The Kurdistan Regional Government (KRG) has called on Baghdad to finalize an oil revenue-sharing deal to ensure public sector salaries are paid on time. Officials stressed that both oil and non-oil revenues must be distributed fairly to prevent financial disruptions.
Prime Minister Masrour Barzani chaired a KRG cabinet meeting where ministers reviewed the existing agreement. Under the deal, the Kurdistan Region delivers 195,000 barrels of oil per day to Iraq’s state oil marketer, SOMO. Revenues are deposited into the federal treasury, and Baghdad is required to release monthly payments to Kurdish public employees.
However, no transfers have been made so far, forcing the KRG to cover salaries using its own resources. Cabinet officials noted that the federal government’s annual allocations exceed 4 trillion Iraqi dinars ($3 billion), and all financial records have already been submitted for audit.
The KRG emphasized that delays in revenue-sharing agreements are putting pressure on public finances and could undermine trust between the Region and Baghdad. Ministers stressed that equal treatment of oil and non-oil revenues is essential for stabilizing finances and preventing further disputes.
The cabinet urged Baghdad to continue negotiations through a joint committee to reach a binding settlement. Officials highlighted that a fair and timely revenue-sharing mechanism will strengthen economic stability, ensure timely payment of salaries, and protect public services.
Analysts note that resolving disputes over oil and non-oil revenue distribution is critical for Iraq’s fiscal health. A transparent agreement will also support investor confidence and enhance cooperation between the federal government and the Kurdistan Region.
The KRG’s call underscores the importance of consistent dialogue and prompt implementation of agreements to maintain public sector stability.