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Iraqi President Calls for Comprehensive Dialogue between Baghdad, Erbil

Iraqi President Barham Salih. (Reuters file photo)
Iraqi President Barham Salih. (Reuters file photo)
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Iraqi President Calls for Comprehensive Dialogue between Baghdad, Erbil

Iraqi President Barham Salih. (Reuters file photo)
Iraqi President Barham Salih. (Reuters file photo)

Iraqi President Barham Salih stressed on Thursday the need to launch "serious and immediate" dialogue between the federal government in Baghdad and the Kurdistan Region government in wake of the Supreme Court's ruling on the region's oil policy.

A surprise ruling by the court on Tuesday cast doubt on the legal foundations of the independent oil policy of Iraq's Kurdish-run region and threatened to drive a political wedge between the two governments.

The Supreme Court struck down the legal justifications for the semi-autonomous region's oil policy, effectively calling into question the future of the region's oil contracts, exports and revenues.

The ruling comes during a politically sensitive time, as efforts have stalled in Iraq to form a government.

In a statement on Thursday, Salih said the dialogue should search for "realistic mechanisms" that take into account the Supreme Court's ruling and that also secure the constitutional rights of the Kurdistan Region and all Iraqis.

"Revenues should be dedicated to serving citizens, away from corruption and mismanagement," he stressed.

He called on parliament to "immediately address the delayed oil and gas draft law" and ratify it.

Salih remarked that the years of delays in ratifying the law has created problems and crises, "leading us to the critical juncture we are facing today."

Tuesday's decision cast into doubt the future of the region's main revenue source.

The region averaged $750 million per month in oil exports via Turkey in 2021, according to Iraq Oil Report, a media outlet that covers Iraq and its oil sector. The region also relies on budget transfers from Baghdad to pay for salaries and debts to traders.

The Kurdish region said the ruling itself was "unjust, unconstitutional" and "unacceptable" in a statement. The region has historically relied on the absence of a federal oil and gas law to justify its independent oil policy.

Iraq's constitution says regions and provinces can have a modicum of independence over oil but that the specifics should be spelled out in a separate law. Such a law has never been passed.

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Syrian Caretaker Government to Hike Public Sector Salaries by 400% Next Month

Graffiti of the Syrian revolution flag is painted on a mosaic of former Syrian President Hafez al-Assad after the ousting of President Bashar al-Assad, in Damascus, Syria January 2, 2025. (Reuters)
Graffiti of the Syrian revolution flag is painted on a mosaic of former Syrian President Hafez al-Assad after the ousting of President Bashar al-Assad, in Damascus, Syria January 2, 2025. (Reuters)
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Syrian Caretaker Government to Hike Public Sector Salaries by 400% Next Month

Graffiti of the Syrian revolution flag is painted on a mosaic of former Syrian President Hafez al-Assad after the ousting of President Bashar al-Assad, in Damascus, Syria January 2, 2025. (Reuters)
Graffiti of the Syrian revolution flag is painted on a mosaic of former Syrian President Hafez al-Assad after the ousting of President Bashar al-Assad, in Damascus, Syria January 2, 2025. (Reuters)

Syria's finance minister said on Sunday the government would hike salaries for many public sector employees by 400% next month after completing an administrative restructuring of ministries to boost efficiency and accountability.

The increase, estimated to cost 1.65 trillion Syrian pounds, or about $127 million at current rates, will be financed by existing state resources plus a combination of regional aid, new investments, and efforts to unfreeze Syrian assets held abroad.

"(This is) the first step towards an emergency solution to the economic reality in the country," Mohammed Abazeed, the finance minister in Syria's caretaker government, told Reuters, adding that this month's wages for public sector staff would be paid out this week.

These measures are part of a broader strategy by Syria's new caretaker government to stabilize the country's economy following 13 years of conflict and sanctions.

Salaries of Syria's public sector employees under toppled President Bashar al-Assad's regime were around $25 a month, putting them below the poverty line, along with the majority of the country's population, Abazeed said.

The hike would follow a comprehensive evaluation of up to 1.3 million registered public sector employees to remove fictitious employees from the payroll and would affect those with sufficient expertise, academic qualifications, and the necessary skills for reconstruction.

Syria's state treasury is facing liquidity challenges emerging from a war. The majority of money available in the central bank is Syrian currency, which has lost much of its value. However, the new government was promised assistance from regional and Arab countries, the minister said.

"The launch of investments in the country in the near future will also benefit the state treasury and allow us to finance this salary increase," he said, adding the central bank currently has sufficient funds to finance the next few months.

The government expects to retrieve up to $400 million in frozen Syrian assets abroad, which could co-finance the initial government expenses.

Syria's caretaker government is also discussing exempting taxpayers, as much as possible, from penalties and interest and working on overhauling the tax system within the next three months to achieve tax justice for all taxpayers, with a first draft expected within four months.

"By the end of this year, we expect having a well-designed tax system that takes the interests of all taxpayers into account," he added.