‘Palestinian president mulls sacking his PM’
Tensions between Abbas and Fayyad mounted recently over resignation of finance minister; economist said to be considered for role
Palestinian Authority President Mahmoud Abbas is considering firing his prime minister, Salam Fayyad, and tasking an economist with forming a new government, a Palestinian official reportedly said on Wednesday.
Mohammed Mustafa, a former head of the Palestinian Investment Fund who also worked at the World Bank in Washington for 15 years, is reportedly being considered for the position.
The Palestinian official spoke on condition of anonymity, telling the Chinese news outlet Xinhua that differences between Abbas and Fayyad have increased following Fayyad’s acceptance of the resignation of PA finance minister Nabil Qassis while Abbas was on a trip to Saudi Arabia.
Upon his return, Abbas reportedly held a tense meeting with members of his Fatah party in which he expressed displeasure at Fayyad’s move.
Qassis resigned in frustration on March 3 over his government’s widening budget deficit.
At a press conference earlier this month, the former finance minister told reporters that the Palestinian Authority’s 2013 budget deficit was expected to reach $1.4 billion. He said he decided to step down after politicians and labor unions objected to a number of proposed austerity measures.
The Palestinian Authority has been struggling with a financial crisis in recent years due to cuts in aid from the United States, Israeli delays in transferring tax payments and the failure by Arab allies to deliver hundreds of millions of dollars in promised assistance.
AP contributed to this report.