Iraq's president, PM discuss Kurdistan funding crisis
Shafaq News/ On Saturday, Iraqi President Abdul Latif Rashid and Prime Minister Mohammed Shia Al-Sudani met in Baghdad to review national developments and government programs.
The Presidency's media office stated that the meeting focused on the political and economic situation in the country. Both sides stressed the need to resolve financial disputes between the federal government and the Kurdistan Regional Government per the constitution, the federal budget law, and a recent ruling by the Federal Supreme Court.
They also underscored the importance of passing the long-delayed oil and gas law to regulate resource management between Baghdad and Erbil.
According to the statement, Rashid and al-Sudani emphasized the need to strengthen national unity and promote security and social stability across Iraq.
The Baghdad-Erbil dispute over federal salary payments has escalated after the Iraqi government suspended funding, accusing the KRG of withholding oil and non-oil revenues. The KRG countered that Baghdad is using salaries as political leverage and violating court rulings. The standoff coincides with a Kurdish delegation's visit to Washington, where investment deals with US firms stirred controversy. The US State Department urged a swift resolution, calling it key to investor confidence and reopening the Kirkuk–Ceyhan pipeline.
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