KRG Delegation and Iraqi Finance Ministry Continue Talks to Resolve Salary Crisis

01-02-2025 02:04

Peregraf

The Kurdistan Regional Government (KRG) delegation and the Iraqi Ministry of Finance continued their meetings in Baghdad for the second consecutive day, aiming to resolve the ongoing issues surrounding the remittance of salaries to the Kurdistan Region.

The KRG announced that technical teams from both the regional and federal finance ministries are engaged in discussions to address outstanding technical problems. Officials have indicated that the work is expected to be completed as soon as possible to facilitate the timely transfer of funds.

Following yesterday’s meeting, KRG Finance Minister Awat Sheikh Janab told reporters that discussions were primarily focused on salary schedules for employees and pensioners. “We had an understanding in a positive atmosphere. We hope that the process will be finalized by tomorrow, allowing the KRG to receive funds on Sunday for the distribution of salaries,” Janab stated.

The salary crisis has exacerbated tensions between Baghdad and Erbil, with both sides accusing each other of failing to uphold Iraq’s federal budget law. Due to the ongoing dispute, KRG employees, including teachers, have not yet received their December 2024 salaries, leading to increasing frustration across the region.

For the past three days, teachers and public sector workers in Sulaymaniyah have staged protests outside the United Nations office, demanding immediate salary payments and adherence to the Iraqi Federal Court’s ruling on the Tawteen program. The demonstrations have been accompanied by a widespread boycott of schools in the city, further emphasizing the gravity of the crisis.

The financial uncertainty has affected approximately 1.25 million public sector employees and pensioners in the Kurdistan Region. Payment delays stem from long-standing disputes over budget allocations, inefficiencies within the KRG’s payroll system, and concerns over financial transparency. Despite a ruling from Iraq’s Federal Supreme Court mandating Baghdad to release funds for KRG salaries under specific conditions, the disbursement process has faced repeated delays.

As protests persist and public discontent grows, pressure mounts on both Baghdad and Erbil to reach a swift resolution. With tensions running high, all eyes are on the ongoing negotiations to determine whether an agreement can be reached before the crisis escalates further.