KRG demands 996 billion dinars for October’s salaries

Shafaq News/ On Tuesday, Rebaz Hamlan, Financial Advisor to the Kurdish Prime Minister, said that the government requires 996 billion Iraqi dinars ($760,532) to pay October salaries for public sector employees in the region.

On the sidelines of the MERI Forum in Erbil, Hamlan stated, "There are currently two KRG delegations in Baghdad. One is discussing the upcoming Iraqi census scheduled for next month; The second, from the Ministry of Finance and Economy, has brought the payroll list to Baghdad. According to this list, we need 996 billion dinars to disburse salaries for October."

Notably, Shafaq News reported this month that the Iraqi Ministry 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 in meeting the timely and complete payment of salaries to its civil servants for the past decade. This financial strain intensified following a ruling by a Paris-based arbitration court that suspended the KRG's oil exports to international markets a year ago, exacerbating its financial crisis.

As a result, the KRG has been heavily reliant on local income sources and its allocated share from the federal budget, which has been a subject of controversy. Despite efforts to manage its fiscal situation, the KRG has consistently struggled to meet its salary obligations.

The Federal Supreme Court of Iraq's decision worsened the situation by issuing a ruling ordering the "localization" of salaries for all Kurdistan Region employees in federal banks. This decision has resulted in the halt of salary disbursements, leading to numerous strikes across various sectors.

Despite the Federal Court's acknowledgment of Baghdad's obligation to pay salaries regularly, problems with salary distribution persist, with some attributing these issues to political rather than financial factors.