The Palestinian Authority is facing a severe financial crisis in the Israeli-controlled West Bank, exacerbated by recent Israeli military actions and a freeze on funds since October 7, 2023. Roads damaged during military operations in Jenin remain impassable because the PA lacks the funds to repair them. Government employees are receiving reduced salaries, and essential services such as healthcare are collapsing, according to an analysis done b7 reuters and times of Israel.
These challenges have significantly weakened President Mahmoud Abbas's administration, prompting doubts about its future. Despite international calls for a "revitalized" PA to manage Gaza post-conflict, financial disarray persists. Donor states, once major contributors to the PA's budget, have reduced funding due to demands for anti-corruption reforms.
In Jenin, a city targeted for its volatility, recent Israeli raids have inflicted substantial damage on infrastructure, including water and sewage systems. The estimated cost of repairs exceeds available resources, illustrating the PA's financial strain.
Established under the Oslo Accords three decades ago, the PA was envisioned as a stepping stone towards Palestinian statehood. However, ongoing challenges, including Israeli settlements and internal rivalries like Hamas, have complicated this goal.
Ghassan Khatib, a lecturer at Birzeit University, warned that Israeli policies risk further marginalizing the PA, potentially leading to its collapse. This scenario could shift political influence toward factions opposing peaceful settlement with Israel, such as Hamas.
Senior Palestinian official Hussein al-Sheikh acknowledged in June that funding shortages are preventing the PA from fulfilling its obligations to the Palestinian people, raising concerns about its viability.