The Central Bank opens branches in Halabja.
Halabja Governor Nokhasha Naseh met with Nabil Al-Najjar, representative of the Central Bank of Iraq, and his accompanying delegation at the governorate's headquarters.
According to a statement issued by the governorate's media on Monday, July 28, 2025, the meeting discussed mechanisms for launching the financial circular initiative by the Central Bank and opening a number of bank branches in Halabja Governorate.
An agreement was also reached to hold conferences and open expanded banking exhibitions to promote the culture of electronic payments and expand banking services. The importance of the initiative was emphasized in supporting the local economy and facilitating citizens' access to electronic banking services.
Both sides emphasized that this step will be a strong and important pillar for developing the economic infrastructure and advancing investment in Halabja Governorate. It will also open new doors for investors and traders to implement investment projects in the governorate.
Al-Sudani reveals Iraq thwarted attacks against Israel and US bases and refuses to negotiate with Tsurkov's kidnappers.
Prime Minister Mohammed Shia al-Sudani stated that armed groups in Iraq attempted to launch missiles and drones toward Israel and Iraqi bases housing US forces during the 12-day war between Tehran and Tel Aviv.
In an interview with the Associated Press, Al-Sudani said that these attacks were thwarted 29 times through "security operations" carried out by the Iraqi government.
He added, "We know that the (Israeli) government has been and continues to pursue a policy of expanding the scope of the war in the region. Therefore, we have been careful not to give any party any justification to target Iraq."
Al-Sudani said his government had also contacted leaders in Iran "to urge them to calm down, make room for dialogue, and return to negotiations."
The Prime Minister addressed the end of the international coalition's mission in Iraq, noting that the United States and Iraq will meet by the end of the year to "arrange the bilateral security relationship" between the two countries.
Al-Sudani also hopes to secure American economic investments—in oil and gas, as well as artificial intelligence—which he said would contribute to regional security and make "the two countries great together."
Al-Sudani said that the presence of coalition forces had provided a "justification" for Iraqi groups to arm themselves, but once the coalition's withdrawal was complete, "there would be no need or justification for any group to bear arms outside the state."
Regarding the Popular Mobilization Forces Law, Al-Sudani defended its enactment, saying it was part of an effort to ensure state control over weapons, emphasizing that "security agencies must operate within the law, be subject to it, and be held accountable."
Regarding the case of Israeli-Russian researcher Elizabeth Tsurkov, who went missing in Iraq in 2023. Her family believes she is being held by the Iraqi Hezbollah Brigades. Reports indicate that US mediation was underway to negotiate her release. Al-Sudani denied the notion that his government had not made serious efforts to secure her release.
He noted that "we do not negotiate with gangs and kidnappers," but the team is holding discussions with political factions that may help locate her.
Baghdad Governor Visits Maliki, Stresses: Our Plan Prioritizes Deprived Areas
The new governor of Baghdad, Atwan Al-Atwani, visited the leader of the State of Law Coalition, Nouri Al-Maliki, today, Monday (July 28, 2025), to express his thanks and gratitude for his support and trust, on the occasion of his election as governor of the capital.
According to a statement from his media office, received by Baghdad Today, the two sides discussed ways to support the local government and enhance political stability in Baghdad, which would contribute to accelerating service and development projects that meet citizens' aspirations.
Al-Atwani emphasized that his administrative and service plan will pay "special attention to deprived and impoverished areas," as part of a strategic and immediate vision to improve the capital's situation and enhance its services.
He stressed "the importance of unifying political and societal efforts to support the governorate's administration, and working as a team to achieve common goals and serve the people of Baghdad throughout the capital."
Iraq replaces the dollar with gold: a yellow shield against economic storms.
Economic expert Nasser Al-Kanani revealed on Monday (July 28, 2025) that Iraq's position as the Arab country with the largest gold purchases represents a strategic shift in the Central Bank's approach to enhancing the country's financial stability.
Al-Kanani told Baghdad Today, "Iraq's purchase of more than 20 tons of gold in a single year, and its rise to seventh place globally in this field, reflects a calculated move by the Central Bank to protect the national economy from fluctuations in foreign currency prices, especially the dollar."
