Kurdistan Economy

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Budget Implementation Failure

Kurdistan Region Prime Minister Masrour Barzani in a statement on Thursday warned that Baghdad's failure and reluctance to send the Region its fair share of the federal budget is "hurting" ordinary citizens

"Zero payments from Baghdad hurt our citizens, erode trust, and blatantly violate the Iraqi Constitution," the Kurdish leader said in a tweet this evening.

Over the past few months, the federal government of Iraq has consistently delayed providing the Kurdistan Region with its rightful share of the national budget, often offering delayed insufficient funds.

Analysts have characterized this attitude by Iraq's federal government as "hostile" and a "deliberate effort" to provoke discontent and dissatisfaction among the general public in the Kurdistan Region.

https://www.basnews.com/en/babat/822638

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Investment and Women Conference

The inaugural Investment and Women Conference took place in Erbil on Monday, featuring the active involvement of over 20 countries and more than 300 investment planning experts

Organized under the auspices of the Kurdistan Regional Investment Board, the event also welcomed representatives from the CBC Investment Board and the Iraqi Investment Board.

During the conference, Dr. Mohammed Shukri, Chairman of the Kurdistan Region Investment Board, conveyed the Prime Minister's vision for the Kurdistan Regional Government’s (KRG) economic sector and the generation of employment opportunities within the region.

In his address, he emphasized the government's commitment to offering equal job opportunities and investment prospects to all entrepreneurs and investors in Kurdistan. The primary goal is to streamline the investment process, eliminating unnecessary bureaucracy, so investors can focus on their endeavors.

Prominent investment boards from Saudi Arabia and other Arab nations actively participated in the conference, contributing to the formulation of comprehensive investment plans, with a specific focus on initiatives benefiting women entrepreneurs and investors.

https://www.basnews.com/en/babat/823014

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Baghdad must pay Erbil salaries

The Kurdistan Government’s (KRG) on Wednesday called on Baghdad to pay Erbil’s financial entitlements according to figures previously agreed upon in order for salaries to be paid uninterrupted

Meetings between delegations from the KRG and the Iraqi federal government have been ongoing over the past months, aimed at resolving lingering disputes over the Region’s share in the federal budget.

On Wednesday, Iraq’s finance ministry announced it will sign a “loan agreement” with the KRG to pay the salaries of its employees, saying that Erbil will receive its dues once it complies with its obligations within the budget.

The KRG Council of Ministers, chaired by Prime Minister Masrour Barzani, convened on Wednesday to call on Baghdad to pay the Region’s financial dues according to agreements in the budget, two days after it said that the 500 billion IQD (roughly $382 million) provided by Baghdad was not enough to meet the needs of the Region.

“Baghdad must send the financial dues of the Kurdistan Region monthly according to the budget of one trillion and 375 billion dinars, of which 906 billion dinars are allocated for salaries, so that the Kurdistan Regional Government can pay the salaries,” the KRG said in a statement.

“What causes concern and regret is the delay in distributing the region’s salaries for two months due to Baghdad not sending salaries even though the Region fulfilled all its obligations towards the federal government within the framework of the budget law and the constitution,” it added.

The KRG has failed to pay its civil servants on time and in full for several years due to the financial crisis. Public sector employees have not been paid for the months of July and August following several failed deals with Baghdad.

During the meeting, the Council of Ministers called on political parties in the Region to “unify their voice and positions in defense” of the Kurdistan Region’s constitutional rights, while also urging parties within the State Administration Coalition that formed the Iraqi government of Prime Minister Mohammed Shia’ al-Sudani to adhere to previous agreements that were a prerequisite to the government’s formation.

Iraq passed its highly-contentious budget bill for the years 2023, 2024, and 2025 in June, which includes a record $152 billion in spending, of which the Kurdistan Region’s share is 12.6.

https://www.rudaw.net/english/kurdistan/060920231

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New Water Treatment Plant

Kurdistan Region Prime Minister Masrour Barzani has allocated 109 billion Iraqi dinars to develop drinking water infrastructure networks in the town of Akre

Construction work has begun on the potable water project on Big Lake (Zey Gawra) in the town of Akre. The project is expected to address drinking water shortages in Akre and surrounding villages, according to a statement released by the KRG Department of Media and Information.

