Iraqi Prime Minister Mohammed Shia al-Sudani is set to visit Erbil this week to push forward government formation talks following the Kurdistan Region’s recent parliamentary elections. Alongside these political discussions, salary payments to Kurdistan Region employees remain a critical issue. Despite recent reassurances from the Iraqi Ministry of Finance, complications in the salary lists persist, sparking tension as Kurdish officials aim to clarify these issues to expedite October’s payment.
KRG’s Salary Issues Remain Unresolved
As October comes to a close, longstanding salary distribution issues persist between Baghdad and the Kurdistan Regional Government (KRG). A KRG delegation is currently in Baghdad, tasked with resolving ambiguities in the salary list to ensure funds are distributed to employees in the region. An official from Iraq’s Finance Ministry reported that the funds could be deposited into the Kurdistan Region’s bank account this week. However, specific issues in the salary list have yet to be fully addressed, leaving KRG officials with an urgent mandate to clarify details and meet federal government requirements.
Salah Bushi, an advisor to the Iraqi parliament, highlighted that discrepancies in the salary files have stalled disbursements for KRG employees, despite the federal government’s commitment to guarantee employee salaries through 2024. Approximately three trillion dinars are reserved for the last quarter of the year—October, November, and December—to prevent delays. However, repeated concerns over unsubmitted or incomplete salary lists from the KRG add complexity to the disbursement process each month.
Sudani’s Visit and Upcoming Government Formation Talks
While the salary issue remains unresolved, Iraqi Prime Minister Mohammed Shia al-Sudani’s upcoming visit to Erbil has raised hopes for progress on the political front. The prime minister’s agenda in the Kurdistan Region includes encouraging political parties to expedite the formation of a new KRG cabinet following recent parliamentary elections. The vote, held last month after a two-year delay, resulted in the ruling Kurdistan Democratic Party (KDP) securing 39 seats, followed by the Patriotic Union of Kurdistan (PUK) with 23 seats, and the opposition New Generation Movement obtaining 15 seats.
These political outcomes are crucial for the region’s stability and cooperation with Baghdad, as well as for resolving pending issues like the salary distribution. However, the election results have not gone without controversy. Opposition parties, including the Kurdistan Islamic Union (KIU), Kurdistan Justice Group (Komal), the National Stance Movement (Halwest), and Lahur Talabany’s People’s Front (Baray Gal), have raised concerns over alleged voting irregularities. These accusations have yet to prompt substantial action, and government formation talks remain in a preliminary stage despite the finalized results.
Budget, Oil, and Security Top Sudani’s Agenda in Erbil
Beyond political discussions, critical economic and security topics are expected to feature prominently during Sudani’s visit. Aziz Ahmad, deputy chief of staff for KRG Prime Minister Masrour Barzani, confirmed that budgetary payments, oil exports, and security collaboration will be key points on the agenda. With Kurdistan’s oil exports halted for over a year due to longstanding disputes, recent progress in Baghdad offers a glimmer of hope. The Iraqi cabinet recently approved a higher compensation rate for oil transportation and production, a decision that, pending parliamentary approval, could reinvigorate the region’s oil exports.
Reinforcing economic ties between Baghdad and Erbil is essential to stabilizing the region’s finances. KRG representatives have expressed a commitment to advancing these discussions, underscoring the urgency to resolve budgetary disagreements as winter approaches. Sudani’s visit could offer a vital opportunity to clarify responsibilities and expectations, promoting fiscal stability and collaborative economic initiatives between the federal and regional governments.
As the KRG delegation in Baghdad works toward finalizing the salary list and addressing ongoing ambiguities, the region’s economic and political stability remains in flux. Sudani’s visit, alongside recent parliamentary developments, may provide a fresh impetus for resolution on both the political and economic fronts.
