'Baghdad’s Suspension of KRG Salaries Is Creating a Political Crisis,' Says Khalilzad
Former U.S. envoy Zalmay Khalilzad urged Baghdad to resume KRG salary payments before Eid, warning of a looming political crisis. He stressed that PM Sudani cares for Kurdish citizens and called for urgent action to ease tensions and enable renewed Baghdad-Erbil dialogue.
By Kamaran Aziz
ERBIL (Kurdistan24) – Former U.S. Ambassador to Iraq and Afghanistan Zalmay Khalilzad issued a strong warning on Monday regarding the deepening crisis between the Iraqi federal government and the Kurdistan Region, calling on Baghdad to urgently resume salary payments to Kurdish public employees ahead of the upcoming Eid holiday.
In a statement posted to his official X (formerly Twitter) account, Khalilzad—who also served as the 26th U.S. Permanent Representative to the United Nations—cautioned that the current suspension of salaries to Kurdistan Regional Government (KRG) employees risks igniting a political crisis and could overshadow Eid festivities with hardship and disappointment.
Baghdad's suspension of payment of salaries to KRG employees is creating a political crisis and is threatening to make the celebrations of the coming Eid difficult and sad. It is vital that escalation of this crisis is avoided and salaries paid prior to Eid. Prime Minister…
— Zalmay Khalilzad (@realZalmayMK) June 2, 2025
"Baghdad's suspension of payment of salaries to KRG employees is creating a political crisis and is threatening to make the celebrations of the coming Eid difficult and sad," Khalilzad warned.
He emphasized the urgency of de-escalating tensions and taking immediate, humane action: "It is vital that escalation of this crisis is avoided and salaries paid prior to Eid."
Highlighting the human cost of the dispute, Khalilzad noted that Iraqi Prime Minister Mohammed Shia al-Sudani has demonstrated care for the country’s Kurdish citizens and should not be perceived as punishing them due to a political disagreement with the regional government.
"Prime Minister Sudani cares about Iraq's Kurdish citizens and would not want to punish them because of disagreement with the regional government," he said.
Khalilzad urged the federal government to restore salary payments as a goodwill gesture and a necessary precursor to renewed dialogue between Baghdad and Erbil. “Restoring the payment before Eid is the vital first step towards the negotiations that are desperately needed on the issues affecting relations between Baghdad and Erbil.”
The remarks come as tensions flare over what the KRG views as a politically motivated and unconstitutional decision by Baghdad to withhold salaries, prompting strong reactions from Kurdish officials, political parties, and diaspora groups. Khalilzad’s intervention adds international weight to growing calls for resolution before the religious holiday.
The Eid al-Adha holiday, expected to begin on June 6, is traditionally a time of joy and family gatherings across Iraq. However, for thousands of unpaid public employees in the Kurdistan Region, the absence of salaries risks turning celebration into hardship.
