Mahmoud Abbas and Mohammad Mustafa
Mahmoud Abbas and Mohammad MustafaReuters

Palestinian Authority (PA) chairman Mahmoud Abbas on Thursday named Mohammad Mustafa, an ally and leading business figure, to serve as the PA “prime minister” with a mandate to help reform the PA, Reuters reported.

Mustafa's appointment comes after mounting pressure to overhaul and revitalize the PA’s governing body and improve its governance in PA-assigned areas of Judea and Samaria.

Mustafa, who helped organize the reconstruction of Gaza following a previous conflict, was assigned to lead the relief and rebuilding of the area following the current war, according to Reuters.

Mustafa replaces former cabinet leader Mohammed Shtayyeh who, along with his government, resigned in February.

His appointment was welcomed by the US, which is pushing for reforms in the PA so that it can govern Gaza after the war.

“We welcome the appointment today of Dr. Mohammad Mustafa as Prime Minister of the Palestinian Authority, and we urge the formation of a reform cabinet as soon as possible,” said National Security Council spokesperson Adrienne Watson in a statement.

“The United States will be looking for this new government to deliver on policies and implementation of credible and far-reaching reforms. A reformed Palestinian Authority is essential to delivering results for the Palestinian people and establishing the conditions for stability in both the West Bank and Gaza,” the statement added.

Washington’s insistence in having the PA play a key role in administering Gaza after the war has put it at odds with Prime Minister Benjamin Netanyahu, who has expressed strong opposition to the idea.

Netanyahu has stressed that Israel will have to continue to control security in the Gaza Strip for as long as it takes to prevent terrorism. He has rejected the idea that the PA will rule Gaza the day after the war, since Abbas refuses to condemn terrorist attacks against Israelis while continuing to pay salaries to terrorist murderers and their families.