A high-level Iraqi cabinet committee formed to resolve long-standing disputes between the federal government and the Kurdistan Regional Government (KRG) is set to submit its final report today, signaling potential progress after months of deadlock, according to a report by Baghdad Al-Youm.

The committee, established earlier this month by the Iraqi Council of Ministers, will present its findings ahead of Tuesday’s cabinet session. A source familiar with the negotiations told the outlet that significant progress has been made on key issues, including revenue sharing and public sector salaries.

The source revealed that an agreement has been secured on domestic revenue sharing, with the KRG agreeing to hand over 50% of its internally generated revenues—collected from customs, taxes, and public services—to Baghdad. Additionally, a "semi-agreement" has been reached on salary payments for KRG employees, though discussions continue on whether disbursements will be processed through federal banking channels or regional mechanisms.

The most sensitive unresolved issue revolves around oil exports. The committee is still negotiating the volume of oil allocated for domestic consumption in the Kurdistan Region. While the federal government has proposed 46,000 barrels per day, the KRG insists on 65,000. Despite the gap, the source expressed optimism that a compromise could be reached before the next cabinet session.

The committee is chaired by Planning Minister Muhammad Tamim and includes the ministers of Finance, Health, and Higher Education, alongside two Kurdish ministers: Construction Minister Bengin Rekani (Kurdistan Democratic Party, KDP) and Justice Minister Khalid Shwani (Patriotic Union of Kurdistan, PUK).

The renewed negotiations follow months of tension over halted oil exports, delayed budget payments, and unpaid salaries for KRG civil servants. The dispute escalated in March 2023 when Baghdad stopped KRG oil exports through Turkey’s Ceyhan port after an International Chamber of Commerce ruling favored Iraq’s control over oil sales. The suspension has severely strained the KRG’s finances.

With Iraq’s parliamentary elections scheduled for November, both sides face mounting pressure to reach a comprehensive agreement. A resolution would not only restore financial stability to the Kurdistan Region but also address legal uncertainties and improve relations between Erbil and Baghdad.