ERBIL, Kurdistan Region of Iraq - Basra province is facing a severe financial crisis that has brought dozens of major development projects to a halt, including school construction and infrastructure improvements. The local government has failed to pay contractors' advance payments, blaming the central government for delaying the release of funds.

Shaker al-Amiri, head of the Basra Provincial Council’s Finance Committee, told The New Region that Basra's development has come to a standstill due to the central government's failure to disburse funding.

“This delay has caused a significant slowdown in work, with some projects stopping entirely,” Amiri said.

He described the situation as “disastrous,” leading to unfinished projects, crumbling infrastructure, and wasted funds amid persistent corruption and negligence. 

Despite being one of Iraq’s main oil-producing provinces, Basra is struggling financially, raising concerns about the mismanagement of its vast revenues.

“The province, which generates substantial oil wealth, is now at the mercy of government inefficiency,” Amiri said. “It raises a fundamental question: How can a resource-rich region face such a severe financial shortfall?”

Contractors' outstanding payments have surpassed 1.2 trillion dinars ($920 million), a figure expected to rise as the crisis continues and the Ministry of Finance delays payments, according to Amiri. 

Despite relative stability in oil production and prices, the government has not provided a clear explanation for the financial shortfall.

Basra requires 6.5 trillion dinars ($5 billion) to complete its projects in 2024, but only 400 of 859 critical projects have received funding, with just 1.5 trillion dinars ($1.15 billion) allocated. The approved projects focus on essential services such as water, electricity, health, education, and defense.