Erbil, Kurdistan Region – The Kurdistan Democratic Party (KDP) and the Patriotic Union of Kurdistan (PUK) have resolved their political dispute over the MyAccount initiative, a key sticking point in the Kurdistan Region’s financial reforms and government formation talks, according to sources close to the negotiations.

Under the new agreement, oversight of MyAccount will be transferred from the Prime Minister’s Office to the Kurdistan Regional Government (KRG) Ministry of Finance. Additionally, the government will stop deducting fees from civil servants’ accounts, and all contract details with participating banks will be shared with the PUK.

The compromise has led the PUK to drop its opposition to the project, a significant reversal after months of resistance. The party had previously criticized MyAccount as lacking transparency and had instead advocated for the Iraqi federal government’s Tawtin (localization) system, particularly in PUK-dominated areas like Sulaymaniyah.

Launched in March 2023, MyAccount is a digital salary payment system developed by the KRG to enhance transparency, reduce cash transactions, and integrate public sector employees into the formal banking system. It was introduced as an alternative to Baghdad’s Tawtin program, which also aims to replace cash salary payments with bank transfers.

However, political tensions stalled its implementation, with PUK leaders accusing the initiative of concentrating too much authority under Prime Minister Masrour Barzani’s office. During the 2024 election campaign, the PUK actively discouraged civil servants in its strongholds from registering for MyAccount, calling it politically motivated and unreliable.

The deadlock began to ease earlier this year as government formation negotiations opened avenues for compromise. In February, PUK President Bafel Talabani acknowledged constructive discussions with PM Barzani on both MyAccount and Tawtin, signaling a potential breakthrough.

The agreement has already shown tangible progress. As of March, over 732,000 public sector employees in the Kurdistan Region have registered for MyAccount, with more than 405,000 receiving debit cards. Over 550 ATMs have been installed to support the system.

The resolution not only removes a major political hurdle but also demonstrates a growing willingness among Kurdish parties to collaborate on financial and administrative reforms. This comes as the KRG seeks to secure regular budget transfers from Baghdad and improve public service delivery.

The deal marks a critical step toward stabilizing the region’s financial system and fostering inter-party cooperation amid ongoing economic challenges.