Retirees are the first victims
In numbers... Iraq's treasury is empty and bankruptcy is no longer a possibility. "It has become a reality." Tighten your seatbelts.
Talk of a financial crisis in Iraq is no longer just a theoretical prediction or warning; it has become a lived reality with its most minute daily details. The state, which used to cover its obligations through oil revenues, now finds itself completely exposed to its people: a nearly empty treasury, revenues melting away into salaries, and government agencies unable to pay dues on time. This reality means that Iraq is not only on the brink of bankruptcy, but is also experiencing its direct symptoms; from the long lines of retirees waiting hours for their pensions, to a general sense of anxiety and disappointment after oil revenues, with all their enormity, became a mere tool for sustaining consumption rather than a lever for development or a bulwark of financial stability.
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While Iraqis have experienced delayed salaries in previous years, such as the 2020 crisis when oil prices collapsed, the recurrence of this scenario today reveals that the problem has not been radically addressed. Between the three-year budgets burdened by overspending and the widespread employment policies that have left more than half of the workforce dependent on the state, a deficit is an inevitable consequence of any disruption to the flow of revenue.
In this context, Iraqi politician Hamid al-Sayyid published indicators that he described as coming not from "parties hostile to the regime," but rather from within the Iraqi government itself. The total amount of salaries paid of all kinds for the first half of 2025 amounted to 44.946 trillion dinars, while total crude oil exports reached 45.283 trillion dinars, with a coverage rate of 99.2%. These figures reveal that oil exports are almost entirely used to cover salaries, leaving the government no room to address investment, services, or development issues. This prompted al-Sayyid to issue an explicit warning: "The treasury is empty... Buckle up... Bankruptcy is coming."
Analyzing this data, according to experts, indicates that the three-year budget, which was approved with huge figures, no longer has any real cover other than oil prices. Any drop in the global market—even by a few dollars a barrel—is enough to upset the financial balance and disrupt the salaries item itself, which is supposed to be the most protected item. Ironically, even with relatively stable prices, revenues are almost completely lost to covering the salaries of employees and retirees, leaving the state unable to fulfill its investment promises.
The social repercussions of this crisis have become clear over the past few months. Retirees have found themselves at the center of suffering after their salaries were delayed for days, accompanied by tears and anger. The issue has transformed from a mere financial crisis into a humanitarian tragedy affecting the most vulnerable groups. Analysts assert that these scenes are no longer circumstantial indicators, but rather structural signs that Iraq has entered a phase of "realistic bankruptcy," manifested in the inability to fulfill even the most basic obligations toward citizens.
What these figures reveal goes beyond a mere financial imbalance. They confirm that Iraq is facing a cumulative structural crisis: a rentier economy entirely dependent on oil, budgets burdened by employment and current spending, and a fragile financial system unable to build sufficient reserves to ensure stability. The result is that the treasury can no longer withstand market shocks, and any decline in exports or prices will mean further suffocation.
According to experts, breaking out of this cycle requires radical approaches that begin with reducing current expenditures by reforming the salaries and subsidies portfolio, diversifying revenues by revitalizing productive sectors such as agriculture, industry, and services, and building a sovereign fund that preserves surpluses during years of abundance to balance the deficit during years of scarcity. Without these measures, Iraq will remain stuck in a cycle of "declared bankruptcy," with all the salaries of its employees and retirees tied to a single barrel of oil, and every crisis in the global market turning into a local disaster.
Is Washington's refusal to grant a Sudanese visa a political message or a diplomatic slap in the face?
An informed political source confirmed to Al-Mustaqilla on Wednesday that Iraqi Prime Minister Mohammed Shia al-Sudani has not yet obtained an entry visa to the United States, despite the start of the UN General Assembly meetings in New York.
The source, who spoke on condition of anonymity due to the sensitivity and accuracy of the information, stressed that the Prime Minister's Office had not received any official notification from the US embassy in Baghdad or the Iraqi embassy in Washington regarding the issuance of visas to the Iraqi delegation. This has raised widespread questions about the reasons for this unusual delay, especially since participation in UN meetings is an international protocol open to world leaders.
