ERBIL, Kurdistan Region - Kurdish Prime Minister Nechirvan Barzani and his deputy met with three provincial governors Wednesday morning to discuss the current economic situation in the region and steps the government is taking to overcome the crisis.
The PM said that all countries reliant on oil revenues have felt the impact of falling oil prices, but the decline has done the Kurdistan Region the biggest harm.
Barzani said that a series of crises such as the budget freeze by Baghdad, the war with the Islamic State (ISIS) and the influx of more than 1.8 refugees have put the region in the worst crisis in a quarter century.
He told the governors from Erbil, Duhok and Halabja that, worst of all, were the falling oil prices, and that government expenses exceed income.
The government understands the situation and its impact on people’s lives and therefore would try to run its affairs with what income it has available.
Barzani said, adding that wrong messages in the media have caused confusion and further misunderstanding of the situation.
The Kurdish prime minister said the regional government cannot print money, nor can it borrow.
Barzani said that the Kurdish region has been left alone: It is fighting ISIS on behalf of the world, but the world hasn’t offered Erbil any financial assistance in this conflict.
Barzani said he appreciates the dire situation of government branches and civil departments. He admitted that there have been flaws in the system. and that to overcome them hard decisions have to be made and austerity and reform must be implemented.
Barzani’s deputy Qubad Talabani also addressed the governors and said that, alongside austerity measures, serious reforms have to be introduced too.
Talabani said that much confusion has been caused among people through wrong interpretations and lack of explanation from the government, which should be addressed and made clear to people through the cabinet and its ministers.
Talabani warned that if the price of oil and expenses remain the same, then the situation could only get worse.
He added that the reform plan will entail cutting shadow employments as well as multiple salaries and the introduction of a fair payment system.
He dismissed some media reports which said this week that the government would be only able to pay half salaries from now on, saying that the half salaries paid to the employees of the education ministry was all that was available to the finance ministry.
He added that everyone would be paid their full salaries.
The deputy PM said that transparency would be part of the new reform program that would allow people to have access to information on government revenues and expenses.
At the meeting’s conclusion, it was decided that a workshop will be held for all government ministers, where they will put on the table details of their financial situation to help the government in its plans to solve the crisis.
.webp&w=3840&q=75)