He pointed out that "gold is considered one of the safest reserve instruments, as it is not affected by fluctuations in the monetary market, unlike paper currencies. This gives Iraq a strategic advantage in confronting sudden crises and enhances confidence in its financial policies, both domestically and internationally."
Al-Kanani explained that "this trend will positively impact the value of the Iraqi dinar in the medium term. It will also contribute to the stability of the local market and reduce reliance on the dollar, giving the Central Bank greater flexibility in managing monetary policy and achieving economic stability in light of current regional and global challenges."
The comprehensive economic reform program comes first in the upcoming elections.
Samir Al-Nusair
Election campaigns for the upcoming parliamentary elections will soon begin, and blocs, parties, and individuals will compete to present their political and economic programs to citizens.
Voters are supposed to choose their candidate based on the gains, achievements and services their electoral program will achieve for Iraq and its people. However, the primary concern of the Iraqi people is that the approach and programs for economic, financial and banking reform should be based on the economy, because politics, security and societal stability must be based on comprehensive and effective economic stability and permanent coordination between the financial and monetary systems, and the ultimate goal should be to achieve societal well-being.
Because most countries, especially democratic and emerging countries, base their approaches and political system on the thought and ideology that the economic system believes in, and in this it relies on the economic, human and natural resources, the infrastructure, the structure and the foundation available to the economy, and the strategic goals that must be achieved to build society and secure the basic needs of the people, which makes them feel that their economic and political system is for the sake of serving them and shaping their future.
This can be achieved by diversifying sources of income for productive economic sectors other than oil, creating new economic resources, overcoming the deficit in non-oil revenues, general budgets, and the deficit in the balance of payments, and the necessity of having a sovereign fund similar to other oil-producing countries. It must also adopt industrial, agricultural, and trade policies that are consistent with the current and future economic reality, build bridges of international economic relations with countries around the world, and have a developed, solid, and modern banking system that complies with international standards and believes in the mechanisms of transitioning to digital transformation and electronic payment, and enhance financial inclusion and spread by providing banking products with modern technologies to the smallest administrative unit on the country’s geographical map. This requires securing the infrastructure and technical capabilities to achieve this.
Therefore, we firmly believe that the electoral economic programme that achieves comprehensive economic, financial and banking reform is what will make it more likely that the candidates who support this programme will win the upcoming elections.
KRG Salary Dispute Reaches Federal Court
Iraq's Federal Court is hearing a case to compel Baghdad to pay KRG employee salaries on time. KRG PM Masrour Barzani has criticized Baghdad for using salaries as a political pressure card and a constitutional violation.
Iraq's Federal Court is convening today to address the contentious issue of salaries for the Kurdistan Region's public employees, a move that brings a long-standing political dispute with Baghdad into the country's highest judicial chamber and follows sharp criticism from the Kurdistan Regional Government (KRG) over the use of livelihoods as a political weapon.
The court is set to meet on Monday, to specifically discuss the matter. According to information obtained by Kurdistan24, the session will deliberate on two formal complaints filed regarding the persistent delays and politicization of salary payments to the region.
The complaints explicitly call on the Federal Court to take decisive action. They demand the court issue an order to not only ensure the payment of salaries for the Kurdistan Region's employees but also to firmly separate these financial entitlements from ongoing political conflicts between Erbil and Baghdad. Furthermore, the complaints seek to compel the Iraqi Ministry of Finance to dispatch the salary payments on time and without any further delays.
The court hearing comes after the Prime Minister of the Kurdistan Region, Masrour Barzani, has vocally criticized the federal government's approach. In a recent interview with Asharq channel, Prime Minister Barzani condemned Baghdad's use of public sector salaries as a "political pressure card," labeling the tactic a "constitutional violation."
"It is very unfortunate that the salaries of people become a political card, or become a dispute between Baghdad and Erbil," Prime Minister Barzani stated during the interview. The Prime Minister stressed that withholding salaries violates the constitution, noting that May salaries were only recently disbursed after a three-month delay.
He accused the federal Ministry of Finance of overstepping its authority by interfering in the Region’s salary distribution and budgeting, calling for an agreement on a constitutionally sound mechanism in the upcoming federal budget law.