The engineering team estimates that the project will be completed in 14 months, which will stretch 114 kilometers. Workers have already begun pipeline work for the project.

Under Prime Minister Masrour Barzani's leadership, substantial progress has been made in enhancing public services and infrastructure networks in the Kurdistan Region.

This progress is evident in building modern hospitals, educational facilities, university campuses, advanced road systems, bridges, dams, reservoirs, water treatment plants, factories, and numerous critical infrastructure components throughout the Region.

Link to Photos:
https://www.basnews.com/en/babat/823165

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BCF to Distribute School Stationery

The Kurdish Barzani Charity Foundation (BCF) in a news conference on Thursday announced plans to continue assisting the education sector in the Kurdistan Region and Iraq as well

"Today, we will begin giving out a necessary collection of stationery items and backpacks to 50,000 students in the Kurdistan Region, as well as in the provinces of Kirkuk, Mosul, and Salahaddin in coordination with Kurdistan's philanthropists," the head of the BCF, Musa Ahmad, said.

The BCF in coordination with the Kurdistan Regional Government (KRG) and philanthropists in the Region has built 136 classrooms across the Kurdistan Region to ensure more space for pupils in recent years, Ahmad added.

Kurdistan Region's leading charity organization has also built 146 new schools for refugees and internally displaced persons (IDPs), who came to Kurdistan to seek refuge from conflict and violence in the country.

The BCF, a prominent charitable organization based in the Kurdistan Region, has a substantial local and global impact. It provides financial aid to disadvantaged families, and delivers humanitarian assistance to those affected by natural disasters and conflicts.

Additionally, the charity is committed to aiding IDPs and refugees, supplying crucial items such as tents, household appliances, and medical provisions.

Their dedication extends to the education sector as well, involving the renovation of existing schools and the construction of new ones. Furthermore, the BCF undertakes the construction of care homes and complexes to cater to the requirements of individuals with special needs.

https://www.basnews.com/en/babat/823377

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Kurdistan financial entitlements

ERBIL (Kurdistan 24) – The Iraqi Council of Ministers on Sunday will decide on the proposals of the Kurdistan Regional Government (KRG), including the transfer of $600 million per month to the Kurdistan Region

Sherwan Dubardani, a member of Iraqi parliament representing the Kurdistan Democratic Party (KDP), told Kurdistan 24 that the KRG delegation was proposing to amend articles 12 and 13 of the budget law related to the Kurdistan Region's share.

Kurdistan 24 has learned that if the Iraqi government sends $600 million per month for the salaries of Kurdistan Region civil servants, then the Kurdistan Region can instead distribute salaries alternatively using its own domestic revenues.

In order to resolve disputes between Baghdad and Erbil, a delegation from the KRG led by Prime Minister Masrour Barzani met in Baghdad on Sept. 14.

Following the meetings, Prime Minister Masrour Barzani announced the framework for short-term and long-term solutions that had been proposed to the Iraqi officials in order to overcome the dispute over KRG salaries.

Amendments should be made to the country’s three-year budget law adopted in June, according to the long-term plan, while the short-term solution focuses on reimbursing funds to the Kurdish public employees.

On Sept. 3, the Iraqi Council of Ministers decided to send $384 million in the form of loans to pay salaries to the Kurdistan Region; however, KRG representation implied that the federal government had unilaterally made the decision without consulting the Kurdish region.

Meanwhile, the KRG Finance Minister said on Sept. 4, that the amount of money the federal government is going to send, with a domestic revenue of about $244 million, is not sufficient to cover all salaries.

