The Kurdistan Democratic Party (KDP) on Saturday announced they will give Baghdad a final chance to solve the issue of the non-payment of salaries to public employees in the Kurdistan Region.
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In May, Iraq’s Federal Ministry of Finance decided to suspend the salaries of public employees in the Kurdistan Region for this year. As a result, public employees in Kurdistan have not received any pay for 72 days.
“In connection with the ongoing issues between the Kurdistan Region and the federal government of Iraq regarding the unification of the salary, budget, and financial entitlements of the Kurdistan Region, today the Political Bureau of the KDP convened to adopt an appropriate stance,” the Barzani Headquarters said in a statement.
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However, the KDP stated that Iraqi Foreign Minister Fuad Hussein had returned to the Kurdistan Region following discussions with Iraqi political parties, and informed the KDP Political Bureau that the Iraqi government promised to solve the salary issue within the coming days.
Therefore, the KDP said that it is appropriate to give the federal government in Baghdad another opportunity to find a resolution to this issue.
“We have always believed that as long as the path of dialogue exists, we are ready to solve problems through mutual understanding,” the KDP underlined.
Statement from Barzani Headquarters
— KDP ForeignRelations (@kdpfro) July 12, 2025
In the name of God, the Most Gracious, the Most Merciful,
Today, the Kurdistan Democratic Party (KDP) Political Bureau convened to address the ongoing issues between the Kurdistan Region and the Iraqi Federal Government. Dr. Fuad Hussein has… pic.twitter.com/FOYycK6A9Y
The KDP ultimatum comes after failed negotiations between Baghdad and Erbil over salary payments and the resumption of oil exports, which were halted in 2023 due to an international arbitration ruling in Paris.
Mohammed A. Salih, a non-resident Senior Fellow at the Foreign Policy Research Institute and expert on Kurdish and regional affairs, told Kurdistan Chronicle that if this last attempt at dialogue between the KDP and Baghdad fails, the KDP could pull out of federal institutions such as the cabinet and parliament.
“They might hope that will weaken the legitimacy of the al-Sudani government and that of federal institutions at a time of regional turmoil. But in these final months of the government’s term in Baghdad, it’s not clear how effective such a withdrawal will be.”
The Iraqi parliamentary elections are scheduled to be held on November 11, 2025.
Furthermore, Salih said the KDP could unilaterally resume oil exports via Turkey with the Turkish government’s approval. “Such a move, if it were to happen, would shake Baghdad and weaken its regional standing. However, it will make the Kurdistan Regional Government (KRG) more dependent on Turkey.
“So the Kurdistan Region’s dependency dilemma, as a landlocked non-state entity, will not necessarily be resolved. But if the KRG could generate sufficient revenues from energy sales via Turkey to survive economically, that would strengthen their hand considerably vis-a-vis Baghdad,” he concluded.
