Peregraf
The Kurdistan Regional Government (KRG) will convene a critical meeting tomorrow to address the deepening salary crisis that has paralyzed the region’s public sector. Prime Minister Masrour Barzani is expected to announce the government’s official position on the issue during a press conference following the session.
The high-level meeting will prioritize an assessment of the KRG’s financial situation, focusing on the two-month suspension of public sector salaries. The KRG has blamed the Iraqi Federal Ministry of Finance for halting transfers, describing the move as “unconstitutional” and an “imposed sanction on the Kurdistan Region,” aimed at “collectively punishing the Kurdish people.”
According to a government statement, the first item on the agenda will be a detailed report from Finance and Economy Minister Awat Sheikh Janab. The report will present current figures on domestic revenues and expenditures, along with potential solutions to mitigate the crisis.
Whether the KRG can cover May salaries using internal revenues remains unclear—especially as June draws to a close with no payments made and growing public frustration.
Earlier this month, Minister Sheikh Janab stated that the Kurdistan Region “will not surrender” and that the government could continue operating through domestic income, oil revenues, and improved internal management.
The crisis began in late May, when the Federal Ministry of Finance suspended the KRG’s 12.67% share of the national budget. Baghdad claimed that the region had exhausted its annual allocation and failed to remit oil and non-oil revenues as required. The KRG has rejected these accusations, insisting that the halt in funding is politically motivated.
Compounding the uncertainty is a pending legal case filed by a group of public employees, demanding that the Federal Supreme Court issue an order mandating the continuation of salary payments.
During a cabinet meeting on June 18, Prime Minister Barzani informed the Council of Ministers that he had submitted a letter to the Federal Court regarding the issue, stating: “We await a ruling in favor of the Kurdish people.”
However, the Federal Supreme Court—expected to deliver a decision—has itself plunged into crisis. Its president and several members recently submitted retirement requests, effectively dissolving the court and delaying any legal resolution.
As tens of thousands of Kurdish public employees continue to wait anxiously, tomorrow’s meeting is seen as a crucial test for the Barzani government to regain public confidence and present a credible path forward.