Iraq’s Al-Sudani: Erbil-Baghdad disputes are Technical, Not Political
Shafaq News/ On Friday, Iraqi Prime Minister Mohammed Shia Al-Sudani described the ongoing disagreements between Erbil and Baghdad as "technical, not political," confirming his government's commitment to funding Kurdistan Region salaries through 2025.
In an interview with Al-Sharq TV, Al-Sudani discussed the pending issues between the federal and Regional governments, stating, "In the spirit of partnership and cooperation, we have made significant progress in resolving these points of contention." He clarified that the delay in salary payments was due to "technical issues, not a political stance from Baghdad."
The technical issues, Al-Sudani explained, stemmed from the connection between the Region's employees and the federal budget, and the need for payments to be processed by the federal Ministry of Finance, based on the recent Federal Court ruling, which set a mechanism for settlement and delivery of non-oil revenues. "The Kurdistan Regional Government (KRG) and the Ministry of Finance need to complete the procedures, which encountered delays but have now been resolved, allowing salaries to be paid in January 2025,” he continued.
The federal government, according to the PM, will continue to pay salaries “smoothly” for the remaining months, expecting the Region to address the technical issues identified by the ministry.
Kurdistan’s Salary Crisis
The crisis stems from a long-standing financial dispute between the KRG and the federal government. Baghdad insists that the KRG must transfer all oil production to the State Organization for Marketing of Oil (SOMO), with revenues directed to the national treasury. The KRG, however, argues that it should deduct production costs before transferring the funds.
Financial experts highlight inefficiencies within the KRG’s payroll system, citing "inflated employee lists" and resistance to direct bank deposits, while others criticize both sides, urging the KRG to reform its system and enhance transparency, and Baghdad to depoliticize salary payments to ensure financial stability.
