Political and local leaders are expected to engage with the Kurdish delegation’s ongoing discussions in Baghdad over the delayed salaries of employees in the Kurdistan region, following the new stipulations set forth by the Federal Ministry of Finance.
A source with direct knowledge of the negotiations indicated that “for the third consecutive day, the Kurdistan Regional Government delegation, led by the Minister of Finance and Economy, Sheikh Janab, is meeting with representatives from the Federal Ministry of Finance in Baghdad. These discussions commenced last Friday morning.”
The delegation aims to resolve outstanding technical issues, with expectations of reaching a resolution promptly.
On Saturday, Federal Finance Minister Taif Sami instructed the Kurdish delegation to provide bank account details for each employee. This applies whether their salaries are processed through federal or regional banks, and the employees should also have the flexibility to choose their preferred bank rather than being obligated to settle their salaries in a specific account, according to knowledgeable sources. Previously, on Friday, a technical delegation from the Kurdistan Regional Government met with a corresponding federal delegation led by Minister Taif Sami in Baghdad.
The dialogue, held at the Al-Rashid Hotel, included Deputy Prime Minister and head of the Iraqi Economic Council, Fouad Hussein, and various consultants and directors from both the Kurdistan and Federal ministries of finance. The discussions addressed budget and salary matters for employees and retirees in a collaborative and constructive environment.
The Kurdistan delegation expressed its commitment to coordinated efforts aimed at achieving a holistic solution to unify budgetary allocations necessary for the payment of salaries to employees in Kurdistan throughout 2025.
In parallel, teachers in Sulaymaniyah are maintaining a sit-in for the sixth consecutive day outside the United Nations building, pressing for the disbursement of delayed salaries and secure commitments for regular payments going forward. These actions intensified following previous unsuccessful attempts to address their grievances through conventional channels, and no official responses have been noted thus far regarding their demands.
The sit-in occurs amidst a financial crisis in the Kurdistan region, marked by the delayed payment of salaries for several months, which has incited protests in various cities, particularly in Sulaymaniyah, where there have been multiple sit-ins and widespread work stoppages recently.
As the hunger strike persists and the health conditions of the protestors deteriorate, calls for an immediate response to their demands are growing louder, with warnings about potential serious health risks if their protests continue without tangible resolutions.
On January 20, former Finance Committee member Ahmed Al-Hajj Rashid underscored a dire outlook for the resolution of the Kurdistan salary crisis, highlighting its likelihood of recurrence every month due to the regional government’s lack of obligation to remit 50% of its internal revenues.
Recent days have seen an increase in tensions between Baghdad and Erbil, characterized by an exchange of conflicting data concerning salary amounts due, as salaries for December 2024 have yet to be distributed to employees in Kurdistan. The Federal Ministry of Finance maintains that the necessary funds for salaries were fully disbursed, while Kurdish officials counter that the actual amount received from Baghdad is approximately 800 billion dinars less than needed, obstructing the distribution of last month’s salaries.
On January 16, the Kurdistan Regional Government declared its requirements for internal revenue transfers to the federal government in Baghdad as a precondition for receiving all budgetary benefits, not solely salaries. This followed a review by the Kurdistan negotiation committee, which engaged diplomats and consuls amidst ongoing disputes between Baghdad and Erbil regarding the budget, salaries, and oil revenue allocations.
This salary crisis coincided with President of the Kurdistan Region, Nigervan Barzani’s, visit to Baghdad on January 12, during which he conversed with Prime Minister Mohammed Shia Al-Sudani and leaders of the State Administration Alliance. This group has faced allegations of impeding the implementation of laws and constitutionally mandated resolutions with the Kurdistan region.
Barzani’s visit served purposes beyond addressing the salary crisis, as it also aimed to tackle more profound concerns regarding the regional-federal relationship, including enhancing transparency in resource management and establishing reliable mechanisms for financial agreements.
Throughout his two-day visit, Barzani advocated for amendments to the budget law to ensure equitable distribution of financial rights to the region and the timely provision of salaries.
The federal budget allocates 21 trillion dinars to the Kurdistan region; however, with oil exports halted, the central government’s transfers have concentrated solely on salaries. The federal government asserts that funding to the region in 2024 was sufficiently provided, whereas Erbil maintains that the amount received was significantly lower.
Employees in the Kurdistan region have faced recurrent crises over the past several years, leading to market paralysis due to persistent salary delays and the imposition of a compulsory savings system implemented by the Kurdistan Regional Government following former Prime Minister Haider al-Abadi’s austerity measures—further compounded by ongoing financial disputes between Baghdad and Erbil, resulting in a severe and prolonged crisis.
