Iraq's parliamentary finance committee advances salary localization for Kurdistan employees

Shafaq News/ The Iraqi Parliamentary Finance Committee convened a meeting on Tuesday with executives from Rafidain Bank and the International Smart Card ISC to deliberate on initiating the localization of salaries for employees in the Kurdistan Region.

The Iraqi Supreme Court issued a ruling last February directing the Kurdistan Regional Government (KRG) to provide a detailed breakdown of the monthly budget allocated for the salaries of the Region's employees to the federal finance ministry. This measure is intended to facilitate Baghdad's commencement of payments from the federal budget towards the Region's share. Additionally, the ruling stipulates that the Kurdish government must establish accounts for its employees at state-owned banks, a procedure referred to as "localization" by Baghdad.

Committee member Mustafa Al-Karaawi outlined the key agenda items to Shafaq News Agency, which included discussions on electronic transactions, salary localization for Kurdistan Region employees, and the issuance of smart cards.

Al-Karaawi pointed out that the employees in Kurdistan are estimated to be 600,000 to 700,000, noting the substantial capacity of Rafidain Bank and Mastercard Company to issue up to 30,000 cards daily for them.

"The successful execution of this initiative is contingent upon receiving necessary notifications and data related to Kurdistan Region employees," reiterated Al-Karaawi.

In turn, the Finance Committee head, Atwan Al-Atwani, highlighted in a statement "the alignment of government programs with electronic transactions and the streamlined provision of services for citizens through electronic cards."

Last week, the Iraqi finance ministry initiated the payment of civil servant salaries for the Kurdistan Region for February. However, it was indicated that the payment for March salaries would occur once the Region fulfills the necessary requirements for salary settlement, particularly regarding opening bank accounts for KRG employees.

Despite the federal ministry's payment announcement, KRG employees have not yet received their February salaries in cash, which contradicts the Federal Court's decision.

The ministry disbursed approximately 560 billion dinars, an amount deemed insufficient by the KRG to cover the salaries in full.