Banking, financial, and security reforms aim to improve governance and public services
The Kurdistan Regional Government’s (KRG) Ninth Cabinet has continued implementing wide-ranging reforms under the 2020 Reform Law, introducing changes across the financial, administrative, and security sectors aimed at modernising public administration, improving transparency, and strengthening public service delivery.
One of the government’s flagship initiatives has been the “My Account” (Hazhmary Mn) salary banking programme, which has provided more than 950,000 public sector employees with bank accounts, replacing cash salary payments with a modern banking system.
The KRG has also expanded digital financial services through the e-Psule platform, which now serves more than 220,000 users and has processed approximately 1.1 million electronic transactions.
As part of broader financial reforms, the government has recovered more than IQD 2.13 trillion in outstanding public loans—nearly half of the IQD 4.48 trillion owed to the state. Preparations have also continued for the establishment of the National Bank, which will begin operations with an initial capital of IQD 250 billion.
Reforms have also extended to the security sector. The Ministry of Peshmerga Affairs has reorganised 88,900 officers and Peshmerga personnel into 38 brigades, including nine divisions and two combat support divisions. Regional Commands 1 and 2 are also being integrated under the ministry’s authority as part of efforts to unify the command structure.
Administrative reforms have included a comprehensive review of public sector records. The government examined the files of 1,478 senior and special-grade officials and 357,815 civil servants, while 402 personnel files were regularised.
The reform programme also addressed irregularities in public spending by terminating 4,189 cases of unlawful dual salary payments. In addition, 29,338 pension files were transferred from the Ministry of Peshmerga Affairs to the Ministry of Finance and Economy to streamline pension administration.
The reforms form part of the Ninth Cabinet’s broader governance agenda following the Kurdistan Parliament’s approval of the 2020 Reform Law and the KRG’s implementation of Commission of Integrity Provision No. 116, measures aimed at improving transparency, accountability, and the efficiency of public institutions.