The source added that the lack of clarity from Washington has prompted many observers, followers, and media outlets to raise several possibilities, most notably that the delay reflects an undeclared political stance by the US president's administration toward the current Iraqi government, or a pressure message linked to thorny and complex domestic and regional issues, amid escalating disagreements over the US military presence and relations with Iran.
Others believe the matter may be merely technical or procedural, but its timing raises questions about Washington's willingness to treat al-Sudani's government as a genuine partner, or to limit it to the status of an "international observer."
The question remains: Will Washington grant al-Sudani a visa at the last minute, or is Iraq facing a new diplomatic crisis at the United Nations?
Is Washington's refusal to grant a Sudanese visa a political message or a diplomatic slap in the face?
An informed political source confirmed to Al-Mustaqilla on Wednesday that Iraqi Prime Minister Mohammed Shia al-Sudani has not yet obtained an entry visa to the United States, despite the start of the UN General Assembly meetings in New York.
The source, who spoke on condition of anonymity due to the sensitivity and accuracy of the information, stressed that the Prime Minister's Office had not received any official notification from the US embassy in Baghdad or the Iraqi embassy in Washington regarding the issuance of visas to the Iraqi delegation. This has raised widespread questions about the reasons for this unusual delay, especially since participation in UN meetings is an international protocol open to world leaders.
The source added that the lack of clarity from Washington has prompted many observers, followers, and media outlets to raise several possibilities, most notably that the delay reflects an undeclared political stance by the US president's administration toward the current Iraqi government, or a pressure message linked to thorny and complex domestic and regional issues, amid escalating disagreements over the US military presence and relations with Iran.
Others believe the matter may be merely technical or procedural, but its timing raises questions about Washington's willingness to treat al-Sudani's government as a genuine partner, or to limit it to the status of an "international observer."
The question remains: Will Washington grant al-Sudani a visa at the last minute, or is Iraq facing a new diplomatic crisis at the United Nations?
Al-Surji reveals a preliminary agreement with the center to export the region's oil.
A leader in the Patriotic Union of Kurdistan (PUK), Ghiath al-Surji, confirmed on Wednesday that meetings between Baghdad and Erbil are continuing with the aim of reaching a joint agreement on financial and oil issues, most notably non-oil revenues and the payment of delayed salaries of the region's employees.
Al-Surji told Al-Maalouma Agency, “Delegations from the federal and regional governments are continuing their meetings in Baghdad to discuss the issue of non-oil revenues, as the disagreement centers on the volume of these revenues, their classification, and the mechanism for delivering them to the federal government.”
He added, "The two sides have reached an initial agreement on resuming the export of Kurdistan Region's oil, while some technical issues remain that need to be resolved with the oil companies operating in the region."
He pointed out that "there is a trend towards resolving outstanding issues in a way that serves the public interest and enhances financial and economic stability in the country."
The roots of the financial disputes between Baghdad and Erbil go back to the mechanism for managing and distributing oil and non-oil revenues. The federal government is demanding that the Kurdistan Region hand over all oil exports and imports from border crossings and airports, in exchange for its commitment to paying the salaries of the region's employees.
Oil isn't the only thing in the picture. Kurdistan is approaching new sources of income.
Kurdistan Regional Government Prime Minister Masrour Barzani announced that talks with the federal government regarding non-oil revenues have reached the final stage, expressing hope that the issues of salaries and oil exports will be resolved soon.
He pointed out that oil companies are demanding financial guarantees.
The issue of oil exports from the region via SOMO has remained suspended since early 2023 due to disputes over the quantities exported and the mechanism for calculating dues to foreign companies.
Iraqi Council of Ministers Refers Kurdistan Region’s Domestic Revenues File to State Council
The Iraqi Council of Ministers, in a session held today, Tuesday, 9 September 2025, chaired by Mohammed Shia' al-Sudani, adopted several decisions concerning oil exports from the Kurdistan Region and domestic non-oil revenues. The matter of domestic revenues was referred to the Council of State for resolution.
The Federal Council of Ministers also decided to expedite the delivery of oil currently produced in the region by local companies to Baghdad, while retaining 50,000 barrels for domestic consumption.
