Former deputy finance minister urges Erbil to negotiate salary deal with Baghdad

Shafaq News/ A former Deputy Finance Minister Fadhel Nabi on Monday urged the Kurdistan Region to swiftly reach an agreement with Baghdad on a mechanism for delivering salaries to the region's public servants, warning of potential consequences if the issue remains unresolved.

In a press conference he held in Sulaymaniyah earlier today, Nabi said the Kurdistan Region should adapt to the "new reality imposed by the decisions of the Federal Supreme Court."

Acknowledging the "potential negative implications" of the court's decisions and the "possibility of underlying motives", he said that the immediate focus should be on securing salaries.

He urged the Kurdistan Regional Government (KRG) to promptly engage with Baghdad and dispatch a delegation to negotiate a mechanism for transferring employee salaries to government banks. Nabi acknowledged the logistical challenges of completing the transfer within a month, but said KRG should proactively requesting Baghdad to undertake this task immediately. "This would ensure that the federal government bears responsibility for any subsequent delays, rather than the KRG."

Nabi proposed a solution where Baghdad would send a monthly sum of 618 billion dinars to the KRG, to be supplemented by the region's internal revenue. "This combined amount would be used by the KRG to distribute salaries until the transfer process to government banks is completed, safeguarding the salaries of the region's employees."

He referred to recent statements by the Iraqi Finance Minister in the Parliament, indicating that salaries for KRG employees would not be sent in March until the transfer process is finalized. Nabi emphasized the need for the KRG to prepare for this scenario, despite the potential discrepancies between statements and actual implementation.

He called for the KRG to prepare for the next phase by securing a decision from the Federal Council of Ministers to regularly send the KRG's 618 billion dinar budget share, not as a loan, until the federal institutions complete the salary transfer process.

Nabi predicted that the KRG would comply with the Federal Supreme Court's decisions, despite their implications and the concerns raised by the KRG. He dismissed the possibility that Baghdad's procedures would hinder the salary delivery process, as the primary goal of the court's decision is to ensure that KRG employees receive their salaries. He asserted that government procedures should not obstruct the implementation of the court's decisions.