Baghdad: The Parliamentary Finance Committee has assured political and parliamentary circles about the execution of the agreement with the Kurdistan Region concerning oil revenues and the salaries of the region’s employees. The federal government is committed to ensuring the agreement’s implementation.

According to National Iraqi News Agency, MP Moeen Al-Kadhimi stated that the federal government has established a high-level committee led by the Minister of Planning. This committee is tasked with overseeing the entitlements of the Kurdistan Region’s employees and managing the transfer of oil revenues from the region’s fields to the federal budget.

Al-Kadhimi mentioned that the government has put forward a plan to resolve the ongoing crisis with the region. This plan includes the Kurdistan Region’s obligation to adhere to Article (12 / Second / C) of the Federal Budget Law and to resume the export of 400,000 barrels of oil per day under SOMO’s supervision, with the government covering an extraction cost of $
16 per barrel.

He further clarified that the region is currently exporting approximately 250,000 barrels per day unofficially, with the destinations of the revenues remaining unknown. The annual total value of these exports for the years 2023-2025 is estimated at about 4.8 trillion dinars, yet only 700 billion dinars have been transferred to the federal government. Additionally, non-oil revenues, such as border-crossing fees and taxes estimated at 4.7 trillion dinars annually, have not been transferred to the federal treasury. The salary localization program for Kurdistan Region employees in state banks also remains incomplete.

Al-Kadhimi emphasized that the ministerial committee will monitor and assess the agreement’s implementation with the region. It will address any arising obstacles due to the region’s failure to meet its financial obligations, in collaboration with the Federal Board of Supreme Audit, the Ministry of Finance, and the Central Bank.