Palestinian PM pitches $65 billion five-year plan to rebuild Gaza

Palestinian Prime Minister Mohammed Mustafa attends a meeting on the Gaza recovery and reconstruction plan in Ramallah in the Israeli-occupied West Bank. (Reuters)
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Updated 17 October 2025
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Palestinian PM pitches $65 billion five-year plan to rebuild Gaza

  • Mohammed Mustafa addresses UN heads of agency, and diplomatic heads of mission from his office in Ramallah

RAMALLAH: The Palestinian Authority’s prime minister met on Thursday with UN and diplomatic officials to present a plan for Gaza’s reconstruction, despite uncertainties over his government’s role in the war-shattered territory’s future.

“I would like to believe that 12 months from now, the Palestinian Authority will be fully operational in Gaza,” Mohammed Mustafa said.

Mustafa said the Palestinian Authority had crafted a five-year plan for Gaza that would unfold over three phases and require $65 billion across 18 sectors, including housing, education, governance, and more.

The authority has not had a role in Gaza’s governance since Hamas seized control of the territory in 2007, though it still provides some services in the territory.

The Gaza peace plan set out by US President Donald Trump does not rule out a Palestinian state. Also, it suggests allowing a role for the Palestinian Authority once it has completed a set of reforms.

The plan builds on what was agreed at a summit of Arab countries in Cairo in March 2025, and Mustafa said that “police training programs initiated with Egypt and Jordan are already underway.”

“Our vision is clear,” Mustafa told an assembly of Palestinian ministers, UN heads of agency, and diplomatic heads of mission from his office in Ramallah, in the Israeli-occupied West Bank.

“Gaza shall be rebuilt as an open, connected and thriving part of the state of Palestine,” Mustafa said.

He also said that technical discussions were ongoing with the EU over “secure crossing operations, customs systems, and integrated policing units.”

The EU is one of the largest donors to the PA.

Above all, the post-war reconstruction plan aims to make way for a single Palestinian government.

The process will “reinforce the political and territorial unity between Gaza and the West Bank, and contribute to restoring a credible governance framework for the state of Palestine,” said Mustafa.

His remarks came as International Monetary Fund Managing Director Kristalina Georgieva urged all parties to continue moving toward sustained peace following a ceasefire in Gaza, saying it would benefit the entire region. 

Georgieva, speaking during the annual meetings of the IMF and World Bank in Washington, said on Thursday she was relieved when the recent ceasefire was reached for the sake of all the people affected by the two-year war in the Palestinian enclave.

She said lowered tensions would be good news for the economies of Egypt and Jordan, where the IMF has programs, and Lebanon and Syria, which have asked for help and support from the global lender. 

“It is important because everybody concerned encourages this direction of sustaining a lasting peace, and yes, it would benefit the region,” she said. 

“There will be a peace dividend for everybody.” 


Iran president confirms talks with US

Updated 7 sec ago
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Iran president confirms talks with US

  • No official confirmation from Tehran on where the talks would be held

Iran’s president confirmed on Tuesday that he had ordered the start of talks with the US following requests “from friendly governments.”

There has been no official confirmation from Iran on where the talks would be held, but an Arab official, speaking on condition of anonymity, told AFP a meeting was likely to take place in Turkiye on Friday, following diplomatic interventions by Ankara, as well as Egypt, Oman and Qatar.
US President Donald Trump  has spoken of potential military action and sent an aircraft carrier group to the Middle East following anti-government protests in Iran that were met with a deadly crackdown last month.

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On Tuesday, Qatar’s Foreign Ministry said diplomacy with Iran was ‘continuing very intensively,’ in ‘tandem with all our neighbors.’

Trump has maintained he is hopeful that Washington will “work something out” with Tehran, but also warned that “bad things would happen” if a deal was not agreed.
Tehran has insisted it wants diplomacy, while promising a decisive response to any aggression.
“I have instructed my Minister of Foreign Affairs, provided that a suitable environment exists — one free from threats and unreasonable expectations — to pursue fair and equitable negotiations,” President Masoud Pezeshkian wrote in a post on X.
He added that the talks followed requests “from friendly governments.”
On Tuesday, Qatar’s Foreign Ministry said diplomacy with Iran was “continuing very intensively,” in “tandem with all our neighbors.”
Earlier, a senior official from the UAE said Iran needed to reach a deal and “rebuild their relationship with the  US.”

I have instructed my Minister of Foreign Affairs, provided that a suitable environment exists to pursue fair and equitable negotiations.

President, Masoud Pezeshkian

“I would like to see direct Iranian-American negotiations leading to understandings so that we don’t have these issues every other day,” said presidential adviser Anwar Gargash.
Iran has repeatedly stressed that any talks should remain focused solely on the nuclear issue, rejecting the possibility of negotiations over its missile program or defense capabilities.
In an interview with CNN broadcast on Monday, Iranian Foreign Minister Abbas Araghchi said Tehran had lost trust in Washington as a negotiating partner but a deal on the nuclear issue remained achievable.
“So I see the possibility of another talk if the US negotiation team follows what President Trump said: to come to a fair and equitable deal to ensure that there is no nuclear weapons,” he said.
Since his return to office in January last year, Trump has reinstated his “maximum pressure” policy of sanctions against Iran, piling additional pain on a floundering economy.
Protests against the rising cost of living broke out in Tehran in December before evolving into wider nationwide anti-government demonstrations that triggered a deadly crackdown by the authorities.
Iranian officials have acknowledged more than 3,000 deaths during the unrest, but insist that most were members of the security forces and innocent bystanders, attributing the violence to “terrorist acts.”
The Human Rights Activists News Agency, a US-based NGO, says it has confirmed 6,854 deaths, mostly protesters killed by security forces, with other rights groups warning the figure is likely far higher.
On Tuesday, the NGO said it had counted at least 50,235 arrests linked to the protests, with further detentions ongoing.
Meanwhile, local media reported that the authorities had detained 139 foreign nationals in central parts of the country during the protests.