Latest news with #KRG
Shafaq News
5 hours ago
- Business
- Shafaq News
Kurdish parties hold emergency meeting in Erbil over salary suspension
Shafaq News/ A broad meeting of Kurdish political parties convened Saturday in Erbil, as tensions escalated over the Iraqi government's decision to halt May salary payments to Kurdistan Region public employees. Held at the Kurdistan Democratic Party's (KDP) political bureau, the meeting will discuss the financial entitlements and assess the broader state of relations between Erbil and Baghdad, according to Shafaq News correspondent. The Iraqi government recently suspended salary transfers, citing the Kurdistan Regional Government's (KRG) failure to remit oil and non-oil revenues as required by the Federal Budget Law and a ruling by the Federal Supreme Court. A KRG delegation is expected to travel to Baghdad on June 1 to resume negotiations with Iraqi officials over the unresolved fiscal arrangements.
Asharq Al-Awsat
5 hours ago
- Business
- Asharq Al-Awsat
Erbil Threatens Boycott as Baghdad Freezes Salaries, US Urges Calm
Tensions are high between Erbil and Baghdad after Iraq's Federal Finance Minister, Taif Sami, ordered the suspension of salary payments to employees in the Kurdistan Region starting May 2025. In response, Shakhawan Abdullah, the second deputy speaker of Iraq's parliament, has called on Kurdish representatives to consider withdrawing from Baghdad, a move that could deepen political rifts within the fragile federal system. Abdullah made the remarks following a meeting with leaders of Kurdish blocs in the Iraqi parliament. He described the finance ministry's decision as a 'deliberate violation' designed to starve the Kurdish people. In a statement posted to Facebook, he said: 'After extensive discussion, we unanimously agreed to demand the federal government immediately halt these violations and resume salary disbursements.' He added that a formal letter had been sent to Prime Minister Mohammed Shia al-Sudani, urging him to take responsibility and resolve the issue. Abdullah warned that, if no action is taken, the Kurdish political leadership is prepared to implement a boycott 'within one hour.' Meanwhile, Ali Hama Saleh, a senior figure in the Kurdistan-based National Stance Movement, called for a high-level delegation led by the Kurdistan Regional Government (KRG) Prime Minister to visit Baghdad after Eid al-Adha. He urged both sides to seek a long-term resolution to the budget dispute and reopen negotiations over oil exports through the Türkiye pipeline. Speaking in a televised interview, Saleh emphasized that the federal budget is calculated annually, and a legal and financial resolution for Kurdistan's 2025 share is still possible. He called for calm and constructive dialogue, warning against inflammatory rhetoric and urging the KRG to ease some of its conditions on resuming oil exports, considering Iraq's economic strain and projected declines in global oil prices. The finance ministry justified its decision by claiming the Kurdistan Region exceeded its allocated 12.67% budget share. According to ministry data, the region generated 19.9 trillion Iraqi dinars in oil and non-oil revenues since 2023 but transferred only 598.5 billion dinars to Baghdad. This shortfall, the ministry argued, breaches budget agreements. Kurdish leaders, however, view the move as punitive and ill-timed especially with the Eid holiday approaching. KRG spokesperson Peshawa Hawramani accused Baghdad of continuing a 'policy of starvation and extermination' against the Kurdish population. Vian Sabri, head of the Kurdistan Democratic Party's bloc in parliament, said Kurdish parties will submit an official protest to the prime minister. She also demanded full disclosure of the federal government's spending, stating that only one financial report has been shared this year. As tensions escalate, the US has reportedly stepped in, urging both sides to resolve the crisis. A senior US State Department official, speaking anonymously, told local media that quickly resolving the salary issue would demonstrate Iraq's commitment to its citizens and create a more stable investment climate. The official also suggested that progress could help reopen the suspended Iraq–Türkiye oil pipeline, a vital export route that has remained closed amid ongoing disputes.
Shafaq News
7 hours ago
- Business
- Shafaq News
EXCLUSIVE: Baghdad to release KRG salaries as one-time loan
Shafaq News/ Iraqi Prime Minister Mohammed Shia al-Sudani will approve May salary payments for public employees in the Kurdistan Region, provided the funds are issued as a temporary federal loan, a source told Shafaq News on Saturday. The disbursement, expected midweek, would fall outside the Kurdistan Regional Government (KRG)'s formal budget allocation, the source explained, describing it as a one-off intervention. 'A second condition requires forming a joint committee between Baghdad and Erbil to address the salary backlog, with a framework agreement targeted before Eid al-Adha.' The move follows growing political and diplomatic pressure on the federal government to resolve the long-running fiscal dispute with the KRG. Kurdish political parties will convene today in Erbil to assess the financial crisis, and a KRG delegation is scheduled to visit Baghdad on June 1 to resume talks with Iraqi officials.
