Iraq
The Iraqi ministerial committee on Erbil-Baghdad budget issues meeting on July 9, 2025. Photo: Iraqi planning ministry
ERBIL, Kurdistan Region - Iraq’s newly formed ministerial committee tasked with resolving outstanding disputes between Erbil and Baghdad held its first meeting on Wednesday, focusing on key financial and energy issues, including oil exports, domestic consumption, and public sector salaries in the Kurdistan Region.
The meeting, chaired by Deputy Prime Minister and Minister of Planning Mohammed Ali Tamim, brought together federal and Kurdistan Regional Government (KRG) representatives to address stalled budget transfers and oil obligations, according to a planning ministry statement.
“A review of the two papers submitted by the federal government and the [Kurdistan] Region, where both papers addressed a number of vital topics, foremost among them the oil export file and its regulatory mechanisms, the volume of local consumption of oil products, as well as the region's delivery of the federal treasury's share of non-oil revenues, in addition to discussing the localization of Kurdistan Region employees' salaries” were discussed, the statement said.
On Monday, a senior KRG delegation arrived in Baghdad to resume talks with federal officials over the prolonged financial dispute, which has led to repeated salary delays in the Kurdistan Region. The committee was established on Tuesday following the visit, per a directive by Iraqi Prime Minister Mohammed Shia’ al-Sudani.
The planning ministry said the committee stressed “the importance of continuing technical and administrative discussions regarding these files with the aim of reaching quick, fair, and realistic solutions and treatments that guarantee the rights of Kurdistan Region employees, similar to their colleagues in the rest of the Iraqi provinces, within the framework of the state's unified financial policy.”
Tensions between Erbil and Baghdad flared in late May when Iraq’s federal finance ministry halted all budget transfers to the KRG, including payments for public employee salaries. The ministry claimed the KRG had exceeded its 12.67 percent share of the 2025 federal budget and failed to deliver its designated share of oil to SOMO.
The situation has been exacerbated by the ongoing suspension of oil exports through the Iraq-Turkey pipeline, which has remained offline since March 2023 following an international arbitration ruling.
The committee is tasked with aligning both sides’ demands and drafts to pave the way for a formal agreement.
Hastyar Qadir contributed to this report.
The meeting, chaired by Deputy Prime Minister and Minister of Planning Mohammed Ali Tamim, brought together federal and Kurdistan Regional Government (KRG) representatives to address stalled budget transfers and oil obligations, according to a planning ministry statement.
“A review of the two papers submitted by the federal government and the [Kurdistan] Region, where both papers addressed a number of vital topics, foremost among them the oil export file and its regulatory mechanisms, the volume of local consumption of oil products, as well as the region's delivery of the federal treasury's share of non-oil revenues, in addition to discussing the localization of Kurdistan Region employees' salaries” were discussed, the statement said.
On Monday, a senior KRG delegation arrived in Baghdad to resume talks with federal officials over the prolonged financial dispute, which has led to repeated salary delays in the Kurdistan Region. The committee was established on Tuesday following the visit, per a directive by Iraqi Prime Minister Mohammed Shia’ al-Sudani.
The planning ministry said the committee stressed “the importance of continuing technical and administrative discussions regarding these files with the aim of reaching quick, fair, and realistic solutions and treatments that guarantee the rights of Kurdistan Region employees, similar to their colleagues in the rest of the Iraqi provinces, within the framework of the state's unified financial policy.”
Tensions between Erbil and Baghdad flared in late May when Iraq’s federal finance ministry halted all budget transfers to the KRG, including payments for public employee salaries. The ministry claimed the KRG had exceeded its 12.67 percent share of the 2025 federal budget and failed to deliver its designated share of oil to SOMO.
The situation has been exacerbated by the ongoing suspension of oil exports through the Iraq-Turkey pipeline, which has remained offline since March 2023 following an international arbitration ruling.
The committee is tasked with aligning both sides’ demands and drafts to pave the way for a formal agreement.
Hastyar Qadir contributed to this report.
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