Wednesday, August 27, 2025

Kurdistan Salaries: Baghdad Sends Funds — But With Strings Attached!

The payment letter is presented to Taif Sami

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Iraqi Finance Minister Taif Sami has been appointed to pay the sixth month salaries of the Kurdistan Regional Government (KRG). Meanwhile, 120 billion dinars of Kurdistan's domestic revenue will be handed over to the Erbil branch of the Central Bank of Iraq.

The video for this My FX Buddies Blog is below here:

 

Big picture: The Iraqi Council of Ministers met on Tuesday. Iraqi Prime Minister Mohammed Shia Sudani decided to pay the sixth month salaries of the Kurdistan Regional Government (KRG) employees, provided that the Kurdistan Region pays 120 billion dinars of domestic revenue to Baghdad.

 

Ava information: Ava has learned that the 120 billion dinars have been prepared and collected in the Kurdistan Region. If administrative procedures are not completed today, the process will move to Thursday.

 

Sending 120 billion dinars of domestic revenue as a condition set by Iraq to send more than 950 billion dinars for the sixth month salaries of Kurdistan Regional Government employees.


What is expected: After the handover of the 120 billion dinars, the procedures for sending money from the Iraqi Ministry of Finance and the Central Bank will begin. If the administrative routines and all the paperwork are completed quickly, the money is expected to be sent on Thursday. Conversely, if it is delayed, the process will fall on the following Sunday, the 31st of the month.


Meanwhile, the Ministry of Finance and Economy of the Kurdistan Region of Iraq (KRG) told Ava that the salary distribution schedule will be announced in a few hours and the distribution will start the next day. The distribution schedule will be similar to previous months and all employees are expected to receive their salaries within three to four days.

 

On the other hand , more than 400,000 employees receive their salaries through ATMs.


Although Baghdad has agreed to pay the sixth month salary, but the two governments have not yet reached an agreement on domestic revenue, and oil exports have not started, which means that the salary problem has not been resolved .


Rafidain Bank: Approximately 87% of foreign debt settled

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Rafidain Bank announced today, Tuesday, the completion of settling about 87% of the foreign debt file, as a statement from the bank stated that “the bank announced a new step that embodies its firm commitment to international credibility and consolidating confidence in the Iraqi financial sector, confirming the previous announcement regarding Rafidain Bank’s achievement of settling about 87% of the foreign debt file and achieving a major negotiating breakthrough with major Dutch and French creditor companies in accordance with Cabinet Resolution No. (403) of 2025.”

The statement added, "The bank, through its legal and international team, was able to close all lawsuits filed by Dutch companies before the Curaçao Court after reaching final legal settlement agreements. The settlement contracts were officially filed in the lawsuit files and announced in accordance with approved international judicial frameworks."

The statement continued, "This step complements the tireless efforts made by the Iraqi government and the General Administration of Rafidain Bank to settle old obligations and strengthen Iraq's legal and financial position before international courts, thus consolidating the bank's image as a sovereign arm capable of protecting the state's interests and managing its foreign affairs with the highest levels of professionalism and governance."

He also stressed that "what has been achieved today reinforces Rafidain Bank's strategic path toward fully closing its foreign debt portfolio and sends a clear message to the international community that Iraq is steadfastly pursuing financial reform and strengthening confidence in its economic sovereignty."

Rafidain Bank closes Dutch lawsuits

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Rafidain Bank announced today, Tuesday, the closure of the Dutch lawsuits and the continuation of its achievements in settling foreign debt.

A statement issued by the bank stated, "In confirmation of the previous announcement regarding Rafidain Bank's achievement of settling about 87% of the external debt file and its achievement of a major negotiating breakthrough with the major Dutch and French creditor companies pursuant to Cabinet Resolution No. (403) of 2025, the bank announces today a new step that embodies its firm commitment to international credibility and consolidating confidence in the Iraqi financial sector."

He added, "The bank, through its legal and international team, was able to close all lawsuits filed by Dutch companies before the Curaçao Court after reaching final legal settlement agreements. The settlement agreements were officially filed in the lawsuit files and announced in accordance with approved international judicial frameworks."

This step, according to the statement, "continues to complement the tireless efforts made by the Iraqi government and the Rafidain Bank's general management to settle old obligations and strengthen Iraq's legal and financial position before international courts, thus consolidating the bank's image as a sovereign arm capable of protecting the state's interests and managing its foreign affairs with the highest levels of professionalism and governance."

The statement concluded, "What has been achieved today reinforces Rafidain Bank's strategic path toward fully closing its foreign debt portfolio and sends a clear message to the international community that Iraq is steadfastly pursuing financial reform and strengthening confidence in its economic sovereignty."


