Ban on Kurdish Products in Iraqi Cities Shuts Hundreds of Factories, Leaves 200,000 Jobless

Peregraf

The Kurdistan Region of Iraq is grappling with a major economic crisis as hundreds of factories have been forced to shut down, leaving more than 200,000 workers unemployed. This follows a nearly month-long ban by Iraqi government checkpoints, which have blocked the entry of goods produced in Kurdistan into cities across Iraq.

Speaking at a press conference in Erbil, Mahmoud Aziz, owner of the Sazaw Salt Factory, revealed the severity of the situation. "Over 60% of the region’s 2,000 factories have ceased operations, causing tens of thousands of workers to lose their jobs," Aziz stated.

He urged the Kurdistan Regional Government (KRG) to take swift action. "We call on the KRG to send a delegation to Baghdad to resolve this issue, which is clearly political. The Iraqi government aims to centralize control over factories and imposes daily obstacles to their operations," he added.

Iraqi cities have historically been a key market for products from Kurdistan, with 90% of the region’s industrial output being exported to central and southern Iraq. Aziz emphasized the high quality and popularity of Kurdish goods in these markets, stating, "Products with Kurdish writing are trusted and highly sought after by Iraqi consumers."

Despite the demand, Kurdish factory owners face significant barriers. Aziz highlighted the preferential treatment given to foreign goods. "While Iranian and Turkish products enter Iraq without issue, our local products are blocked. Some factories are even forced to pay exorbitant bribes to get their goods through. One factory had to pay $9,000 to clear just 10 trucks at checkpoints," he disclosed.

Factory owners warn that if the crisis persists, the region will face even greater economic and social challenges. They are calling for urgent measures to lift the restrictions and restore normal trade relations between Kurdistan and the rest of Iraq.