KRG confirms salary resolution, still in talks with Baghdad
Shafaq News/ On Sunday, the Kurdistan Regional Government (KRG) confirmed that the long-standing issue of public sector salaries has been resolved, with ongoing discussions between Erbil and Baghdad to finalize the disbursement process in the coming days.
At a press conference, KRG spokesperson Peshawa Hawramani described the recently passed budget amendment as a “positive step toward resolving financial disputes” between the Kurdistan Region and the federal government, stating that discussions are progressing constructively, with salary transfers expected soon.
The negotiations extend beyond a single month's salary, aiming to address multiple pending payments, including pensioners' salaries, which remain a key point of discussion.
Hawramani noted that the KRG delegation has remained in Baghdad for several days to ensure that disbursements proceed smoothly and avoid delays similar to those faced last year, pointing out that the KRG has fulfilled its financial obligations to Baghdad, particularly regarding oil sales through the federal mechanism, and credited the regional prime minister's office for actively supporting efforts to resolve the crisis.
On the ongoing protests in Al-Sulaymaniyah, Hawramani pointed out that while some demonstrators demand direct salary disbursements from Baghdad, others are “affiliated with political figures.” He acknowledged that political influence frequently affects financial matters in Iraq but expressed hope that political factions would “prioritize Iraq’s stability and citizens' well-being.”
Earlier today, Deputy Speaker of Iraqi Parliament Shakhwan Abdullah announced that obstacles to oil exports from Kurdistan had been resolved following the approval of the budget amendment.
Salary Dispute
The salary dispute has remained a central issue in Baghdad-Erbil relations, particularly after the Iraqi Federal Supreme Court’s ruling last year, which mandated that all Kurdistan Region public sector salaries be processed through federal banks.
While Baghdad has expressed commitment to implementing the ruling, it has insisted on receiving detailed payroll lists from the Kurdistan Region, while the KRG’s Ministry of Finance expressed that the mechanism for processing these lists remains unclear.
The Kurdistan Region continues to face financial difficulties following the halt in oil exports to Turkiye via the Ceyhan pipeline, which resulted from an international arbitration ruling requiring Ankara to compensate Baghdad for unauthorized crude exports. Meanwhile, the federal government is grappling with a growing budget deficit exceeding 64 trillion Iraqi dinars, with domestic debt now standing at 14.5% of GDP, according to official data.
