KRG Salaries Delayed as Baghdad Disputes Revenue Share; Audit Team Returns to Kurdistan
Peregraf
The Iraqi Ministry of Finance’s dissatisfaction with the amount of non-oil revenue transferred monthly by the Kurdistan Regional Government (KRG) remains a "primary obstacle" to the disbursement of April salaries for KRG employees. A financial oversight delegation has returned to the Kurdistan Region to reexamine domestic revenue and expenditures amid the ongoing dispute.
The KRG Ministry of Finance stated that Awat Sheikh Janab, the KRG Finance Minister, met with a joint audit team from the Iraqi Federal Board of Supreme Audit and the Kurdistan Regional Government. The team is tasked with "preparing a detailed report on revenues and expenditures for the first three months of 2025 in the Kurdistan Region."
Baghdad Withholds Approval for Salaries
A well-informed source in Baghdad told Peregraf that "despite efforts by both the federal government and KRG officials, as of this evening, neither Taif Sami (Iraq’s Finance Minister) nor Iraqi Prime Minister Mohammed Shia’ Al-Sudani have agreed to release the April’s salaries for KRG employees."
According to the source, Iraq’s Finance Minister disputes the revenue figures submitted by the KRG under the "Federal Treasury’s share of Kurdistan’s non-oil revenue," claiming that "only half of the actual revenue is being transferred to Baghdad."
KRG Apparently Assures Full Cooperation with Audit Team
The KRG Ministry of Finance reiterated its readiness to cooperate with the joint audit team, affirming that "all necessary and available data will be provided to the Federal Board of Supreme Audit and the KRG’s joint financial oversight team."
A full week into May, the Iraqi Finance Ministry has yet to disburse April salaries for KRG employees, despite the KRG’s payroll list being submitted on April 22, 2025.
The KRG Ministry of Finance reported transferring the following amounts to Baghdad as its federal share of non-oil revenues:
- March 2025: 48 billion, 205 million, 765 thousand dinars
- February 2025: 48 billion, 722 million, 239 thousand dinars
- January 2025: 51 billion, 895 million, 457 thousand dinars
Iraqi PM’s Concerns Over Oil Exports and KRG’s Actual Domestic Revenue
The same source noted that "while Taif Sami has often delayed KRG salaries, requiring Iraqi Prime Minister Mohammed Shia’ Al-Sudani’s intervention, this time, Al-Sudani himself is hesitant—not only due to disputes over KRG’s actucal domestic revenue but also over the resumption of Kurdistan Region’s oil exports."
"Al-Sudani is under pressure from Shiite factions accusing the KRG and oil companies of obstructing the resumption of oil exports. Hence, he is reluctant to approve salary payments until these issues are resolved," the source added.
Negotiations Continue on Oil Exports
Sabah Subhi, Deputy Chairman of Iraq’s Parliamentary Oil and Gas Committee, told the Kurdistan Democratic Party’s (KDP) official website that "at the request of the Iraqi Prime Minister, a delegation from the KRG’s Ministry of Natural Resources is in Baghdad for talks on resuming Kurdistan’s oil exports."
Subhi stated that after their latest meeting with Iraqi PM, "several solutions were proposed to resolve the obstacles preventing the resumption of Kurdistan’s oil exports."
"Al-Sudani has called for forming a technical committee from the KRG’s Ministry of Natural Resources to engage with Iraq’s Oil Ministry. The logic has shifted—Sudani wants no remaining excuses to delay exports," Subhi said.
The salary delay exacerbates the KRG’s financial crisis, with public sector employees facing increasing hardship as disputes between Erbil and Baghdad persist. The return of the audit team signals another attempt at transparency, but whether it will lead to a breakthrough remains uncertain.