WASHINGTON: The International Monetary Fund has urged Israel to lift restrictions on the Palestinians living in the West Bank and Gaza and allow their ailing economy to recover.

“Against the background of rising political uncertainty, the economy of the West Bank and Gaza is weakening, and unemployment, particularly youth unemployment, currently at 43 per cent, continues to rise from already high levels,” said a statement issued by the IMF headquarters in Washington.

It noted that the Palestinian Authority was doing a commendable job in managing the economy under trying circumstances but needed international support to cope with the challenges it faced.

The IMF projected a sizeable fiscal financing gap for 2014 and suggested a combination of fiscal measures and additional financing to fill this gap.

“Continued donor support is vital at this time, as is a comprehensive easing of Israeli restrictions to underpin the Palestinian reform efforts,” the statement said.

Earlier this week, IMF mission chief for the region, Christoph Duenwald, urged the international donor community to continue to support the Palestinian Authority.

In a February forecast, the IMF saw the economy in the West Bank and Gaza growing 2.5pc this year, up from 1.5pc in 2013.

Published in Dawn, July 6th, 2014