PUK Lawmaker: KRG Employee Salaries' Disbursement Depends on Erbil-Baghdad Agreement

Economy 02:32 PM - 2025-09-21

PUK Lawmaker Dr Narmin Maruf.

Negotiations continue between the Kurdistan Regional Government (KRG) and the Iraqi Federal Government to resolve financial matters and resume oil exports from the Kurdistan Region through Iraq’s State Organisation for Marketing Oil (SOMO), while a lawmaker of the Patriotic Union of Kurdistan (PUK) in the Iraqi Parliament has confirmed that the salaries of public sector employees in the Kurdistan Region for the rest of the year remain tied to the agreement between the two sides.

State Council Meetings

Dr. Narmin Maruf, a PUK lawmaker in the Iraqi Parliament, told PUKMEDIA: “Following a request from the Iraqi Council of Ministers, Iraq’s State Council held several meetings to address the existing disagreements regarding the Kurdistan Region’s non-oil revenues. 

“The State Council has now concluded its meetings and prepared its report,” she said. “Once reviewed, it is scheduled to be submitted today to the Federal Council of Ministers for a final decision.”

Agreement on Oil Exports

Dr. Maruf added that a new agreement has been reached between the KRG, the federal government, and the oil companies operating in the Kurdistan Region. 

Under the agreement, she said, the Region will retain 50,000 barrels of oil per day for domestic consumption, while the $16 fee per barrel produced will be paid directly to the producing companies rather than in cash.

She also revealed that a tripartite meeting involving the Iraqi Ministry of Oil, the Kurdistan Region’s Ministry of Natural Resources, and the oil companies is scheduled for Sunday to finalise arrangements for the resumption of oil exports.

According to the original agreement between the KRG and the federal government, the Region is required to deliver 230,000 barrels of oil per day to Baghdad. However, due to recent drone attacks targeting the Kurdistan Region’s oil fields, the KRG has reported a decline in production capacity. In response, Baghdad has indicated its willingness to accept whatever volume the Region is able to deliver. 

Employee Salaries

Dr. Maruf noted that public sector salaries in the Kurdistan Region for the remainder of the year are linked to the agreement between the KRG and the federal government regarding non-oil revenues and the resumption of oil exports. 

She said: “If the Federal Council of Ministers receives the reports on non-oil revenues and oil exports, it is expected that a decision will be taken during its regular session next Tuesday to release the salaries of the Kurdistan Region’s employees.”

Background

Disputes between Baghdad and Erbil over the Kurdistan Region’s share of the federal budget have persisted for years, directly impacting public sector salaries. Over the past eight months, the federal government has transferred funds for only six salary payments in the Kurdistan Region.

Exports through Türkiye’s Ceyhan port were halted in March 2023 following an arbitration ruling by the International Chamber of Commerce in Paris. The tribunal determined that Türkiye had breached a 1973 pipeline transit agreement by permitting the KRG to export crude independently of Baghdad. 

Since then, the pipeline has remained closed, pending an agreement between the federal government and the KRG. Negotiations have been hindered by disagreements over revenue-sharing, non-oil income, and contractual terms with international oil companies.



PUKMEDIA