The Iraqi Private Banks Association has given its full support to Prime Minister Mohammed Shia al-Sudani's initiative to digitise salary payments for private sector employees, vowing to help modernise the country's largely cash-based financial system.

The banking association said the move, as part of a wider government plan to eliminate cash transactions at state institutions by mid-2025, would boost financial inclusion and transparency while supporting Iraq's digital economy.

"This initiative reflects the government's commitment to financial and economic reform," Ali Tariq, executive director of the Iraqi Private Banks Association, said in a statement.

"Digitising private sector salaries, similar to what has been done in the public sector, will enhance financial inclusion and transparency."

The transition is expected to boost digital economy growth, improve credit access for the public, and increase administrative efficiency across public and private institutions, Tariq said.

The association pledged full cooperation with government authorities and financial institutions to achieve these objectives and expressed readiness to support initiatives aimed at modernising the country's financial infrastructure.

"We believe these steps will strengthen the stability of the financial system and drive economic growth to better levels, benefiting both individuals and institutions," Tariq added.

The initiative represents Iraq's latest effort to modernise its banking sector and reduce reliance on cash transactions.