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Qatar provides Palestine millions to revive economy

Palestine-Qatar-AidQatar has come to the aid of the Palestinians with a multimillion dollar package to revive the economy which has shrunk for the first time in 10 years. Public services have been shut off and salaries have been unpaid for a while because the authorities in Gaza are out of funds. The Palestinian Authority depends on foreign aid to run the country due to its chronic budget deficit.
The recent crisis is linked to Israel’s increased border restrictions and the decline of foreign aid. According to the World bank, the economy has shrank by 0,1%  in the first half of this year. It went on to say that the current situation showcases the “distorted nature” of the Palestinian economy.
Authorities have been forced to shut down generators of Gaza’s sole power plant because they couldn’t afford to fuel it. They have also struggled to pay salaries of some 170,000 civil servants and finance the costs of running main services in the West Bank and the Gaza Strip.
The Emir of Qatar, Sheikh Tamim bin Hamad al-Thani, has offered $150 million to pull Gaza out of its mystery. The amount is expected to relieve these fast-developing economic woes. Prime Minister Rami Hamdallah of the Palestinian Authority commended the Emir for the gesture and hopes that they will get the amount “the soonest time possible”. He acknowledged that they were offered exactly what they asked for from the Emir.
In September, Prime Minister Hamdallah said they need half a billion dollars to cover their 2014 expenses. He lamented that “we have a lot of resources in Palestine but we are facing these economic problems because of the occupation”. His Finance Minister Shukri Bishara remains optimistic about the outlook of the economy.

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Posted by on Nov 29 2013. Filed under Finance, Headlines. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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