Iraqi PM and NGM Leader Shaswar Abdulwahid Discuss Salary Distribution for Iraqi Kurdistan Employees, 5 OCT

 Iraqi PM and NGM Leader Shaswar Abdulwahid Discuss Salary Distribution for Iraqi Kurdistan Employees, 5 OCT

In a recent meeting, Iraq’s Prime Minister Mohammed Shia Sudani and Shaswar Abdulwahid, the leader of the New Generation Movement (NGM) of Iraqi Kurdistan, debated the issue of salary distribution for employees of the Kurdistan Regional Government (KRG). This comes after a proposal by Abdulwahid to distribute salaries to the KRG employees via TBI Bank, a solution that could potentially resolve the ongoing issue that was also discussed in their previous meeting two months ago.

The NGM Faction, along with several other factions in the Iraqi parliament, have recently sent a letter to the central government, arguing that the salaries of employees should not be politicized and should be sent on time. This signifies a growing consensus among different factions within the Iraqi parliament to address the issue of salary distribution in a fair and timely manner.

Government Response and Recent Developments

The federal government of Iraq has responded by announcing a decision to provide more funds to the administration of the semi-autonomous northern Kurdish region. This decision came after Prime Minister Masrour Barzani of the KRG visited Baghdad to request for more funds to be released to the region, which is currently experiencing a shortfall in revenue.

According to a statement from the federal government, it plans to disburse 2.1 trillion dinars (approximately $1.6 billion) to the region. These funds will be paid in three installments of 700 billion dinars each, more than $530 million, and will be loaned by three state banks and reimbursed by the Ministry of Finance in Baghdad. This amount will cover the salaries of employees, social welfare recipients, and retirees.

Stressed Relations and Economic Stability

However, this financial decision comes amid rising tensions between the Kurdistan Democratic Party (KDP) and the Patriotic Union of Kurdistan (PUK), two major parties within the KRG. These tensions, which have led to boycotts and public criticisms, threaten the economic and political stability of the Kurdistan region. The PUK has accused the KDP and the KRG of withholding payment of salaries and punishing the Sulaymaniyah region, which is under PUK control.

Furthermore, disagreements over the allocation of the Kurdistan Region’s budget and income between the KDP and PUK have exacerbated these tensions. The KDP argues for payment of salaries and budgets based on each governorate’s respective incomes, while the PUK suggests a more equitable distribution of all income from the Kurdistan Region to all regions as needed.

Implications for the Future

The ongoing disputes and financial challenges within the Kurdistan Region of Iraq have significant implications for the region’s future. The PUK’s grievances regarding budget cuts from the KRG, which have left PUK-controlled areas unable to pay for government and security forces’ salaries, highlight the urgent need for a resolution to these issues.

Moreover, the unresolved disagreements between the central government of Baghdad and the KRG pose considerable obstacles for the KRG’s oil sector, the main source of the region’s income. The decision by the Iraqi Federal Court to declare the entire oil operation in the Kurdistan Region of Iraq as illegal has added to these challenges.

As the Kurdistan Region navigates these complex issues, the decisions made by its leaders and the central government of Iraq will have lasting impacts on the region’s economic stability, political unity, and the livelihoods of its citizens.