ERBIL, Kurdistan Region - The long-standing salary issue facing civil servants in the Kurdistan Region is expected to be resolved in the new year, though disputes between Baghdad and Erbil over internal revenue-sharing will require more time, a Kurdish minister in the Iraqi government said on Thursday.
“Salaries are much better now; everything is clear,” Iraq’s Minister of Construction and Housing, Bangin Rekani told Rudaw, adding that disagreements remain over the calculation and handover of domestic revenues to Baghdad.
Rekani explained that negotiations between technical teams from the federal government and the Kurdistan Regional Government (KRG) have been delayed due to recent federal elections and the absence of a designated prime minister.
He noted that in the absence of a federal budget law, government spending is limited to “one-twelfth of what was spent the previous year,” a mechanism that covered only 10 of the 12 monthly salaries for Kurdistan Region civil servants.
Rekani confirmed that January salaries will be paid on time, while the unpaid salaries for November and December of last year remain unresolved.
For more than a decade, public sector employees in the Kurdistan Region have faced salary delays, partial payments, and deductions due to recurring financial disputes between Erbil and Baghdad. As in previous years, employees received only 10 months’ pay in 2025, with the final two months still unpaid as both sides continue to blame each other.
Iraqi government formation
Addressing the formation of the next Iraqi government and Kurdish representation in Baghdad, Rekani said the Kurdistan Democratic Party (KDP) Politburo will meet on Saturday to decide whether to nominate a candidate for the presidency, who that candidate would be, and whether an agreement can be reached with the Patriotic Union of Kurdistan (PUK).
“It is much better if we go [to Baghdad] together,” Rekani said. “It is better for the Kurds, better for the KDP, better for the PUK, and better for all Kurdish parties.”
He added that other Iraqi political factions, including Shiite parties, are encouraging Kurdish unity to ensure the formation of a stable government.
“The next phase in Iraq is very difficult,” he said, citing economic challenges and regional changes.
Earlier this week, the Iraqi parliament elected its speaker and deputy speakers, opening a three-day window for political parties to submit candidates for the largely ceremonial position of president. Since the 2003 US-led invasion, the presidency has traditionally been held by the PUK, though the KDP is also seeking the post.
Regarding ministerial portfolios, Rekani said the KDP may not retain the foreign ministry, a key sovereign position historically held by Kurdish parties. He noted that “some Shiite parties want to take back the foreign ministry and give the finance ministry to the Kurds,” describing the latter as a “very heavy” responsibility.
“If you want reform, it starts with finance,” Rekani said, adding that many Shiite parties “may not want to carry that burden.”
Discussing Iraq’s broader financial challenges, Rekani pointed to outdated oil revenue structures and systemic inefficiencies. “Iraq produces 3.5 million barrels of oil per day—the same amount as when the population was seven million. Now it is 46 million,” he said. “Every month, eight trillion dinars [over $6.1 billion] are paid in salaries, while monthly revenues do not even reach that amount.”
Despite the strain, Rekani stressed the importance of Kurdish participation in the federal government. “It is heavy, but we are part of Iraq,” he said. “If there is a financial crisis in Iraq, we lose, and our people lose. We must participate in reform with a serious vision and real involvement.”