The Palestinian financial situation is going through its most difficult phase since the establishment of the Authority, and this requires rationalizing expenditures to a minimum.

Approximately two billion dollars are withheld by the occupation, while compensation continues to be deducted illegally.

The success of reconstruction depends on enabling the Authority to manage the sector, but the occupation is placing many obstacles.

Official and popular Kuwaiti support has had a significant impact in strengthening the steadfastness of the Palestinians in the face of the occupation.

Palestine's participation in joint meetings of financial bodies aims to strengthen economic relations with Arab brothers.

Arab countries are experiencing a stifling economic crisis resembling a "trade war," which is compounding the suffering of the Palestinian people.

Palestinian Finance Minister Dr. Omar Bitar said that Palestine is economically dying, stressing the need to shed light on the difficult financial and economic conditions the country is experiencing amid the ongoing war and sensitive regional circumstances.

In an interview with Kuwait's Al-Rai newspaper, which Al-Quds is publishing simultaneously today, Al-Bitar highlighted the importance of holding the joint annual meetings of financial institutions and the 16th regular session of the Council of Arab Finance Ministers, hosted by Kuwait. He emphasized the importance of this meeting, particularly given the difficult circumstances facing Arab countries, including a stifling economic crisis resembling a "trade war," which is compounding the suffering of the Palestinian people.

He added that Palestine's participation in the meetings aims to strengthen economic relations with its Arab brothers, regardless of political considerations, reassure them about the current situation in Palestine, and expand the horizons of economic cooperation to support the steadfastness of the Palestinian people.

Al-Bitar noted that the Palestinian financial situation, under pressure from the occupation, is facing, in addition to the military aggression against Gaza and the West Bank, a systematic and vigorous financial war waged by Israel against it, imposing increasing financial restrictions through which it steals Palestinian tax and customs funds, whether by delaying them, withholding them, or imposing illegal deductions.

Al-Bitar stated that approximately $2 billion is being withheld by the Israeli occupation under various pretexts, with compensation being illegally deducted due to a law recently passed by the Israeli Knesset that allows any Israeli citizen who suffered injury or damage after October 7 to sue the Palestinian Authority, regardless of where the incident occurred.

He pointed out that this law provides substantial compensation of up to $3 million to the family of each person killed, and $1.5 million to each person injured.

He explained that the volume of lawsuits filed against the Palestinian Authority could result in compensation payments of up to $5 billion, a massive financial burden that could bankrupt the Authority before any political or economic progress is achieved.

The occupation is exploiting the "clearance" as a financial pressure tool.

Al-Bitar asserted that the Israeli occupation is exploiting clearance revenues (tax revenues collected by Israel on behalf of the Palestinian Authority) as a tool for financial pressure, noting that Israel is not content with deducting electricity bills and debts, but is also adding unjustified deductions, which further burdens the Palestinian treasury.

Al-Baytar explained that some deductions are carried out in an incorrect manner, such as deducting electricity costs directly from clearance funds without settling the amounts with the electricity companies, placing the Authority under increasing financial pressure.

rationalization of expenses

Al-Baytar explained that Palestine currently relies on Israel for 90% of its electricity needs, 100% of its petroleum needs, and approximately 70% of its consumer needs.

He emphasized the existence of a clear plan to reduce this dependence, despite significant challenges, such as the need to build fuel storage facilities and energy infrastructure.

He pointed out that the Palestinian financial situation is going through its most difficult phase since the establishment of the Palestinian Authority, which requires rationalizing expenditures to a minimum and focusing on essentials.

Confronting corruption

In response to a question about the presence of administrative corruption in some sectors, Al-Bitar explained that the ongoing reforms aim to build a strong financial collection system without directly addressing corruption, but rather to address the weaknesses of the previous system.

He pointed out that the ministry has changed administrative staff, particularly in the tax and finance departments, as part of a comprehensive reform plan.

Decision independence

Al-Bitar emphasized that the current government relies on technical competencies (technocrats) far removed from politics, and makes its decisions based purely on professional considerations.

He explained that the reform process is strongly supported by President Mahmoud Abbas and the Prime Minister, enabling the implementation of reform plans free from political pressure.

Salary reform

Al-Bitar reviewed plans related to reforming the government payroll sector, identifying problems and developing practical solutions. He also noted that net lending reform has begun, particularly with regard to the accumulated debts of electricity and water companies, through settling accounts with municipalities and local authorities.

health reforms

Al-Baytar pointed out that there is a robust plan to reform the health sector, which was suffering from significant financial drain. The sector has been restructured and new financial departments have been activated to ensure financial sustainability and improve the quality of services.

He praised the ongoing Arab support for Palestine, particularly from Saudi Arabia and Kuwait, as Arab countries provide contributions through various support funds.

He noted that Arab support funds have existed for years, allocated to support various sectors, thus contributing to alleviating the Palestinian financial deficit.

Gaza reconstruction

Al-Bitar addressed efforts to rebuild the Gaza Strip after the recent aggression, with coordination underway with the World Bank to develop a comprehensive plan. He noted that these efforts will begin with relief and early recovery projects and extend over several years, according to international estimates.

He stressed that the success of reconstruction depends on enabling the Palestinian Authority to administer the Gaza Strip, noting that preliminary agreements exist with Hamas to facilitate the work, but that the Israeli occupation is placing numerous obstacles in the way.

He pointed out that the internal displacement crisis in the West Bank is worsening, with more than 50,000 internally displaced persons (IDPs) from the northern West Bank (Tulkarm and Jenin), placing an additional burden on the government.

Al-Bitar emphasized that the best way to break away from the occupation is to enhance Palestinian capabilities by localizing services, strengthening vital sectors such as health and energy, and reducing reliance on Israeli resources.

Kuwaiti supportive role

Al-Baytar extended his greetings to the Kuwaiti government and people, noting that official and popular Kuwaiti support, particularly in Jerusalem and Hebron, has had a significant impact in strengthening the steadfastness of Palestinians in the face of occupation and settlement activity.