KRG says obligations met, demands end to public sector salary freeze

ERBIL — The Kurdistan Regional Government on Wednesday urged the federal government in Baghdad to end its withholding of public employee salaries, citing progress in recent negotiations and reiterating that it has fulfilled all obligations under existing agreements.

In a statement released after a regular cabinet session chaired by Prime Minister Masrour Barzani, the KRG Council of Ministers said it had demonstrated “full flexibility” in efforts to resume oil exports via Iraq’s federal State Oil Marketing Organization, known as SOMO.

The statement said both sides, along with representatives of oil companies, had held several rounds of meetings in Erbil and Baghdad to finalize a framework for Kurdish oil exports and the disbursement of May and June salaries.

“All parties now await a decision from the federal government to approve the mutual understandings reached in recent days,” the statement said, adding that KRG institutions remain fully prepared to cooperate with Baghdad. It also emphasized that the regional government continues to comply with all financial procedures, including payroll data verification and the transfer of domestic revenues.

“Salaries are a legal and constitutional right,” the cabinet said. “Baghdad must end the policy of withholding salaries, which cannot be justified under any pretext.”

The appeal comes amid ongoing tensions between Erbil and Baghdad over budget transfers. The dispute escalated in May when the federal Finance Ministry halted salary payments, accusing the KRG of exceeding its budget share and failing to provide verifiable data on oil and non-oil revenues. The ministry claimed the KRG had surpassed its 2025 allocation by more than 19 trillion dinars.