Syria announced on Sunday plans to increase public sector salaries by 400 per cent next month, marking a significant step in addressing the country's economic challenges. The salary hike, costing an estimated 1.65 trillion Syrian pounds (approximately $127 million), will be funded through existing state resources, regional aid, new investments, and efforts to recover frozen Syrian assets abroad. The initiative follows a restructuring of ministries aimed at enhancing efficiency and accountability. It will involve evaluating up to 1.3 million public sector employees to eliminate fictitious workers and focus on those with the qualifications and skills necessary for reconstruction. Public sector wages, previously around $25 per month under the former regime, placed most employees below the poverty line. The salary increase seeks to address this disparity while stabilising the economy. Syria's state treasury faces liquidity constraints due to the war and the devaluation of its currency. However, the government expects to retrieve up to $400 million in frozen assets and launch new investments to bolster the treasury. Additionally, the government is drafting a tax system overhaul to ensure fair taxation, with a first draft expected within four months. These measures form part of a broader strategy to rebuild the economy and provide relief to citizens. Attribution: Reuters Subediting: Y.Yasser
