KRG confirms salary resolution, still in talks with Baghdad
Shafaq News/ On Sunday, theKurdistan Regional Government (KRG) confirmed that the long-standing issue ofpublic sector salaries has been resolved, with ongoing discussions betweenErbil and Baghdad to finalize the disbursement process in the coming days.
At a press conference, KRGspokesperson Peshawa Hawramani described the recently passed budget amendmentas a “positive step toward resolving financial disputes” between the KurdistanRegion and the federal government, stating that discussions are progressingconstructively, with salary transfers expected soon.
The negotiations extend beyond asingle month's salary, aiming to address multiple pending payments, includingpensioners' salaries, which remain a key point of discussion.
Hawramani noted that the KRGdelegation has remained in Baghdad for several days to ensure thatdisbursements proceed smoothly and avoid delays similar to those faced lastyear, pointing out that the KRG has fulfilled its financial obligations toBaghdad, particularly regarding oil sales through the federal mechanism, andcredited the regional prime minister's office for actively supporting effortsto resolve the crisis.
On the ongoing protests inAl-Sulaymaniyah, Hawramani pointed out that while some demonstrators demanddirect salary disbursements from Baghdad, others are “affiliated with politicalfigures.” He acknowledged that political influence frequently affects financialmatters in Iraq but expressed hope that political factions would “prioritizeIraq’s stability and citizens' well-being.”
Earlier today, Deputy Speaker ofIraqi Parliament Shakhwan Abdullah announced that obstacles to oil exports fromKurdistan had been resolved following the approval of the budget amendment.
Salary Dispute
The salary dispute has remained acentral issue in Baghdad-Erbil relations, particularly after the Iraqi FederalSupreme Court’s ruling last year, which mandated that all Kurdistan Regionpublic sector salaries be processed through federal banks.
While Baghdad has expressedcommitment to implementing the ruling, it has insisted on receiving detailedpayroll lists from the Kurdistan Region, while the KRG’s Ministry of Financeexpressed that the mechanism for processing these lists remains unclear.
The Kurdistan Region continues toface financial difficulties following the halt in oil exports to Turkiye viathe Ceyhan pipeline, which resulted from an international arbitration rulingrequiring Ankara to compensate Baghdad for unauthorized crude exports.Meanwhile, the federal government is grappling with a growing budget deficitexceeding 64 trillion Iraqi dinars, with domestic debt now standing at 14.5% ofGDP, according to official data.
