PA prime minister asks Arab League for financial support as Israel continues to withold $2.2bn

Palestinian Authority Prime Minister Mohammad Mustafa asked the Arab League for financial support since the Israeli government is withholding approximately $2.2bn in Palestinian tax revenues, Wafa news agency reported on Wednesday. 

Mustafa told the secretary general of the Arab League, Ahmed Aboul Gheit, that their support is essential to enable the Palestinian government to fulfil its obligations, including paying salaries and allowances to more than 170,000 beneficiaries and supporting more than 150,000 families receiving social assistance.

Israel has been withholding tax revenues under various pretexts since 2019. The tax revenues represent duties imposed on goods imported into Palestine either via Israel or through Israeli crossings.

Mustafa underscored the importance of international and Arab support in pressuring the Israeli government to release the $2.2 bn in tax revenues, also referred to as clearance funds.

The Palestinian government says the withholding of the funds has put it under severe strain, preventing it from fulfilling its obligations to provide essential services in key sectors such as health, education, social protection, and security.

Gheit says he will coordinate with Arab and European countries, as well as the United States, to exert pressure on Israel to release the withheld funds to Palestinians.

The Palestinian economy has been thrown into further jeopardy since last Tuesday, when Finance Minister Bezalel Smotrich directed his office to cancel a critical policy for sustaining the Palestinian economy in retaliation for the decision by five countries to sanction him and fellow far-right minister, Itamar Ben Gvir.