Channel8 has conducted an in-depth review of the Kurdistan Region's financial situation, revealing a substantial decrease in both domestic revenue and oil exports. 

The investigation indicates that internal revenue has plummeted by 70%, with non-oil income dropping from approximately 320 billion dinars to between 120 and 150 billion dinars.

This decline is primarily attributed to the implementation of the ASYCUDA system, changes in customs duties, and a decrease in oil production.

Oil Production Severely Impacted

Oil production has suffered due to ongoing drone and missile attacks, as well as the withdrawal of foreign oil companies from the fields. 

Currently, oil fields such as Taq Taq, Khurmala, and Hasira are producing around 20,000 to 25,000 barrels per day.

Reduced Oil Exports and Market Re-Engagement

The Kurdistan Region's total oil exports, including Kirkuk oil to the Port of Ceyhan, are estimated between 250,000 and 280,000 barrels daily.

Erbil and Baghdad, brokered by the U.S., reached an agreement on March 17 to allow Iraqi oil to be transported through the Kurdistan pipeline to Turkey, in response to declining exports caused by regional conflict and the closure of the Strait of Hormuz.

Financial Obligations and Salary Payments in Question

Regarding financial obligations, the KRG informed Baghdad that it is unlikely to transfer the full 120 billion dinars from non-oil revenue to the Iraqi Ministry of Finance for March.

Despite this shortfall, sources indicate that the region is prepared to meet salary payments for public sector employees, with no immediate disruptions expected. 

Procedural Challenges and Pending Documentation

The KRG must still adhere to a set of procedural steps, including submitting non-oil revenue reports, payroll lists, and a formal letter from the Iraqi Oil Ministry to the Finance Ministry regarding commitments to oil deliveries to SOMO.

The only potential obstacle to the March payment is the transmission of this letter, which is currently pending.

Government Confidence Despite Revenue Shortfalls

The Iraqi government has been notified of the revenue shortfall, but authorities remain confident that salary payments will proceed without issue this month.