Kurdistan Regional Government urges Baghdad to fulfill financial commitments

The appeal comes as the Region grapples with the pressing need to ensure uninterrupted salary payments to its employees.

In recent months, delegations from the KRG and the Iraqi federal government have engaged in continuous discussions aimed at resolving longstanding disputes over the Kurdistan Region's share in the federal budget.

On Wednesday, Iraq's finance ministry made a significant announcement, revealing its intent to enter into a "loan agreement" with the KRG to cover the salaries of its employees. This financial assistance, however, is contingent upon Erbil's compliance with its obligations outlined within the budget framework.

The KRG Council of Ministers, presided over by Prime Minister Masrour Barzani, convened on Wednesday, reiterating the Region's call for Baghdad to disburse its financial dues in accordance with the budget agreements. This statement comes just two days after the KRG declared that the 500 billion IQD (approximately $382 million) provided by Baghdad fell short of meeting the Region's pressing needs.

The KRG's statement emphasized that “Baghdad must send the financial dues of the Kurdistan Region monthly according to the budget of one trillion and 375 billion dinars, of which 906 billion dinars are allocated for salaries, so that the Kurdistan Regional Government can pay the salaries.”

Expressing concern and disappointment, the KRG noted that the delay in distributing the Region's salaries for two months was due to Baghdad's failure to disburse payments, despite Erbil fulfilling all its obligations under the budget law and the constitution.

The Kurdistan Regional Government has grappled with difficulties in paying its civil servants on time and in full for several years, primarily due to the ongoing financial crisis. Public sector employees have not received their salaries for the months of July and August following multiple unsuccessful negotiations with Baghdad.

During the Council of Ministers' meeting, the Kurdistan Regional Government called upon political parties within the Region to unite in defending the Kurdistan Region's constitutional rights. It also urged parties within the State Administration Coalition, which forms the Iraqi government led by Prime Minister Mohammed Shia' al-Sudani, to adhere to prior agreements that were deemed essential for the government's formation.

Notably, Iraq passed its contentious budget bill for the years 2023, 2024, and 2025 in June, allocating a record $152 billion in spending, with the Kurdistan Region's share set at 12.6 percent. (ILKHA)