Baghdad: The Council of Ministers, under the leadership of Prime Minister Mohammed Shia al-Sudani, convened for its 34th regular session to discuss the nation’s pressing issues and make pivotal decisions. Among the key outcomes of the meeting was the decision to disburse salaries for employees of the Kurdistan Regional Government (KRG), reflecting ongoing financial negotiations between the federal government and the KRG.
According to National Iraqi News Agency, the Council reviewed a detailed report from the ministerial committee addressing financial obligations between the federal and Kurdistan governments. The Ministry of Finance was authorized to release the June 2025 salaries for the KRG, with the regional government committing to pay 120 billion dinars as a non-oil revenue installment, in line with Cabinet Resolution No. 636 of 2025. The Council also established a legal team to resolve disputes concerning non-oil revenues, involving representatives from both federal and regional bodies.
The session further examined the delivery of oil from the Kurdistan Region to the State Oil Marketing Organization (SOMO) for export via the Iraq-Turkey pipeline, stressing the need for immediate action in accordance with the amended federal budget law.
In the realm of energy, the Minister of Electricity updated the Council on the country’s electricity production, which has reached 28,000 megawatts, a significant increase from 19,000 megawatts in 2022. The Council reviewed ongoing and future projects, including solar, thermal, and combined-cycle power plants, and approved an energy cooperation agreement with Siemens Energy. The agreement, part of the 2025 federal budget, empowers the Minister of Electricity to implement cooperation principles with Siemens, bypassing standard government contract procedures.
Investment in power infrastructure was also a priority, with the Council exempting several projects from previous Cabinet resolutions to facilitate their implementation. These projects include the Al-Faw Combined Gas Investment Power Plant and other combined-cycle gas power plants across Iraq, with a cumulative capacity of several thousand megawatts.
In addition, the Council granted the Ministry of Oil’s Middle Refineries Company an exemption from certain procurement regulations, enabling streamlined budget implementation.
The Council also addressed civil defense, approving the establishment of 100 units across Baghdad and other governorates, and improved border control with Syria. Furthermore, the Council sanctioned amendments to the Samarra Capital of Islamic Civilization law, forwarding the draft to the Council of Representatives for consideration.