BAGHDAD,— The caretaker Kurdistan Regional Government (KRG) is starting new natural gas projects while past problems from oil sales still remain. Economists and observers warn that the region may repeat old mistakes if the gas sector is not managed better.
On June 1, economic expert Othman Karim spoke to Baghdad Today about the current state of the economy in Iraq’s Kurdistan Region.
He explained that before 2014, the region was growing. “There was economic progress. Construction was strong, tourism was increasing, and salaries were paid on time,” Karim said.
Things changed when the KRG began selling oil without approval from Iraq’s federal government.
Karim said that after 2014, the region’s finances went into decline. “Most of the oil profits were controlled by political parties. Ordinary citizens saw very little benefit,” he said.
He also pointed out that the gas sector may follow the same path if things don’t change. “There is no clear plan or agreement with Baghdad,” Karim warned.
“Gas could become another curse like oil if it’s not handled the right way.”
The KRG is now focusing on natural gas development, even though the disagreement with Baghdad over oil revenue is still unresolved. There are concerns that without transparency and a fair system, gas money will also end up in the hands of a few powerful groups.
People in Kurdistan once hoped that oil would bring better jobs, services, and a stronger economy. But instead, many now face delayed salaries, fewer services, and higher costs.
Now, with gas on the table, citizens hope for real change — but many also worry that nothing will improve if the same issues continue.
Iraqi Kurdistan is often described by local officials and international watchdogs as one of the most corrupt areas in Iraq. Leaked reports and statements from Kurdish lawmakers say billions of dollars in oil money have gone missing.
For many years, the Kurdistan Region has been governed by two major political families — the Barzanis, who lead the Kurdistan Democratic Party (KDP), and the Talabanis, who run the Patriotic Union of Kurdistan (PUK). Both groups have faced regular accusations of corruption and misuse of public funds.
According to observers, these families control many private businesses and several major oil fields across the region. Together, their commercial assets are estimated to be worth several billion U.S. dollars.
(With files from baghdadtoday.news)
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