On Wednesday, the Kurdistan Regional Government’s (KRG) Council of Ministers said that they had reached an understanding with Baghdad regarding the Kurdistan Region’s financial obligations and commitments.

“KRG Prime Minister Masrour Barzani and Deputy Prime Minister Qubad Talabani briefed the Council on the joint understanding reached with Baghdad the previous day regarding the Kurdistan Region’s financial obligations and commitments,” the KRG’s Council of Ministers said.

“After thorough deliberation, the Council endorsed the agreement and pledged to implement its provisions. In turn, the federal government is expected to honour its commitments concerning the salaries and financial entitlements of the Kurdistan Region.”

In the last few weeks, negotiations between the KRG and the federal government of Iraq have intensified to reach an agreement to resume oil exports via the Iraq-Turkey Pipeline, which were stopped in 2023, and to resume payments by Baghdad to public employees in the Kurdistan Region.

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 over 70 days.

On Monday, the leadership of the Patriotic Union of Kurdistan (PUK) and Kurdistan Democratic Party (KDP) met in Pirmam and agreed to jointly intensify an effort to find a solution to the salary issue.

Also on Tuesday, PUK leader Bafel Talabani and Iraqi Foreign Minister Fuad Hussein, who is also a senior KDP member, met with Iraqi Prime Minister Mohammed Shia’ al-Sudani to find a solution.

So far, there has been no statement made by Baghdad on the preliminary deal.