Despite meeting its commitments as outlined in the agreements, Erbil asserts that the federal government has not disbursed salaries to its civil servants as per their prior mutual agreement.

https://www.kurdistan24.net/en/story/32 ... -on-Sunday

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I AM FURIOUS

Iraq loans 2.1 trillion IQD to Kurdistan

After the Iraqi Council of Ministers directed the loan of 700 billion Iraqi dinars for three months (total 2.1 trillion) monthly to cover salaries of the Kurdistan Region’s civil servants, the Region’s Prime Minister Masrour Barzani on Sunday thanked top Iraqi and Kurdish officials for the agreement

Iraq’s Council of Ministers on Sunday agreed to loan a total of 2.1 trillion Iraqi dinars to the Kurdistan Region to cover the salaries of civil servants for a period of three months. The decision was highly welcomed by PM Barzani.

“We were able to reach an appropriate agreement with the Iraqi federal Prime Minister, Mr. Mohammed Shia’ al-Sudani, to provide the salaries of citizens,” Barzani said in a statement.

He also thanked Kurdistan Region President Nechirvan Barzani for “supporting and making the negotiation process with the federal government a success,” while also expressing gratitude to Masoud Barzani, leader of the Kurdistan Democratic Party (KDP), and the Kurdistan Region’s “resilient” citizens for their patience.

Iraq's Justice Minister Khalid Shwani told Rudaw's Halkawt Aziz that the loan will cover the salaries of September, October, and November. The Kurdistan Region's civil servants are yet to receive their salaries for July and August.

The Iraqi government decision came after a high-level delegation from the Kurdistan Regional Government (KRG) led by PM Barzani went to Baghdad on Thursday to meet senior Iraqi officials and campaign for the Kurdistan Region’s financial entitlements.

In the statement, Barzani also thanked Iraqi and Kurdish political parties “for their support,” after he met with parties involved in the State Administration Coalition during his Baghdad visit.

The State Administration Coalition is an alliance of Shiite, Sunni, and Kurdish political parties in Iraq that successfully broke the political deadlock that suffocated the country and left it without a government for over a year. The coalition backed then-prime minister-designate Sudani and voted to elect his cabinet in October of last year.

The Iraqi parliament in June passed its highly-contentious budget bill for the years 2023, 2024, and 2025, of which the Kurdistan Region’s share is 12.6 percent. However, budget issues between both governments have not been resolved as Erbil blames Baghdad for not sending the required funds to pay the Region’s civil servants.

Economic woes in the Kurdistan Region have worsened in recent months after Turkey suspended the flow of Kurdish crude oil through the Iraq-Turkey pipeline to its Ceyhan port in March following a ruling from a Paris arbitration court, causing the KRG billions of dollars in losses.

Several meetings have been held between Iraqi and Turkish delegations since March, aimed at resuming the flow of crude oil from the Kurdistan Region. The meetings, however, have not yielded any results.

The Kurdish government has failed to pay its civil servants on time and in full for nearly a decade due to the financial crisis. The public employees are yet to receive their July salaries.

“We will continue to … not allow futile attempts to disrupt the stability of the Kurdistan Region,” PM Barzani stressed.

https://www.rudaw.net/english/kurdistan/17092023

LOAN
LOAN
LOAN

Iraq owes Kurdistan a trillion times that and much more for the destruction of Kurdistan and the slaughter of all the innocent Kurds

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End Baghdad's Unfair Treatment of KRG

Three US Republican Congressmen have in a letter on Monday called on President Joe Biden to stop the unjust treatment of the people of the Kurdistan Region at the hands of Iraq's federal government

"We urge you to make every effort to end the unacceptable treatment of Iraqi Kurds and Iraqi Kurdistan Regional Government (KRG) by Iran-aligned elements in Iraq," Congressmen Michael Waltz, Michael T. McCaul, and Joe Wilson said in the letter.

The Iraqi Kurdistan Regional Government (KRG) has served as one of the United States' most reliable partners in the Middle East, yet is being economically strangled, politically and legally pressured, including reportedly by Faiq Zaydan, President of the Supreme Judicial Council in Iraq, and militarily threatened by Iran and Iran-backed elements in Baghdad."

In recent months, Baghdad has been sending funds to the Kurdistan Region with substantial delays and inadequacies, which has consequently left the Kurdistan Regional Government unable to cover public sector salaries for a period exceeding two months.

Many in the Kurdistan Region and beyond have labeled this unfair treatment by Baghdad of the people of the Kurdistan Region as "hostile" and "discriminatory."

