Ramallah: Palestinian Prime Minister Mohammad Mustafa opened the 121st weekly cabinet meeting on Tuesday with a speech addressing political and economic developments. He emphasized that the suffering of the Palestinian people, particularly in the Gaza Strip, stems primarily from premeditated Israeli political motives targeting the Palestinian national project and its institutions.
According to Union of OIC News Agencies, Mustafa said that the economic and financial crisis, and the resulting shortage of liquidity and limited provision of some basic services, is not a passing crisis, but rather came within a strategic and political context aimed at undermining and weakening national institutions, ultimately leading to a state of chaos and lawlessness. Mustafa added that there are continuous attempts by the other side to undermine official Palestinian political representation and to violate signed international agreements, in an attempt to renege on all gains achieved by the Palestinian people and leadership over the years.
Based on this understanding, the government adopted an approach focused on protecting society, preserving the ability of national institutions to perform their responsibilities, and mobilizing international political, financial, and economic support. This includes working rationally and with national responsibility while rejecting any external political dictates. Regarding the shekel accumulation crisis and the concern about the future of the banking relationship between Palestinian banks and Israeli correspondent banks, Mustafa explained that a ministerial committee, formed by the Cabinet in partnership with the Monetary Authority and the private sector, is continuing its work on two parallel tracks.
The first track involves taking urgent measures to mitigate the effects of the shekel crisis and ensure the continued supply of fuel and basic goods. The second track focuses on developing a vision to address these challenges sustainably and enhance financial and economic stability amidst ongoing uncertainty imposed by the security and political conditions in the region. The committee has discussed the crisis of shekel accumulation in Palestinian banks and at the Monetary Authority, resulting from Israeli restrictions on the amount of banknotes allowed to be returned to the Israeli side, which are used to finance commercial activities, including trade with Israel.
Mustafa confirmed that urgent measures have been initiated to alleviate the fuel crisis and mitigate its repercussions. Relevant parties have begun working on them, including the Petroleum Authority and the Ministry of Finance, which have allocated additional funds to secure increased quantities of petroleum products and meet market needs. Mustafa pointed out that the Petroleum Authority had reached understandings with gas station owners on new supply arrangements and increased storage, making special arrangements for managing the supply of fuel to citizens.
Regarding the uncertainty surrounding the relationship between Palestinian banks and Israeli correspondent banks, the Prime Minister stated that the Palestinian Monetary Authority is working efficiently and effectively to find solutions to maintain the stability of the banking sector. He expressed gratitude for international efforts, particularly those of the United States, European countries, and other friendly nations, which contributed to maintaining the banking relationship. However, he emphasized the importance of Israeli banks adhering to this decision.
The Prime Minister stressed that addressing the clearing, liquidity, and fuel crisis is part of a reform program initiated by the government to address financial weaknesses and protect public funds. He highlighted efforts to release Palestinian tax and customs revenues withheld by Israel, emphasizing that these funds are essential to fulfilling obligations to the Palestinian people.
Mustafa concluded by affirming the commitment to protecting public funds, preserving state resources, and combating fraud and smuggling as a national responsibility, working in cooperation with all parties, especially law enforcement institutions.