UNRWA: Financial Crisis May Affect Employee Salaries, Operational Projects

Palestinian employees of the United Nations Relief and Works Agency (UNRWA). (Reuters)
Palestinian employees of the United Nations Relief and Works Agency (UNRWA). (Reuters)
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UNRWA: Financial Crisis May Affect Employee Salaries, Operational Projects

Palestinian employees of the United Nations Relief and Works Agency (UNRWA). (Reuters)
Palestinian employees of the United Nations Relief and Works Agency (UNRWA). (Reuters)

Media Advisor to the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) in Gaza Adnan Abu Hasna has warned against the effect of the financial shortfall on the agency’s operations.

Abu Hasna said that the agency’s financial crisis may impact its operational projects and employee salaries in November and December if it fails to mobilize the necessary fund during the UNRWA Pledging conference, which will be held on the sidelines of the 77th session of the UN General Assembly on September 22.

He told reporters on Saturday that the Arab financial support to the UN agency reached $200 million in 2018.

“In 2021, the Arab financial aid to the agency declined to $20 million,” he noted, adding that the financial support in 2022 will be much less than the expected.

He voiced concern over repeating 2021’s scenario, especially in light of the financial deficit and the decline in support provided by Arab states.

Political changes in the region greatly affect the support provided to UNRWA, Abu Hasna affirmed, noting that donors are currently focusing on the Ukrainian crisis, in addition to the hike in prices of raw materials and the repercussions of the coronavirus crisis.

He expressed hope that the agency would be able to mobilize the required and enough financial support that would cover its financial deficit, which amounted to $100 million.

According to UNRWA, this deficit is exacerbating in the Gaza Strip, in light of the siege, the consequences of the political division, and the continuous wars, which raise unemployment rates.

The agency spends about 38% of its budget in the enclave, especially that the refugees there constitute about 20% of the population.

The UNRWA Commissioner-General, Philippe Lazzarini, warned that the financial challenges could lead to the slow erosion of the quality of the agency’s services or to their interruption.

The agency has recently stated that it is facing the most threatening financial situation of its recent history.

“This financial crisis happens amidst global attention shifting elsewhere, and general fatigue from what is seen by some as an irritatingly long and unresolved conflict.”

UNRWA has been suffering financially for several years. The United States halted its support for the agency under former President Donald Trump before the current administration signed a framework agreement with it to restore US assistance programs.



Syria Announces 200 Percent Public Sector Wage, Pension Increase

FILE PHOTO: Bundles of Syrian currency notes are stacked up as an employee counts money at Syrian central bank, in Damascus,Syria, January 12, 2025. REUTERS/Firas Makdesi/File Photo
FILE PHOTO: Bundles of Syrian currency notes are stacked up as an employee counts money at Syrian central bank, in Damascus,Syria, January 12, 2025. REUTERS/Firas Makdesi/File Photo
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Syria Announces 200 Percent Public Sector Wage, Pension Increase

FILE PHOTO: Bundles of Syrian currency notes are stacked up as an employee counts money at Syrian central bank, in Damascus,Syria, January 12, 2025. REUTERS/Firas Makdesi/File Photo
FILE PHOTO: Bundles of Syrian currency notes are stacked up as an employee counts money at Syrian central bank, in Damascus,Syria, January 12, 2025. REUTERS/Firas Makdesi/File Photo

Syria announced on Sunday a 200 percent hike in public sector wages and pensions, as it seeks to address a grinding economic crisis after the recent easing of international sanctions.

Over a decade of civil war has taken a heavy toll on Syria's economy, with the United Nations reporting more than 90 percent of its people live in poverty.

In a decree published by state media, interim President Ahmed al-Sharaa issued a "200 percent increase to salaries and wages... for all civilian and military workers in public ministries, departments and institutions.”

Under the decree, the minimum wage for government employees was raised to 750,000 Syrian pounds per month, or around $75, up from around $25, AFP reported.

A separate decree granted the same 200 percent increase to retirement pensions included under current social insurance legislation.

Last month, the United States and European Union announced they would lift economic sanctions in a bid to help the country's recovery.

Also in May, Syria's Finance Minister Mohammed Barnieh said Qatar would help it pay some public sector salaries.

The extendable arrangement was for $29 million a month for three months, and would cover "wages in the health, education and social affairs sectors and non-military" pensions, he had said.

Barnieh had said the grant would be managed by the United Nations Development Programme (UNDP), and covered around a fifth of current wages and salaries.

Syria has some 1.25 million public sector workers, according to official figures.