Council of Ministers Urges Federal Action on Salaries and Non-Oil Revenues

Kurdistan 09:51 PM - 2025-10-01
Kurdistan’s Council of Ministers’ meeting. The Council of Ministers’ media office

Kurdistan’s Council of Ministers’ meeting.

KRG

The Kurdistan Regional Government’s (KRG) Council of Ministers convened its regular weekly meeting on Wednesday, 1 October 2025, chaired by Prime Minister Masrour Barzani, with Deputy Prime Minister Qubad Talabani also in attendance.

At the start of the session, Chief of Staff of the Council of Ministers, Omed Sabah, presented a detailed report on the Region’s financial situation. The report, prepared by the Ministry of Finance and Economy, outlined updated figures on revenues and expenditures. Sabah noted that, following the tripartite agreement to resume oil exports, a new financial context had emerged for the federal government, necessitating a reassessment and reorganisation of the Kurdistan Region’s finances.

After thorough discussions, the Council reaffirmed its full support for the continued implementation of the Kurdistan Region’s oil export agreement, which came into effect on 27 September 2025. Over recent days, an average of 195,000 barrels per day from the Region’s fields had been delivered to the State Oil Marketing Organisation (SOMO). The Ministry of Natural Resources oversaw the transfer, after which SOMO sold the oil on global markets and deposited the proceeds into the federal treasury. In this context, the Council expressed its expectation that the federal government would meet its obligations by paying the salaries and benefits of Kurdistan Region employees for August 2025 and subsequent months, in line with arrangements elsewhere in Iraq.

On the matter of non-oil revenues, the Council underlined the KRG’s commitment to partnership with the federal Ministry of Finance, grounded in Article 29 of the Federal Financial Management Law No. 6 of 2019 and Article 21/Second of the Federal General Budget Law, which determine the federal treasury’s share of such revenues.

The Council also noted that, despite allocations of more than 4 trillion dinars annually within the federal budget, the Federal Ministry of Finance had yet to release any funds for the Region’s operational and investment costs. Consequently, the KRG has been compelled to finance these expenses from local revenues, after deducting the federal treasury’s share on a monthly basis. Monthly revenue and expenditure reports have been submitted to Baghdad and audited jointly by the Federal and Regional Boards of Supreme Audit since early 2023.

The Council therefore urged the federal government to continue discussions between delegations from both sides, overseen by a ministerial committee established by the Federal Council of Ministers, to reach a swift agreement on the issue of non-oil revenues—similar to the settlement reached on oil exports—and to remove obstacles hindering the disbursement of salaries and financial entitlements owed to the Kurdistan Region.

In the second agenda item, Minister of Justice Firsat Ahmed proposed repealing a previous decision of the Regional Economic Council, citing its inconsistency with Law No. 1 of 2021 on the Sale and Leasing of State Assets. After deliberation, the Council voted in favour of revocation.

The third item concerned a report by Minister of Interior Rebar Ahmed on the “Safety Guide” prepared by his Ministry. The guide sets out standards and directives designed to safeguard lives and property and to provide a safe environment by requiring compliance with safety measures in buildings, factories, and projects of all sizes.

The Council praised the efforts of the drafting team and Ministry staff, and approved the guide by majority vote, authorising the Minister of Interior to issue the necessary instructions for its implementation.



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