World Bank grant targets Syria's broken public finance systems

The World Bank has approved a $20 million grant to Syria to strengthen the country’s public financial management systems, laying essential groundwork for transparent, accountable use of public funds as the country charts a path toward recovery, as announced in a press release. Approved on March 5 by the Bank’s Board of Executive Directors, the Syria Public Financial Management Capacity Strengthening Project will target core budget, procurement, and financial reporting functions — and begin laying the groundwork for their digitalization. It is only the second World Bank project in Syria, marking a significant step in re-engagement after decades of absence.

Fourteen years of conflict have left Syria’s public finances in a critical state. Government revenue has collapsed from nearly 20% of GDP before the war to under 5% today, gutting the state’s ability to deliver basic services and rebuild trust with its own citizens and the international community.

World Bank Middle East Division Director Jean-Christophe Carret stressed that “disciplined and transparent management of public funds is critical for the Syrian state to gain the trust of its citizens” as it seeks to mobilize the resources its reconstruction demands. Syria’s Finance Minister H.E. Yisr Barnieh struck a cautiously optimistic note, pointing to expected positive economic growth in both 2025 and 2026 and describing the project as part of a broader reform effort to “lay the foundation to improve service delivery in a transparent and accountable manner.”

The project has three components: overseeing PFM reform coordination, building capacity in budgeting and procurement, and establishing a Syria Integrated Financial Management Information System (SIFMIS). A new Syria External Assistance Fiduciary Section within the Ministry of Finance will also be set up to ensure consistent oversight of both national and international funding flows.

The World Bank is explicit that the approach will be incremental — “basics first” — building foundational systems before tackling more advanced reforms. Better payroll, procurement, and budgeting will ultimately translate into improved health, education, and infrastructure services for Syrians. In a country rebuilding from near-total collapse, getting the financial plumbing right is not a bureaucratic exercise — it is the foundation everything else depends on.