Economic Institution: Central Bank Reforms Boost Investor Confidence and Open the Way to Global Markets

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Economic Institution: Central Bank Reforms Boost Investor Confidence and Open the Way to Global Markets

Khaled Al-Jaberi, Chairman of the Osool Foundation for Economic and Sustainable Development, affirmed on Tuesday that the reforms led by the Central Bank are fundamental and have contributed to transforming the banking sector from a restricted reality to one open to the world. He explained that these steps will open up broad horizons for Iraqi banks and positively impact the overall economic and investment activity in the country.

Al-Jaberi told the Iraqi News Agency (INA): "The current reforms have transformed the banking sector from being restricted and deprived of dealing in dollars to a sector capable of opening correspondent banks and restoring its international relations, which will directly reflect on improving banking services and stimulating economic activity in Iraqi markets."

He added, "Iraqi banks welcomed these reforms because they are an indispensable necessity. The banking sector is suffering from numerous problems, and a comprehensive reform is needed to ensure the ability to conduct international transactions and ensure the freedom to trade in dollars."
He explained that "the investment environment in Iraq has become attractive thanks to the security stability, and this has prompted investors to enter the Iraqi market." He explained that "investors are always looking for two basic answers: the status of the banking sector and the country's tax system. If reassurance is achieved in these two aspects, investments begin to flow."

Al-Jaberi pointed out that "banking reforms will lead to broader relationships with correspondent banks, putting Iraq on the path to opening up to the global market and facilitating the transfer of funds in line with international standards."
He continued, "Financial technology and digital transformation are a fundamental pillar of these reforms, as they are not limited to banking policies alone, but rather encompass all aspects of banking operations. This positively impacts all economic sectors, such as agriculture, industry, and tourism, and contributes to facilitating the movement of funds and trade both domestically and internationally."

Earlier, Central Bank Governor Ali Al-Alaq confirmed that the banking reform plan would boost international confidence and restore relations with correspondent banks.

Economist: The 2026 budget cannot be replaced by a law similar to food security.

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Economist: The 2026 budget cannot be replaced by a law similar to food security.

 

Economic expert Bassem Jamil Antoine asserted that the 2026 budget cannot be replaced by a law similar to the Food Security Law, emphasizing the importance of submitting the annual budget on time to ensure the smooth running of financial operations.

Antoine told Euphrates News: "The 2025 budget schedules face challenges, and the final accounts and disbursements of funds cannot be replaced by alternative laws, as the budget is the primary legal framework for disbursing salaries and other government expenditures." 

He pointed out that "disbursements are practically being made according to a 1/12 mechanism of the annual budget, and this percentage is ongoing and will not cease, even with attempts to ensure salaries are paid from the state's non-oil revenues to compensate for any shortfall in oil revenues."

Antoine explained that "relying on non-oil revenues to mitigate the effects of budget delays is no substitute for submitting the annual budget on time," emphasizing that "any delay could lead to financial and administrative problems that would impact the stability of public expenditures and services provided to citizens."




Banking consultant: The Iraqi banking sector faces unprecedented challenges.

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Private banking advisor Sherwan Anwar told Kurdistan 24 that the Iraqi banking sector is currently facing major challenges that require radical reforms. He emphasized that banks are the "backbone of any productive economy," and that their success is linked to integration with the global banking system.

Structural crisis in the banking sector

Anwar explained that the Iraqi banking sector is still far from international standards, explaining:

"The truth is that the banking sector in Iraq suffers from accumulated problems, including political interference, weak management, and the absence of real governance, which has directly impacted its ability to perform its economic role."

He pointed out that reform requires joint efforts between the Central Bank, the government, and international institutions, emphasizing that the plan, developed with support from the World Bank and several global companies, is "very tough" and requires strict commitment from all parties.

Central Bank Reform Plan

Anwar spoke about the Central Bank of Iraq's plan, which includes:

Increasing banks' capital to 400 billion dinars.

Bank merger procedures to address challenges and increase competitiveness.

Establishing digital banks and adopting technological infrastructure.

Applying international governance standards and auditing the independence of boards of directors.

He added that the plan also aims to prevent the entry of illicit funds into the financial system and combat money laundering, noting that the government and the Prime Minister are directly supervising this reform process.

The role of international institutions and a sovereign wealth fund

Anwar revealed that international institutions have made recommendations to address the challenges, including establishing a sovereign or national fund to support banks and increase their capital through contributions from local and foreign investment companies, and even oil companies.

He explained that this fund could contribute to raising the prices of local bank shares, making them more attractive to investors and citizens. However, he emphasized that its success requires "flexible timing and clear political will."

Anwar warned that the plan's rapid implementation without taking into account political and economic conditions could harm the reputation of Iraqi banks both locally and internationally. However, he emphasized that:

"The opportunity still exists if the government cooperates with the Central Bank, banks, and investment institutions. Only then can a banking sector be built that protects state and citizen assets, supports small and medium-sized enterprises, and integrates with the global financial system."


