Palestinian Government cites withheld funds for salary delays

Mohammed Abu al-Rub, director of the Palestinian Government Communication Center, stated that Israel's withholding of clearance funds for approximately 18 months is a primary driver of the current financial and economic crisis. These funds account for roughly 68% of Palestinian revenues.

Abu al-Rub noted that the crisis is compounded by restrictions preventing Palestinian workers from returning to their jobs. To address these challenges, the Palestinian Prime Minister recently met with the Director-General of the International Labour Organization, Gilbert Houngbo, to advocate for workers' rights and seek international pressure for their return.

The government is attempting to mitigate the crisis by increasing international support—noting increased contributions from the European Union and the World Bank—and by managing tax files for major taxpayers. While the financial strain has caused delays in public sector salaries, the government is prioritizing vital sectors, such as health, having recently spent approximately 70 million shekels on medicines.