The Federal Ministry of Finance began disbursing salaries for the Kurdistan Region’s employees for June earlier this month, completing distribution within three days. The Kurdistan Region’s Ministry of Finance submitted the August payroll to the Federal Ministry of Finance today, having previously sent the July payroll on 3 August.
While Baghdad has already begun distributing pensions to retirees in other parts of Iraq, employees and retirees in the Kurdistan Region are still awaiting their July and August salaries, with no specific payment date yet announced.
Epicor: We will resume oil exports on condition
"We have conditions for the export of oil from the Kurdistan Region and the Iraqi government must provide all financial guarantees to international companies," said Miles Caggins, spokesman for the Kurdistan Oil Industry Association (Epicor).
The Kurdistan Regional Government (KRG ) and the Iraqi government have reached an agreement on the oil issue, but there are still problems with the oil companies. The companies are seeking guarantees to pay their financial entitlements and compensate their debts, which amount to about $1 billion.
Official statement: Miles Cagins, spokesman for Epicor, told Ava Media that Baghdad and Erbil announced at the end of February that they had reached an agreement to resume oil exports from the Kurdistan Region, but the process has not yet resumed.
Impact: The suspension of Kurdistan's oil exports through the Turkish World Pipeline has cost Iraq and the Kurdistan Region $30 billion in recent years.
What you need to know: The Iraqi Council of Ministers met on Tuesday and on the issue of oil, Sudan decided to start receiving oil from the Kurdistan Region from Wednesday.
- The Kurdistan Region's oil production capacity is more than 200,000 barrels per day. The Kurdistan Regional Government (KRG) will keep 50,000 barrels per day for domestic consumption and give the rest to SOMO.
- The Iraqi prime minister has called for a tripartite agreement between the Iraqi Oil Ministry, the Kurdistan Regional Government's Ministry of Natural Resources and oil companies as soon as possible. The agreement aims to resolve the problems to resume the export of oil from the Kurdistan Region through the Turkish World Port.
Background: On 25-3-2023, the Paris Court of Arbitration suspended the export of oil from the Kurdistan Region to the world markets.
Foreign companies: The Iraqi market is promising and offers great investment opportunities.
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Shiite Coordination Committee leaders discuss cooperation with the US administration and elections.
Shiite Coordination Committee leaders discuss cooperation with the US administration and elections.
Leaders of the Coordination Framework, which includes Iraq's ruling Shiite political forces, held a meeting to discuss several internal and external issues, including "enhancing cooperation with the US administration."
A source within the framework said the meeting discussed the Israeli bombing of Qatar and the disqualification of candidates, while stressing the need to adhere to the law to ensure fairness and transparency in the upcoming elections.
According to the source, the meeting also addressed the future of cooperation and partnership with the US administration to achieve balance in relations with neighboring and regional countries. The meeting also discussed the results of the Prime Minister's visit to the Sultanate of Oman and Iraq's upcoming tasks in this context.
The source added that the attendees also discussed oil exports, stopping smuggling, salaries for the Kurdistan Region, the water crisis, and the need to negotiate with Turkey in line with the current situation and common interests to change the reality of water releases.
The Kurdistan Region calls on Baghdad to adopt its proposal as the basis for addressing the issue of non-oil revenues.
The Kurdistan Regional Government's Council of Ministers on Wednesday (September 10, 2025) called on the federal government to adopt the region's proposal as a basis for addressing the issue of non-oil revenues based on laws and the Federal Court's decision, while the Ministry of Finance and Economy to coordinate with the Federal National Retirement Authority, with the aim of implementing the optimal legal option to guarantee the best retirement salary for the Peshmerga forces. It also decided to exempt 15% of government loans and advances, with a full exemption from interest and late payment fines, with the decision to be effective until the end of this year.
The Kurdistan Regional Government's Council of Ministers held its weekly meeting today, chaired by Prime Minister Masrour Barzani and attended by his deputy, Qubad Talabani. At the beginning of the meeting, Masrour Barzani, on behalf of the Council, offered his "sincere condolences to the family and friends of the late Saad Khalid, the former Minister of Parliamentary Affairs, who passed away today following a health crisis," according to a government statement.
