Mustafa: Economic Stability Is a Priority and Requires Urgent and Sustainable Financial Support

SadaNews - Prime Minister Dr. Mohammad Mustafa confirmed that the government's goal is to achieve economic stability, strengthen institutions, and create the right conditions for recovery and growth towards independence, emphasizing that this requires sufficient and sustainable financial support.

This came during his speech at the donors' meeting held today, Monday, in the Belgian capital Brussels, attended by representatives from more than 30 donor countries and international institutions. He outlined the main economic challenges facing Palestine and the urgent priorities for intervention, accompanied by Minister of Finance and Planning Istifan Salama and Palestinian Ambassador to Belgium and the European Union, Amal Jadoo Al-Shuqaa.

Mustafa explained that the government is focused on several priorities, the most notable of which are the immediate release of clearance funds, lifting restrictions on cash liquidity, providing emergency support for the general budget, investing in recovery and development programs, and lifting restrictions on the movement of Palestinian workers.

He pointed out that the Palestinian economy faces deep and complex challenges, especially in the Gaza Strip, which is experiencing unprecedented economic collapse due to the extent of the destruction, leading to widespread damage to infrastructure, basic services, and productive sectors, leaving about two million citizens in urgent need of humanitarian assistance, shelter, and job opportunities.

In the West Bank, Mustafa noted the continued economic deterioration due to restrictions on movement and access, incursions, settler violence, and economic blockade, which limits growth, raises unemployment rates, and increases pressure on the most vulnerable groups.

He indicated that Israel's continued withholding of clearance funds, exceeding five billion dollars and constituting the largest part of public revenues, has caused a severe liquidity crisis and significant pressures on the public sector.

The Prime Minister revealed that unemployment rates have risen to about 44%, reaching nearly 80% in the Gaza Strip and 35% in the West Bank, due to restrictions on labor movement, war, and economic contraction.

He stressed that addressing these challenges requires ensuring accountability, protecting civilians, and respecting economic agreements, foremost among them the Paris Protocol, as this is a prerequisite for achieving real economic recovery.

Mustafa affirmed that the government continues to implement comprehensive reforms to enhance governance and transparency, improve public financial management, and expand social protection programs for the most needy groups.

In the political context, he referred to moving forward with renewing the democratic process by holding local elections in the West Bank on April 25, to be followed by elections in the Gaza Strip.

Regarding the Gaza Strip, Mustafa called for accelerating the implementation of transitional arrangements to ensure the return of the Palestinian Authority to administer the sector and achieve institutional unity between Gaza and the West Bank.

He also emphasized the importance of supporting the "Horizon Fund" in partnership with the United Nations, mobilizing funding, stimulating investment, supporting economic recovery, and creating job opportunities.

In conclusion, the Prime Minister expressed his appreciation to the donor countries for their continued support, affirming that this support is a fundamental pillar for strengthening the resilience of national institutions and maintaining economic stability.

Additionally, Prime Minister Dr. Mustafa held a press conference on the sidelines of the donors' meeting with the High Representative of the European Union for Foreign Affairs, Kaia Kallas, and the Minister of Foreign Affairs of Norway, Espen Barth Eide.