The Council of Ministers of the Kurdistan Region convened on Wednesday under the chairmanship of Prime Minister Masrour Barzani and in the presence of Deputy Prime Minister Qubad Talabani, discussing key economic and social reforms, including customs modernization and retirement benefits for private sector workers.

During the first item on the agenda, the Council reviewed a summary of the joint memorandum signed on June 18, 2026, in Baghdad between the Federal Customs Authority and the Kurdistan Region Customs Directorate regarding the implementation of the ASYCUDA customs management system. A technical committee from the Kurdistan Regional Government presented details of the memorandum and the preliminary agreement reached between the Federal Government and the Kurdistan Region.

The Council emphasized the importance of the agreement, noting that it aims to unify customs procedures across Iraq, digitize customs operations, enhance transparency in border customs revenues, increase public revenues, reduce bureaucracy, and facilitate trade through border crossings. The Kurdistan Regional Government reaffirmed its support for these reforms.

To advance the process, the Council tasked the Ministries of Finance and Economy, Trade and Industry, Interior, Planning, Agriculture and Water Resources, and Health, along with the Investment Board and the Information Technology Directorate, with coordinating closely with their federal counterparts. The objective is to finalize preparations for approval of the agreement at the upcoming meeting of the Economic Ministerial Council, which a high-level Kurdistan Region delegation is expected to attend in Baghdad next week.

The Council also urged the Federal Government to convene the Economic Ministerial Council as soon as possible to complete the approval process and begin implementation. Officials stated that the agreement would contribute to increasing public revenues, improving services for citizens, and strengthening constitutional and legal relations between federal institutions and the Kurdistan Region.

In the second item of the meeting, the Council discussed retirement and social security reforms for private sector workers.

Minister of Labor and Social Affairs presented a report highlighting recent reforms, including the digitization of social security procedures, activation of the Social Security Fund, restoration of pension deductions for workers, employer contributions to the fund, activation of employment offices, expansion of vocational training programs, and initiatives to create employment opportunities for young people.

According to the report, these measures have led to nearly 64,000 registered projects and increased the number of insured workers to approximately 320,000. The reforms have also encouraged greater participation in the private sector while providing workers with retirement and end-of-service benefits guaranteed by law.

The Minister proposed setting the minimum monthly pension for private sector workers at 500,000 Iraqi dinars.

Prime Minister Masrour Barzani and Deputy Prime Minister Qubad Talabani commended the Ministry of Labor and Social Affairs for its achievements in implementing the government's reform agenda. They noted that the ministry, with the support of the Prime Minister’s and Deputy Prime Minister’s offices, has made significant progress in strengthening social protection and employment programs.

Following discussions, the Council of Ministers unanimously approved the proposal to establish a minimum monthly pension of 500,000 Iraqi dinars for private sector workers. The decision is intended to strengthen social security protections, support workers’ rights, promote employment in the private sector, and further align retirement benefits between private and public sector employees.