Low oil revenues hurting Iraq’s counter terrorism efforts

According to Moody's Analytics, Iraqi economy is at the verge of facing danger due to low oil price and conflict in the country. Counter terrorism efforts are also creating cash shortage for the country.
Supported by U.S.-backed coalition forces in the air, more than 7,000 members of the Kurdish military force known as Peshmerga pushed fighters loyal to the Islamic State out of the strategic northern city of Sinjar last week. US Department of Defence stated that recently the coalition has carried out 12 airstrikes in Iraq. Amongst those airstrikes, 4 were carried out near Ramadi.
The vacuum left by simmering Syrian civil war has been filled by elements with or loyal to the terrorist group calling itself the Islamic State. More than five years after U.S. President Barack Obama declared an end to combat operations in Iraq, the country is feeling severe economic stress from conflict.
Moddy’s Analytics also explained, "Iraq's economy and government finances have been hit by two shocks: the rise of the Islamic State and falling oil prices since mid-2014."
The International Monetary Fund last week said the Iraqi gross domestic product should grow by about 1.5 percent in 2015 because of an increase in crude oil production.
Some of the growth in production comes from territory in and around the Kurdish north, where some of the battles against the IS -- also identified as Daesh, ISIS and ISIL -- have taken place, including in Sinjar.
Iraqi oil production for October was around 4 million barrels per day, a 4.6 percent decline from the previous month. Despite the decline, October's output was 3.5 percent higher than the average for second quarter 2015.
IMF (International Monetary Fund) stated that Iraqi economy is operating within a dire environment.
Moddy’s Analytics added, "Government revenues have been declining since 2013, and we expect them to drop another 35 percent in 2015 versus 2014."
Moody's adds that plans to increase oil production are jeopardized by economic strains and revenues could make it more difficult to fund military operations against the Islamic State.