Baghdad, Kurdistan officials push to end salary standoff

Shafaq News/ Iraqi and Kurdish finance officials continued talks in Baghdad on Saturday to resolve the long-running dispute over salary payments for Kurdistan region employees and retirees, Iraq’s finance ministry said.

“Taif Sami, Iraqi Finance Minister, attended the meetings, which lasted until late in the evening, alongside Kurdistan Regional Government (KRG) officials, and the Foreign Minister Fuad Hussein,” the ministry said in a statement.

"Another meeting at the finance ministry is necessary to directly audit salary lists, annual and monthly costs, and make the required adjustments as quickly as possible," Sami was quoted as saying after the talks.

A joint technical committee has been scrutinizing payroll data for civil and contractual employees, as well as social security beneficiaries, in an effort to finalize payments, the ministry added.

A Protracted Dispute

Talks between Baghdad and the KRG have entered their second day, with both sides seeking to address technical obstacles.

On Friday, Kurdish officials, including around 20 representatives led by KRG Finance Minister Awat Sheikh Janab, met at the Iraqi Foreign Minister’s residence in Baghdad to discuss December salaries and 2025 payments.

"The atmosphere was very positive," Janab told reporters. "We discussed salary tables and hope to finalize funding by Sunday (Feb. 2)."

Kurdistan’s salary crisis dates back to 2014 when disputes over oil revenue and budget allocations prompted Baghdad to halt funding to the Region.

In response, the Kurdistan Regional Government (KRG) began independently exporting oil, escalating political and financial tensions. However, in March 2023, Turkiye shut down the Iraq–Turkiye Pipeline (ITP) following a ruling by the International Chamber of Commerce's International Court of Arbitration.

The court ordered Ankara to pay around $1.5 billion in damages to Iraq for transporting oil without Baghdad’s approval. The shutdown further strained Kurdistan’s finances, leading to renewed salary payment delays for Kurdish public sector employees.

Despite successive budget agreements, the crisis remains unresolved, largely due to political mistrust and non-compliance with agreed terms.