The first item on the agenda was devoted to discussing the latest developments related to non-oil revenues and the resumption of regional oil exports, in light of the decisions taken at yesterday's weekly Federal Cabinet meeting on these two issues, which were reviewed in detail by the Chief of Staff of the Cabinet, Omid Sabah, and the Secretary of the Cabinet, Amanj Rahim.
Regarding the federal treasury's share of the region's non-oil revenues, the Council of Ministers affirmed, according to the statement, that the regional government's proposal regarding the classification of these revenues and the mechanism for sharing them with the federal government is based on both the Federal Public Financial Management Law No. (6) of 2019, the Federal General Budget Law No. (13) of 2023, and the decision of the Federal Supreme Court, which together outline a clear legal framework for this issue. Accordingly, the Council of Ministers calls on the federal government to resolve this issue in accordance with these laws and decisions, to prevent it from becoming an obstacle to the disbursement of salaries and benefits to the region's citizens. While the regional government affirms its rights guaranteed by law, it looks forward to the federal government adopting its proposals and legal vision in this regard.
Regarding the issue of oil exports, Acting Minister of Natural Resources Kamal Mohammed Salih presented all the steps, procedures, and facilities provided by the ministry in preparation for the resumption of exports, stressing "continued efforts with the Federal Ministry of Oil and oil companies to reach a joint and balanced agreement between the three parties, in a way that serves the public interest and accelerates the process of resuming oil exports to global markets through the State Oil Marketing Organization (SOMO), and depositing the revenues into the federal treasury."
Accordingly, the Council directed the Ministry of Natural Resources to intensify its efforts with oil companies to resolve outstanding issues and overcome all obstacles, according to the statement.
The statement stated that in the second paragraph of the session, the Minister of Peshmerga Affairs, Shorsh Ismail, and the Head of the Coordination and Follow-up Department, Abdul Hakim Khosro, presented the joint minutes of the ministries and relevant authorities, which included their proposals regarding the mechanisms for implementing the Peshmerga Service and Retirement Law No. (38) of 2007 for retirees covered by its provisions.
The statement read that, after deliberation, the Council of Ministers renewed its support for any recommendation or decision that serves the interests of the Peshmerga forces and aims to improve their retirement salaries and financial benefits. To this end, the Council directed the Ministry of Finance and Economy to take the necessary legal measures, in coordination with the Federal National Retirement Authority, to implement the optimal legal option that guarantees the best retirement salary for the Peshmerga forces, who deserve the highest levels of appreciation, taking into account their special status as an important part of the national defense system and their grave responsibility to protect the land and the homeland. The Council also directed the Ministry to pay the retirement salaries of the Peshmerga forces as soon as possible.
Under the third item on the agenda, Finance and Economy Minister Awat Sheikh Janab presented the Ministry of Finance's proposals and recommendations regarding facilitating loans and advances granted by banks affiliated with the Ministry of Finance to citizens in previous years in the sectors of real estate, agriculture, industry, housing, and tourism, according to the statement.
After deliberations and discussions, the Cabinet decided, according to the statement, to provide a package of facilities for citizens benefiting from these loans and advances, including a 15% exemption from the principal amount, in addition to a full exemption from all bank interest and late payment fines. This decision will be effective until December 31, 2025, for citizens wishing to benefit from it. The Cabinet also directed the Ministry of Finance and Economy to issue the necessary instructions to implement this decision.
Chinese company ZIPC opens regional branch in Basra
In a move that reflects Chinese companies' growing focus on investing in the global oil and gas sector, Zipco Petroleum Engineering, a Chinese oil industry giant, opened its regional branch, Babylon, in Basra Governorate. The opening was attended by local government officials and representatives from oil companies.
Basra Provincial Council member Hassan Shaddad told Al-Sabah that the council reviewed a comprehensive presentation submitted by the company on its investment plans in the field of energy engineering, the manufacture and maintenance of oil equipment, and drilling projects. He indicated that the presence of a branch of this size in Iraq represents a qualitative leap that will contribute to training local cadres and rehabilitating the oil infrastructure according to modern standards. He emphasized that the company's projects will help reduce maintenance costs and completion times, in addition to providing additional resources through periodic maintenance work that can serve oil companies in Iraq and the region.
