On Thursday, 16 January, 2025, the Kurdistan Regional Government (KRG) delegation to Baghdad met with international and diplomatic envoys based in the Kurdistan Region to address pressing issues related to the budget and oil exports.

Peshawa Hawramani, spokesman for the KRG, emphasised that from the beginning of this dispute with the federal government, the KRG has maintained full transparency regarding finance and oil. Hawramani stated that the negotiation team aimed to provide a clear picture of the ongoing situation between the KRG and the federal government.

He noted that during the meetings in Baghdad, the delegation had explained the challenges surrounding public sector salaries, presented accurate financial information, and stressed the urgent need for a resolution this year. Hawramani further indicated that if the issue persists, the Kurdistan Region will be compelled to adopt its own position.

The spokesperson also highlighted that the ministers of Finance and Natural Resources, along with the KRG’s Chief of Staff, presented detailed information about the discussions and negotiations held between the KRG and the federal government. They reiterated the KRG’s readiness to seek solutions for these critical issues.

Safeen Dizayee, head of the KRG's Department of Foreign Relations, pointed out that the passing of the three-year Public Budget Act in 2023-2024 was intended to resolve the financial entitlements of the Kurdistan Region, particularly the public sector salaries, as stipulated by law and the agreements between Erbil and Baghdad. However, he noted that the financial allocation provided to the Region thus far has been insufficient to even cover salaries.

Dizayee explained that the suspension of oil exports from the Kurdistan Region has resulted in losses exceeding $22 billion to both the Iraqi and Kurdistan Region budgets. He also highlighted that while numerous meetings and negotiations have taken place between Erbil and Baghdad, the central government has failed to properly implement the agreements. Furthermore, he criticised the central government for presenting a distorted narrative to the public in both Iraq and the Kurdistan Region.

Of particular concern, Dizayee noted, was the fact that some of the parliamentarians from the Kurdistan Region in the federal parliament have unfortunately echoed these false narratives and statistics. He stressed that the people of the Kurdistan Region have endured two difficult years and must not face similar hardships in 2025.

Dizayee underscored the importance of holding this meeting with diplomatic envoys in the Kurdistan Region to address these challenges.