Arab states cutting funding to Palestinians....

It's because they are sending their money to aid Pakistan! Only kidding...

Arab states have cut financial aid to the Palestinian Authority (PA) so far this year, according to PA figures seen by Reuters, and the United Nations has warned of a looming Palestinian cash crisis.

"The Arabs are not paying. We urge them to meet their financial pledges," said Saleh Rafat, a member of the Palestine Liberation Organisation's executive committee and one of the few Palestinian officials willing to speak out on the matter.

Arab government officials contacted by Reuters declined to comment on the issue.

The failure of some wealthy Arab states to pay up is frustrating Western governments, which are big contributors to the Palestinian territories, and leaving officials in the West Bank with a budget headache.

Some Palestinian officials speculate Arab states might be withholding the cash to try to persuade the Palestinian factions Fatah, which controls the West Bank, and Hamas, which controls Gaza, towards reconciliation.

Palestinian Finance Ministry figures seen by Reuters showed the PA had received $583.5 million in budget support so far in 2010. Only 22 percent came from Arab donors, the rest coming from international donors including the EU and United States.