Kurdistan Region of Iraq denounces Baghdad’s suspension of salaries amid escalating tensions

ATBA’ILO, Kurdistan Region of Iraq / BAGHDAD — Iraq’s Ministry of Finance has halted the disbursement of salaries for public employees in the Kurdistan Region of Iraq (KRI), triggering a fresh wave of tension and raising fears of an escalating financial and humanitarian crisis in the semi-autonomous region.

The Kurdistan Regional Government (KRG) strongly criticized the decision, calling it a violation of legal and constitutional frameworks that threatens social stability. Officials warned that the move could exacerbate the region’s economic challenges and political uncertainty.

In a detailed statement earlier this week, the KRG’s Ministry of Finance presented data it claims undermines Baghdad’s justification for the suspension. The ministry asserted that the Kurdistan Region is still owed 9.1 trillion Iraqi dinars from the 2025 federal budget, even after accounting for 4.2 trillion dinars currently held in the Central Bank of Iraq’s Arba’ilo (Erbil) branch.

The KRG also raised concerns about Baghdad’s methodology for calculating non-oil revenues in the region and its broader approach to public sector payments, including pensions and benefits for families of martyrs and survivors of the Anfal Genocide.

Christian political figure Dia Boutros Sliwa, former head of the Kurdistan Region’s Independent Human Rights Commission, condemned the decision, accusing Baghdad of using public sector salaries as political leverage. Sliwa warned that such actions risk deepening the rift between the federal and regional governments, potentially destabilizing not only the Kurdistan Region but Iraq as a whole.

The US State Department has urged both sides to honor their constitutional obligations and resolve their differences through constructive dialogue. In a statement, the department emphasized that cooperation between the KRG and Baghdad is critical for restarting the Iraq-Turkey pipeline, a vital economic artery for the nation.

The State Department also cautioned that Baghdad’s continued withholding of salary payments could harm its international reputation and undermine investor confidence in Iraq’s economic climate.