Iraq has transferred over $300 billion abroad for imports in the past five years while collecting alarmingly low customs revenues, according to a report released Tuesday by the Iraq Future Foundation for Economic Studies and Consultancy.

Citing Central Bank data, the foundation’s head, Manar al-Obaidi, revealed that between 2019 and 2024, Iraq spent 415 trillion dinars (approx. $311 billion) on imports. However, the Finance Ministry collected only 8.5 trillion dinars in customs duties—less than 2% of the total import expenditures.

“This return is strikingly low,” al-Obaidi stated, noting that even with standard tariff exemptions, Iraq should have generated at least 29 trillion dinars under a typical 7% duty rate. The estimated shortfall exceeds 21 trillion dinars ($14.5 billion), though he warned the actual loss could be far greater.

While tariff waivers account for some of the gap, al-Obaidi attributed the massive revenue loss to deep-rooted flaws in Iraq’s customs system. “The scale of lost revenue points to pervasive loopholes and systemic inefficiencies,” he emphasized, calling for urgent reforms to curb financial leakage.