Kurdistan Region's crude exports were halted in March of this year when the France-based International Chamber of Commerce ruled that KRG oil exports violated a pipeline agreement between Baghdad and Ankara, and were therefore unconstitutional. The halt has significantly diminished Kurdistan's economic ability to pay its civil servants and fund development projects.

https://www.basnews.com/en/babat/823986

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Sixth Agro Pack exhibition

ERBIL (Kurdistan 24) – The Kurdistan Region’s capital Erbil on Tuesday witnessed the inauguration of the sixth agriculture and food expo known as Agro Pack that will run until Sept. 21

More than 200 international and local companies are taking part in the three-day event that is expected to attract numerous customers and networking efforts.

The Kurdistan Regional Government (KRG) Minister of Agriculture and Water Resources Begard Talabani, as well as other local officials, participated in the inauguration ceremony along with numerous company representatives and foreign diplomats.

The exhibition is Iraq’s only venue for the “food, packaging, plastic, and agriculture industries,” according to a social media post, the event organizer posted on September 7.

The participating companies display their products and agricultural produce to the visitors, including Kurdish and Iraqi farmers.

Large agricultural company delegations from both India and the Netherlands, for example, are taking part in the expo, Kurdistan 24 has learned.

The Region, frequently hailed for its fertile land and great agricultural potential, has recently ramped up efforts to develop its agricultural sector and find new markets outside Iraq for its produce.

About 1,000 tons of potatoes have been exported to the United Arab Emirates (UAE) from the Kurdistan Region since August, Bashar Mushir Agha, the general director of Kurdistan-Holland (K-H) Company for Agricultural Investments, told Kurdistan 24 in early September.

The Gulf country similarly received Kurdistan Region’s pomegranates last year, marking the first Gulf country to have received Kurdish produce.

In a bid to further support farmers and increase their skills, the KRG has recently launched providing training courses to farmers.

The government has been in contact with various regional market leaders and governments in order to draw their attention to the Kurdish produce, which has been hailed as “premium grade,” Prime Minister Masrour Barzani has said on several occasions.

Honey and apples will also be exported to the Gulf countries in 2023, according to the government.

"Kurdistan Region could become Iraq's food basket," Barzani said in a televised interview aired last December while speaking on his cabinet's efforts to develop the sector.

https://www.kurdistan24.net/en/story/32 ... exhibition

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Duhok Agriculture Exhibition

The city of Duhok on Wednesday opened its 16th annual agriculture exhibition to showcase grape and honey products in the province

The exhibition is being held at Duhok’s Family Mall, where 40 exemplary farmers will be displaying their products. The event aligns with the government's efforts to bolster the agriculture sector in the Kurdistan Region, Kurdistan 24 reported.

The current cabinet of the Kurdistan Regional Government (KRG) has made the development of key industrial sectors, especially farming and agriculture, a top priority. This strategic focus is intended to diversify revenue streams, and strengthen the overall economic foundations of Kurdistan.

Additionally, the government has shown its commitment to improving infrastructure networks, including through the construction of modern storage facilities for farmers. These efforts are part of a comprehensive plan to establish a resilient and sustainable farming and agriculture industry.

Through various other initiatives, such as addressing water scarcity challenges, introducing incentive programs, and facilitating the export of agricultural products like potatoes, pomegranates, rice, sumac, the government is actively contributing to the growth of this vital sector.

https://www.basnews.com/en/babat/824134

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Agricultural sector important
By Wladimir van Wilgenburg

ERBIL (Kurdistan 24) – Dutch Deputy Consul General of Netherlands in Erbil, Jort Posthumus, on Tuesday at a Dutch-Kurdish Agribusiness event underlined that the agricultural sector is important to diversify the Kurdistan Region’s economy

The Dutch-Kurdish business networking event was organized for the same week as the Agro-Pack Iraq event in Erbil, which is taking place from Sept. 19 to Sept. 21.

“Throughout the years, we experienced a lot of interest and vision to further develop the agri-food sector by all relevant stakeholders in the KRI (Kurdistan Region of Iraq) at the highest levels from the Kurdistan Regional Government (KRG) and its respective ministries, investors, entrepreneurs and farmers.”

