Said Amori, Rania Abu Shamala
04 September 2025•Update: 04 September 2025
JERUSALEM/ISTANBUL
The Palestinian Authority (PA) has begun to show “signs of collapse” as a result of its economic crisis, Israel’s domestic intelligence agency Shin Bet warned Thursday.
According to Israeli Channel 12, Shin Bet informed the political leadership that the PA’s deteriorating economic situation, rising unemployment, and the failure to pay salaries to its security personnel “are factors that could lead to further escalation” in the West Bank.
Shin Bet recently detected “signals of fragility in the internal situation” in the West Bank, cautioning about the repercussions for security stability, the channel said.
There was no immediate Palestinian comment on the report.
On Tuesday, the Palestinian Foreign Ministry urged a “genuine” international effort to provide a financial safety net and secure the release of funds withheld by Israel, warning that ongoing financial strangulation was eroding vital services, including education and health.
The ministry accused the international community of failing not only to halt “genocide, displacement and annexation,” but also to stop the humanitarian crisis and famine imposed on Palestinians in Gaza.
The withheld revenues, known as clearance funds, are customs duties collected by Israel on behalf of the PA for imported goods.
Since 2019, Israel has deducted around $3 billion from these transfers under various pretexts, leaving the PA unable to fully pay its employees.
The PA’s monthly wage bill amounts to about 1 billion shekels ($300 million), covering some 245,000 beneficiaries, including 144,000 active civil and military employees, as well as retirees and welfare recipients.
