CAIRO – The Palestinian prime minister has warned that his government could fail to meet its obligations to its people because of a cash crunch, urging Arab countries to pay up promised aid.
Salam Fayyad met Sunday with Arab League members to discuss ways to raise $100 million in aid they pledged earlier to his Palestinian Authority. The Arab League chief said seven countries have responded favorably, but he did not name them.
Fayyad said his government's bid to gain recognition from the U.N. for a state of Palestine in November has so far led only to Israeli punitive measures, including halting monthly transfers of about $100 million in tax funds it collects on behalf of the Palestinians.
Fayyad said the cash shortage could cause the disintegration of the Palestinian Authority.