KRG blames Baghdad for salary delays, says crisis has ‘severely affected’ livelihoods

ERBIL — The Kurdistan Regional Government on Sunday blamed the Iraqi federal government for halting public sector salaries, saying the suspension has “severely affected the livelihoods of Kurdistan Region residents,” as tensions mount over budget disputes and stalled oil exports.

The statement followed a meeting chaired by Prime Minister Masrour Barzani and attended by Deputy Prime Minister Qubad Talabani. Officials said the discussion focused on resolving the salary crisis and restarting the region’s oil exports, which have been suspended since March 2023 following an arbitration ruling.

As of July 13, KRG employees had not received their May wages. The dispute intensified in May when Baghdad’s Finance Ministry froze budget transfers, accusing the KRG of exceeding its 2025 allocation by more than 19 trillion dinars and failing to submit audited data on oil and non-oil revenues. The KRG denies the claims and says it has met all its constitutional obligations.

In its statement, the KRG said it is intensifying efforts to “secure the salaries and financial entitlements of the people of Kurdistan, which are a legal and constitutional right of public employees.” It added that the government remains committed to cooperating with Baghdad to resolve the issue, which it says has worsened living conditions across the region.

The Kurdistan Democratic Party’s political bureau held a separate meeting Saturday, during which Iraqi Foreign Minister Fuad Hussein briefed party leaders following talks in Baghdad. According to a statement from the Barzani Headquarters, Hussein said federal officials and political parties had “pledged” to resolve the salary issue “in the coming days.”

The KDP and the Patriotic Union of Kurdistan are expected to hold a joint political bureau meeting Monday in Pirmam, Erbil. KDP President Masoud Barzani and PUK President Bafel Talabani are scheduled to attend.

On Saturday, Iraq’s Oil Minister Hayan Abdul Ghani said that the federal government is prepared to resume crude exports from the Kurdistan Region through Turkey but remains in deadlock with Erbil over internal consumption figures.