Key Highlights of the 19th Palestinian Government's Reform Activities

(April 2024 - March 2025)

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Executive Summary

Since its formation, the 19th Palestinian Government, led by Dr. Mohammad Mustafa, has embarked on an ambitious reform agenda to tackle pressing developmental challenges and pave the way toward a stable, prosperous, and resilient future for Palestine. Between April and January 2025, the Government implemented key reform activities across four strategic pillars:

1. Fiscal and Public Finance Policy: The Government has adopted significant financial reform and austerity measures as an initial phase to rationalize overhead expenses, preserve public funds, control the use of government vehicles, rationalize employment and contracting in the public sector, and improve the management of state property. These actions have enhanced financial sustainability and mitigated the risk of fiscal collapse.
2. Governance and Rule of Law: By restructuring institutions for better governance, promoting fair competition for senior government positions, protecting human rights and freedoms, and improving judicial services, the Government has strengthened transparency, accountability, and public trust in governmental operations.
3. Investment and Business Climate: Efforts to create a favorable legal environment for business, promote investment, and launch initiatives like the Unified Electronic Company Registration System and the Renewable Energy Platform have stimulated economic growth and attracted both domestic and foreign investments.
4. Basic Service Provision: Significant improvements in the health sector include localizing healthcare services, regulating service agreements, reducing medication costs, and integrating health insurance systems. Additionally, enhancements in other essential services—such as digitalizing government services, improving grievance redressal mechanisms, and advancing education—have directly improved citizens' quality of life.

Through these decisive actions and inclusive strategies, the Government has made substantial progress in enhancing financial sustainability, strengthening governance, stimulating economic growth, and improving public services. The achievements documented in this report reflect the Government's unwavering commitment to reform and its dedication to meeting the needs and aspirations of the Palestinian people.

Overview

In alignment with its commitment to driving measurable and sustainable impact, the 19th Palestinian Government, under the leadership of Dr. Mohammad Mustafa (hereinafter 'the Government'), swiftly directed its efforts toward the adoption of a strategic framework for development and reform across priority sectors, defined in the mandate letter from His Excellency President Mahmoud Abbas.

Amidst focused efforts to establish foundational key pillars for effective development and reform measures with tangible on-the-ground impact, the Government prioritized, and adopted four strategic pillars: Fiscal and Public Finance Policy, Governance and Rule of Law, Investment and Business Climate, and Basic Service Provision.

The Government's reform strategy, shaped through extensive collaboration with governmental bodies, non-governmental organizations, and civil society, established four priority pillars to address pressing developmental needs. This inclusive, strategic approach emerged after years of navigating complex structural challenges and barriers that underscored an urgent need for immediate reform. By drawing on diverse insights from across sectors, the Government has ensured that these reforms are both resilient and responsive to on-the-ground realities, setting a solid foundation for impactful, lasting progress by establishing special units within relevant ministries to monitor and manage the implementation of reform and development measures effectively, ensuring the achievement of the desired goals.

To optimize and accelerate the reform agenda, the Government established the Executive Office for Institutional Development and Reform within the Prime Minister’s Office and formed the Permanent Ministerial Committee for Reform. These entities work in close coordination with government ministries and agencies to ensure cohesive planning, implementation, and monitoring of development and reform initiatives, enabling a unified approach across sectors.

This report presents a comprehensive overview of the reform and development measures undertaken by the Government between April 2024 and March 2025, documenting progress in advancing its objectives toward a stable, prosperous, and resilient future for Palestine.

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