Baghdad yet to send funds

Sulaymaniyah resident doctors strike over unpaid salaries as Kurdistan Region budget disputes continue

SULAYMANIYAH – Resident physicians in Sulaymaniyah have gone on strike, protesting the non-payment of their salaries, which have been delayed for nearly three months. The strike, which began on Monday, reflects growing frustration among public sector workers across the Kurdistan Region as the Kurdistan Regional Government continues to struggle with budget shortfalls.

“Since yesterday, the resident physicians have continued their strike and abandoned their duties at the hospital,” Dr. Daro Hadi, a representative of the physicians, told 964media. He added that they would not return to work until their salaries were paid in full. “These doctors rely solely on their government wages as their primary source of income, and they have only received one of their salaries for almost 90 days,” Dr. Hadi said.

The strike comes amid broader financial issues faced by the KRG. Public sector employees across the region have not yet received their August salaries after the Iraqi federal government sent only part of the required funds. More than a week ago, Baghdad transferred 755 billion dinars (about $496 million) to the KRG, but an additional 243 billion dinars (about $159 million) is needed to cover the full payroll. The KRG’s Ministry of Finance is still awaiting the remaining funds.

Despite repeated assurances from Baghdad that the full amount would be transferred, KRG officials say the delay persists. Rebaz Hamlan, an advisor to the KRG prime minister, told reporters on Tuesday, “We remain hopeful that the remaining portion of the August salary payments will soon be credited to the Kurdistan Region’s account, after which the distribution process will begin.”

Hamlan added, “We expected the 243 billion dinars (about $159 million) to be transferred at the start of this week after all necessary requests were submitted to Baghdad. Unfortunately, the Iraqi Ministry of Finance continues to offer daily excuses, further delaying the resolution of this issue.”

The Sulaymaniyah physicians’ strike mirrors similar protests in towns across the region, including Kalar, Said Sadiq, and Penjwen, where resident physicians have also walked off the job due to salary delays.

Further delays could lead to strikes in other sectors. Though the academic year began on schedule, KRG officials have warned that teachers may strike if salary payments continue to be delayed, which could paralyze the education system as it did last year in Sulaymaniyah and Halabja.

The KRG has faced financial difficulties since March 2023, following an International Chamber of Commerce ruling that blocked the KRG’s independent oil exports, a major revenue source, after a dispute between Baghdad and Turkey. The loss of oil revenue has left the KRG struggling to pay public sector salaries, with the last three months of 2023 remaining unpaid.

On Feb. 23, 2024, Iraq’s Supreme Federal Court ruled that the KRG must hand over all oil and non-oil revenues to Baghdad, while the federal government is obligated to pay KRG civil servants. However, the Iraqi Ministry of Finance has since dragged its feet on sending the monthly payments, raising ‘concerns’ about discrepancies in the KRG payroll list.

On Sept. 9, 2024, the KRG and Baghdad reached an agreement on the distribution of salaries for KRG employees. However, KRG spokesperson Peshawa Hawramani said that delays have since continued.