By Dakok Support Centre | June 2025
The Kurdistan Region of Iraq (KRI) stands at a critical juncture. In a CNN Business report published earlier this year, Prime Minister Masrour Barzani confirmed that the KRG generated $12.9 billion in revenue in 2024, of which a staggering 87% was derived from oil. Despite this significant income, public sector salaries remain unpaid, igniting widespread public outrage and exposing deep structural issues of transparency, accountability, and fiscal governance.
Disparity Between Revenue and Salaries
While the Iraqi federal government transferred all 12 months of salary allocations to the KRG as required by the national budget law, the KRG has only managed to disburse 11 months of payments, leaving tens of thousands of civil servants unpaid as of June 10, 2025. More than 50 days have passed since May salaries were due, exacerbating poverty and diminishing public trust in the government.
KRG’s Ministry of Finance, in a statement issued on 2 January 2025, argued that while 10.75 trillion IQD was received from Baghdad, the Region needed 12 trillion IQD to meet obligations—implying a shortfall. However, critics argue that this explanation is incomplete and misleading, particularly in light of the multi-billion-dollar oil income.
Unaccounted Oil Revenues and False Statements
Numerous members of the Kurdistan Parliament have accused the KRG, particularly the Kurdistan Democratic Party (KDP) leadership, of manipulating oil data and hiding significant portions of revenue from public records.
- Sherko Jawdat, head of the Natural Resources Committee, testified in 2018 that nearly $300 million per month in oil revenue remains unaccounted for.
- In May 2016, MPs Izat Sabr, Ali Hama Salih, and Sherko Jawdat revealed that $1.68 billion had disappeared from official accounts over a ten-month period.
- Reuters (July 2024) reported that over 200,000 barrels per day were being smuggled to Iran and Turkey, generating revenues not declared in official KRG budgets.
- The AP (June 2025) confirmed federal claims that the KRG failed to hand over oil to the national marketer SOMO, while Prime Minister Barzani controversially likened Baghdad’s enforcement measures to “collective punishment” and “mass starvation.”
A Pattern of Misinformation and Deflection
The ongoing dispute between Baghdad and Erbil is further complicated by conflicting narratives:
- The KRG accuses Baghdad of creating “obstacles” and failing to provide regular payments.
- Baghdad counters by stating the KRG failed to meet its legal obligation of transferring oil revenues, violating budget law provisions.
What remains undeniable is that the KRG has consistently failed to disclose a full and accurate account of its oil revenue, despite multiple calls from the Kurdish Parliament and civil society. There is no independent audit or verified financial statement available to the public.
Civil Society Demands Accountability
This pattern of revenue concealment, salary mismanagement, and suppression of dissent has eroded public confidence. Citizens, journalists, and activists report facing intimidation when raising concerns, pointing to a larger culture of political repression and unaccountable governance.
Dakok Support Centre
On behalf of Dakok Support Centre, we strongly condemn the deliberate withholding of public salaries and the persistent lack of financial transparency by the Kurdistan Regional Government. We call on all relevant authorities—particularly the leadership of the KDP and KRG—to release full financial records, end the misuse of oil revenue, and cooperate with independent investigators.
The people of Kurdistan are entitled to accountability, justice, and a government that serves—not exploits—them. We urge both regional and international oversight bodies to press for transparency and to hold those responsible for corruption and financial mismanagement to account.
References
- CNN Business: Kurdistan PM reveals $12.9 billion in 2024 revenue
- Reuters: Kurdish oil smuggling to Iran flourishes
- AP: Public employees in Iraq’s Kurdish region caught in the middle of Baghdad-Irbil oil dispute
- Kurdistan Parliament Proceedings: Sherko Jawdat, Natural Resources Committee (2018, 2016)
- KRG Ministry of Finance Official Statements (2025)
- Iraq Federal Budget Law (2024–2025 Implementation Guidelines)
The situation between Baghdad and Erbil seems incredibly tangled, with both sides presenting their own versions of events. It’s hard to determine who’s in the right when the narratives are so conflicting. Do you think there’s a way to find common ground, or is this just a never-ending cycle of disputes? I wonder what role external actors might be playing in this—could they be fueling the tensions? It feels like a resolution is needed urgently, but how do you even start when trust is so low? What’s your take on the long-term implications of this dispute for the region? Honestly, it’s frustrating to see such divisions persist without a clear path forward.