Iraqi Finance Official: KRG solely responsible for salary distribution

Shafaq News/ On Monday, Iraq’s Deputy Minister of Finance, Masoud Haider, confirmed that there are no direct interactions between federal institutions and the offices of the Kurdistan Regional Government (KRG), which exclusively manage salary distribution.

In a statement, Haider clarified that "no federal institution can engage directly with the offices of the KRG," adding that “all interactions with the region are conducted solely through the KRG itself.”

Haider highlighted, "Salaries are paid exclusively by the Ministry of Finance Kurdistan Region," urging that “sensitive issues such as salary disbursement should not be exploited for political purposes, which could further escalate tensions.”

Notably, the Kurdish government has faced significant challenges in meeting the timely and complete payment of salaries to its civil servants for the past decade. This financial strain intensified following a ruling by a Paris-based arbitration court that suspended the KRG's oil exports to international markets a year ago, exacerbating its financial crisis.

As a result, the KRG has been heavily reliant on local income sources and its allocated share from the federal budget, which has been a subject of controversy. Despite efforts to manage its fiscal situation, the KRG has consistently struggled to meet its salary obligations.

The Federal Supreme Court of Iraq's decision worsened the situation by issuing a ruling ordering the "localization" of salaries for all Kurdistan Region employees in federal banks. This decision has resulted in the halt of salary disbursements, leading to numerous strikes across various sectors.