Highlighting the real-world impact of the delays, the Prime Minister added, "Unfortunately we have seen that for 3 months, the salaries were delayed; and only recently in the last couple of days the salary for May have been released. And we are now towards the end of July."
Prime Minister Barzani also detailed the KRG's view that Baghdad's actions infringe upon the region's constitutional rights. "The federal Ministry of Finance is interfering in the details of the salaries and budget of the Kurdistan Region, which is a violation of the constitution and rights of Kurdistan," he said.
Looking for a lasting resolution, the Prime Minister emphasized the need for a clear and binding agreement. "The best way and the final and the most reasonable solution, the most constitutional solution, would be to agree on a budget for Kurdistan in the next budget law," he concluded.
A financial expert confirms: The absence of final accounts opens the door to corruption.
Financial expert Salah Nouri emphasized that "preparing the final accounts, along with the Federal Board of Supreme Audit's report, and presenting and discussing them in the House of Representatives sessions, is one of the primary means of parliamentary accountability of the executive authority."
Nouri stressed in a press statement that "the absence of these accounts opens the door to corruption and wastes a real opportunity for parliamentary accountability."
Final accounts are a fundamental tool for accountability and transparency, as they demonstrate how public funds are spent, the sources of revenue, and the government's compliance with the approved budget.
The 2025 budget schedules face a new crisis as the final accounts issue continues to pose an obstacle to the budget's approval on schedule.
10 Reasons Behind the Decline in the US Dollar Exchange Rate Against the Iraqi Dinar
Economic expert, Munar Al-Obaidi, confirmed today, Monday (July 28, 2025), that the continuous decline in the exchange rate of the dollar against the Iraqi dinar is due to ten main reasons, noting that these factors are intertwined, and their varying impact has collectively contributed to strengthening the dinar in the parallel market.
Al-Obaidi explained in a post on his official page, followed by "Baghdad Today," that the most prominent of these reasons are the state of "economic contraction and declining consumer confidence," the suspension of government investment spending, and the tightening of controls at border crossings, in addition to traders' shift to official banking platforms, and the decline in re-export operations, in addition to the settlement of some foreign companies' dues in petroleum products instead of cash.
He pointed out that "preparations for the electoral process" played a role in increasing the dollar supply after political blocs resorted to converting their cash reserves into dinars to finance their campaigns. Meanwhile, the increase in foreign arrivals and the cessation of illicit trade with Syria contributed to the dollar's abundance in the markets.
Al-Obaidi also noted that the Central Bank's withdrawal of a portion of the dinar monetary supply created additional demand for the local currency, leading to a gradual decline in the dollar. He emphasized that the ranking of these factors reflects the extent of their impact on the parallel market, without denying the existence of other, undisclosed factors that may also have contributed to this decline.
Parliament's Finance Committee commends the government's role: It has fulfilled its obligations related to securing salaries.
The Parliamentary Finance Committee confirmed, on Sunday, that the government was able to fulfill its financial obligations related to securing salaries for employees, retirees, and those covered by the social safety net.
Committee member Moeen Al-Kadhimi said: "The government was able to fulfill its financial obligations, which include providing salaries for 4.2 million employees, the salaries of 3 million retirees, in addition to the salaries of 2.15 million people covered by social welfare."
Al-Kadhimi added that "oil revenues generated from exporting 3.4 million barrels per day, even with the decline in oil prices in global markets to $65 per barrel, will be sufficient, in addition to non-oil revenues such as revenues from the Communications and Media Commission, the Tax Authority, the Border Ports Authority, as well as ministries' levies and revenues from profitable companies."
He continued, "The revenues mentioned above can provide 140 trillion dinars for the year 2025, leaving a remaining deficit of only 10 trillion dinars within the federal budget allocations."
He explained that "the Ministry of Planning estimated the need for projects at 12.5 trillion dinars, and there is also a need for 12.5 trillion dinars to represent the costs of extracting oil, so the total required for the investment aspect is 25 trillion dinars."
Al-Kadhimi indicated that "the current funding for the investment aspect is faltering and may result in the launch of necessary projects such as building schools and health centers and completing important hospitals, including five in the capital, Baghdad."
