PM Barzani pushes for majority government as salary crisis deepens

Shafaq News

3 days ago

Shafaq News/ Kurdistan Region Prime Minister Masrour Barzani said Wednesday that the Kurdistan Democratic Party (KDP) and the Patriotic Union of Kurdistan (PUK) are working together to form a new majority government, as tensions rise over an intensifying salary crisis that has left public sector workers unpaid for more than six weeks.
Speaking at a press conference in Erbil, Barzani said both ruling parties had reached a common understanding on the framework for the next cabinet. 'We have made serious efforts to form a majority-based government and remain in continuous dialogue,' he stated. 'There is no constitutional vacuum, and our doors are open to all political forces willing to participate.'
Barzani also addressed the worsening salary dispute with Baghdad, saying a breakthrough may be near following direct conversations with Iraqi Prime Minister Mohammed Shia al-Sudani and Supreme Judicial Council head Faiq Zaidan. 'For two months, Kurdistan Region salaries have not been paid per the law. This is unconstitutional,' he said. 'We reject the politicization of salaries and any attempt to use them as leverage.'
He revealed that a federal delegation is expected in Erbil within days to begin negotiations. 'We are optimistic,' he said. 'But if a solution isn't reached, we will fall back on internal revenues and spending cuts to protect the financial rights of our people.'
As of Wednesday, civil servants and pensioners in the Kurdistan Region had entered their 42nd day without receiving May 2025 salaries. The last federal transfer—covering April wages—was made on May 13 and distributed by the KRG within four days. Since then, no additional payments have been issued, despite mounting pressure during Eid al-Adha and rising living costs.
Official sources told Shafaq News that Wednesday's weekly cabinet meeting would focus almost entirely on the salary crisis, amid growing public unrest and labor strikes.
The standoff deepened after a May 28 letter from Iraqi Finance Minister Taif Sami notified the KRG that Baghdad could no longer continue salary payments, citing a breach of the Region's 12.67% budget allocation. The letter claimed that although the Kurdistan Region had generated approximately 19.9T IQD(about $15 billion) in oil and non-oil revenues between 2023 and April 2025, it had only transferred 598.5B IQD (around $457 million) to the federal treasury.
Amid the financial strain, an internal KRG finance directive dated June 23 ordered a suspension of all government expenditures for two months beginning June 24, citing 'severe financial conditions.'
Efforts to resolve the issue through Iraq's Federal Supreme Court collapsed earlier this month when nine judges — including six principal members — resigned on June 16 over internal disputes. Shafaq News has learned that the resignations effectively halted a pending legal order that might have forced Baghdad to resume salary payments. The case had been filed by Kurdistan Region employees seeking emergency intervention from the court.
The political deadlock has fueled public frustration across the Region. On Tuesday, staff at Halabja General Hospital staged a walkout to protest unpaid wages. In al-Sulaymaniyah, teachers planned demonstrations, though local security authorities urged postponement due to ongoing regional instability.
Political analyst Hawri Karzan called on the KRG to form a unified delegation representing all major parties and head to Baghdad for direct talks. 'The lack of a cohesive position is allowing Baghdad to delay action,' he warned.