By Saman Shali

The Iraqi government can play a crucial role in supporting the Kurdistan Region's efforts to address its debts. Here are some ways in which the Iraqi government can assist:

1. Dialogue and Negotiation: The Iraqi government can engage in constructive dialogue with the Kurdistan Regional Government (KRG) to understand the region's debt situation and work together to find solutions. This collaboration can involve discussing debt restructuring options, seeking financial support, and exploring potential avenues for debt relief.

2. Financial Assistance: The Iraqi government can provide financial assistance to the Kurdistan Region to help alleviate its debt burden. This could involve allocating a portion of the federal budget to support the region's economic development, infrastructure projects, and social programs. The allocation of funds should be based on transparent and equitable criteria, ensuring the efficient use of resources.

3. Revenue Sharing and Financial Measures: Enhancing revenue-sharing mechanisms and financial measures between the Iraqi government and the Kurdistan Region can contribute to debt reduction efforts. This could involve revisiting and updating the existing revenue-sharing formula, ensuring that the Kurdistan Region receives a fair share of national revenues and resources to address its financial challenges.

4. Economic Cooperation and Development Initiatives: The Iraqi government can collaborate with the KRG to implement joint economic projects and initiatives that contribute to the region's economic growth and debt reduction. This could include joint investments in infrastructure, energy projects, and industrial development that generate revenue and create employment opportunities.

5. Support for Economic Reforms: The Iraqi government can provide technical assistance, expertise, and capacity-building support to the KRG in implementing economic reforms. This can help enhance fiscal management, improve public financial systems, strengthen governance and transparency, and promote sustainable economic development in the Kurdistan Region.

6. International Advocacy: The Iraqi government can advocate on behalf of the Kurdistan Region in international forums and with international financial institutions. This can involve lobbying for debt relief or favorable debt restructuring terms, highlighting the region's economic challenges, and seeking international support to alleviate the debt burden.

7. Political Stability and Security: Maintaining political stability and security in Iraq as a whole, including the Kurdistan Region, is vital for attracting investments, promoting economic growth, and addressing the debt situation. The Iraqi government can work towards fostering a stable and secure environment, which encourages domestic and foreign investors to engage in the region's economic activities.

8. Transparency on debts: The KRG has to build trust between the KRG and the Iraqi government on the one hand and between the KRG and the Kurdistan people on the other hand. It needs to be very clear and transparent about its liabilities so it can help eliminate debt.

9. Salary arrears: The Iraqi government is the reason behind the arrears on the KRG employees salary, therefor the federal government must cooperate to restore these rights, like all Iraqi federal employees, by allocating monthly amounts from the federal budget in cooperation with the KRG.

Close cooperation and coordination between the Iraqi government and the Kurdistan Regional Government are essential to effectively address the debt situation and support sustainable economic development in the Kurdistan Region and Iraq.

Saman Shali has a Ph.D. in Science (1981) from the University of Sussex. Dr. Shali worked as an Assistant Researcher and Assistant Professor at the University of Sussex, King Saud University, and Pennsylvania State University. He is also a senior fellow at the Mediterranean Institute for Regional Studies.