Regarding the agreement with the Kurdistan Region, the member of the Finance Committee stated that "the Kurdistan Region of Iraq is entrusted with 9 trillion dinars annually from oil exports and non-oil revenues," stressing "the need to implement the agreement between the federal government and the region and involve the Supreme Audit Board in the accounts and auditing."
Source: The region has not delivered a single liter of oil to SOMO.
An informed source revealed on Sunday that the Kurdistan Region has not yet committed to delivering any crude oil to the State Oil Marketing Organization (SOMO), warning of attempts to mislead public opinion as the salary payment deadline approaches.
The source told Al-Maalouma, “The Kurdistan Region has not delivered a single liter of oil to SOMO to date, in clear violation of the financial agreements signed with the federal government.” He confirmed that the commitments have not been fulfilled despite the prior political and financial agreement.
He added, "There are false media statements currently being broadcast to mislead the Iraqi public, coinciding with the imminent disbursement of June salaries and salaries for the coming months, with the aim of buying time or easing public pressure."
The source stressed that "leaving Iraqi citizens to suffer from hunger and delaying salaries due to the narrow interests of some parties or companies is a blatant disregard for the national interest, and those responsible must be held accountable without delay."
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Iraq has a strong presence in New York. Fuad Hussein participates in a high-level international meeting in support of Palestine.
Chaired by France and Saudi Arabia
Foreign Minister Fuad Hussein participated on Monday in a high-level ministerial meeting on Palestine held at the United Nations headquarters in New York under the title "Achieving Peace: Consolidating Results and Charting the Way Forward." The meeting was chaired by the foreign ministers of Saudi Arabia and France, and attended by the UN Secretary-General, the Prime Minister of Palestine, and a number of foreign ministers. The participants discussed ways to support the Palestinian cause in light of the humanitarian and political challenges, stressing the need to achieve a just and comprehensive settlement that guarantees the rights of the Palestinian people and ends the occupation.
Deputy Prime Minister and Minister of Foreign Affairs participates in the high-level ministerial meeting on Palestine.
On Monday, April 28, 2025, Deputy Prime Minister and Minister of Foreign Affairs, Mr. Fuad Hussein, participated in the high-level ministerial meeting entitled: "Achieving Peace: Consolidating Results and Charting the Way Forward," which was held within the framework of the United Nations High-Level International Conference on the Peaceful Settlement of the Palestinian Question, at the United Nations Headquarters in New York.
The meeting was co-chaired by the Minister of Foreign Affairs of the Kingdom of Saudi Arabia, Prince Faisal bin Farhan Al Saud, and the Minister of Foreign Affairs of the French Republic, Mr. Jean-Noël Barrot, with the participation of the Secretary-General of the United Nations, Mr. António Guterres, and the Prime Minister of the State of Palestine, Dr. Mohammad Mustafa, along with a number of foreign ministers of UN member states.
The meeting witnessed extensive discussions on ways to support the Palestinian cause in light of the worsening humanitarian and political challenges, in addition to examining regional and international efforts aimed at reaching a just and comprehensive solution.
Bilateral meeting with China: Iraq seeks to strengthen its relationship with its neighbors, especially Kuwait.
Prime Minister and Minister of Foreign Affairs Fuad Hussein affirmed on Monday that dialogue and negotiation are the best way to resolve regional disputes, noting Iraq's efforts to strengthen its relations with neighboring countries, particularly Kuwait.
The Ministry of Foreign Affairs said in a statement received by Dijlah News that “Deputy Prime Minister and Minister of Foreign Affairs Fuad Hussein met on Monday with the Chinese government’s Special Envoy for Middle East Affairs, Zhai Jun, on the sidelines of the conference hosted by the United Nations on the Palestinian issue, at the headquarters of the Iraqi mission to the organization in New York.”
He added, "The meeting discussed bilateral relations between Iraq and China, and exchanged views on the situation in the region, particularly developments in the Palestinian issue and the worsening humanitarian tragedy in Gaza."
The statement added that "the minister highlighted Iraq's position on the ongoing events in Gaza," while expressing his thanks to China for "its supportive stance on Palestinian rights and its standing with the Palestinian people during the difficult circumstances they are experiencing."
