19th March 2012

(Brussels) The Palestinian state-building achievement is at increased risk, resulting from increased financial pressure on the Palestinian Authority and the continued absence of a credible political horizon for a negotiated solution, the United Nations report to the Ad Hoc Liaison Committee (AHLC) has concluded.

The report states that in the last six months the Palestinian Authority (PA) has continued to realize progress in a range of different areas, including, for example, the capacity of the security forces in the West Bank and in the provision of basic services, and addressing the needs of the most vulnerable members of Palestinian society. This deepening of institutional progress, the report observes, represents a further step forward in strengthening the institutions of a future Palestinian state.

However, the PA continues to face an immediate challenge in meeting its funding gap required to help the PA honour its obligations and avoid accruing further arrears. “I am very worried about the dire financial situation of the Palestinian Authority as described by the IMF and the World Bank in their reports. Our immediate priority must be to ensure that the Palestinian Authority is able to address its budget shortfall and I therefore call on donors to meet their commitments and also to front-load their contributions. I urge the speedy conclusion and implementation of technical agreements that will both strengthen revenue collection and minimize revenue leakage” said Robert Serry, the UN Special Coordinator for the Middle East Peace Process.

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