Iraq faces internal debt... The economic advisor reveals 92 trillion dinarsand gradual solutions to eliminate it!

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The Prime Minister's economic advisor, Mazhar Mohammed Salih, confirmed that Iraq's financial situation is relatively stable regarding its debts. He pointed out that external debt does not exceed worrying levels, while the public debt-to-GDP ratio remains within internationally safe limits, with fiscal and monetary policies being adopted to manage and gradually reduce liabilities.

In an interview with Al-Mada, Saleh said, "Iraq's external debt is 'very comfortable,' as it does not exceed $9 billion, including the remnants of the Paris Club debts from 2004 and some foreign commercial debts, which are expected to be fully settled by 2028."

He added, "Similar loans have been provided by development funds for the reconstruction of liberated areas and elsewhere, and they will be repaid over the next decade. He emphasized that the federal general budget adopts a precise and transparent mechanism for managing and settling these obligations, which has strengthened the stability of Iraq's credit rating at (B) over the past ten years."

Saleh pointed out that "external public debt does not exceed 7 to 8% of GDP, a level well below the safe international standard ceiling that allows debt to reach 60% of GDP."

The economic advisor noted that "the crises facing the Iraqi economy since 2014, as a result of fluctuating oil prices and other external factors, have pushed the government to borrow domestically from the local banking market, raising the domestic public debt to approximately 92 trillion Iraqi dinars. He noted that 47% of this debt remains within the Central Bank of Iraq's investment portfolio, fully covered by cash and foreign reserves."

Saleh stressed that "total public debt, both domestic and external, does not exceed 35 to 40 percent of GDP, keeping it within the safe international range." He emphasized that "there is high coordination between fiscal and monetary policy with the aim of gradually and comfortably extinguishing domestic debt, noting that 95 percent of this debt is concentrated within the government banking system, and that the government is continuing to implement precise plans to reduce it within the objectives of the current government program."

Iraq relies heavily on oil revenues, which account for approximately 90% of the state budget. This makes the economy vulnerable to fluctuations in global oil prices, thus affecting domestic and foreign borrowing.

Domestic borrowing has increased significantly in recent years due to the decline in oil prices and the security and economic crises that followed the liberation of areas from ISIS, in addition to the need to finance infrastructure and reconstruction projects.

The central bank's cash reserves and the presence of a large portion of domestic debt within its investment portfolio give the government greater leeway to manage domestic debt without directly impacting market liquidity.

Iraq's credit rating of 'B' reflects the country's stable ability to meet debt repayments, but it still indicates moderate challenges in attracting foreign investment.

Current government policies aim to gradually reduce reliance on domestic borrowing and boost non-oil revenues, as part of plans to manage public debt in line with international standards.




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Iraqi PM Reveals U.S. Warning Against Armed Groups if PMF Bill Proceeds

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The Coordination Framework, which convened on August 22, ultimately decided to suspend the bill. Instead of pushing for new legislation, the government plans to issue guidelines aimed at addressing obstacles stemming from the 2016 law that originally formalized the PMF.

Iraqi Prime Minister Mohammed Shia al-Sudani. (Photo: Designed by Kurdistan24)

Iraqi Prime Minister Mohammed Shia al-Sudani has told members of the Coordination Framework that Washington warned Baghdad it would target 16 bases of armed groups in Baghdad and other provinces if parliament proceeds with the Popular Mobilization Forces (PMF) bill, Iraqi media reported.

The Coordination Framework, which convened on August 22, ultimately decided to suspend the bill. Instead of pushing for new legislation, the government plans to issue guidelines aimed at addressing obstacles stemming from the 2016 law that originally formalized the PMF.

The Iraqi parliament also released its weekly agenda, which notably did not include the PMF bill, suggesting it will not be discussed during any of the three scheduled sessions this week.

Political sensitivities

Haider Barzanji, a political analyst, told Kurdistan24 that the bill has not been formally withdrawn and remains in parliament, but the timing of the debate is seen as unsuitable.

“The unity of Iraq and its communities is one of the priorities of the Coordination Framework,” Barzanji said, adding that non-Shiite parties would likely boycott any discussion.

He also denied suggestions of new threats from Washington against the “Resistance Front,” saying such warnings are not new but reflect regional sensitivities.

U.S. pressure and Shiite divisions

Several Iraqi politicians acknowledged that Shiite parties recognize the seriousness of U.S. pressure, which influenced the decision to suspend the bill to avoid a direct confrontation with Washington.

However, the move has sparked frustration among parts of the Shiite base, as many PMF members and their families had hoped for legislation that would strengthen the group’s legal and financial standing.

