عربي English Türkçe اردو فارسى
Logo
Latest News
Arab World

Israel to Use Withheld Palestinian Tax Income to Pay Electric Co Debt

Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
TT
TT

Israel to Use Withheld Palestinian Tax Income to Pay Electric Co Debt

Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)

Israel plans to use tax revenue it collects on behalf of the Palestinian Authority to pay the PA's nearly 2 billion shekel ($544 million) debt to state-run Israel Electric Co (IEC), Finance Minister Bezalel Smotrich said on Sunday.

Israel collects tax on goods that pass through Israel into the occupied West Bank on behalf of the PA and transfers the revenue to Ramallah under a longstanding arrangement between the two sides.

Since the Hamas-led attack on Israel on Oct. 7, 2023, triggered the war in Gaza, Smotrich has withheld sums totaling 800 million shekels earmarked for administration expenses in Gaza.

Those frozen funds are held in Norway and, he said at Sunday's cabinet meeting, would instead be used to pay debt owed to the IEC of 1.9 billion shekels, Reuters reported.

"The procedure was implemented after several anti-Israeli actions and included Norway's unilateral recognition of a Palestinian state," Smotrich told cabinet ministers.

"The PA's debt to IEC resulted in high loans and interest rates, as well as damage to IEC's credit, which were ultimately rolled over to the citizens of Israel."

The Palestinian Finance Ministry said it had agreed for Norway to release a portion of funds from an account held since last January with 1.5 billion shekels, calling money in the account "a punitive measure linked to the government’s financial support for Gaza.”

The ministry said as part of the deal, 767 million shekels of the Norwegian-held funds will pay Israeli fuel companies for weekly fuel purchases over the coming months. A similar amount will be used to settle electricity-related debts owed by Palestinian distribution companies to IEC.

Smotrich has been opposed to sending funds to the PA, which uses the money to pay public sector wages. He accuses the PA of supporting the Oct. 7 attack in Israel led by Hamas, which controlled Gaza. The PA is currently paying 50-60% of salaries.

Israel also deducts funds equal to the total amount of so-called martyr payments, which the PA pays to families of militants and civilians killed or imprisoned by Israeli authorities.

The Palestinian finance ministry said 2.1 billion shekels remain withheld by Israel, bringing the total withheld funds to over 3.6 billion shekels as of 2024.

Israel, it said, began deducting an average of 275 million shekels monthly from its tax revenues in October 2023, equivalent to the government’s monthly allocations for Gaza.

"This has exacerbated the financial crisis, as the government continues to transfer these allocations directly to the accounts of public servants in Gaza," the ministry said.

It added it was working with international partners to secure the release of these funds as soon as possible.

Most Viewed

 
 
Arab World

UN Says It Risks Halting Somalia Aid Due to Funding Cuts 

A Somali trader marks watermelons for sale at an open-air grocery market as Muslims start the fasting month of Ramadan, the holiest month in the Islamic calendar, within Bakara market in Mogadishu, Somalia, February 18, 2026. (Reuters)
A Somali trader marks watermelons for sale at an open-air grocery market as Muslims start the fasting month of Ramadan, the holiest month in the Islamic calendar, within Bakara market in Mogadishu, Somalia, February 18, 2026. (Reuters)
TT
TT

UN Says It Risks Halting Somalia Aid Due to Funding Cuts 

A Somali trader marks watermelons for sale at an open-air grocery market as Muslims start the fasting month of Ramadan, the holiest month in the Islamic calendar, within Bakara market in Mogadishu, Somalia, February 18, 2026. (Reuters)
A Somali trader marks watermelons for sale at an open-air grocery market as Muslims start the fasting month of Ramadan, the holiest month in the Islamic calendar, within Bakara market in Mogadishu, Somalia, February 18, 2026. (Reuters)

The UN's World Food Program (WFP) warned Friday it would have to stop humanitarian assistance in Somalia by April if it did not receive new funding.

The Rome-based agency said it had already been forced to reduce the number of people receiving emergency food assistance from 2.2 million in early 2025 to just over 600,000 today.

"Without immediate funding, WFP will be forced to halt humanitarian assistance by April," it said in a statement.

In early January, the United States suspended aid to Somalia over reports of theft and government interference, following the destruction of a US-funded WFP warehouse in the capital Mogadishu's port.

The US announced a resumption of WFP food distribution on January 29.

However, all UN agencies have warned of serious funding shortfalls since Washington began slashing aid across the world following President Donald Trump's return to the White House last year.

"The situation is deteriorating at an alarming rate," said Ross Smith, WFP Director of Emergency Preparedness and Response, in Friday's statement.

"Families have lost everything, and many are already being pushed to the brink. Without immediate emergency food support, conditions will worsen quickly.

"We are at the cusp of a decisive moment; without urgent action, we may be unable to reach the most vulnerable in time, most of them women and children."

Some 4.4 million people in Somalia are facing crisis-levels of food insecurity, according to the WFP, the largest humanitarian agency in the country.

The Horn of Africa country has been plagued by conflict and also suffered two consecutive failed rainy seasons.

Arab World

Hamas Says Path for Gaza Must Begin with End to ‘Aggression’ 

Makeshift tents of displaced Palestinian families among the ruins of their homes at sunset during the holy month of Ramadan in Jabaliya northern Gaza Strip on, 19 February 2026. (EPA)
Makeshift tents of displaced Palestinian families among the ruins of their homes at sunset during the holy month of Ramadan in Jabaliya northern Gaza Strip on, 19 February 2026. (EPA)
TT
TT

Hamas Says Path for Gaza Must Begin with End to ‘Aggression’ 

Makeshift tents of displaced Palestinian families among the ruins of their homes at sunset during the holy month of Ramadan in Jabaliya northern Gaza Strip on, 19 February 2026. (EPA)
Makeshift tents of displaced Palestinian families among the ruins of their homes at sunset during the holy month of Ramadan in Jabaliya northern Gaza Strip on, 19 February 2026. (EPA)

Discussions on Gaza's future must begin with a total halt to Israeli "aggression", the Palestinian movement Hamas said after US President Donald Trump's Board of Peace met for the first time.

