Erbil Chamber of Commerce Blasts Baghdad Over Salary Withholding, Warns of Eid Economic Fallout

By Dler Mohammed

ERBIL (Kurdistan24) — The Erbil Chamber of Commerce and Industry has issued a scathing statement condemning the Iraqi federal government's decision to withhold public sector salaries in the Kurdistan Region, describing it as a deliberate act of economic sabotage that has devastated local markets ahead of Eid al-Adha.

In a statement released Thursday, the Chamber accused Baghdad of weaponizing salaries to punish the Kurdish population, noting that the federal government has once again failed to transfer the Kurdistan Region’s rightful share of the budget, despite constitutional obligations and prior agreements.

“The Iraqi government, as it has done repeatedly in the past, has withheld the financial entitlements of the Kurdistan Regional Government, preventing the disbursement of salaries,” the Chamber stated. “This has left citizens unable to prepare for Eid, leading to stagnant markets and deepening concerns among business owners and traders.”

The Chamber emphasized that the salary freeze is not merely a financial issue but a politically motivated act designed to destabilize the Kurdistan Region’s economy. It warned that the move undermines the progress made by the KRG, particularly under the leadership of the ninth cabinet, which has prioritized economic development and infrastructure projects.

“We view this as a calculated political maneuver aimed at creating hardship for the people of Kurdistan and obstructing the KRG’s development initiatives,” the statement read. “This is not just an attack on the government but on the entire Kurdish population.”

The Chamber called on international organizations, foreign consulates, and the United Nations to intervene and pressure Baghdad to fulfill its constitutional and legal obligations. It urged these entities to recognize the salary withholding as a violation of human rights and a breach of the Iraqi constitution, which guarantees equal treatment for all citizens.

The salary crisis has had immediate and severe repercussions on the Kurdistan Region’s economy. Markets that typically experience a surge in activity ahead of Eid have seen a significant downturn, with many citizens unable to afford basic necessities. Business owners report a sharp decline in sales, and there is growing concern about the long-term impact on the region’s economic stability.

The Chamber’s statement reflects a broader sentiment of frustration and betrayal felt by many in the Kurdistan Region. The repeated withholding of salaries by the federal government is seen not only as an economic issue but as an affront to the dignity and rights of the Kurdish people.

As the Eid holiday approaches, the Chamber’s call for international support underscores the urgency of the situation. Without immediate action, the economic and social consequences of Baghdad’s decision are likely to deepen, further straining relations between the Kurdistan Region and the federal government.