Mohammed Shamari, a member of parliament’s Security and Defense Committee, accused foreign actors of deliberately creating obstacles to prevent the passage of the bill.

For his part, MP Jawad Yasari pointed out that divisions within Shiite ranks, coupled with opposition from the Kurdish and Sunni blocs, played a significant role in halting the legislation.

 

 

U.S. Troop Convoy Leaves Ain al-Asad Base for Syria Amid Gradual Withdrawal from Iraq

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The source told Kurdistan24 that the convoy departed in the early hours of Tuesday, in line with the US administration’s recent directive to withdraw all troops from both Ain al-Asad and Baghdad’s Victoria base.

Illustration depicting the withdrawal of US troops. (Graphic: Kurdistan24)

A senior security source at Iraq’s Ain al-Asad military base confirmed on Tuesday that a new convoy of US troops had withdrawn from the base in Anbar province and redeployed toward Syria, marking a further step in Washington’s decision to end its military presence in Iraq.

The source told Kurdistan24 that the convoy departed in the early hours of Tuesday, in line with the US administration’s recent directive to withdraw all troops from both Ain al-Asad and Baghdad’s Victoria base. However, the source added that a number of American forces remain at Ain al-Asad for the time being, with the full evacuation to be carried out in phases over the coming days until the base is completely vacated.

Just a few days earlier, Washington abruptly announced its intention to withdraw all remaining troops from Iraq, a move that took many by surprise given the lack of prior indications of such a swift timetable.

The decision comes amid renewed debates in both Baghdad and Washington about the future of the US-led coalition presence, which was initially deployed to Iraq in 2014 at the request of the Iraqi government to combat the Islamic State (ISIS).

The withdrawal of US forces from Iraq represents a watershed moment in the two-decade American military involvement in the country. US troops first entered Iraq in 2003 to topple Saddam Hussein, later shifting to counterinsurgency and stabilization missions. Although most American forces withdrew in 2011, they returned in 2014 under Operation Inherent Resolve after ISIS seized nearly a third of Iraq’s territory, including Mosul.

Since then, US and coalition forces have played a central role in training Iraqi and Kurdish Peshmerga troops, providing intelligence, and carrying out airstrikes that ultimately helped defeat ISIS territorially by 2017.

However, calls for their departure have grown louder in recent years, particularly after the 2020 assassination of Iranian General Qassem Soleimani in Baghdad, which fueled political and militia-led pressure on Baghdad to expel US troops.

While Washington has consistently argued its mission was limited to training and advising Iraqi forces against the resurgence of ISIS, the latest decision signals a dramatic shift in US policy. Observers warn that a complete withdrawal could reshape Iraq’s security landscape, potentially strengthening Iranian-backed militias and leaving questions about Iraq’s capacity to contain lingering ISIS sleeper cells.

 


Go to New York, the partnership with Washington is “over” in Iraq

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3 warnings from the example of Al-Alusi

 

Former MP Mithal Al-Alusi warned of the repercussions of the withdrawal of US forces from Iraq, noting that the Iraqi government will bear the brunt of any attack, whether Israeli, Turkish, or ISIS, which may launch coordinated attacks, exploiting the lack of US deterrence. He also issued three warnings to the Iraqi government related to Baghdad’s failure to gain Washington’s trust, the message of the US withdrawal, which is that “Iraq is no longer a space for US-Iranian partnership,” and that Washington is no longer counting on factions to confront extremists such as Al-Qaeda and ISIS, especially after its recent understandings with the new Syrian regime. He concluded his remarks by advising Baghdad to send a delegation to the upcoming UN meetings in New York, so that Iraq will be present when Syrian President Ahmed al-Sharaa meets with the Israeli side there, in order to avoid “dangerous” scenarios.

 

Al-Alusi's statements:

Neither Israel nor any country in the region would dare bomb Iraq while the Americans were present, but in their absence, there would be no protection at Victoria or Ain al-Assad. The Iraqi government would then bear responsibility for any aggression, whether it was Israeli, Turkish, or even ISIS.

Talk about protecting the border from ISIS after the withdrawal is inaccurate. Were it not for the United States and the international coalition, ISIS would have reached Baghdad.

Political forces in Iraq may not realize the magnitude of the challenges. ISIS may launch coordinated attacks, taking advantage of the lack of US deterrence, while the Coordination Framework will be held responsible if a security collapse occurs.

Baghdad has failed to gain Washington's trust, and the US withdrawal is a message to both Baghdad and Tehran that Iraq is no longer a space for US-Iranian partnership.

Washington no longer relies on factions to confront extremists like al-Qaeda and ISIS, especially after its recent understandings with the new Syrian regime.