Shafaq News
a day ago
- Business
- Shafaq News
Kurdistan's salary crisis escalates ahead of Eid
Shafaq News/As Eid al-Adha approaches, more than a million public servants in Iraq's Kurdistan Region face yet another holiday without salaries—caught in the crosshairs of a deepening standoff between Baghdad and Erbil that underscores unresolved constitutional, political, and economic rifts. The Iraqi government recently suspended salary payments for May 2025, accusing the Kurdistan Regional Government (KRG) of failing to deliver oil and non-oil revenues as mandated by the federal budget law and a Federal Supreme Court ruling. The Ministry of Finance warned of legal action to hold the KRG accountable, laying blame squarely on Erbil for disrupting monthly payments and social welfare programs. The row has intensified following the KRG's announcement of two major energy deals with American firms worth over $110 billion to develop gas and oil infrastructure in the Region. Baghdad views these agreements as violations of its sovereign authority, while Erbil insists the contracts fall within its constitutional right to enhance local revenues and diversify the Region's economic base. Responding to the federal decision, the KRG's Ministry of Finance and Economy said Baghdad owes Erbil over 4.22 trillion dinars (about $3B) and has yet to release the remaining 9.11 trillion dinars (around $6.5B) of Kurdistan's 2025 allocation. Kurdish officials argue that Baghdad's revenue calculations ignore the KRG's operational expenses and the local funds used to cover salary gaps. They also point to the federal government's failure to compensate victims of the Anfal genocide, which they say adds to long-standing grievances. 'The federal government is trying to create unconstitutional roadblocks,' the KRG stated, citing a February 2025 ruling by the Federal Supreme Court directing Baghdad to disburse salaries directly to Kurdish employees regardless of political disagreements. Erbil has framed the latest salary freeze as a political tactic that targets ordinary citizens and threatens regional stability. Since 2014, salary payments to the Kurdistan Region have shifted from fixed budget allocations to ad hoc 'emergency advances' subject to Baghdad's oversight. Each budget cycle has become a flashpoint for constitutional disputes, driven by the absence of a federal oil and gas law since 2007 and competing interpretations of revenue-sharing rules. For many Kurdish families, the result is a familiar cycle of uncertainty and hardship. Despite multiple court rulings, federal disbursements remain entangled in political maneuvering. Jamal Kocher, a Kurdish member of Iraq's financial committee, criticized Baghdad's decision as 'poorly timed and unjust,' warning that it effectively punishes over 1.2 million employees who are uninvolved in high-level political disputes. Kocher stressed that 'a series of steps must be taken to resolve this issue,' urging Prime Minister Mohammed Shia al-Sudani to 'respond to Iraqi citizens in a manner that promotes fairness. It is unacceptable for employees in Iraq to receive their salaries while those in the Kurdistan Region face cuts.' He also emphasized the need to engage the Federal Supreme Court to take further decisions on the matter. Political analyst Hamza Mustafa described the crisis as a symptom of deeper institutional dysfunction. 'The salary crisis is just the tip of the iceberg,' he said. 'The deeper issue is Iraq's failure to pass an oil and gas law for nearly two decades. As always, it's the citizens who pay the price.' The United States has called for calm, urging both Baghdad and Erbil to resolve the standoff through dialogue and constitutional mechanisms. A US State Department official told Shafaq News in an exclusive statement, 'A swift resolution will show that Iraq is prioritizing its citizens' welfare and create an environment attractive to investors.' He added that resolving the crisis could also signal readiness to reopen the suspended Iraq-Turkiye oil pipeline. This appeal follows recent high-level meetings in Washington, where KRG Prime Minister Masrour Barzani met with US Secretary of State Marco Rubio and other senior officials. The salary freeze comes at a delicate moment in Iraqi-Kurdish relations. Prime Minister Mohammed Shia al-Sudani faces competing pressures: demands from political blocs in Baghdad to assert federal control, and calls from international partners to ensure stability and fair treatment for the Kurds. Analysts believe al-Sudani is keen to avoid further escalation ahead of the holidays, with back-channel negotiations possibly underway to explore temporary fixes. However, without structural reforms—such as the long-stalled oil and gas legislation—many fear the cycle of crisis, court rulings, and emergency payments will continue to define Baghdad-Erbil relations. With public frustration mounting and Eid just days away, all eyes are now on whether Baghdad and Erbil can move beyond legal sparring to reach a sustainable fiscal settlement—or whether yet another round of crisis budgeting awaits the Kurdistan Region.
Shafaq News
a day ago
- Business
- Shafaq News
Ruling clarifies: Federal-KRG disputes cannot impede salary payments
Shafaq News/ On Friday, Iraq's Federal Supreme Court ruled that disputes between the federal government and the Kurdistan Regional Government (KRG) cannot be used as grounds to delay or suspend salary payments, KRG Cabinet Secretary Amanj Raheem disclosed. Quoting a February ruling, Raheem highlighted that disagreements over Articles 12 and 13 of the 2023 Federal Budget Law—relating to oil exports and non-oil revenues—must not obstruct monthly payments to employees, retirees, and welfare recipients in the Kurdistan Region. 'This decision reaffirms the court's stance on insulating citizens' livelihoods from political conflict,' Raheem, a member of the Patriotic Union of Kurdistan (PUK) party, said in a statement. Earlier, Parliamentary Finance Committee member Raed al-Maliki confirmed that the Ministry of Finance halted salary disbursements to the KRG, citing the Region's failure to transfer required oil and non-oil revenues to the federal treasury, despite the KRG receiving its entitlements. The KRG Ministry of Finance rejected the justification, asserting that Baghdad is constitutionally obliged to continue salary payments to civil servants, retirees, and beneficiaries of the social safety net. It also criticized the federal government for neglecting reparations to survivors of the Anfal campaign and chemical attacks, calling such omissions a breach of duty. In response, the federal Finance Ministry published data indicating that the KRG exceeded its designated budget share by failing to submit full oil and non-oil income, with joint reports from the federal and regional audit bureaus substantiating the findings, leading to the suspension of transfers. The salary dispute comes amid deeper budgetary tensions between Baghdad and Erbil. Since oil exports from the Kurdistan Region through Turkiye's Ceyhan port were suspended in 2023, the federal government shifted to issuing monthly loans instead of direct budget payments. Despite court intervention, the funding impasse continues, with both sides accusing each other of failing to meet their fiscal responsibilities under the national budget law.