“All of which have been working with the objective of improving this highly important, perhaps one of the most vital sectors in the KRI. I cannot emphasize enough the importance of a well-functioning climate-proof and sustainable agri-food sector,” he added.

He underlined that the agricultural sector can be a valuable asset, diversifying the KRI’s economy, creating jobs, and bolstering economic resilience. It can also contribute highly to food security and autonomous agricultural production, reducing the dependence on imports and boosting exports.

Moreover, he said climate change is having a detrimental effect on the agricultural sector. “It would be an understatement to say that we increasingly notice the effects of climate change in our daily lives. As very often mentioned, Iraq will be among the most affected countries by climate change regarding the agriculture and horticultural sectors, which further highlights the need for more water efficiency for crop growing [...]”

Furthermore, he said to “elevate the level and quality of an entire sector requires commitment, resources and expertise. Therefore, international collaboration is essential.”

He also said that the Dutch-Kurdish relationship has been very alive for many years. “As [there] is a vast Dutch-Kurdish diaspora in the KRI, which not only keeps our connection very strong, but it also enables us more effectively to expand our relationship.”

According to some estimates there are around 7,000 Kurds with Dutch passports in the Kurdistan Region.

“In terms of resources and expertise. We offer various programs working on different levels of knowledge sharing, and university collaborations to private public partnerships and [furthering] business coordination [...],” he added.

He also said this is illustrated by the Dutch-Kurdish Joint Advisory Commission, which included Dutch experts. The recommendations of the policy paper that was produced by the committee contribute to KRI strategy for the agricultural sector,” he added.

Lastly, the deputy consul added that other successful examples of Dutch-Kurdish cooperation involving the potato value chain and installation of metric greenhouses. “All these efforts focus on strengthening the agri-food sector.”

In 2021, in coordination with Prime Minister Masrour Barzani, the Dutch supported the opening of a large potato processing plant in Duhok worth 5.8 million euros.

In May, the Kurdistan Region planted 5,000 trees using an advanced Dutch technology called Groasis Waterboxx.

Aside from economic cooperation and assistance, the Dutch have supported the KRI militarily as part of the International Coalition to Defeat ISIS. The Dutch have also been an ardent supporter of the Peshmerga reform program, along with other coalition countries.

https://www.kurdistan24.net/en/story/32 ... uty-Consul

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KRG Continues to Strengthen Agriculture

The Kurdistan Regional Government (KRG) on Monday announced plans to build a modern grain silo in the city of Halabja to reach self-sufficiency in food products and also develop the agriculture sector

The Department of Media and Information of the KRG in a statement today announced plans to boost the agriculture sector in Halabja by building more storage facilities for farmers.

Under the leadership of Prime Minister Masrour Barzani, this KRG cabinet has placed a strong emphasis on prioritizing the expansion of infrastructure networks, earning it the reputation of a "public services-focused cabinet."

Despite grappling with numerous financial and economic challenges, the government remains steadfast in its commitment to advancing and modernizing public services across the Region.

In addition to this, the government has set its sights on industrial growth and the diversification of revenue sources. It seeks to achieve these goals by concentrating on the development of various industry sectors, with a special focus on agriculture, farming, and tourism.

https://www.basnews.com/en/babat/825540

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Barzani launches Project Bloom

ERBIL (Kurdistan 24) – Kurdistan Region Prime Minister Masrour Barzani on Monday launched Project Bloom, a loan-giving initiative for small and medium businesses in the Kurdish region

Barzani was joined by senior Kurdistan Regional Government (KRG) officials as well as foreign diplomats based in Erbil.

“I am pleased to announce the KRG’s Project Bloom, which provides commercial loans to small and medium businesses,” Barzani said, adding the loans will be given through private banks.

The project is part of the government’s agenda to develop businesses and support the private sector, which has closely cooperated with the public sector in developing the Kurdistan Region’s economic infrastructure in recent years.

The small and medium businesses constitute about 50 percent of the Kurdistan Region’s transactions and workforce, Barzani said, citing research data.