Baghdad should send a large delegation to the upcoming UN meetings in New York, so that Iraq can be present when Syrian President Ahmad al-Sharaa meets with the Israeli side there, to avoid dangerous scenarios.

 

With any potential strike, Trump is "no longer responsible" for Iraq after his withdrawal to Kurdistan.

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Maan Al-Jubouri in a pessimistic comment

 

Security expert Maan al-Jubouri warned Tuesday of the fragility of the region's geopolitical landscape as the US military redeploys from Iraq and relocates to the Kurdistan Region. The Syrian border remains a threat, and ISIS is taking advantage of the chaos to adapt through thousands of foreign fighters and supporters in the region. The ultimate outcome, he said, will be for Washington to distance itself from any developments in Iraq, whether terrorism or a potential strike.

 

Maan Al-Jubouri - Security Expert, with journalist Sajjad Al-Jubouri:

If we look at the situation and the geopolitical map in the region, there is no reassurance, and neither Iraq nor any country can relax at the present time.

The Syrian border has been a problem since 2003.

ISIS is mercurial, and it didn't come with an army and tanks. It operates based on facts on the ground and understands geography, demographics, and the state of the Middle East. There is a force that benefits from the state of chaos.

America cannot exclude Iraq from its strategic calculations in the region after two decades of strenuous effort and the many things it has endured. Iraq is a strategic pillar for the American side, especially in confronting Iran.

We cannot be convinced that America will withdraw from Iraq and leave the vacuum to be filled by Iran and its loyal militias, but there are tactics and strategies, as America adapts to the changes in the new Middle East.

There are now changes in the political map of the region, culminating in the fall of Assad and the rise of Sharaa. This has given America room to maneuver, but that doesn't mean Trump will exclude Iraq from his plans.

I believe a change will soon occur in the region. America is not escaping, as it could be subjected to strikes in Kurdistan as well.

ISIS is an ideology, and there are still conditions and fertile ground for these harmful plants to flourish as a result of the changes taking place in the region. ISIS may adapt and move according to the soft areas and the givens. ISIS may exploit these circumstances.

ISIS has foreign expertise and coordinates with thousands of foreign fighters as well as sympathetic supporters from within the region.

Most of ISIS's leaders were killed with the help of Iraqi or Syrian forces, but the strategy, intelligence, and aircraft used in the operation were all American. Therefore, we cannot easily lose the capabilities that America provides to the Iraqi military and intelligence effort.

The withdrawal came under pressure, and was a tug-of-war between pro-Iranian militias and the US, with the Iraqi government attempting to maintain a middle ground but failing. Therefore, the US withdrawal is a message to the Iraqi government that Baghdad is incapable of reining in the factions. It follows that the emergence of ISIS or any potential strikes are likely to occur within Iraq, at which point the US will distance itself from any developments.

America's resort to the Kurdistan Region and its declaration that it is a friendly country represents a victory and a gain for the regional government, as it has been able to gain military and strategic weight that will protect it from the dangers of future changes.










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Erbil Chamber of Commerce opens doors for cooperation with business owners in Saudi Arabia.

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Erbil Chamber of Commerce opens doors for cooperation with business owners in Saudi Arabia.

The Erbil Chambers of Commerce and Industry announced on Tuesday that a trade meeting will be held between traders and business owners from the Kurdistan Region and Saudi Arabia in the near future. 

A statement issued by the Chamber, received by Shafaq News Agency, said, "The head of the Chamber, Gilan Haji Saeed, received today the Director of the Saudi Trade Representation Office in Erbil, Azzam bin Muhammad, in the presence of the members of the Chamber's Executive Council, Khalil Goran, Shirin Yahya Khalil, and Rashid Mustafa Mirkhan. The focus was on strengthening economic and trade relations between Saudi Arabia and the Kurdistan Region."

Gilan Haji Saeed said, "The basic backbone of establishing and strengthening trade is relations," expressing his hope that, through the Saudi Trade Representation Office in Erbil, efforts will be made to establish relations between the Erbil Chamber of Commerce and Saudi chambers and trade organizations." 

Saeed called for "cooperation in sending schedules of Saudi exhibitions, conferences, and economic events, so that business owners can benefit and participate through the Erbil Chamber of Commerce and Industry."

The statement noted that "the meeting discussed organizing a trade meeting between traders and business owners from Saudi Arabia and the Kurdistan Region in the near future, as well as highlighting the importance of introducing and marketing the products of both parties."



Nechirvan Barzani on an upcoming visit to Sulaymaniyah and Baghdad

 

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An informed political source revealed, on Tuesday (August 26, 2025), that the President of the Kurdistan Region, Nechirvan Barzani, will soon visit both Sulaymaniyah and the capital, Baghdad.

