Dilan Ghafoor, an Iraqi lawmaker and spokeswoman for the Patriotic Union of Kurdistan (PUK) bloc in parliament, stated that the exact timing for sending Kurdistan Region public sector salary payments remains unknown, though they are expected before the Iraqi Prime Minister's visit to the United States.

Speaking to Channel8 in an interview, Ghafoor stressed that there is currently a “severe financial crisis” in Iraq. 

She noted that the suspension of oil exports through the Strait of Hormuz has triggered the current situation, leaving the Ministry of Finance with a critical cash shortage. 

Ghafoor emphasized that although the payment timeline is still unconfirmed, the decision to disburse salaries is expected before Ali Faleh al-Zaidi's trip, which is scheduled to take place tomorrow.

According to the lawmaker, the Minister of Finance will not apply any deductions to this month's salary funds. 

KRG-Baghdad Revenue Transfer Disputed Amid Crisis 

The financial agreement between the Kurdistan Regional Government (KRG) and Iraq mandates that Erbil must hand over 120 billion Iraqi dinars in monthly non-oil revenues to Baghdad in exchange for public sector salary funding. 

The federal government successfully deposited the May salary funds into the account of the KRG Ministry of Finance; however, the June payroll remains pending.

Kurdish domestic non-oil revenues have declined significantly in recent months, leading to a financial dispute with Baghdad over the fixed 120 billion dinar monthly treasury transfer. 

Meanwhile, Iraq’s oil production dropped sharply by roughly 60% to 80% earlier this year due to the regional war against Iran and the closure of the Strait of Hormuz.

Iraq Pursues Economic Reforms as al-Zaidi Heads to U.S. 

Lawmaker Dilan Ghafoor highlighted earlier that the Iraqi Ministry of Finance has submitted six drafted bills to the Finance Committee aiming to boost revenues through investment, agricultural, and property reforms, alongside employee leave programs designed to lower public wage expenditures. 

In the meantime, al-Zaidi is traveling to Washington to sign multiple strategic energy agreements aimed at securing major U.S. investments to boost oil and gas production, expand electricity infrastructure, and build alternative export routes.