RAMALLAH, July 17, 2025 (WAFA) - The Palestinian Cabinet warned today of the grave and mounting consequences of the ongoing all-out Israeli war against the Palestinian people in the Gaza Strip and the West Bank, including Jerusalem; continued settler violence; restrictions on movement at border crossings; and the ongoing withholding of Palestinian clearance revenues revenues.
In an emergency session held Thursday evening, the Cabinet underscored that these developments gravely threaten the Government’s ability to sustain the provision of essential public services, particularly in the health, education, and social protection sectors, as well as other vital areas.
The cumulative amount of illegally withheld Palestinian funds has now surpassed 9.1 billion shekels, including over 8.2 billion shekels withheld to date, plus the clearance revenues for the past two months.
This financial strangulation has severely undermined the Government’s capacity to meet its core obligations, most notably in the healthcare sector, where acute shortages of medicines and medical supplies pose an imminent risk of systemic collapse. Other institutions are similarly affected, as deepening poverty and unemployment endanger societal cohesion and civil stability.
The Cabinet further cautioned that the Government’s continued inability to fulfill its obligations—including the payment of public sector salaries—will inevitably degrade service delivery and institutional performance. As a result, the Government may be forced to consider the temporary suspension of certain departments and a reduction in working hours across public institutions.
The Cabinet reaffirmed that the Palestinian leadership, headed by President Mahmoud Abbas, is undertaking intensive political and legal efforts to restore the withheld funds and safeguard Palestinian rights.
It urged the international community—particularly the United States, as a signatory to the Oslo Accords, and France, as the host of the Paris Protocol—to take immediate and decisive action to compel Israel to fulfill its legally binding obligations. The Cabinet warned that time is running out to take meaningful steps that preserve regional peace and prevent further instability.
Despite these unprecedented challenges, the Government remains committed to reclaim the withheld revenues and mobilize all possible resources to meet its core financial obligations, especially public sector salaries, and to maintain the delivery of essential services.
The Cabinet also directed all public institutions to immediately adopt necessary adjustments to working arrangements in light of the fiscal emergency, while ensuring continuity in the delivery of critical public services.
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