Iraqi Council of Ministers to Discuss Kurdistan Region Salaries and Oil Exports
A Kurdistan Regional Government (KRG) delegation has been in Baghdad for the past week, holding talks with federal officials in an effort to reach an agreement on the resumption of oil exports and the disbursement of salaries. So far, no deal has been finalized.
ERBIL (Kurdistan24) – The Iraqi Council of Ministers is set to convene its regular session on Tuesday, with employee salaries in the Kurdistan Region and oil exports on the agenda, according to Kurdistan24 reporter Dilan Barzan in Baghdad.
A Kurdistan Regional Government (KRG) delegation has been in Baghdad for the past week, holding talks with federal officials in an effort to reach an agreement on the resumption of oil exports and the disbursement of salaries. So far, no deal has been finalized.
The dispute centers on the linkage between public sector salaries in the Kurdistan Region and both oil and non-oil revenues. Baghdad has conditioned the transfer of salaries and financial entitlements to the KRG’s commitment to hand over revenues to the federal government.
On August 19, the Iraqi Council of Ministers, chaired by Prime Minister Mohammed Shia al-Sudani, decided to release the June salaries of public employees in the Kurdistan Region.
The council confirmed that the payment decision follows recommendations from a special committee formed during its 27th session on July 8. The committee was established on al-Sudani’s suggestion to address salary-related issues between the Iraqi government and the KRG.
The salary dispute has been one of the most contentious issues in the relations between Baghdad and Erbil. For years, delays and disagreements over budget transfers and oil revenues have led to recurring crises, leaving hundreds of thousands of public employees in the Kurdistan Region without regular salaries.
Oil exports through the Iraq-Turkey Pipeline have been suspended since March 2023 following a ruling by the International Chamber of Commerce (ICC) that halted independent Kurdish oil sales. Oil exports have long been a contentious issue between the KRG and the federal government, impacting the region's economic stability and development.
The suspension has significantly affected the KRG revenue, which heavily depends on oil exports. This has led to financial challenges for the region. Efforts to resolve the issue through negotiations between the KRG and the federal government are ongoing.
