RAMALLAH, May 11, 2026 – The Government of Japan has contributed approximately $12 million to two key World Bank projects aimed at strengthening fiscal stability and public health in Palestine.
A press release issued by the Representative Office of Japan to Palestine said, “Since the outbreak of the Gaza conflict in October 2023, the Palestinian economy has suffered a severe and unprecedented shock, leading to a significant contraction in 2024. This has also had serious fiscal implications, with the Palestinian Authority facing a deep fiscal deficit and not paying full civil servants’ salaries.”
The release continued: “The education and health sectors, which together account for approximately 60 percent of total wage expenditures, are particularly critical, and the inability to fully pay salaries in these sectors poses a direct threat to the continued operation of schools and healthcare facilities.”
In response, Japan has once again provided timely support through the World Bank’s Palestinian Emergency Financing Facility (PEFF). Japan contributed $10 million to help partially finance salary payments for civil servants in the education and health sectors, helping prevent a collapse in public service delivery and ensuring the continuity of essential services.
In addition, Japan has pledged $1,986,666 to support the Health System Efficiency and Resilience Project (HSERP), aimed at strengthening the public health system in the West Bank.
The contribution will provide essential medical equipment, medicines, and supplies to enhance emergency care services. Under this support, an additional 8,040 people will receive hospital services across six public hospitals.
Both contributions fall under the Palestinian Fund for Reconstruction and Development (PFRD) established by World Bank, which focuses on fiscal stability, human capital, private sector development, protection of vulnerable groups, and Gaza recovery. Japan’s contribution plays a key role in advancing these priorities.
The release concluded, “Japan remains committed to supporting the Palestinian people in these challenging times. It will continue to strengthen the resilience of the Palestinian Authority and maintain the health and well-being of its citizens, while standing alongside Palestine in its efforts.”
T.R.
