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PA Unable to Pay Salaries for 2nd Consecutive Month

A general view of Jerusalem. (File photo: Reuters)
A general view of Jerusalem. (File photo: Reuters)
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PA Unable to Pay Salaries for 2nd Consecutive Month

A general view of Jerusalem. (File photo: Reuters)
A general view of Jerusalem. (File photo: Reuters)

The Palestinian Authority (PA) has not paid the salaries of its employees for the month of June yet, knowing that it did not pay the salaries of May either due to the suspension of agreements with Israel.

This issue further aggravated the living situation in the Palestinian territories which have been under lockdown for the past three months due to the spread of the coronavirus.

The Palestinian government is trying to secure part of the salaries; however, it is unclear if the Authority will be able to provide the salaries for the coming months, especially if Israel goes ahead with its plans to annex part of the West Bank, a source close to the matter told Asharq Al-Awsat.

He added that the Authority refused to receive the funds from Israel since it ended the security coordination, and was now facing a major fiscal deficit.

The Minister of Civil Affairs, Hussein al-Sheikh, stated that the refusal to receive the funds from Israel was in compliance with the Authority's decision to end ties with Israel.

Palestinian Prime Minister Mohammad Shtayyeh said that the Authority may not be able to pay salaries this month pending the estimates of the Ministry of Finance, which is yet to issue a statement on the matter.

Member of the Palestine Liberation Organization (PLO) Executive Committee Azzam al-Ahmad warned that Palestinian Authority would face another financial crisis.

Ahmad said that the PLO lost many of its resources after the Gulf War and was unable to pay salaries for nearly a year.

The official indicated that the Authority faced several financial crises where it couldn’t pay salaries for over a year, or had to pay them every three or four months. He added that after Hamas won the elections, the employees did not receive any payment for 18 months.

The government estimated the economic losses at $3.8 billion, and said it expected the budget deficit to increase to $1.4 billion, especially with the expected 50 percent reduction in revenues.

Over the past two years, reports of the Palestine Monetary Authority showed a continuous slowdown in the Palestinian economy, with the growth rate reaching 0.7 percent compared to 3.1 percent in 2017. This comes against the backdrop of the continued contraction of the economy in the Gaza Strip and the decline in growth in the West Bank.

Earlier, the World Bank warned that poverty may double in the occupied West Bank this year due to the economic situation, and the staff crisis reinforces these estimates.

Israeli media reported that the Palestinian Authority does not intend to pay the salaries of employees or transfer funds to Gaza, in order to push people to escalate the situation with Israel.

The Authority informed the Coordinator of Government Activities in the Territories (COGAT), Kamil Abu Rukun, that the Israeli Defense Minister, Benny Gantz, must pay the salaries if Israel annexed parts of the West Bank, according to Israeli reports.

The salaries of state employees in the Palestinian Authority are estimated at about NIS 550 million, to be paid to about 140,000 employees.

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Israel Strikes Beirut's Suburbs to Target What It Says is Hezbollah Drone Production

Smoke rises following an Israeli airstrike on Dahiyeh in the southern suburb of Beirut, Lebanon, Sunday, April 27, 2025. (AP Photo/Bilal Hussein)
Smoke rises following an Israeli airstrike on Dahiyeh in the southern suburb of Beirut, Lebanon, Sunday, April 27, 2025. (AP Photo/Bilal Hussein)
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Israel Strikes Beirut's Suburbs to Target What It Says is Hezbollah Drone Production

Smoke rises following an Israeli airstrike on Dahiyeh in the southern suburb of Beirut, Lebanon, Sunday, April 27, 2025. (AP Photo/Bilal Hussein)
Smoke rises following an Israeli airstrike on Dahiyeh in the southern suburb of Beirut, Lebanon, Sunday, April 27, 2025. (AP Photo/Bilal Hussein)

The Israeli military struck several sites in Beirut’s southern suburbs that it said held underground facilities used by Hezbollah for drone production Thursday, on the eve of the Eid al-Adha holiday.

The strikes marked the first time in more than a month that Israel had struck on the outskirts of the capital and the fourth time since a US-brokered ceasefire agreement ended the latest war between Israel and the Lebanese militant group Hezbollah in November, The Associated Press said.

Israel posted a warning ahead of the strikes on X, formerly known as Twitter, announcing that it would hit eight buildings at four locations.

Israel has continued to carry out near-daily strikes in southern and eastern Lebanon since the ceasefire, which Lebanon has said are in violation of the agreement. Israeli officials say the strikes are intended to prevent Hezbollah from regrouping after a war that took out much of its senior leadership and arsenal.

The Israeli army said in a statement that Hezbollah was “working to produce thousands of drones under the guidance and financing of Iranian terrorist groups.”

Hezbollah “used drones extensively in its attacks against the State of Israel and is working to expand its drone industry and production in preparation for the next war,” the army statement said.

There was no immediate statement from Hezbollah.

A Hezbollah official denied that there were drone production facilities at the targeted locations.

“In the (ceasefire) agreement, there is a mechanism for investigating if there is a complaint,” the official said. “Israel in general, and Netanyahu in particular, wants to continue the war in the region.”

A Lebanese army official said the army had attempted to convince Israel not to carry out the strikes and to instead let Lebanese officials go in to search the area under the mechanism laid out in the ceasefire agreement, but that the Israeli army refused, so Lebanese soldiers moved away from the locations. Israeli army officials could not immediately be reached for comment.

Both Lebanese officials spoke on condition of anonymity because they were not authorized to speak publicly.

Lebanese President Joseph Aoun and Prime Minister Nawaf Salam condemned the strikes.

Aoun in a statement called them a “blatant violation of an international agreement, as well as the basic principles of international and humanitarian laws and resolutions, on the eve of a sacred religious occasion” and said it demonstrates Israel's “rejection of the requirements of stability, settlement and just peace in our region.”

He accused Israel of using Lebanon as a “mailbox” to send a message to the United States. He did not elaborate. Washington has been negotiating with Iran - Hezbollah's longtime backer - for a deal over Tehran's nuclear program and has warned Israel not to strike Iran in the meantime.

Israeli Defense Minister Israel Katz in a statement praised the Israeli air force for “perfect execution” of the strikes and said Israel will “continue to enforce the ceasefire rules without any compromise.” He said Israel holds the “Lebanese government directly responsible for preventing violations of the ceasefire and all terrorist activity" against Israel.”

The conflict between Hezbollah and Israel began on Oct. 8, 2023 when the Lebanese militant group began launching rockets across the border in support of its ally, Hamas, in Gaza. Israel responded with airstrikes and shelling and the two were quickly locked in a low-level conflict that continued for nearly a year before escalating into full-scale war in September 2024.

It killed more than 4,000 people in Lebanon, including hundreds of civilians, while the Lebanese government said in April that Israeli strikes had killed another 190 people and wounded 485 wounded since the ceasefire.

There has been increasing pressure on Hezbollah - both domestic and international - to give up its remaining arsenal, but officials with the group have said they will not do so until Israel stops its airstrikes and withdraws from five points it is still occupying along the border in southern Lebanon.