Peregraf- Iraqi Prime Minister Mohammed Shia al-Sudani said Monday that Baghdad has resolved its oil dispute with the Kurdistan Region and is working on an agreement over non-oil revenues. He stressed that these talks would not affect the regular payment of public sector salaries.
But more than two and a half months after they were due, salaries for August 2025 remain unpaid for tens of thousands of Kurdistan Region employees. The delay has fueled frustration among public employees of Kurdistan Region who accuse both Kurdistan Regional Government (KRG) and Iraqi Federal government of failing them.
Speaking to Arab and international journalists in Baghdad, Al-Sudani described Iraq’s economy as strong, despite deficits inherited from previous administrations. He said the government had reduced the federal budget shortfall to 34 trillion IQD while maintaining financial stability.
"The oil issue with the Kurdistan Region, which had been pending since 2009, has been settled," Sudani declared. "As for non-oil revenues, discussions are ongoing, but this does not affect employees’ salaries."
The Iraqi prime minister also used the meeting to defend his government’s wider policies. He downplayed concerns over foreign debt, highlighted a 40% rise in tourism revenues, and pointed to major projects such as the $450 billion Development Road and new power generation deals with U.S. companies.
On security, Al-Sudani repeated that armed groups must either integrate into state institutions or enter political life. He also welcomed the appointment of U.S. President Donald Trump’s envoy to Iraq, stressing the importance of continued international engagement.
For Kurdistan, however, his assurances bring little relief. With August salaries still frozen, public employees say promises from Baghdad and Erbil have yet to translate into paychecks.