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Tensions Rise Between Erbil and Baghdad after Kurdistan Salary Payments Halted
Tensions Rise Between Erbil and Baghdad after Kurdistan Salary Payments Halted

Asharq Al-Awsat

time3 days ago

  • Business
  • Asharq Al-Awsat

Tensions Rise Between Erbil and Baghdad after Kurdistan Salary Payments Halted

A sharp dispute has erupted between Erbil and Baghdad following Iraqi Finance Minister Taif Sami's decision to halt salary payments to public employees in the Kurdistan Region, citing violations of the federal budget law. The move has prompted intense backlash from Kurdish officials and increased contacts between US officials and Kurdish leaders, with Washington stepping up pressure on the federal government. On Wednesday, Sami sent an official letter to the Kurdistan Regional Government (KRG), stating that the Finance Ministry could no longer continue disbursing funds to the region, stating that it exceeded the allocated 12.67% share of the national budget. She noted that Kurdistan had surpassed its entitlement by 13.5 trillion Iraqi dinars, which made continued payments legally untenable. According to the ministry, from 2023 through April 2025, Kurdistan generated 19.9 trillion dinars in oil and non-oil revenues but delivered only 598.5 billion dinars to the federal government. The decision to halt funding comes at a particularly sensitive time, with Eid al-Adha approaching, further fueling outrage among Kurdish leaders. KRG spokesperson Peshawa Hawramani issued a strong response, saying that the 'problems with Baghdad will be resolved, and the truth will prevail.' He accused successive governments of pursuing policies of 'starvation and genocide' against the Kurdish people and warned that 'those who abandon the defense of their people's rights will be condemned by history.' Kurdish lawmakers are expected to meet soon with Prime Minister Mohammed Shia al-Sudani to address the implications of the finance minister's decision. Meanwhile, Vian Sabri, head of the Kurdistan Democratic Party bloc in the Iraqi parliament, announced that Kurdish factions would submit a formal protest to the prime minister. She stressed that salary payments should be separated from political disputes, referencing an agreement between Baghdad and Erbil to that effect. Amid the internal tensions, the United States has increased its diplomatic engagement. According to a statement from Kurdistan Region President Nechirvan Barzani's office, he received a phone call from US Secretary of State Marco Rubio, in which both sides discussed the importance of maintaining coordination to promote stability in Iraq and the wider region. The call came shortly after KRG Prime Minister Masrour Barzani visited the US, where contracts were signed with American oil companies to operate in Kurdistan, an act that angered Baghdad, which insists that oil agreements must comply with constitutional provisions governing federal-regional relations. Public policy professor Ihsan al-Shammari at the University of Baghdad said Washington is now applying 'maximum pressure' on the Iraqi government. He noted that US demands have taken multiple forms, including calls to dismantle militias and curb Iranian influence in Iraq.

24/7 power for less? Kurdistan's bold new plan
24/7 power for less? Kurdistan's bold new plan

Shafaq News

time14-05-2025

  • Business
  • Shafaq News

24/7 power for less? Kurdistan's bold new plan

Shafaq News/ On Wednesday, the Kurdistan Regional Government (KRG) ratified a new electricity tariff structure under the 'Ronaqi' initiative. During a press conference in Erbil, Government Spokesperson Peshawa Hawramani announced the cabinet's unanimous approval of the new structure, noting, 'Roughly 80% of citizens will pay less than before while receiving 24-hour electricity.' Ronaqi, launched in October 2024, seeks to overhaul the Region's power sector, long plagued by inconsistent supply. It is being implemented through a public-private coordination model aimed at improving service delivery and easing the financial burden on consumers. The system is set to roll out across all provincial capitals by the end of the year, with phased expansion in remaining areas. 'It supports household stability and promotes broader economic resilience,' Hawramani explained. To encourage adoption, the KRG will offer tiered financial subsidies during the initial three-month phase. Depending on the consumer category, the government will cover up to 50% of installation costs.

KRG: March salaries depend on Baghdad funding
KRG: March salaries depend on Baghdad funding

Shafaq News

time25-03-2025

  • Business
  • Shafaq News

KRG: March salaries depend on Baghdad funding

Shafaq News/ The Kurdistan Regional Government (KRG) said on Tuesday it is prepared to pay March salaries to public sector employees before Eid al-Fitr, if the required funding is received from the federal government in Baghdad. 'When the funding is provided, the KRG is fully ready to make the payments,' spokesperson Peshawa Hawramani said in a statement, clarifying that relations with Baghdad remain positive and that all technical issues related to salary disbursement "have been resolved." 'Unless new requests are made by Iraq's Ministry of Finance, there should be no issue in processing the salaries,' he added. Earlier, the Kurdistan Ministry of Finance and Economy said the Federal Ministry of Finance would transfer 954.88 billion Iraqi dinars (about $728 million) on March 26 to cover the Region's public payroll, including payments to retirees.

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