ERBIL, Kurdistan Region - The Iraqi parliament said Sunday that “solutions have been reached” on key disputes between Erbil and Baghdad, adding they “will be discussed in the coming days.” The remarks followed meetings between Iraqi Parliament Speaker Mahmoud al-Mashhadani and senior Kurdish officials, including Kurdistan Region President Nechirvan Barzani and Kurdistan Democratic Party (KDP) leader Masoud Barzani.
A statement from the Kurdistan Region Presidency noted that President Barzani and Speaker Mashhadani addressed ongoing issues between the Kurdistan Regional Government (KRG) and the federal government - chief among them, addressing the unresolved salary crisis affecting over 1.2 million public sector employees in the Region “based on [mutual] understandings and the Constitution [of Iraq].”
The two top officials expressed “optimism regarding the [ongoing] efforts and roadmap for resolution,” emphasizing that resolving the salary dossier “is in the interest of all of Iraq.” Mashhadani praised President Barzani’s “positive role and continuous efforts” to bring opposing sides closer together, while President Barzani commended the speaker’s “efforts toward resolution.”
Tensions between Erbil and Baghdad escalated in late May when Iraq’s federal finance ministry suspended budget transfers to the KRG, citing overspending beyond the KRG’s allocated 12.67 percent share of the 2025 federal budget. Kurdish parties have denounced the suspension as unconstitutional and politically motivated.
In a statement, the Iraqi parliament confirmed that Mashhadani and President Barzani held extensive discussions about means to resolve the financial impasse, emphasizing the urgent need to “depoliticize this critical humanitarian issue.” The statement added that "solutions have been reached” with regards to tangled issues between Erbil and Baghdad and that they “will be discussed in the coming days."
The statement reaffirmed the federal government’s commitment to finding practical solutions and quoted Speaker Mashhadani as expressing support for “the citizens of Kurdistan.”
The two officials also voiced readiness for “serious dialogue” and agreed that the Iraqi parliament could play a key role in mediating between Baghdad and Erbil, with the aim of establishing a “harmonious administrative relationship free from political interference.”
Earlier in the day, Mashhadani met with preeminent Kurdish leader and KDP head Masoud Barzani.
A statement from the Kurdish leader’s office highlighted their shared view on the need for swift resolution of the ongoing financial disputes. Both leaders stressed that any solution must be grounded in the Iraqi constitution and guided by “the principles of partnership, balance, and compromise."
They emphasized that “under no circumstances should the livelihoods of [the Kurdistan] Region’s citizens be held hostage to political disputes,” underlining the importance of the immediate disbursement of public sector salaries.
The talks also touched on preparations for Iraq’s upcoming national elections, scheduled for November. The two officials stressed the importance of improved coordination among political parties to address challenges and correct past political missteps.
For its part, the Iraqi parliament also reported that the talks between Mashhadani and the KDP leader focused on the Iraqi legislature’s “commitment to addressing the crisis,” quoting the preeminent Kurdish leader as stating that the Region awaits “practical moves from both [the Iraqi] Parliament and Government” to finalize the salary dossier.
Earlier on Sunday, Mashhadani also met with Kurdistan Region Prime Minister Masrour Barzani, where the salary crisis and broader federal-Regional relations were discussed.
The Iraqi parliament speaker’s visit coincides with ongoing negotiations over the resumption of Kurdish oil exports. Informed sources confirmed to Rudaw last week that the main point of contention is the volume of oil the KRG must deliver to Iraq’s State Oil Marketing Organization (SOMO). While Baghdad is demanding 400,000 barrels per day (bpd), Erbil has proposed starting with 280,000 bpd.
Kurdish oil exports via the Iraq-Turkey pipeline have been halted since March 2023, following a Paris-based arbitration ruling that found Turkey violated a 1973 pipeline agreement by allowing the KRG to export oil independently from Baghdad since 2014.
Reaching a final agreement on oil exports is widely viewed as critical to unlocking federal budget transfers and resuming public sector salaries in the Kurdistan Region.
