Meeting of the Ad Hoc Liaison Committee (AHLC) 
New York, 24th September 2026 
Chair: Mr Espen Barth Eide, Minister of Foreign Affairs, Norway 

CHAIR’S SUMMARY  

The Ad Hoc Liaison Committee (AHLC) met in New York on September 24, 2026. The Chair thanked the Palestinian Minister of Finance and Planning for his presentation by video link and the EU, as co-sponsor, for its opening remarks. The Chair also thanked the special guests from the Board of Peace/NCAG and all AHLC members, including the rapporteurs (i.e., the United Nations, World Bank, International Monetary Fund, and Office of the Quartet) for their valuable contributions. 

The AHLC underscored that the challenges facing Palestinian macroeconomic stability and institutions are unprecedented. Members noted that these challenges largely reflect political volatility weighing on the vital mechanisms underpinning Israeli-Palestinian economic and financial cooperation under the 1994 Paris Protocol. They further noted that, absent a durable political solution, there is a risk of continued conflict in an increasingly fragmented Palestinian territory, settlement expansion and outpost proliferation, alongside a further erosion of the Palestinian Authority’s (PA) fiscal and institutional capacity to maintain essential public services, with adverse consequences including increased violence, displacement, discrimination, and radicalization. The AHLC highlighted that such a scenario would further undermine the security of Palestinians and Israelis alike.  

The AHLC recognized the enormous scale of the remaining and emerging humanitarian needs in Gaza, including those related to shelter and tents, sanitation, solid waste management and the clearance of unexploded ordinance (UXOs), as well as food and nutrition and education, in the context of the approaching winter and its severe humanitarian impact.  

Members noted that the increased deterioration is already materializing across key dimensions of the Palestinian economy and institutional framework. They expressed deep concern that Palestinian clearance revenue transfers (i.e., taxes and custom revenues collected on behalf of the PA) have been fully withheld since May 2025, undermining the PA’s financial viability and straining its ability to provide essential services, including health, education and security. Members further noted that growing uncertainty surrounding correspondent banking relationships (CBRs) between Palestinian and Israeli banks, together with the continued accumulation of excess Shekel cash, is adding to pressures on economic and financial stability. They underscored that the Palestinian economy also remains heavily constrained by movement restrictions, reduced access to labor markets, shortages of intermediate and final goods, and increasingly restricted access to land and natural resources. Members highlighted that heightened tensions and unprecedented levels of settler violence are further weighing on economic activity. They further stressed that donor support cannot substitute for the PA’s own revenue streams, while emphasizing that Palestine’s economic potential could be unlocked through an easing of restrictions, structural reforms, and political progress towards peace.  

AHLC members acknowledged the PA’s continued progress in advancing an ambitious reform agenda under exceptionally challenging circumstances. Members stressed that reform alone cannot secure the PA’s viability. They encouraged the PA, with the support of development partners, to maintain the reform momentum and further strengthen its preparedness to resume governance responsibilities in Gaza, in line with the 20-Point Plan and Security Council (SC) Resolution 2803. AHLC members also underscored the importance of holding Palestinian elections. The importance of credible, inclusive and transparent arrangements was also stressed, enabling all eligible Palestinians to exercise their electoral rights. In addition, they underscored the Palestine Monetary Authority’s contribution to safeguarding financial integrity and mitigating financial-sector risks through close supervision and the continued operation of the payment system, including in Gaza, while also advancing digital payments, instant-payment infrastructure, and e-wallets.       

The AHLC reaffirmed its support to the 20-Point Peace Plan and Security Council Resolution 2803, which established a framework for advancing peace, reconstruction, and Palestinian self-determination and statehood. Members expressed support for the continued implementation of the Plan, including efforts to develop a security framework that would advance Gaza’ reconstruction and preparations for a future independent Palestinian state encompassing Gaza, the West Bank, and East Jerusalem, while ensuring adequate humanitarian assistance. Members welcomed progress in reaching an agreement to decommission Hamas’ weapons and supported ongoing mediation efforts to facilitate reconstruction. Members further welcomed the launch of the Team Gaza Initiative by the European Union, EU Member States, and international partners around a package of urgent early-recovery projects. They stressed the importance of transitional arrangements serving as a bridge to the Palestinian Authority and its institutions in Gaza, while avoiding the creation of parallel institutions. In this context, AHLC members underscored the importance of close coordination and cooperation between the Board of Peace/NCAG and the PA during the transition. Members further underscored the importance of continued coordination among Board of Peace members and other key stakeholders and welcomed the role of the Board of Peace institutions for Gaza, World Bank, UN, and others in aligning international support around shared objectives of peace and stability in the region. The AHLC also reiterated the importance of scaling up early recovery in Gaza, based on the findings of the RDNA and through one joint plan, supported by a unified thematic aid and donor coordination structure. Humanitarian assistance, the UN Horizon Fund, and the World Bank’s Palestinian Fund for Reconstruction and Development (PFRD) were reaffirmed as essential pillars of the international response to Gaza.  

Members underlined that all efforts must be Palestinian-owned and led, and well prioritized, coordinated, and in line with implementation realities. Members highlighted the importance of strengthening the foundations for independent statehood through continued capacity building as well as strategic investments in Palestinian infrastructure, particularly in the energy, and water sectors. Members further emphasized that continued planning to identify infrastructure needs and investment priorities will be critical to unlocking economic growth and fostering greater economic self-reliance. In parallel, members stressed the need for immediate measures to increase potable water supply that benefit Palestinians in Gaza directly and mitigate cross-border risks, including restoring the Mekorot water line to full capacity, energizing the Deir al-Balah desalination plant, and facilitating the entry of critical imports.  

AHLC members called on:  

- The international community to urgently and substantially scale up financial and other forms of support to the Palestinian people, including through budget support and direct assistance to strengthen the PA and to support the implementation of the 20-Point Peace Plan and SC Resolution 2803; provide financial support to UN and World Bank financing instruments; and expand technical assistance, capacity building and on-the-job-training for Palestinian civil servants, including through partnerships among like-minded partners such as the Conference on Cooperation among East Asian Countries for Palestinian Development (CEAPAD). 

- The Government of Israel to cease the illegal settlement activity; lift restrictions on access and movement; hold perpetrators of settlement violence accountable; ensure the full and uninterrupted transfer of clearance revenues to the PA;  enact a durable, mutually beneficial and internationally backed framework to ensure the predictable continuity of CBRs between Palestinian and Israeli banks and facilitate the adequate repatriation of excess Shekel cash; and allow the unimpeded delivery and sustained distribution of humanitarian aid at scale into and throughout Gaza. 

- The Palestinian Authority to continue advancing its reform agenda, including by further improving public financial and debt management, domestic revenue mobilization, and fiscal statistics; enhancing financial-sector risk mitigation and accelerating digital transformation; preparing to resume governance responsibilities in Gaza in line with the 20-Point Peace Plan and SC Resolution 2803; coordinating with transitional structures; and proceeding with the planned elections. 

- All relevant parties to support the implementation of practical measures to increase potable water supply in Gaza (including increasing existing Israeli water supply lines to operational capacity); energizing critical water infrastructure, restoring wastewater treatment; and facilitating the entry of essential materials required for these activities. 

- The AHLC rapporteurs (i.e. the UN, World Bank, IMF, and Office of the Quartet) to continue providing objective and relevant analysis and practical recommendations in support of the AHLC’s work.