The KRG Ministry of Finance has issued a formal statement addressing recent rumors regarding its delegation's activities in Baghdad.

The Ministry categorically denied allegations that its representatives requested a suspension of salary shipments to the Kurdistan Region.

While the Ministry moved to quash reports of a deliberate halt, it clarified that salary payments are not expected until after the 10th to 15th of the month. This timeline is dictated by the mandatory preparation of the trial balance report, a process that occurs between the 1st and 10th of each month and serves as a prerequisite for the release of funds.

Objectives of the Baghdad Delegation

In an effort to provide transparency, the Ministry detailed the primary agenda items for the recent discussions in Baghdad. The meetings were focused on technical and administrative cooperation rather than the suppression of public sector wages. Key areas of focus included:

• Resolution of customs-related disputes.
• Implementation protocols for the ASYCUDA automated customs system.
• Addressing tax liabilities for companies operating within the Kurdistan Region.
• Coordination on customs exemptions and product protection measures.
• Standardization of quality control procedures.

Regulation of Regional Revenues

The Ministry clarified that discussions regarding non-oil revenues were limited to a side meeting with the Iraqi Minister of Finance. During these talks, the regional delegation advocated for the management of domestic revenues in strict accordance with the federal Budget Law and the Financial Management Law.

Under this framework, the Kurdistan Region is required to transfer 50 percent of its domestic revenues to the federal government, contingent upon the submission of monthly trial balance reports.

Refutation of Salary Suspension Rumors

Addressing the speculation regarding the delayed payments, the Ministry issued a sharp rebuke to parties circulating claims that the delegation had sought to block or stall salary transfers.

"Any individual, party, media outlet, or page claiming that the Region's delegation requested that salaries not be sent is telling a falsehood and a lie," the Ministry stated.

The Ministry further explained the systemic reality behind the payment schedule, noting that revenues are not fully reconciled until the end of each month. Because the monthly trial balance report cannot be finalized until the first ten days of the following month, the necessary data for processing expenditures remains unavailable until that window closes.

The statement concluded by emphasizing that the administrative timing of these reports is a standard fiscal procedure, and that salary disbursements remain subject to the completion of these mandatory accounting cycles.