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    Palestinian Authority faces ongoing financial crisis amid growing challenges

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    By Loisa Lane on August 19, 2026 World News
    Palestinian Authority faces ongoing financial crisis amid growing challenges
    Cover image: © France 24
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    Get you up to speed: PA financial crisis: No budget for ‘essential services’ including infrastructure, education & health

    The Palestinian Authority is facing a significant financial crisis that is eroding its capacity to provide essential services and pay public-sector salaries. This ongoing situation is exacerbated by settlement expansion, settler violence, and Israeli restrictions impacting Palestinian institutions and economic life.

    The Palestinian Authority (PA) is currently facing a significant financial crisis, impacting its ability to deliver essential services and maintain infrastructure. Joost Hiltermann of the International Crisis Group highlights that this situation is characterised by ongoing institutional erosion rather than a sudden emergency.

    Joost Hiltermann, Special Adviser for MENA at the International Crisis Group, stated that the Palestinian Authority’s financial crisis is a process of “institutional and economic erosion” rather than an immediate emergency. As settlement expansion and related violence continue, the PA’s ability to provide essential services and maintain infrastructure is increasingly compromised.

    What remains unclear — The extent to which Israeli restrictions are impacting the Palestinian Authority’s ability to function remains unspecified.

    Palestinian Authority faces ongoing financial crisis amid growing challenges

    Palestinian Authority faces ongoing financial crisis amid growing challenges

    Special Adviser for MENA and training for the International Crisis Group describes the situation in Palestine as untenable. He sees the Palestinian Authority’s financial crisis not as an approaching emergency, but as an ongoing process of institutional and economic erosion.

    The reason is they are unable to provide the refuge that is needed urgently enough for teh amount of settlers destroying the homes.

    The PA has already lost much of its capacity to provide essential services, pay public-sector salaries in full, maintain infrastructure, and sustain education and health care. Partly because Israel has blocked its funds and secondly, because it is unable to receive foreign donations.

    All the while, settlement expansion, settler violence and Israeli restrictions are occurring alongside financial measures that are threatening Palestinian institutions and economic life.

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