The source explained to Baghdad Today that "Barzani will first head to Sulaymaniyah in an attempt to calm the tensions between the Kurdistan Democratic Party and the Patriotic Union of Kurdistan. He is scheduled to meet with PUK leaders, most notably party leader Pavel Talabani."

The source added, "Barzani will then visit Baghdad to meet with leaders of the State Administration Alliance and the Prime Minister, with the aim of resolving the outstanding disputes between the federal government and the regional government."

On August 22, the city of Sulaymaniyah witnessed violent armed clashes that lasted for hours between security forces affiliated with the Kurdistan Regional Government and gunmen loyal to opposition leader Lahur Jangi, the former co-chair of the Patriotic Union of Kurdistan (
PUK). The operation came after a court order was issued for his arrest, leading to a siege of the Lalazar Hotel where he was holed up. Security forces used heavy weapons and drones during the clash.

The clashes resulted in the deaths and injuries of dozens on both sides, including members of the Kurdish security forces and gunmen loyal to Jangi. The incident is an extension of a long-standing internal conflict within the Patriotic Union of Kurdistan (PUK) between Jangi's faction and his cousin, Pavel Talabani, which culminated in Jangi's ouster in 2021 before he established an opposition party called "Barakal."

The incident sparked widespread political reactions, with observers considering it the region's biggest security test in years, amid calls to contain the situation and prevent it from sliding into a wider confrontation.


What have the Kurdistan Region and Baghdad agreed on?

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A source told KNN that Baghdad has decided to pay the sixth month salaries of the Kurdistan Regional Government (KRG) on condition that the handover of 120 billion non-oil revenues.

As for the salaries of the months of July to December, Baghdad has explicitly asked the Kurdistan Regional Government delegations not to wait for the resumption of oil exports and the handover of 120 billion dinars of monthly non-oil revenues.

 

The Kurdistan Regional Government (KRG) delegations in the past two days and last week, asked Baghdad to agree to reduce the transfer of 100 billion monthly non-oil revenues instead of 120 billion.

 

These facts show that there is no concrete agreement between the Kurdistan Region and the central government for the salaries of the next months and their fate remains unknown.

 

The procedures for sending 120 billion dinars of non-oil revenue to Baghdad will begin tomorrow

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A source in the Kurdistan Regional Government (KRG) Ministry of Finance revealed that the procedures for sending 120 billion dinars of non-oil revenue to Baghdad will begin tomorrow.

The Kurdistan Regional Government (KRG) will start sending 120 billion dinars of domestic revenue tomorrow, a source in the Ministry of Finance and Economy said. The procedures involve collecting the money and then transferring it to the account of the Iraqi Ministry of Finance.


He added that whenever the letter of payment is sent to the Iraqi Ministry of Finance, they will put the 120 billion dinars into the account of the Iraqi Ministry of  Finance


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Araqchi: Tehran is ready to resume negotiations with Washington provided "non-aggression guarantees" are met.

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Iranian Foreign Minister Abbas Araqchi announced that Tehran is ready to resume nuclear negotiations with the United States, provided that Washington provides "guarantees of non-aggression."

In an interview with Asharq Al-Awsat newspaper on Tuesday, Araghchi stressed that "what military attacks against nuclear facilities failed to achieve will not be achieved in any future negotiations with Washington."

He added that Iran remains open to "fair and equitable negotiations" regarding its nuclear program, noting that talks with the three European countries and the International Atomic Energy Agency are continuing to determine a new framework for negotiations.

In the same context, Kazem Gharibabadi, Deputy Foreign Minister, said following his meeting with Majid Takht-e Ravanchi and European Troika officials in Geneva that Tehran remains committed to the diplomatic process and a solution that "benefits both sides."


Iraq Negotiates with the US Lobby: Searching for a Voice Behind the Walls of Washington

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At a sensitive moment, with US forces withdrawing and Washington threatening economic sanctions if the Popular Mobilization Forces law is passed, Iraq is seeking to maintain a balanced policy in an attempt to keep the country away from danger.

Farhad Alaa Al-Din, the Prime Minister's advisor for foreign relations, revealed that Iraq is negotiating with lobbying firms to convey the government's viewpoint to decision-makers in Washington on a number of issues, most notably the Popular Mobilization Forces (PMF) law.

In a televised interview, Alaa El-Din said that "the lack of communication between Prime Minister Mohammed Shia al-Sudani and US President Donald Trump is due to each party being preoccupied with issues far removed from the other," noting that "Trump and al-Sudani's first call was very friendly."

He added, "Iraq needs a lobbying firm to clarify its viewpoint regarding the Popular Mobilization Law, as Iraq wants to deliver its messages to the American interior through lobbying firms," noting that "the government is negotiating with lobbying firms to create influence within the United States."

