Erbil, Kurdistan Region – The Kurdistan Regional Government (KRG) is preparing a comprehensive written response following the Iraqi federal government’s decision to halt salary payments for public employees in the Kurdistan Region—a move that violates prior agreements and a Federal Supreme Court ruling.

A source within the KRG’s Ministry of Finance and Economy told BasNews that the federal Finance Ministry’s letter was "misleading" and emphasized that the KRG’s rebuttal would be supported by "accurate data." The response, coordinated with the KRG Council of Ministers, is expected to be made public soon.

On Wednesday night, Iraqi Finance Minister Taif Sami confirmed the suspension of salary payments, citing Erbil’s alleged failure to transfer oil and non-oil revenues to Baghdad. The decision has raised concerns in the Kurdistan Region, where public sector employees have faced persistent salary delays.

Dr. Hawre Kamal, a KRG advisor, accused Baghdad of violating a binding agreement reached earlier this year, which guaranteed uninterrupted salary payments for 2025. "These delays are clearly political," he stated.

Narmin Ma’roof, a member of Iraq’s Parliamentary Finance Committee, dismissed the federal government’s justification as "legally baseless" and vowed to pursue "all constitutional and parliamentary measures" to resolve the issue.

Tensions between Erbil and Baghdad have escalated due to repeated delays in disbursing the Kurdistan Region’s share of the federal budget. Despite a Federal Supreme Court ruling mandating Baghdad to ensure full salary payments for 2025, funds have not been delivered consistently.

Kurdish officials maintain that the KRG has met its obligations, including transferring oil and non-oil revenues, and argue that the delays are politically motivated rather than technical.

The KRG’s forthcoming response is expected to challenge Baghdad’s claims and demand adherence to legal and financial agreements.