The term Palestine Donor Group (PDG) is a concept and a recent initiative, often used interchangeably with the long-standing Ad Hoc Liaison Committee (AHLC), which is an international coordination mechanism. The AHLC was established in November 1993 following the Oslo Accords to coordinate the delivery of international aid to Palestinians and the Palestinian Authority (PA). It was created to ensure effective coordination of international aid efforts and provide a forum for the PA and the Government of Israel (GoI) to discuss economic, development, and security issues.
The AHLC is a 15-member committee chaired by Norway and co-sponsored by the United States and the European Union (EU). Its members include the PA, Israel, the United Nations, the World Bank, and the International Monetary Fund (IMF). The AHLC serves as the principal policy-level mechanism for mobilizing and coordinating development assistance to the Palestinian people, typically convening twice a year.
The newer term, Palestine Donor Group (PDG), was announced by the European Commission in September 2025 and its first meeting was convened in Brussels on November 20, 2025. The PDG is an integral part of the EU's Multiannual Comprehensive Programme for Palestinian recovery and resilience and aims to support the implementation of the PA's Reform Agenda. The EU channels its financial support to the PA through the PEGASE mechanism, created in 2008, which is designed to ensure secure and transparent funding, including for civil servant salaries and pensions. The PDG's focus is on strengthening governance, stabilizing finances, and advancing Gaza's recovery, often linking aid to the PA's commitment to fiscal, economic, and governance reforms. A recent change includes the EU's launch of the €883.6 million ($1 billion) "Team Gaza Initiative" in July 2026 through the AHLC to support early recovery projects in Gaza.