Iraq's Minister of Planning Salman Ali Hassan Al-Jumaili stated on Tuesday that 2469 economic projects valued at $49 billlion have been halted due to the economic crisis in the country.

Speaking to Anadolu Agency (AA), Al-Jumaili said falling oil prices have substantially affected the country.

"We set the budget of our projects in accordance with oil prices. Up until two years ago, a barrel of oil was sold for $120, however, it has dropped as low as $43. The main source of the current economic crisis is the change in oil prices," Al-Jumaili said adding that Iraq generates revenue basically from oil.

As to the exact process of halting the projects Al-Jumaili said, "We stopped 300 projects valued at $9 billion as part of the first step. Afterwards, we decided to hold 2169 other projects valued at $40 billion. This is a significant cost and a crucial part of the government budget."

Al-Jumaili pointed out the fact that an important part of Iraq's budgetary costs have been earmarked due to military and emergency causes to fight against the Islamic State of Iraq and al-Sham (ISIS).

"We are looking for a way out of the economic crisis in Iraq. Clashes against ISIS affect Iraq's economy adversely as a significant portion of the budget is allocated to military spending. In order to save the current budget, we have cut expenditures, one of which is projects with high costs. Our aim is to implement the projects that are requisite for our people and country," Al- Jumaili emphasized.

Since early 2014, Iraq has suffered a serious economic decline as the government in Baghdad started losing territory to the ISIS. Low oil prices exacerbated the decline, wreaking havoc on Iraq's national budget, of which oil revenue makes nearly 95 percent. According to Oil Ministry figures, Iraq's oil revenues stood at $31.5 billion, as of July, with an average daily export capacity less than a 3.3 million barrel quota set in this year's budget. Iraq's $102.5 billion budget now runs a deficit of about $21.4 billion. Some $27 billion is earmarked for defense, but more could be needed.

According to 'Oil Revenues Estimates' projected by the Ministry of Planning, oil revenues represented 88.5% of total revenues in 2009, increasing to 97.1% in 2012, and oil revenues are projected to remain in the lead and impact the Iraqi economy over the duration of the 2013-2017 Plan, amid continued improvement in oil sector production capacity as well as implementation of contracts signed with foreign companies to increase production and export quantities. The average annual increase in oil production is projected to reach 17.9%, with the average annual increase in exports hitting 26.2% over the 2013-2017 period, as shown below: