Kurdish politician warns of political fallout over Baghdad salary freeze
On X, Zebari described the move as an attempt by the government of Prime Minister Mohammed Shia al-Sudani and the Coordination Framework to 'starve citizens under financial and administrative pretexts.' He added, 'We are not living in an ideal city; history shows the aggressor will be held accountable.'
Tensions between Erbil and Baghdad have escalated over the decision by Iraq's federal finance ministry to freeze May 2025 salary transfers to the Region. Baghdad cited the Kurdistan Regional Government (KRG)'s alleged failure to hand over oil and non-oil revenues as mandated in the federal budget.
The KRG responded by accusing Baghdad of shirking its obligations and described the decision as politically motivated, affecting more than 1.2 million Regional employees.
The US State Department also weighed in, urging a swift and constructive resolution to the payment dispute. In a statement to Shafaq News, a department official said, 'Resolving the payments issue quickly would send a message that Iraq prioritizes its people and create an environment more attractive to investment.' The official added that it could also pave the way for reopening the Iraq-Turkiye pipeline.
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