB from accessing USD

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The appointment of eleven more ministers to Prime Minister Ali Al-Zaidi’s cabinet means there are now vacancies in other government institutions, such as the governorship of Kirkuk and a number of seats in parliament. While the Kirkuk provincial council has to elect a new governor, the vacancies in parliament have been dealt with by the Independent High Electoral Commission (IHEC), which on Tuesday announced the replacements for Deputy Prime Minister Muhsin Al-Mandalawi of Asas and Minister of Interior Yasser Skhail Al-Maliki of the State of Law coalition.

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The discussion then looks at the broader political trajectory. The inclusion of Laith Al-Khazali and other resistance-aligned figures confirms that the US had lifted its objections to their participation in government. But the most significant development may be the head of the judiciary's call for constitutional reform in a statement issued on the same night as the parliamentary vote. Is Iraq moving away from consensus politics towards a majoritarian approach, and what are the risks of opening Pandora's box by pursuing constitutional amendments?

The Ministry of Migration and Displacement is the last vacant ministry in Prime Minister Ali Al-Zaidi’s cabinet. Of the 12 ministers proposed, Ruaa Amer Salem was the only candidate who was not sworn in, after three of the five Christian MPs protested her nomination. Although the Christian quota accounts for only five of parliament’s 329 seats, the Christian component is deeply divided politically, like the rest of Iraq, and with only one ministry allocated to it, satisfying all sides is more difficult.

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• Parliament holds second vote on ministerial candidates

• Prime Minister travels to Riyadh

• US Special Envoy to Iraq visits Baghdad

• Iraq opens new embassy in Vatican City

• US Treasury sanctions Iraqi bank

• Former PUK leader sentenced to prison

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Parliament convened this evening to vote on the cabinet posts still vacant in Prime Minister Ali Al-Zaidi’s government. The vote comes five months after the first vote that confirmed Zaidi alongside 14 ministers. Today’s vote, however, went beyond filling vacancies: it revived the deputy prime minister as a standalone post, split ministries that had been merged, and created new ministries.

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Prime Minister Ali Al-Zaidi visited three provinces this past week: Karbala, Najaf, and Nineveh, to lay foundation stones for sites in his one-million residential plot project, the Watan Initiative. In Karbala, Zaidi announced 60,000 plots, followed by 35,000 in Najaf and 110,000 in Nineveh. Zaidi’s promise to provide a home for every Iraqi came early in his premiership, and he is now making a show of progress as he manages the public uproar from the devaluation of the Iraqi dinar (IQD).

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The team discusses who bears responsibility for the crisis, why the public was caught off guard, and what the leaked 2027 federal budget reveals about the government’s spending plans and optimistic oil revenue forecasts.

The episode also explores the political negotiations over the remaining cabinet vacancies, with parliament potentially set to vote on new ministers this week.

• CBI devalues the IQD

• Prime Minister addresses political blocs in parliament over fiscal situation

• Sadr addresses US in open letter

• Commander-in-Chief orders arrests of individuals who desecrated US flag

• Communications Ministry bans GPS app

• Anti-Corruption Criminal Court seeks immunity lift for Diyala MP

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The latest budget execution figures from the Ministry of Finance show that government revenues rebounded in July for the first time since the start of the US-Iran war. Capital spending remained severely constrained, however, while the government increased its allocation for debt servicing.

The Finance Ministry’s latest figures cover the first seven months of 2026. Total spending reached IQD 68.2 trillion against revenues of IQD 39 trillion, leaving a deficit of IQD 29.2 trillion. By comparison, the deficit stood at just IQD 5.3 trillion by the end of July 2025.

During July this year, the government continued to meet its payroll commitments in full, including salaries and social welfare payments across federal Iraq and the Kurdistan Region. These accounted for around 65% of total government spending.

At the same time, the government sharply increased debt servicing payments, which reached IQD 2.2 trillion in July. By comparison, it spent an average of IQD 660 billion per month on debt servicing during the first half of the year.

Capital expenditure was once again hit hardest by the fiscal squeeze, with the government spending just IQD 325 billion in July. By comparison, the Sudani government spent an average of IQD 1.84 trillion per month on capital expenditure during 2025.

The rebound in government revenues during July helped contain the widening deficit. Revenues reached IQD 3.2 trillion, up 43% from June, marking the first monthly recovery since revenues collapsed in May due to the closure of the Strait of Hormuz. Nevertheless, July revenues remained far below the 2025 monthly average of IQD 10.3 trillion.

The Coordination Framework met on Monday evening and hosted Finance Minister Faleh Sari to discuss economic and financial affairs. The meeting came after the Ministerial Council for the Economy submitted a draft of the 2027 federal budget to the Council of Ministers last week. The proposed budget operates with the assumption that the IQD will be devalued to a new official rate, a departure from the Coordination Framework’s previous position and a reverse course on the previous revaluation.

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• Iraq celebrates “Sovereignty Day”

• Iraq gets US exemption for flights to Iran

• Progress made on federal budget and PMF draft laws

• Taqaddum MP sentenced to prison

• Iraq to host the 28^th Gulf Cup

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In this podcast episode of Iraqi Voices, we examine how the government managed to prepare the budget ahead of schedule and whether this could mark a break from the recurring cycle of delays that has plagued previous budgets. We also discuss what we can expect from the draft, including the likely level of expenditure, oil revenue assumptions, and how the government plans to finance the deficit. Finally, we look ahead to parliament and the likely sequencing of the legislative agenda that could eventually lead to the budget’s approval.

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