KRG, Baghdad Delegations Continue Negotiations on Salaries, Budget
“Our meetings with the Iraqi delegation continue tomorrow,” KRG Finance Minister said. “We discussed salary distribution and employee and retiree lists, reaching a positive understanding."
Jan. 31, 2025
ERBIL (Kurdistan24) – A meeting between delegations from the Kurdistan Regional Government (KRG) and the Federal Government of Iraq concluded on Friday, as discussions centered on critical budget and salary issues for the Kurdistan Region.
While no ultimate agreement was reached, officials reported important progress, and negotiations are set to continue.
Kurdistan24 correspondent Dylan Barzan reported from Baghdad that the meeting, primarily planned to take place at the residence of Iraq’s Foreign Minister Fuad Hussein, was relocated to the Baghdad Hotel due to the large number of participants from both sides.
The meeting was chaired by Fuad Hussein, who also serves as Iraq’s Deputy Prime Minister for Financial Affairs.
Key Discussion Points
According to Kurdistan24 sources, the discussions revolved around three primary financial matters:
Determining the total funds required by the KRG Ministry of Finance to cover employee salaries for the entirety of 2025.
Separating the pension list for employees reaching the retirement age of 60 this year, ensuring they receive their 12-month retirement compensation.
Preparing the salary review balance for December 2024 to facilitate accurate financial planning.
Ongoing Talks and Mutual Understanding
Following the meeting at Rashid Hotel in Baghdad, KRG Finance Minister Awat Sheikh Janab addressed reporters, expressing optimism concerning the discussions.
“Our meetings with the Iraqi delegation will continue tomorrow,” Janab stated. “We discussed the salary distribution schedule, employee and retiree lists, and there is a positive mutual understanding. We hope that tomorrow’s session will lead to the resolution of outstanding issues and the disbursement of necessary funds.”
The three-hour meeting denoted a crucial step in the ongoing negotiations between Erbil and Baghdad.
The Kurdistan Region has recurrently urged a clear financial mechanism to ensure the timely and consistent payment of public sector salaries, an issue that has been a longstanding point of contention between the two governments.
Path Forward
While no definitive resolution was reached in Friday’s meeting, the commitment to additional negotiations indicates a positive approach to tackling the financial challenges facing the Kurdistan Region.
The continuance of discussions on Saturday is likely to bring further clarity to the budgetary framework and salary disbursement mechanisms, with both sides expressing a willingness to find a sustainable solution.
