"Iran is ready to provide Iraq with a credit line of $3 billion in order to increase the presence of Iran’s private sector in the restoration of Iraq," Jahangiri said, as quoted by the Tasnim news agency.
Both Iran and Iraq aim to further strengthen their bilateral political and economic ties, according to the official.
READ MORE: Iran Reopens Border With Iraqi Kurdistan Closed After Referendum — Reports
Jahangiri also said that it is necessary to connect the railway systems of both countries and the sides are planning to construct a bridge and a 30-kilometer section of the railway.
Jahangiri is currently on a visit to Baghdad to hold talks with the country’s officials.
In December, Iraqi Prime Minister Haider Abadi declared an end of the country's fight against the Daesh* as Iraqi troops re-established complete control over the country's Syrian border. This came after years of violent fighting, that brought significant damages to the country's infrastructure.
READ MORE: Terrorist Ideology Should Be Eradicated After Daesh Military Defeat — Iraqi PM
The Kuwait International Conference of Iraq Reconstruction and Development, which was held in February, managed to raise $30 billion in direct aid, loans and investments for the post-war reconstruction of Iraq's economy, according to Kuwaiti Foreign Minister Sabah Al Salim Sabah.
*Daesh (Islamic State/IS/ISIL/ISIS) is a terrorist organization banned in Russia