By Dr. Pshtiwan Faraj

Sulaimani, Iraqi Kurdistan — 25 May 2026

 The head of the Border Ports Authority, Omar al-Waeli, confirmed on Sunday a significant decline in smuggling operations across border crossings as a result of tightened control measures and enhanced field monitoring. He noted that these measures have contributed to a clear increase in revenues, and pointed to the implementation of an integrated strategy to facilitate trade and protect the national economy.

Al-Waeli told the Iraqi News Agency (INA) that "border crossings are subject to smuggling attempts in various forms, but the volume of these operations has witnessed a significant decline in recent years as a result of tightened control measures and enhanced field monitoring."

He added that "the Border Ports Authority has adopted a number of mechanisms to reduce smuggling, most notably automating procedures, activating monitoring systems and cameras, intensifying auditing and detection efforts, as well as continuous coordination with security and regulatory bodies and activating the one-stop shop principle, which contributes to reducing cases of manipulation and corruption."

He pointed out that "the Authority adopts an integrated strategy aimed at achieving a balance between facilitating trade, enhancing oversight, and protecting the national economy. This is accomplished through digital transformation, standardizing procedures, improving employee efficiency, combating administrative and financial corruption, developing infrastructure, and utilizing modern technologies for inspection and detection." He explained that "these measures have resulted in a clear increase in revenues, a reduction in waste and smuggling rates, and faster processing of transactions at border crossings."

He further noted that "there is ongoing coordination between the federal government and the Kurdistan Regional Government regarding border crossing management, information exchange, oversight procedures, and the activation of the ASYCUDA system, given that border crossings represent a part of the state's economic sovereignty."

Digital Transformation at the Center of Iraq’s Border Strategy

Al-Waeli outlined what he described as an “integrated strategy” designed to balance trade facilitation with stricter economic oversight.

The reforms include:

• Automation of customs and border procedures
• Expanded use of surveillance cameras and monitoring systems
• Increased auditing and inspection operations
• Enhanced coordination with security and regulatory agencies
• Activation of the “one-stop shop” administrative model
• Deployment of modern inspection and detection technologies

The Iraqi government believes these reforms can simultaneously accelerate legal trade while reducing corruption networks that have historically flourished across poorly monitored crossings.

Officials say the digitalization campaign has already reduced bureaucratic delays and increased processing speed for cargo and commercial transactions.

One of the central pillars of the reform effort is the rollout of the ASYCUDA customs management system, a globally recognized digital customs platform designed to streamline import-export procedures and reduce opportunities for fraud and tax evasion.

Baghdad and Erbil Seek Greater Coordination

The statement also highlighted continued coordination between the federal government in Baghdad and the Kurdistan Regional Government over the management of border crossings.

Al-Waeli said discussions between both sides focus on:

• Information sharing
• Oversight procedures
• Revenue transparency
• Unified customs systems
• Joint implementation of ASYCUDA

The issue of border management remains politically sensitive in Iraq, particularly regarding crossings operated within the Kurdistan Region, where disputes over customs authority and oil revenues have repeatedly fueled tensions between Erbil and Baghdad.

Federal authorities increasingly view border modernization not only as an economic necessity but also as a matter of national sovereignty.

“Border crossings represent a part of the state’s economic sovereignty,” al-Waeli stated.

Smuggling Remains a Major Regional Challenge

Despite the reported decline, smuggling networks remain deeply entrenched across Iraq and the wider Middle East.

For years, Iraqi border crossings have been vulnerable to:

• Fuel smuggling
• Tax evasion
• Illegal imports
• Narcotics trafficking
• Corruption-linked customs fraud

Security analysts say weak oversight following decades of conflict allowed informal economic networks and politically connected actors to gain influence over critical trade routes.

The government’s recent reforms appear aimed at regaining institutional control while improving investor confidence and stabilizing non-oil revenues amid continued economic pressures.

Why This Matters

The reduction of smuggling could have significant implications for Iraq’s fragile economy.

Higher customs revenues would:

• Increase federal income outside the oil sector
• Reduce financial leakage
• Strengthen state institutions
• Improve trade efficiency
• Enhance Iraq’s regional commercial competitiveness

For the Kurdistan Region, improved coordination with Baghdad on border systems may also reduce recurring disputes over customs administration and financial transfers.

Whether the reforms can produce long-term structural change, however, will depend on sustained enforcement and the government’s ability to confront corruption networks that remain embedded within Iraq’s broader political and economic system.

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