Shafaq News/ On Tuesday, Rebaz Hamlan, Financial Advisor tothe Kurdish Prime Minister, said that the government requires 996 billion Iraqidinars ($760,532) to pay October salaries for public sector employees in theregion.
On the sidelines of the MERI Forum in Erbil, Hamlan stated,"There are currently two KRG delegations in Baghdad. One is discussing theupcoming Iraqi census scheduled for next month; The second, from the Ministryof Finance and Economy, has brought the payroll list to Baghdad. According tothis list, we need 996 billion dinars to disburse salaries for October."
Notably, Shafaq News reported this month that the IraqiMinistry of Finance has transferred approximately one trillion dinars ($763,422)into the Kurdistan Regional Ministry of Finance for the salaries of September.
The Kurdish government has faced significant challenges inmeeting the timely and complete payment of salaries to its civil servants forthe past decade. This financial strain intensified following a ruling by aParis-based arbitration court that suspended the KRG's oil exports tointernational markets a year ago, exacerbating its financial crisis.
As a result, the KRG has been heavily reliant on localincome sources and its allocated share from the federal budget, which has beena subject of controversy. Despite efforts to manage its fiscal situation, theKRG has consistently struggled to meet its salary obligations.
The Federal Supreme Court of Iraq's decision worsened thesituation by issuing a ruling ordering the "localization" of salariesfor all Kurdistan Region employees in federal banks. This decision has resultedin the halt of salary disbursements, leading to numerous strikes across varioussectors.
Despite the Federal Court's acknowledgment of Baghdad'sobligation to pay salaries regularly, problems with salary distributionpersist, with some attributing these issues to political rather than financialfactors.