The World Bank Board of Executive Directors has approved a $20 million grant to help Syria modernize and digitize its public financial infrastructure. Delivered through the International Development Association (IDA), the funding will power the Syria Public Financial Management Capacity Strengthening Project, aiming to bring transparency, efficiency, and accountability to the country’s fiscal operations.
Quick Facts
- World Bank approved a $20 million capacity-building grant.
- Initiative targets the digitalization of public financial management.
- Goal is to enable transparency and private sector growth.
Rebuilding Syria’s Fiscal Architecture
After 14 years of conflict and severe economic strain, Syria’s institutional frameworks require major stabilization. Currently, the country’s fiscal space is heavily constrained. Revenue collection has plummeted from nearly 20% of GDP prior to the conflict to less than 5% today, driven by steep declines in oil and tax revenues. Custom duty collection remains marginal, despite heavy reliance on imported commodities since 2011.
The new grant provides a strategic framework to address these critical gaps. By introducing structured capacity building, the project will help the government manage public resources more efficiently and lay the groundwork for rebuilding essential public services.
Digitizing Public Funds and Procurement
The project is structured around three core pillars: public financial management (PFM) reform oversight, capacity development for essential procurement functions, and the launch of a Syria Integrated Financial Management Information System (SIFMIS).
These components are designed to deliver accurate fiscal data and establish better compliance mechanisms. The initiative will specifically target budget preparation, execution, and financial reporting by simplifying and digitizing related administrative processes. Upgraded systems for payroll, procurement, and budgeting are expected to ultimately support better health, education, and infrastructure services.
To ensure the longevity of these upgrades, the project will institutionalize the upskilling of government staff. Additionally, a Syria External Assistance Fiduciary Section (SEAFS) will be established within the Ministry of Finance to oversee funding and harmonize assistance channels from multiple sources.
Institutional Partnerships for Economic Growth
“A disciplined and transparent management of public funds is critical for the Syrian state to gain the trust of its citizens and that of the international community as it seeks to mobilize domestic and external assistance for the country’s massive reconstruction needs,” said Jean-Christophe Carret, World Bank Middle East Division Director.
Carret added that the implementation will rely on a ‘basics first’ approach, building foundational systems before moving to advanced administrative reforms.
After years of economic contraction, the Syrian government anticipates positive economic growth for 2025 and 2026, marking a critical transition toward recovery.
“Our ongoing reform efforts, including the strengthening of public financial management supported by this project, will support a steady economic recovery over the medium-term and help lay the foundation to improve service delivery in a transparent and accountable manner,” said H.E. Yisr Barnieh, Syria’s Minister of Finance.
“The Ministry of Finance’s collaboration with the World Bank over the past year has paved the way for a solid partnership after decades of non-engagement,” Barnieh added.
The PFM initiative serves as the second project in a growing partnership between the World Bank and the Syrian government. Both entities are discussing a broader strategy focused on stabilizing the economy, restoring essential services, and enabling private sector-led recovery.
About The Syria Public Financial Management Capacity Strengthening Project
The Syria Public Financial Management Capacity Strengthening Project is a $20 million initiative backed by the World Bank’s International Development Association. The project focuses on improving core public financial management and procurement functions, digitizing business processes, and establishing robust institutional oversight to support Syria’s economic stabilization and recovery.
Source: World Bank
