A year into his two-year plan to build a Palestinian state, Prime Minister Salam Fayyad says the next goal is be a self-sufficient economy.

Speaking at a presentation marking the midway point of his plan, Fayyad said recent growth was a result of foreign aid, but aid-dependency must be reduced to build an economy that can support statehood.

The Ramallah-based prime minister explained that financial policy reforms and investment were required to achieve the aim of a democratic system that incorporates freedom of speech, civil liberties and a strong civil society.

He added that the plan complements efforts by the PLO, which will engage in direct talks with Israel starting Thursday.