Shaddad pointed out that ZIPC plans to spend billions of dollars over the coming years to implement its industrial strategy in the Middle East, explaining that these plans include engaging qualified Iraqi human resources and training large numbers of those seeking employment in various technical and technological fields. He also noted that the company has signed contracts with the local government in Basra to establish desalination plants and address water scarcity to serve citizens.
For his part, Li Shu, General Manager of Zipco in Iraq, explained that Basra represents a vital energy hub in the global economy, making it a strategic hub for the company's plans in the region. He revealed that the company is studying the establishment of an industrial facility for the production of oil equipment and pipelines, as well as advanced maintenance workshops in Basra to rehabilitate production units and train Iraqi personnel, in cooperation with the government. He added that Zipco entered Iraq in 2012 and won contracts to develop fields in Baghdad, Dhi Qar, and Muthanna in the fifth and sixth licensing rounds, and plans to invest additional funds in crude oil export pipeline system projects.
For his part, Fahmi Al-Fayyad, Managing Director of Mashariq Iraq Oil Logistics Services, emphasized that Zipco's entry into Basra on this scale represents a significant shift in Iraq's dealings with international oil companies. He noted that the move has been welcomed locally, regionally, and internationally, as it contributes to attracting new investments and developing the oil industry and related logistics services.
Kurdish Life in Nashville; A small Kurdistan in the heart of America
Nashville, Tennessee, has been home to a large Kurdish population since the reception of Kurdish refugees in the 1980s. It is known as a small Kurdistan in the heart of the United States.
Two years after the Kurdistan Region of Iraq (KRG) was named the sister city of Nashville, the presence of the Kurdish community in the city has become more pronounced. From Kurdish restaurants and markets to Kurdish festivals, cultural events and sports programs, Nashville has become a symbol of the Kurdish diaspora in the United States.
The “A Country in Our Hearts” podcast, recently broadcast by local radio (WPLN), attempts to make a connection between the past and present of the Kurdish community in Nashville by looking at the stories of Kurdish immigrants. "The choice of this topic reflects the fact that Kurds have been forced to migrate to other countries, especially the United States and Europe, in recent decades, and this idea is the point of contact between the various fronts of Kurdish immigrants who have started a new life in Nashville.
According to Gilbert, a significant part of that history dates back to the 1980s; When the Anfal operations ordered by Saddam Hussein led to the massacre and cleansing of the Kurdish people in northern Iraq, the destruction of thousands of villages and hundreds of thousands of Kurdish refugees. Most Kurdish families, including Nash Chalka, whose father was a Peshmerga, have finally arrived in the United States after years of fleeing and hiding in temporary shelters.
By 2025, refugee housing plans will continue to be suspended and the US political climate will accept fewer immigrants than in the past. This issue has become especially difficult after a massive wave of Kurdish immigrants, especially Kurds from Turkey, across the Mexican border to the United States. Because unlike the first front of Iraqi Kurdish immigrants who entered the United States through organized programs, this new group faces a complex legal process and strict legal and social measures.
This gap between two immigrant experiences shows that Nashville's “Little Kurdistan” is not just a historical immigrant narrative, but has now become a meeting place of two opposing realities: the memory of displacement in the 1980s and the challenges of asylum in the United States today.
Thus, Kurdish society in Nashvik has been able to establish a stable identity by preserving their traditions and ceremonies. The celebration of Newroz, which has been held in the city since 1994, is a clear example of this cultural resistance. The lighting of the symbolic bonfire and the gathering of thousands of people not only mark the beginning of the New Year, but also a symbol of resistance and hope for a society that has turned its painful history into an opportunity for revival.
In this sense, Nashville's “Little Kurdistan” is higher than an immigrant neighborhood, and its Kurds reflect the broader challenges of US immigration policy and the role of the diaspora in redefining identities in a new country. The Kurdish experience in Nashville shows how Washington's political decisions, from Saddam's Anfal to the restriction of access to refugees, directly affect the fate of displaced people and the future of their fronts in the United States.
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