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Aboul Gheit: Palestine’s Budget Deficit Amounts to $700 Million

Arab League Secretary-General Ahmed Aboul Gheit. Reuters file photo
Arab League Secretary-General Ahmed Aboul Gheit. Reuters file photo
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Aboul Gheit: Palestine’s Budget Deficit Amounts to $700 Million

Arab League Secretary-General Ahmed Aboul Gheit. Reuters file photo
Arab League Secretary-General Ahmed Aboul Gheit. Reuters file photo

Arab League Secretary General Ahmed Aboul Gheit said that Palestine’s budget deficit reached $700 million this year.

His statement came during an emergency meeting of the Arab foreign ministers in Cairo on Sunday.
 
“We are able to support the Palestinians through the financial safety net, or in any form of financial support, including grants or even loans, in order to help them overcome the pressing and dangerous crisis,” he said.
 
In a statement issued at the end of the meeting, the ministers emphasized their commitment to the decisions of the Arab League, with regards to the establishment of a financial safety net to support the budget of the Authority, worth $100 million per month.
 
The finance ministers stressed “Arab support for the political, economic and financial rights of the State of Palestine and the need to ensure its political, economic and financial independence.” They also condemned the “Israeli hijacking of the Palestinian people’s money” and called on the international community to exert pressure on the Israeli government in this regard.
 
The Arab finance ministers proposed to provide soft loans within the safety net through a bilateral agreement with Palestine, and to continue to support infrastructure and development projects through financial aid or soft loans.
 
The final communiqué also called on Arab funds and institutions, as well as Arab banks, to contribute to the financial safety net by providing soft loans to the State of Palestine in direct coordination with the Palestinian competent authorities.
 
Shoukri Beshara, the Palestinian minister of finance and planning, had earlier called on Arab finance ministers to “activate the Arab safety net in accordance with the resolutions of the League of Arab States,” noting that Israeli sanctions put the Palestinian economy at a critical juncture.

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Iraq Frustrated by Iran’s Reluctance to Rein in Militias

Iraqi Prime Minister Mohammed Shia al-Sudani has cautioned leaders of the Coordination Framework about the threats facing Iraq due to the escalating conflict between Israel and Iran (X)
Iraqi Prime Minister Mohammed Shia al-Sudani has cautioned leaders of the Coordination Framework about the threats facing Iraq due to the escalating conflict between Israel and Iran (X)
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Iraq Frustrated by Iran’s Reluctance to Rein in Militias

Iraqi Prime Minister Mohammed Shia al-Sudani has cautioned leaders of the Coordination Framework about the threats facing Iraq due to the escalating conflict between Israel and Iran (X)
Iraqi Prime Minister Mohammed Shia al-Sudani has cautioned leaders of the Coordination Framework about the threats facing Iraq due to the escalating conflict between Israel and Iran (X)

A senior government official said Iraqi Prime Minister Mohammed Shia al-Sudani has warned leaders of the Coordination Framework about the “risks to Iraq” from the growing conflict between Israel and Iran.

The official added that Iran is using “deception” when asked to distance its allied militias from the war.

Political and government figures are increasingly worried that Iraq could be hit, after two Israeli soldiers were killed in a drone strike on the Golan Heights early Friday.

Speaking anonymously to Asharq Al-Awsat, the official said al-Sudani is taking steps to keep Iraq out of the conflict.

These efforts include ramping up “political mediation” to persuade militias not to involve Iraq. The prime minister “informed Coordination Framework leaders of the risks” and urged them to “act quickly.”

The official also warned that an attack is still possible, saying intelligence shows the Iraqi militias launched the strike from outside Iraq, using weapons that came from Iraqi territory.

Al-Sudani’s Mediation Efforts

The Iraqi premier has chosen mediators, approved by Iran, to negotiate with militias about the conflict and conditions for de-escalation. These three individuals have previously acted as mediators in past crises.

Last week, Asharq Al-Awsat reported that al-Sudani asked three key Shiite figures to intervene and prevent militias from getting involved in the war between Hezbollah and Israel, after reports surfaced that Israel had identified 35 Iraqi targets.

Sources confirmed that Ammar al-Hakim is among the mediators, along with two other influential Shiite leaders whose names haven’t been disclosed.

However, two Iraqi militias—likely the al-Nujaba Movement led by Akram al-Kaabi and Kataib Hezbollah led by Abu Hussein al-Hamidawi—have refused to cooperate and continue launching rocket attacks on Israel.

The Iraqi official admitted that some militias are “stubborn,” but stressed that al-Sudani knows Iraq is “at the center of the storm.”

He reportedly told leaders of the Coordination Framework, “Iraq cannot avoid a military strike if it happens, so we must stay out of the war to protect the country.”

Iran’s Supreme Leader Ali Khamenei, in a Friday sermon, stated that “Iran’s allies in the region won’t back down,” increasing concerns that Iraqi militias tied to Iran will continue attacking Israel.

Iraqi sources also reported that the Coordination Framework has reviewed an “intelligence report” on dozens of Iraqi targets that Israel might strike or assassinate.

Government Efforts to Prevent Escalation

Al-Sudani has blocked the flow of Iraqi funds into conflict zones, unlike previous leaders, according to the official.

He has worked closely with the US and its Treasury Department to strictly monitor financial movements, often insisting that Iran uses official channels to claim its dues from Iraq.

The official also said global auditing firms are now helping Iraq’s central bank oversee financial transactions, shutting down all previous routes for illicit money flows.

Since the Gaza war began on October 7, 2023, the US told Iraq it pressured Israel not to strike Iraq, as long as Iraq stays out of the conflict, the official added.

The US doesn’t oppose Iraq’s stance of condemning Israel, supporting Lebanon and Palestine, and sending aid.

But it “won’t accept any financial or military support to militias.”

Regarding Iran’s role, the official said Tehran claims militias act independently, dodging responsibility for reining them in.