Baghdad – The Kurdistan Regional Government (KRG) has confirmed a new deal with Baghdad. This deal focuses on resolving the issue of public sector salary payments. For months, government employees in the Kurdistan Region have struggled without timely wages. This agreement marks a key development in the ongoing financial crisis.
On Wednesday, KRG Prime Minister Masrour Barzani led a cabinet meeting in Erbil. Deputy Prime Minister Qubad Talabani also attended the session. During the meeting, officials reviewed the economic situation and shared the results of talks with federal leaders.
The cabinet approved a new “joint understanding” with Baghdad. This deal includes commitments on oil and non-oil revenues. It also promises urgent financial support to the Kurdistan Region. According to the KRG, Baghdad has agreed to send the delayed salaries and other entitlements soon.
This announcement comes as KRG employees continue to wait for their May wages. As of mid-July, those salaries are nearly 80 days late. The financial pressure on public workers has grown worse each month.
Leaders from both the Kurdistan Democratic Party (KDP) and the Patriotic Union of Kurdistan (PUK) worked together before the deal. On Tuesday, PUK President Bafel Talabani met Iraqi Prime Minister Mohammed Shia Al-Sudani in Baghdad. They stressed the need for joint coordination and legal compliance. The goal was to solve outstanding financial disputes.
That same day, a four-hour meeting was held in Erbil. KDP President Masoud Barzani and Bafel Talabani discussed strategies before their Baghdad visit. Their goal was to present a united Kurdish front during negotiations.
Tensions between Erbil and Baghdad peaked in May. The federal government halted monthly budget transfers to the KRG. Officials in Baghdad accused the KRG of overspending its 2025 allocation. They also claimed the KRG failed to share reliable revenue data.
The KRG has firmly denied those allegations. Leaders insist the regional government has followed its constitutional duties. They believe the latest deal will restore stability in public sector salary payments.
The agreement is expected to improve federal-regional relations. It also brings hope to thousands of unpaid workers. For now, KRG employees await action following this latest step toward financial resolution