"Any political process or any arrangement under discussion concerning the Gaza Strip and the future of our Palestinian people must start with the total halt of aggression, the lifting of the blockade, and the guarantee of our people's legitimate national rights, first and foremost their right to freedom and self-determination," Hamas said in a statement Thursday.

Trump's board met for its inaugural session in Washington on Thursday, with a number of countries pledging money and personnel to rebuild the Palestinian territory, more than four months into a fragile ceasefire between Israel and Hamas.

Israeli Prime Minister Benjamin Netanyahu has insisted however that Hamas must disarm before any reconstruction begins.

"We agreed with our ally the US that there will be no reconstruction of Gaza before the demilitarization of Gaza," Netanyahu said.

The Israeli leader did not attend the Washington meeting but was represented by his foreign minister Gideon Saar.

Trump said several countries had pledged more than seven billion dollars to rebuild the territory.

Muslim-majority Indonesia will take a deputy commander role in a nascent International Stabilization Force, the unit's American chief Major General Jasper Jeffers said.

Trump, whose plan for Gaza was endorsed by the UN Security Council in November, also said five countries had committed to providing troops, including Morocco, Kazakhstan, Kosovo and Albania.

Arab World

Official Contacts Aim to Keep Lebanon out of War on Iran as Israel Raises Readiness on Northern Front 

This photograph shows a memorial for slain Lebanese Hezbollah longtime leader Hassan Nasrallah at the entrance of the southern village of Qannarit on February 16, 2026. (AFP)
This photograph shows a memorial for slain Lebanese Hezbollah longtime leader Hassan Nasrallah at the entrance of the southern village of Qannarit on February 16, 2026. (AFP)
TT
TT

Official Contacts Aim to Keep Lebanon out of War on Iran as Israel Raises Readiness on Northern Front 

This photograph shows a memorial for slain Lebanese Hezbollah longtime leader Hassan Nasrallah at the entrance of the southern village of Qannarit on February 16, 2026. (AFP)
This photograph shows a memorial for slain Lebanese Hezbollah longtime leader Hassan Nasrallah at the entrance of the southern village of Qannarit on February 16, 2026. (AFP)

Israel has raised the alert level of its military along the border with Lebanon, raising questions that Lebanon’s south may again be involved in a regional confrontation should the US attack Iran.

Given the heightened tensions between the US and Iran, questions have been asked over whether Hezbollah will become involved in a new war. Its Secretary-General Sheikh Naim Qassem had recently announced that the party will not remain on the side if Iran is attacked.

On the ground, Israel blew up houses in southern Lebanon border towns and carried out air strikes in the south. Israeli military spokesman Avichay Adraee said the raids targeted “Hezbollah infrastructure,” including arms caches and rocket launchers.

Their presence in the south is a violation of current agreements, he added.

Amid the high regional tensions, Israel’s Maariv quoted a military source as saying that the army has come up with plans, including a preemptive strike against Hezbollah, which would drag the south and the whole of Lebanon into a new war.

Ministerial sources told Asharq Al-Awsat that the presidency has been carrying out internal and foreign contacts since Thursday morning to keep Lebanon out of any escalation.

Hezbollah had launched a “support front” war against Israel a day after Hamas’ October 7, 2023 attack. In 2024, the war spiraled into an all-out conflict, with Israel decimating the Hezbollah leadership and severely weakening the party.

Israel believes that Hezbollah has been rebuilding its capabilities since the ceasefire that was struck in November 2024.

Kassim Kassir, a political analyst who is close to Hezbollah, told Asharq Al-Awsat: “No one knows what Hezbollah will do because the situation is tied the extent of the attack, should it happen.”

He noted that Qassem was ambiguous when he said the party will decide what to do when the time is right, but at any rate, he stressed that the party will not remain on the sidelines or abandon Iran.

“No one knows what Hezbollah’s abilities are, so everything is possible,” Kassir said.

Riad Kahwaji, a security and defense affairs expert, said he does not rule out the possibility that Hezbollah would join the war should the US attack Iran.

Speaking to Asharq Al-Awsat, he stressed that Iran is now the United States’ main target, when previously it used to confront its proxies.

It has now taken the fight directly to the heart of the problem, which is the Iranian regime, he remarked.

The extent of the military mobilization in the region and the frequent American statements about regime change all indicate that a major military operation may be imminent, he added.

Israel’s military also favors preemptive operations, so it is watching Hezbollah, which remains Iran’s most powerful regional proxy despite the blows it received in 2024 war, Kahwaji said.

Hezbollah still possesses a rocket arsenal that can threaten Israel, he remarked.

Israel’s high level of alert on the border with Lebanon could be in readiness for any development. Should Tel Aviv receive word from Washington that it intends to attack Iran, then it could launch operations against Hezbollah as part of preemptive strikes aimed at preventing the party from launching attacks against it, Kahwaji said.

“As long as Hezbollah possesses heavy weapons, such as rockets, and drones, that it has not handed over to the army, then Lebanon will continue to be vulnerable to attacks in the next confrontation. It will be exposed to Israeli strikes as long as this issue remains unresolved,” he added.