He pointed out that there is "direct communication between the Iraqi government and the US administration, and that the US administration has not made a single decision against Iraq," believing that "the US administration is working on the principle of trade instead of war, and is working to expand the relationship with Washington and not limit it to the military aspect."

Several Arab and local media outlets, including the Erem news site, reported on Monday that Washington had given Baghdad a deadline of no more than three weeks to develop a practical plan to restrict arms possession to the state and prevent the passage of the Popular Mobilization Forces (PMF) law, or it would face a series of sanctions.

Parliament Speaker Mahmoud al-Mashhadani made controversial statements on August 24, in which he asserted that “the objective of the proposed law on service and retirement for the Popular Mobilization Forces (PMF) fighters was to retire only one person,” indicating that “the parliamentary Security and Defense Committee advised against passing it at the present time to avoid including senior leaders in this sensitive situation, and this was done.” He also noted that “a veiled threat from the United States and, behind it, Israel reached Iraqi leaders if the PMF law is passed.”

The Popular Mobilization Forces (PMF) law is a major factor in fueling discord within parliament, amid sharp divisions within the Shiite community, rejection by Sunni and Kurdish forces, and American and British objections.

On August 22, informed sources reported that “the parliament’s leadership decided, after consultations with Prime Minister Mohammed al-Sudani and faction leaders, to remove the Popular Mobilization Forces law from the parliament’s agenda.” The sources indicated that “there are concerns within Iraq about the law’s repercussions on the country, especially since it faces Western and regional rejection, not just American,” according to Al-Alam Al-Jadeed newspaper.

This coincided with the start of the implementation of the first phase of the agreement for the withdrawal of international coalition forces from Iraq. The first US force departed from the Al-Asad base in Anbar for Erbil, with a portion heading to Kuwait, and another to the Al-Tanf base in Syria. The withdrawal will be carried out in phases, extending until September 2026, to achieve a complete withdrawal.

It's worth noting that the decision to withdraw a portion of US forces came in contravention of the agreed-upon timetable for a gradual withdrawal, which was supposed to take place after the parliamentary elections in November. Political experts believe this was likely a reaction from the US administration to Iraq's recent pro-Iranian stance.

 

Al-Mashhadani calls on American companies to invest in Iraq.

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During his reception of the Chargé d'Affaires of the US Embassy in Baghdad, Ambassador Stephen Fagin, Speaker of Parliament Mahmoud al-Mashhadani stressed the importance of American companies entering the Iraqi market. The Parliament Speaker's media office stated in a statement that "Speaker of Parliament Mahmoud al-Mashhadani received Ambassador Stephen Fagin, Chargé d'Affaires of the US Mission in Iraq, in his official office. During the meeting, they discussed the mechanism for reducing the number of troops at Ain al-Assad base and shifting the work to a limited bilateral framework within the Kurdistan Region, in line with the requirements of the reality on the ground, in a way that enhances national sovereignty, and reflects the security stability achieved in the country." 

According to the statement, Al-Mashhadani stressed that "sustainable security stability cannot be achieved without economic prosperity," emphasizing "the importance of American companies entering the Iraqi market to support the private sector and provide extensive job opportunities for the national workforce." 

The statement continued, "The two sides also emphasized the strength of the relationship between Iraq and the United States, and their keenness to develop it in a manner that serves common interests and enhances cooperation in the political, economic, and security fields." The meeting concluded with an emphasis on the fact that developing Iraq's relations with its neighbors represents a fundamental pillar in enhancing regional stability and helps consolidate the principles of good neighborliness, serving the future of Iraq and the peoples of the region.


The first call is being made in these governorates. Vodafone Iraq will soon be operational.

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Minister of Communications Hiyam Al-Yasiri announced on Wednesday that the coming weeks will witness the launch of Vodafone Iraq's first call.

Al-Yasiri said during a television interview followed by Al-Masry that “Vodafone Iraq will soon begin offering 5G services exclusively for a period of three years,” indicating that “the first call will take place in the coming weeks in Baghdad, Karbala, Najaf, and Babylon.”

At the end of 2024, the Ministry of Communications announced the signing of an agreement with the global company Vodafone to establish a new 5G telecommunications network, fully owned by the Iraqi government.

Minister of Communications, Hiyam Al-Yasiri, emphasized that the project aims to improve the quality of telecommunications services provided to citizens, reduce costs, increase state revenues, and introduce modern technology.

She added that the new operator will provide job opportunities for young Iraqis and contribute to developing their network management skills

Goodbye Forgy... Vodafone Iraq is coming with 5G and Minister Hiam is waiting for the first ring

Goodbye Forgy... Vodafone Iraq is coming with 5G and Minister Hiam is waiting for the first ring

 

.And the Internet will "get faster" too.