He pointed out that "Fuad Hussein reviewed Iraq's vision regarding the overall situation in the region," and while stressing that "dialogue and negotiation constitute the best way to resolve regional disputes," he pointed out that "Iraq seeks to strengthen its relations with neighboring countries, especially with the sisterly State of Kuwait, in a way that ensures the building of distinguished relations based on mutual respect and common interests."
The statement quoted the Chinese envoy as saying that his country "supports Iraq's positions and balanced policies on regional issues," noting that "the two sides share identical views regarding the need to enhance regional stability and intensify joint efforts to achieve security and peace."
Economic dominance: MP warns against Washington's use of oil fields as blackmail against Iraq
Rafiq al-Salihi, a member of parliament for the Sadiqoun bloc, warned on Sunday of the dangers of US infiltration into Iraq's oil sector, asserting that American companies are controlling most of the oil fields with the aim of dominating the country's economy and using it as a means of political pressure.
Al-Salihi told Al-Maalouma News Agency, “American influence in the oil sector is no longer merely economic, but has transformed into a political tool used by Washington to blackmail the Iraqi government and advance its agendas at the expense of national autonomy.”
He explained that "American dominance over oil fields contributes to restricting national decision-making and weakens Iraq's ability to formulate independent economic policies," noting that "the continuation of this situation threatens Iraq's economic security and opens the door to direct foreign intervention."
Earlier, economic analyst Faleh al-Zubaidi confirmed that influential political parties are working to enable Western companies, particularly American ones, to control the country's oil sector, in efforts aimed at marginalizing competent national companies and depriving them of investment and development opportunities.
Economist: America imposes an unjust blockade on Iraq
Economist Rashid Al-Saadi confirmed on Sunday that the United States is besieging Iraq economically by imposing unfair customs duties on its oil exports and other goods exported outside the country.
Al-Saadi told Al-Maalouma, “America is imposing an unjust economic blockade on Iraq by imposing tariffs on the export of oil and other Iraqi goods, which negatively impacts the country’s financial budget. Not to mention that the decline in oil exports to the United States and other countries worldwide as a result of Trump’s economic plan has led to a contraction in the country’s economy.”
He added, "Iraq's exports of dates and other goods abroad have been negatively impacted by the US blockade on the country's economy, which has impacted export operations and led to a decline in exports due to increased customs duties."
He explained that "the package of economic measures imposed by the US on Iraq will have an increasingly negative impact in the coming years, given that providing financial liquidity for employee salaries depends on oil revenues."
He explained that "Trump's economic measures affect the country's economy because they focus on imports and exports."
Al-Saadi stressed that "Trump's package of economic measures has had negative impacts on the Iraqi economy, especially oil and date exports."
Top Iraqi Security Chief Arrives in Erbil to Probe Drone Attacks
National Security Advisor Qasim al-Araji affirmed on Monday that the strength and security of the Kurdistan Region are an integral part of Baghdad, following a meeting of the joint security committee tasked with investigating drone attacks on the region, held in Erbil.
The National Security Adviser's media office stated, "The joint security committee tasked with investigating drone attacks on the Kurdistan Region, headed by National Security Adviser Qasim al-Araji, held a high-level security meeting today with the regional government in Erbil and its security forces."
He pointed out that "the meeting included a comprehensive review of the committee's mission, with a detailed explanation of the nature of the attacks and the information available to the region about them. The meeting concluded with recommendations from the assigned committee to be submitted to the Prime Minister and Commander-in-Chief of the Armed Forces."
During the meeting, Al-Araji reiterated the Prime Minister's and Commander-in-Chief of the Armed Forces' affirmation that the security of the region is an integral part of Iraq's security, and that the relevant agencies are working to analyze information related to the attacks, in addition to continuing coordination between the federal government and the regional government in this regard.
In a post on the Aks platform, Al-Araji noted that "the relevant agencies are continuing their work to analyze information related to the sabotage operations targeting oil facilities in the region, which they consider a direct attack on the national economy and a grave harm to Iraq's reputation at the local, regional, and international levels."
