The Popular Mobilization Forces (PMF), known in Arabic as Al-Hashd al-Shaabi, represent a state-funded umbrella of Shiite paramilitaries in Iraq that have become deeply integrated into the country's official security architecture. Despite their nominal subordination to the Iraqi prime minister, these forces are heavily influenced, trained, and directed by Iran’s Islamic Revolutionary Guard Corps (IRGC). Over the past decade, the PMF has transformed from a loose coalition of volunteer militias into a powerful state-sanctioned military apparatus with access to billions of dollars from Iraq's national budget. This official status allows the militias to operate with legal impunity while systematically diverting state resources to sponsor regional instability and hostile operations against Israel.
The Institutionalization of Iraq's Paramilitary Umbrella
The PMF was initially established in 2014 following a fatwa by Grand Ayatollah Ali al-Sistani to combat the rapid territorial expansion of the Islamic State (ISIS) in northern Iraq. Although formed as a temporary defensive mobilization, the group's pro-Iranian leadership quickly moved to institutionalize their presence within the Iraqi state. In 2016, the Iraqi parliament passed a law granting the PMF official status as an independent military force reporting directly to the prime minister, securing their permanence and access to public funds. Since then, dominant factions within the PMF, such as Kata'ib Hezbollah and Harakat Hezbollah al-Nujaba, have successfully captured key state institutions to entrench their political and economic power.
Under successive Iraqi administrations, and particularly under the government of Prime Minister Mohammed Shia al-Sudani, state funding for the PMF has experienced unprecedented growth. By the fiscal year of 2024, the Iraqi parliament allocated approximately $3.5 budget to the PMF, representing a massive expansion in state-funded salaries and resources for over 230,000 registered fighters. A substantial portion of this budget is systematically funneled to U.S.-designated terrorist organizations operating within the PMF umbrella. These well-funded groups utilize state infrastructure, including military bases, logistical networks, and government-procured weaponry, to construct a formidable launchpad for Iran's regional proxy warfare.
Key Factual Developments and Budget Diversion
- Unprecedented State Funding: The PMF received an official budget allocation of approximately $3.5 billion in 2024, representing a massive portion of Iraq's national defense spending and funding the salaries of more than 230,000 personnel, many of whom belong to designated terrorist organizations.
- Direct Aggression Against Israel: Following the Hamas-led terror attacks on October 7, 2023, the PMF-affiliated militias operating under the moniker "Islamic Resistance in Iraq" launched over 300 drone and missile attacks targeting Israeli territory, culminating in a deadly October 2024 drone strike in the Golan Heights that killed two IDF soldiers.
- Commercial Laundering via State Contracts: In late 2022, the Iraqi government authorized the PMF to establish the "Muhandis General Company," a massive commercial conglomerate modeled after Iran's IRGC-owned Khatam al-Anbia, which secures lucrative, tax-free state contracts and millions of acres of strategic borderlands to generate independent revenue for armed proxy networks.
Strategic Repercussions and Iranian Proxy Integration
The integration of the PMF into the Iraqi state security apparatus has created a highly dangerous dual-track mechanism for Iranian aggression. While the PMF utilizes official state legitimacy to draw billions of dollars from Iraq's public treasury, its most powerful factions operate as independent proxies that execute Iran's regional foreign policy. By forming the "Islamic Resistance in Iraq" as a deniable umbrella brand, these militias have carried out dozens of drone and cruise missile strikes against Israeli cities and military installations without exposing the central Iraqi government to direct diplomatic or military repercussions. This strategic arrangement effectively forces Iraqi taxpayers, whose state revenues are heavily dependent on oil exports, to directly fund Iran's "Unity of Fields" strategy aimed at the destruction of Israel. For a detailed breakdown of these proxy dynamics and their strategic implications, see the INSS publication on degrading Iran's regional proxy network.
Furthermore, the PMF has successfully converted its physical control over Iraqi border regions into highly strategic assets for the Iranian axis. Through the state-sanctioned Muhandis General Company, the PMF has secured vast tracts of land along Iraq's western and southern borders, establishing secure corridors that facilitate the smuggling of advanced weaponry, including Iranian-supplied Quds-351 cruise missiles and long-range drones. These developments are monitored closely by regional security analysts, who note that these strategic land acquisitions provide the PMF with localized launch zones that significantly shorten the response time for Israeli air defenses. To understand how these commercial front companies are used to bypass international sanctions and consolidate military control over strategic trade and deployment routes, readers can consult the Washington Institute analysis of the group's economic expansion.
The Growing Threat to Israeli National Security
The transformation of the PMF into a permanent, state-funded military force poses an increasingly complex security challenge for Israel and its regional allies. As the central government in Baghdad remains either unwilling or unable to rein in these powerful Shiite militias, Israel must prepare for a persistent threat emanating from Iraqi territory. The acquisition of advanced Iranian missile technologies, combined with the PMF's growing economic autonomy, means that these proxies are no longer merely irregular guerrilla forces but are rapidly evolving into a structured, well-equipped standing army. Consequently, Israel has been forced to adapt its defense strategies, expanding its intelligence coverage and preparing for potential preemptive or retaliatory actions within Iraqi territory to disrupt imminent threats.
Ultimately, addressing the threat posed by Iraq's state-funded militias requires coordinated international pressure on Baghdad to decouple its public finances from terrorist organizations. As long as the Iraqi government continues to tolerate and actively bankroll the PMF, it remains a complicit partner in Iran's regional campaign of terror against the Jewish state. For Israel, neutralizing this northern and eastern threat corridor will remain a critical priority in its efforts to dismantle Iran's ring of fire. Achieving long-term regional stability will depend on restoring true state sovereignty in Baghdad and ensuring that public resources are used to benefit the Iraqi people rather than funding anti-Israel hostility.