 

Minister of Communications, Hiyam Al-Yasiri, confirmed that the national company, Vodafone Iraq, has obtained an exclusive privilege to operate 5G services for a period of three years, and that it will conduct the “first call” in the coming weeks, as its services will include Baghdad, Babylon, Karbala, and Najaf, as an initial phase. She explained that the company will operate with the expertise of Iraqi graduates and under the supervision of the British parent company for a period of 10 years, with the right to use its trademark for a period of 20 years. She attributed the rise in internet services in Iraq to the high costs of infrastructure and the refusal of operators to switch to the cheaper and higher-quality optical cable technology, as a result of their habit of making profits by selling the capacities allocated to one subscriber to more than one subscriber at the same time, which doubles their profits.

 

Hiam Al-Yasiri, in an interview with journalist Samer Jawad:

Some believe that the internet in Iraq suffers from high prices and poor quality. It's important for citizens to understand that the Ministry of Communications is not responsible for mobile phone companies; that responsibility lies with the Communications Commission. Our responsibility lies solely with providing the infrastructure, while the fixed internet that reaches homes is the responsibility of the ministry.

Internet in some neighboring countries is expensive and doesn't offer good services. I'm not defending the internet in Iraq, but the current high price is due to the high cost of infrastructure. Iraq inherited nothing in this area from the previous regime. Now, the price of a megabyte of international internet that we sell to companies is only 27,000 dinars, while it used to be 150,000. We've worked on reducing it until we reached this price level, and I'm continuing with this reduction until it reaches almost free prices.

The poor quality of the internet in Iraq is due to companies' reliance on Wi-Fi services rather than fiber optic cables. The latter provides internet 30 times faster. We have revolutionized this aspect and forced some companies to gradually transition to fiber optic cables, at the expense of their profits. They make more profits when they rely on Wi-Fi because the bandwidth can be shared among multiple subscribers, as the ministry is unable to control it. Unlike cable, where bandwidth cannot be shared among subscribers, these bandwidths are controlled by the ministry.

There are difficulties in imposing fiber optic cable on companies because it prevents them from sharing capacities. They can distribute the capacity allocated to one home to five other homes, thus earning five times the price of the capacity allocated to the home. When I took over the ministry, there were approximately one million fiber optic lines, of which only about 100,000 were active. Now we have 4.5 million fiber optic lines, of which 1.5 million are active. There are appeals and letters from citizens to generalize the experience more widely.

There are approximately 8.5 million homes in Iraq. If we exclude the Kurdistan Region, we would need 6 million fiber optic lines to cover the remaining governorates. We have scheduled a gradual transition to fiber optic cables with one company, and we are following up with them month by month. By next year, Wi-Fi lines will be completely complete, with the exception of the desert areas that cannot be reached by fiber optic cables, which are very few.

We've completed the preparatory phase with Vodafone, which lasted six months, and we're now starting the actual work on the fourth license. The idea behind having a government operator is to stimulate competition among private sector companies, to improve quality and lower prices, especially since the government operator will launch 5G services. We'll rely on unemployed Iraqi graduates to operate it, and Vodafone will oversee their training to operate 5G technology.

Vodafone's approach is to give the name to local companies. There are Vodafone Turkey, Egypt, Oman, and others. The same will happen in Iraq. Our national company will become Vodafone Iraq, and it will be an exact replica of the parent Vodafone in terms of technology, operating policies, compliance, and even furniture and visual identity. Vodafone will not take any stake in the company; rather, we will pay it fees for these services.

The Vodafone brand will remain in Iraq for 20 years, but the period of operation, training, and service provision will be between 7 and 10 years. Once we see that our young people are capable of running the company without any problems, we will terminate the contract with them. However, the brand will remain, and they will then receive lower fees for the brand name.

We will announce the establishment of the company soon. The capital will come from the employees' retirement fund, to be supported by the company's profits, along with the Trade Bank of Iraq and the ministry's Al-Salam Company. The revenues will go entirely to the government.

We will cover Baghdad, Karbala, Najaf, and Hillah as a first phase, as they are crowded with visitors year-round, and there are huge profits during the period of millions of visits. This is the reason why I am not sectarian. Ask my team about me. This company will not be treated discriminatory. The ministry will maintain an equal distance from all operators, both private and public. The company will also pay the infrastructure and license fees.

Vodafone Iraq's first call will be made in the coming weeks, and will certainly be before the end of the current government's term. To be honest, the first call will mark the beginning of a trial period that precedes the commercial operation phase, which will begin within months, God willing.

Vodafone Iraq has been granted a three-year exclusive right to operate 5G services, a privilege that will help the company thrive. The three other companies were granted a five-year geographic exclusivity when they launched in 2003, with Korek in the north, Iraqna in the center, and Atheer in the south. This privilege helped them thrive until they were ready to compete in an open market.

 

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