Peregraf
The Kurdistan Regional Council of Ministers has approved a new mutual understanding between the Kurdistan Regional Government (KRG) and the Federal Government of Iraq regarding the disbursement of public sector salaries and financial entitlements, which was finalized yesterday in Baghdad.
The salary crisis, which has left civil servants in Kurdistan unpaid for May and June, has severely impacted the local economy, undermined public confidence, and intensified pressure on both Kurdish and Iraqi leadership to act swiftly.
According to an official statement released by the KRG Council of Ministers:
On Wednesday, July 16, 2025, the Council convened under the chairmanship of Prime Minister Masrour Barzani and the attendance of Deputy Prime Minister Qubad Talabani.
The Council reviewed the meeting’s primary topic, which focused on the current financial situation in the Kurdistan Region and the course of recent negotiations with the Federal Government regarding the payment of public salaries and financial entitlements of the Region.
Both Prime Minister Barzani and Deputy Prime Minister Talabani presented detailed insights into the mutual understanding reached yesterday in Baghdad, which concerns the provision of the Kurdistan Region’s financial entitlements and the Region’s corresponding obligations.
Following deliberation and exchange of views, the Council welcomed the terms of the new understanding and resolved to implement its content. In accordance with this agreement, the Federal Government is to proceed with the allocation and transfer of the Kurdistan Region’s public sector salaries and financial entitlements.
During the meeting, the Council strongly condemned the recent terrorist attacks targeting the Kurdistan Region, particularly the assaults on the region’s oil infrastructure. The Council described these acts as shameful, having caused substantial material damage to oil production operations. It further emphasized that the objective behind these attacks is to undermine the economic foundations and energy stability of the Kurdistan Region.
The Council called on the Federal Government to fulfill its responsibility by putting an end to these attacks, enforcing legal measures against those responsible, and safeguarding the security of the region’s vital economic sectors.