“Lack of access to financial support has been a major challenge for businesses and trade in Kurdistan Region,” the premier said, adding business owners had been unable to expand their businesses for the same reason.

From its inception, the KRG ninth cabinet has been supportive of the banking sector as well as SMEs in order to provide a suitable atmosphere for economic diversification, the prime minister said.

Supervised by the KRG Ministry of Labour and Social Affairs, the project aims to give up to 150 million dinars in loans to small and medium business owners.

Business owners who wish to access loans should apply through a digital portal in order to make the application.

“This is the first time that the KRG is offering loans to business owners through entrepreneurs and private banks in a professional way to expand their businesses,” Barzani said.

https://www.kurdistan24.net/en/story/32 ... ject-Bloom

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Internally Displaced Persons in Kurdistan

ERBIL (Kurdistan 24) – Kurdistan Regional Government (KRG) Minister of Interior Reber Ahmed on Tuesday responded to allegations by the Iraqi government that the Kurdistan Region is trying to exploit the situation of internally displaced persons (IDPs)

“The refugees did not come to the Kurdistan Region by a decision, so their return will not be done through another decision,” he said, adding the displaced population voluntarily chose the Kurdish region as a safe haven following the onset of the Syrian Civil War in 2011 and the ISIS offensive in 2014

The minister's remarks came during the inauguration of the government’s Operation Room of the Joint Crisis Coordination Center (JCC), the Region’s crisis management entity that deals with both natural and man-made emergencies.

Speaking of the Iraqi federal government’s decision to close down the displacement camps across the country, Ahmed reiterated his government’s long-standing position to continue hosting nearly a million displaced population, including Yezidis and Syrian refugees.

The minister’s remarks were a response to the “accusations” that have been made by the Iraqi Ministry of Displacement and Migration against the Kurdistan Region, alleging the semi-autonomous region uses the displacement dossier for political gains.

“It is not the government’s duty to reduce or close the camps. It is the decision of the [displaced] people to go back or stay,” Ahmed added.

The Kurdistan Region has hosted nearly 2.5 million Syrian refugees and Iraqi IDPs following the conflicts that began in Syria in 2011.

The Kurdish government supports 70% of all the necessary costs of hosting the population, according to the KRG.

https://www.kurdistan24.net/en/story/32 ... r-minister

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KRG launches digital banking system

Kurdistan (KRG) announced the launch of the “My Account” initiative aimed at providing citizens with an inclusive financial program and modernizing the banking sector, in line with its digitalization campaign

Last year, Prime Minister Masrour Barzani announced the KRG’s Digital Transformation Strategy aimed at transforming government services into being more “citizen-centric.”

The “My Account” initiative will provide will provide public sector employees, pensioners, and security forces with safe, transparent, and convenient access to their salaries,” according to a statement released by the KRG on Tuesday.

“We want to achieve what takes other countries 30 years to accomplish in two years. We do not have such time. The indicators are suggesting that the project’s success is almost guaranteed,” Hiwa Afandi, the head of the KRG's Department of Information Technology (DIT) told Rudaw on Thursday.

The new program will be available in numerous locations across the Kurdistan Region and Iraq, providing access to modern banking services.

“Further enriching the program's spectrum, we eagerly anticipate the onboarding of more banking partners in the near horizon,” Barzani said on Wednesday.

Afandi stated that account registration began last month with over 71,000 people already having registered, adding that 20 registration points currently exist in Erbil.

The KRG said that the new project would reduce the existing heavy reliance on cash while also increasing government efficacy and transparency. Afandi also said the project is being carried out in coordination with the federal government in Baghdad, reassuring that the value of the dinar would remain the same.

It provides civil servant salaries with “an advanced banking system,” with them being allowed to use it around the world. They can pay for governmental services such as electricity and water through the account.

“My Account” is set to begin registrations in Sulaimani and Duhok next month, aiming to reach the private sector by next year.

The soft launch of the program was carried out in February, with the KRG stating that over 800 employees of Erbil’s Children and Maternity Hospital successfully received their salaries using electronic transfers.

https://www.rudaw.net/english/kurdistan/12102023