The tension between the Kurdistan Regional Government (KRG) and the federal government has resurfaced, escalating to the point where the Kurdistan Democratic Party (KDP) has threatened to withdraw from the political process in Baghdad. This follows the ongoing issue of employee salaries for 2025, as funds and the budget have not been sent, and the agreed timelines and agreements between both parties have not been honored.
However, the threat of withdrawal did not gain support from all political factions. It was issued by the KDP alone and was met with rejection by the Patriotic Union of Kurdistan (PUK), which “preferred” its relationship with the Coordination Framework over aligning with the KDP on the crisis. The decision was broadly dismissed by other Kurdish parties and the Coordination Framework as “just media talk” intended to stir up the Kurdish public.
The Kurdistan Regional Government’s Council of Ministers held an “exceptional” session, attended by Kurdish ministers in the federal government, as well as deputies from the KDP and PUK in the Iraqi parliament. The session emphasized that the region’s representatives in the federal government are working jointly with regional officials to secure salaries for all Kurdish employees for the 12 months of 2025. To this end, a delegation from the region will meet with the Iraqi Prime Minister to deliver the message that the Kurdistan Region must be dealt with as a federal and constitutional entity.
Commenting on these developments, Ghiyas Sorji, a senior member of the PUK, stated in an interview with Al-Alam Al-Jadeed that “the idea of withdrawing from the political process in Baghdad was raised by one political party only, the KDP. We do not believe in this and will never resort to it.”
Sorji added, “We still consider Baghdad to be the strategic depth of the region, and we remain committed to our relationship and partnership with the forces of the Coordination Framework. Our position is not neutral. We attended the KRG Council of Ministers’ session because we want to know the truth and not just hear media statements.”
He emphasized, “We have attended many meetings with the federal finance minister, and we want to know the opinion of the Kurdistan Regional Government and who is to blame for the salary crisis. The PUK has never issued any statement or remark that insults Baghdad or the government of Prime Minister Sudani.” Sorji noted, “The PUK’s only stance is to stand with our people and try to solve the problems they are facing. We are not siding with one party against another. We believe that the salary crisis will not be resolved through stubbornness; the only solution is dialogue, adherence to the constitution and the law. The other Kurdish parties should have attended the Council of Ministers’ session and clarified their positions.”
Criticism was directed at the PUK for not clearly stating its stance regarding the call for withdrawal from the federal government, with some labeling its position as “neutral.” This came after other parties, including the New Generation Movement, officially rejected the proposal.
It is worth noting that the President of the Kurdistan Region, Nechirvan Barzani, arrived in Baghdad yesterday and participated in a meeting of the State Administration Alliance at the Government Palace, chaired by Prime Minister Sudani and attended by Speaker of the Parliament, Mohammed al-Halbousi. According to a statement issued by Sudani’s office after the meeting, it was emphasized that there is no political stance regarding the issue of salaries for Kurdistan employees, with only technical matters being discussed.
Kurdistan’s Responsibility for Salary Crisis
On the other hand, Sorin Omar, a member of the Justice Party in the Kurdistan Region, told Al-Alam Al-Jadeed that “the Kurdistan Regional Government is responsible for the salary crisis, as it has not handed over its revenue to Baghdad for the past six months, which violates the budget law.”
Omar pointed out that “the opposition parties in the region did not attend the Council of Ministers’ session because we already know the problem. The threat of withdrawal from Baghdad is just media talk and political grandstanding aimed at mobilizing the Kurdish street, which now understands the root of the issue.”
The salary issue remains one of the most prominent unresolved problems between Erbil and Baghdad. The Iraqi government insists that Erbil must hand over its oil to Baghdad, and that exports should go through the federal government. However, the KRG rejects this, leading Baghdad to cut salaries for a large portion of the region’s employees and paying them intermittently and irregularly since 2014. Salaries were completely stopped in October 2017 following the fallout from the independence referendum.
On October 4, 2024, Rebaz Hamlan, the Assistant to the KRG Prime Minister for Economic and Administrative Affairs, accused the Baghdad government of creating various excuses and justifications to delay salary payments, pointing out that the federal Ministry of Finance had some issues with employee lists, particularly with the biometric system, and some promotions within regional government departments.
Criticism of Kurdish Withdrawal Threats
In response, State Administration Coalition member Amer Al-Fayez stated in press remarks that the threats of Kurdish factions withdrawing from the federal government are “mere personal media talk.” He confirmed that salaries for the Kurdistan Region are still being sent monthly and continuously by the federal government in accordance with the agreement. However, the KRG has failed to deliver the 250,000 barrels of oil it exports daily as per the agreement, contributing to the problem.
The region’s employees have faced multiple crises over the past years, leading to a complete paralysis of markets due to delayed salary payments and the implementation of a mandatory savings system by the KRG. This was exacerbated by former Prime Minister Haider al-Abadi’s “austerity” policies and financial disputes between Baghdad and Erbil, resulting in a severe economic crisis.
Political Pressure and Kurdish Threats
Kurdish political activist Farman Karim told Al-Alam Al-Jadeed that “the withdrawal threat is just media pressure aimed at pushing the Iraqi government and exploiting the current situation, especially the pressures facing the government, particularly from the United States.”
Karim continued, “There is a perspective within the ruling parties, especially the KDP, that this is the right time to pressure the Sudani government and threaten withdrawal to embarrass it before the international community. But in reality, the Kurdish parties will never sacrifice their privileges with Baghdad. It will remain nothing more than a threat.”
Regarding the PUK’s position on the withdrawal threat, Karim argued, “The PUK is currently practicing a policy of balancing between both sides. It does not want to lose Baghdad, especially its strategic ally, the Coordination Framework, while at the same time it wants to strengthen its relationship with the KDP, particularly with the formation of the regional government approaching. The PUK is concerned about the KDP potentially forming a government with the New Generation Movement, excluding the PUK.”
In February 2024, the Federal Supreme Court ruled that the Baghdad government must directly pay the salaries of the Kurdistan Region’s employees without transferring funds to the regional authorities, due to delays in salary payments over several months.
Despite various political and technical delegations, including the latest visit of Finance Minister Taif Sami to Erbil, the issue of employee salaries remains fraught with administrative and legal complexities.