He affirmed that the security services will track down the real perpetrators, and that they will face a fair trial. He emphasized that Iraq's security is indivisible, and that everyone must work with a spirit of national responsibility to protect national sovereignty and ensure the country's security. The strength of the Kurdistan Region stems from the strength of Baghdad, and both are pillars of the security and stability of the Iraqi state.
The National Security Advisor concluded by saying, "Any targeting of national economic interests constitutes an attack on the country's supreme interests and directly harms the Iraqi people."
Al-Araji arrives in Erbil under the direction of Al-Sudani
Qasim Al-Araji, the Iraqi National Security Advisor, arrived in Erbil this morning, Monday 7/28/2025.
This is happening (according to a brief statement seen by Al-Masry), under the direction of Mohammed Shia al-Sudani, Prime Minister and Commander-in-Chief of the Armed Forces, at the head of a high-level security delegation.
Oil, revenues and oil provide the region's salaries
The issue of resuming oil exports from the Kurdistan Region is one of the conditions
The Iraqi government is not easy to send the salaries of the Kurdistan Regional Government (KRG) and it is unclear whether it will create problems for the resumption of oil exports, a member of the Finance Committee said They are bad and dangerous, which affects oil exports.”
The timing of the June salary is unknown
Jamal Kochar, a member of the Finance Committee of the Iraqi Parliament, told PUKMEDIA: "According to the agreement between the two governments, the Kurdistan Regional Government should resume oil exports through SOMO.
"We have no accurate information to export oil from the Kurdistan Region on a specific date, while the negotiations between the two sides on the issue of oil exports and salaries are constantly changing There is a monthly amount of 120 billion dinars for Iraq,” Kochar said.
"If the Kurdistan Regional Government adheres to the agreement with the Iraqi government, there is no problem in sending the June salary, but we can not determine the date of sending the June salary," he said.
Re-exporting the region's oil is not easy at the moment
Bahjat Ahmad, an expert in the field of oil and energy, told the official website of the Kurdistan National Union (KNU) PUKMEDIA: "The agreement between the two governments, although several points have been implemented, but exporting oil is not easy."
"The security situation in all the oil fields in the Kurdistan Region is bad and they are in danger and they are constantly attacked by drones, which makes it difficult to export oil from the Kurdistan Region and it takes time," Bahjat Ahmad said.
On July 17, 2025, the Iraqi Council of Ministers approved a new agreement with the Kurdistan Regional Government (KRG) to send the May salaries to the Kurdistan Region Kurdistan Regional Government (KRG) salaried employees in the near future.
President Barzani Receives Iranian Delegation, Discusses Strengthening Bilateral Ties
Governor Rahmani expressed appreciation for the Kurdistan Regional Government’s (KRG) efforts in facilitating the entry of Iranian pilgrims into Iraq through the Haj Omran border crossing.
President Masoud Barzani on Monday received a delegation from the Islamic Republic of Iran, led by Reza Rahmani, Governor of Iran’s West Azerbaijan Province, at his headquarters in Pirmam, Erbil.
During the meeting, Governor Rahmani conveyed special greetings from Iranian President Masoud Pezeshkian to President Barzani and expressed appreciation for the Kurdistan Regional Government’s (KRG) efforts in facilitating the entry of Iranian pilgrims into Iraq through the Haj Omran border crossing.
The two sides also reaffirmed the deep historical ties and longstanding friendship between the Kurdistan Region and Iran. Discussions focused on ways to enhance bilateral economic cooperation and boost cross-border trade activity between the two neighbors.
Earlier in the day, the same Iranian delegation met with Kurdistan Region Prime Minister Masrour Barzani in Erbil, where both sides discussed strengthening bilateral relations, particularly in the fields of trade and tourism. The Iranian officials expressed gratitude for the Kurdistan Regional Government’s continued cooperation and support in facilitating the movement of Iranian pilgrims to religious sites across Iraq.
Two conditions for two salaries combined, implementation within 6 days... a time race to end the crisis?
A source familiar with the negotiations between the regional and federal governments reported on Monday that Baghdad is prepared to send two salaries to Kurdistan Region employees simultaneously, provided the region adheres to two points.
The source said in a statement circulated by Kurdish media outlets, "Baghdad is prepared to send the June and July salaries in one installment if the regional government implements two points stipulated by the federal government by next Sunday."
