ISIS hit by financial crises, slashes salaries of fighters

“So on account of the exceptional circumstances the Islamic State (Daesh) is facing, it has been chose to reduce the salaries that are paid to all mujahideen by half, and it is not allowed for anyone to be exempted from this decision, whatever his position”. The Islamic State does kindly inform its soldiers that, though times are lean, payments will not be interrupted: “Let it be known that work will continue to distribute provisions twice every month as usual”.

Analysts believe that the decision by ISIS is proving that the coalition airstrikes against their financial sources have effectively faced the terrorist group with serious financial crisis.

Aymenn Jawad al-Tamimi, a researcher with the Middle East Forum, is compiling an archive of ISIS administrative documents and recently uncovered a missive from ISIS leadership announcing the reduction in pay. A memo from the terror group says it’s cutting salaries by 50 percent, but doesn’t say why.

Syrian Observatory head Rami Abdel Rahman told AFP that the wage cuts will leave Syrian ISIS fighters with roughly $200 a month, whereas foreign fighters, who are generally paid double to reward their travels, will see their monthly income brought down to $400. The U.S. has recently turned its attention toward the black gold, conducting airstrikes on oil trucks, storage tanks, mobile refineries and other oil field equipment.

General Lloyd Austin of the U.S. Central Command is quoted saying these new economic strikes have cost the terror state “millions of dollars”. But a concerted effort to quell the group’s spending power in recent months, which included the U.S. Air Force dropping two 2,000 lbs. on a bank in Mosul that contained millions in hard currency, have stopped the group’s surge across Iraq and Syria.

This was the second such instance in over a week that U.S. military has targeted an Islamic State of Iraq and Syria (ISIS) finance centre holding significant cash reserves.

Like any other state, ISIS faces a large challenge as it tries to maintain a functioning government on limited tax receipts. In addition to keeping its fighters motivated, the high pay was also reportedly a means of attracting more jihadists. CNN Money notes that ISIS pays engineers and technicians upward of $1,500 a month to provide reliable electricity.