ERBIL, Kurdistan Region of Iraq - A top delegation from the Kurdistan Regional Government (KRG) held a meeting with the Iraqi finance ministry on Friday, aimed at resolving outstanding issues between Erbil and Baghdad regarding the Region’s budget share and civil servant salaries.

The KRG delegation was led by Finance Minister Awat Sheikh Janab, while federal Finance Minister Taif Sami headed the Iraqi delegation for the meeting held at Baghdad Hotel.

The budget and salaries of the Kurdistan Region’s civil servants and pensioners were discussed “in a positive and responsible atmosphere” during the meeting, according to a statement from the KRG’s Ministry of Finance and Economy.

“The KRG delegation reaffirmed their readiness for coordination and joint work aimed at reaching a comprehensive solution to consolidate the necessary allocations to ensure the salaries of employees and salaried workers in the Kurdistan Region this year,” read the statement.

The delegations are set to continue their meetings on Saturday “to resolve the remaining technical remarks” until the two sides reach an agreement that would ensure the Region’s salaries for the entirety of 2025, it added.

The January salaries of the Kurdistan Region's civil servants and the retirement income of the Region's pensioners were highlighted during the meeting, according to the KRG finance minister.

“Both sides worked as one team,” said Janab, “we hope the issue is settled tomorrow and salaries are financed by Sunday.”

Salaries of the Kurdistan Region’s civil servants and the Region’s share of the federal budget have long been a point of contention between the federal and regional governments. As of the time of this writing, the KRG has not been able to pay its civil servants their December 2024 salaries, citing Baghdad’s refusal to send the agreed upon amount for said salaries.

Years of conflict and unresolved issues between Erbil and Baghdad, and economic sanctions and pressure on Erbil by federal authorities, have pushed employees in the Region to live from paycheck to paycheck.

The KRG’s financial crisis was exacerbated in the wake of the halt of the Kurdistan Region’s oil exports following a court ruling on a dispute between Iraq and Turkey over Erbil’s independent oil sales.

Earlier in January, Kurdistan Region Prime Minister Masrour Barzani led an irregular meeting of the Council of Ministers with Kurdish ministers in the federal government and heads of parliamentary blocs in the Iraqi parliament, aimed at discussing the next steps for the Kurdish representation in the political process in Baghdad amid ongoing budget issues.

Barzani tasked the Kurdish federal ministers with informing Baghdad that Erbil needs guarantees that 2025 salaries will be paid without any issues and demands its full share of the budget starting 2026, warning of a firmer stance otherwise.