Palestinian Finance Minister Istifan Salameh has warned that the Palestinian Authority faces an “existential threat” due to Israel’s ongoing withholding of tax revenues, predicting 2026 will be its most challenging financial year. He stated that Israel has seized around 70% of Palestinian revenues, leading to a severe fiscal deficit that hampers public sector salaries and basic services. Despite some improvement in foreign aid, Salameh emphasized that the financial challenges remain significant, calling on the international community to pressure Israel to release withheld funds. The situation has escalated with Israeli officials threatening to sever financial ties, which could further destabilize the Palestinian economy and banking system.
