Fiscal Year 2026
Capacity Development Activities
Financial Supervision and Regulation
SRP Project: ICAAP regulation and risk matrix development (May 24-28)
METAC collaborated with the Central Bank of Iraq (CBI) team to finalize new guidelines about the Internal Capital Adequacy Assessment Process (ICAAP) regulation, a critical component in sustaining the financial soundness of the banking sector. This initiative was part of a broader effort to enhance the banking supervision practices of the CBI. Emphasis was placed on improving the evaluation of risks and effective monitoring of banks, both off-site and on-site. The overarching objective is to ensure banks are better equipped to manage their financial risks.
Public Debt Management
Strengthening debt portfolio management capacity (June 15-19)
A virtual mission trained debt managers on the best practices in public debt management and financial analysis of public debt portfolios and debt instruments. The training focused on presenting financial mathematic concepts commonly used in public debt management, presented issues related to debt portfolio risk management, discussed the relationship between debt portfolio risk management and debt management strategy and covered some issues related to domestic debt market development, i.e., essential characteristics of government securities, auction methods, key players, and prerequisites for developing the government securities market.
Revenue Administration
Thematic support for Iraq customs continues (July)
The sixth in a series of hybrid capacity development workshops commenced with remote drafting of supporting instructions for the implementation of customs guarantees. The draft has been shared with Iraq customs for their initial review and will be validated and finalized during an in-person workshop in August.
Strengthening Audit Capacity in Iraq’s Tax Administration (July)
The mission supported the General Commission for Taxes (GCT) in Iraq through a five-day training program designed to enhance the audit capabilities of approximately twenty tax officers. The mission built foundational knowledge and practical skills in auditing companies for compliance with Iraqi tax laws. Through interactive sessions and practical exercises, the mission team introduced participants to key audit principles, including case selection, planning, evidence gathering, and audit finalization. The training was based on good international practices such as VITARA and TADAT and tailored to address the diverse experience levels of participants. The training helps adopting modern audit techniques and strengthening the overall effectiveness of Iraq’s tax administration.
Tax Policy
Income Tax Law (June 19-July 25)
A remote joint METAC and IMF HQ mission reviewed the draft Income Tax Law (ITL) before submission to parliament. The mission recommended legislative changes and policy design options to strengthen revenue yields, equity, and the efficiency of Iraq’s income tax legislation. The mission worked primarily with the General Commission for Taxation and the Supreme Committee for the Implementation of Tax Reform.