He explained that "the first condition is the delivery of 120 billion dinars of non-oil revenues, and the second is the delivery of 100,000 barrels of oil per day."
An international organization warns of the repercussions of drone attacks and salary cuts on the Kurdistan Region.
Human Rights Watch warned on Tuesday of the serious repercussions for the provision of public services in the Kurdistan Region of Iraq as a result of drone attacks targeting oil fields there. It confirmed that drone attacks carried out by unknown groups between July 14 and 16 on five oil fields caused significant damage to energy production in the region.
In a report published today and seen by Shafaq News Agency, the organization said that the drone attacks represent a dangerous escalation in the long-standing dispute between Baghdad and Erbil over the control and distribution of oil revenues. It noted that, as part of this dispute, Baghdad has stopped paying public sector salaries to the regional government since May.
The organization called on the Iraqi federal authorities and the Kurdistan Regional Government to investigate the drone attacks, prevent further attacks on energy infrastructure, and ensure that public sector salaries are paid in full and on time.
"The deliberate destruction of oil infrastructure could have serious repercussions for the people of the Kurdistan Region of Iraq's access to public services," said Sarah Sanbar, Iraq researcher at Human Rights Watch, in the report. "To make matters worse, thousands of teachers, doctors, and nurses cannot meet their daily expenses because their salaries are held hostage by political disputes."
The attacks halted production of approximately 220,000 barrels of oil per day, reducing total oil production in the Kurdistan Region of Iraq by 70%, according to The New Arab. No casualties were reported.
No group has claimed responsibility for the attack. Aziz Ahmed, deputy director of the office of Kurdistan Regional Prime Minister Masrour Barzani, blamed "criminal militias on the payroll of the Iraqi government."
The Kurdistan Regional Government (KRG) relies heavily on oil revenues and federal budget transfers to pay salaries and fund public services. Since 2014, Baghdad has intermittently withheld Erbil's share of the federal budget, using the payments as leverage to force concessions in negotiations over oil revenues.
On July 17, the Iraqi government agreed to an agreement with the regional government to resume oil exports from the Kurdistan Region and pay public sector salaries.
On July 24, the KRG's Ministry of Finance confirmed that it had received the funds and would distribute them to pay May salaries. Salaries for June and July have not yet been disbursed.
Human Rights Watch said that Baghdad's withholding of public sector salaries directly impacted the quality and provision of essential public services, including health care and education.
According to the report, as a result of the withholding of oil-related budget transfers, the Kurdistan Regional Government (KRG) has not paid teachers 16 monthly salaries, and has only paid a portion of the 44 monthly salaries it has paid over the past decade, Kirkuk Now reported. Teachers and school principals have repeatedly gone on strike to protest the unpaid salaries.
In late 2023, approximately 60,000 teachers went on strike for six months, the longest-running public sector strike in the Kurdistan Region, depriving 700,000 students of their education.
Health workers have repeatedly struck over unpaid salaries, limiting services to emergency cases. Many doctors, facing increasing financial pressures, have resorted to working in the private sector, resulting in reduced availability of services in government hospitals and a decline in the quality of care for patients who cannot afford private services, according to the organization.
The Khor Mor gas field, which provides raw materials for most of the region's power plants, has been attacked by drones at least nine times since 2023, most recently in February 2025. In April 2024, a drone attack on Khor Mor killed four workers and halted production for nearly a week. Despite pledges by Iraqi Prime Minister Mohammed Shia al-Sudani, the government has not published the results of any investigations or held those responsible accountable.
The Ministry of Natural Resources of the Kurdistan Regional Government of Iraq condemned the recent wave of drone attacks, describing them as "terrorist acts aimed at undermining the economic infrastructure of the Kurdistan Region and endangering the safety of civilian employees in the oil sector."
On July 15, Prime Minister Mohammed Shia al-Sudani ordered an investigation into the recent attacks and pledged to hold those involved accountable.
In its report, the organization noted that federal and regional authorities bear responsibility for protecting vital infrastructure and civilians. They must act in good faith to ensure the realization of the population's economic, social, and cultural rights, and prioritize the payment of public sector salaries to ensure the population's access to public services.
Human Rights Watch warned that the authorities' continued failure to resolve these disputes has had a direct and devastating impact on the rights of public sector workers and those who rely on their services.
The organization concluded in its report that Iraq, as a state party to the International Covenant on Economic, Social and Cultural Rights, is obligated to respect the right to an adequate standard of living, including timely payment of wages, health, and education.
“Baghdad and Erbil must stop using civil servant salaries and livelihoods as bargaining chips in oil negotiations,” Sanbar said.
Additional deduction delays payment of Kurdistan Region employees' salaries for July
A source in the Kurdistan Region's Ministry of Finance revealed on Monday (July 28, 2025) that the preparation of the region's employee payroll for the current month of July is in its final stages, but he indicated that the disbursement of salaries may be delayed due to new deductions.
The source told Baghdad Today that "the relevant authorities in the ministry have completed most of the details of the July payroll, and they are expected to be finalized within days." He explained that "the main reason for the delay is the adoption of an additional 3% deduction from the total salary of employees, which will be calculated as accumulated retirement benefits from previous years."
The source indicated that "the June payrolls have been sent to the relevant authorities and are currently being reviewed, while the May salaries were distributed earlier."
Signs of a new rift between Baghdad and Erbil: The agreement is on the verge of collapse and a salary crisis is looming.
Kurdish politician Nawzad Latif warned on Monday (July 28, 2025) of the risk of the collapse of the financial and oil agreement between the federal government and the Kurdistan Regional Government (KRG) due to the latter's failure to adhere to the terms of the agreement, particularly those related to revenues and oil.
In a statement to Baghdad Today, Latif said, "There is a clear deficit in the regional government's ability to secure the agreed-upon internal revenues, which amount to 120 billion dinars per month, which is hindering the fulfillment of the terms of the agreement with Baghdad."
He added, "The region's oil exports have not yet resumed, and there is no clear date for depositing the revenues into SOMO's account, further complicating the situation and threatening to derail the entire agreement."
Latif explained that "the continuation of this stumbling block could return the crisis to square one, especially with regard to the disbursement of salaries to the region's employees," noting that "the federal government will not disburse June salaries unless it receives the agreed-upon amount and the required quantities of oil from Kurdistan."
In recent days, a new agreement was reached to hand over all of the region's internal revenues, along with oil exports through SOMO, in exchange for Baghdad's commitment to cover the salaries of the region's employees.
However, this agreement faced numerous challenges, most notably the halting of Kurdish oil exports via the Turkish port of Ceyhan due to an international arbitration ruling, the region's inability to deliver the required monthly revenues to the federal treasury, and drone attacks targeting the region's oil and gas fields.
This led to delayed or suspended salary payments, exacerbating the suffering of employees in the region and sparking popular protests.
Nawzad Latif's new warning comes at a time when doubts are growing about the seriousness of the two sides' mutual commitment, foreshadowing the collapse of the agreement and a return of the crisis to its previous form.
The Shadow Man's Visit: Did Qaani Meet with the Framework's Leaders in Baghdad Without the Government's Knowledge?
Media reports over the past two days have highlighted a secret visit by Iranian Quds Force Commander Esmail Qaani to the capital, Baghdad. The visit lasted approximately 10 hours, during which Qaani met with prominent leaders from the Coordination Framework. The meeting did not include Prime Minister Mohammed Shia al-Sudani, according to these reports.
However, an informed source denied this information in an interview with Baghdad Today, Monday (July 28, 2025), stressing that "there are no indications of a visit by Iranian military leaders to Baghdad in recent days, whether by General Qaani or any figure from the Revolutionary Guard or the Iranian Ministry of Defense."
The source added, "This type of visit was common in previous months, but the situation changed radically after the June 13 attack, which resulted in the deaths of several senior Iranian officers in assassinations attributed to Israel. This led to the escalation of the confrontation and its transformation into an open war, with the United States as one of the parties."
He stressed that "the movements of Iranian leaders are now managed with extreme secrecy, even within Iran itself, to avoid being targeted. Therefore, any talk of a visit under these circumstances remains pure speculation, without any solid evidence or data."
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