Syrian Finance Minister Muhammad Abazid said on Sunday that the government will increase the salaries of many public sector employees by 400 percent next month, after completing the administrative restructuring of the ministries to enhance efficiency and accountability.

The cost of increasing salaries is estimated at approximately 1.65 trillion Syrian pounds (about 127 million dollars at the current exchange rate), and will be financed from the current state treasury, regional aid, new investments, and efforts aimed at unfreezing Syrian assets currently located abroad.

The minister told Reuters that this is “the first step towards an emergency solution to the economic reality in the country,” adding that the salaries of public sector employees this month will be paid this week.

These measures form part of a broader strategy by the new interim government in Syria to achieve stability in the country’s economy after conflict and sanctions that extended for about 13 years.

Abazid said: “The maximum limit for employees’ salaries is $25... This, for us, is something that indicates that the majority of workers in the private and public sectors, or the majority of the population under the control of the regime previously, were below the poverty line.”

The salary increase will be approved after a comprehensive evaluation of up to 1.3 million employees registered in the public sector with the aim of removing the names of fictitious employees from the payroll, which will benefit those who have sufficient experience, academic qualifications and skills necessary for reconstruction.

The minister said: “The amount available in the central bank today is sufficient to the extent that I expect... the first construction period, one or two months and three months. The period of carrying out work is possible, and this money is sufficient.”

He added: “We have problems with liquidity. It is a natural thing. We are emerging from the war. We promised aid from countries, from regional and Arab countries, and we promised to open investments within the region in the coming period. This is of course a natural thing as it brings benefits to the state treasury, and it is possible.” We can finance this increase (in salaries).”

The government expects to recover up to $400 million in Syrian assets frozen abroad, which could help finance initial government expenditures.

The Syrian Interim Government is also considering exempting taxpayers from fines and interest as much as possible and working to reform the tax system during the next three months to achieve tax justice for all taxpayers, with the expectation that a first draft of the tax system will be issued within 4 months.

Abazid said: “During the coming period, perhaps over a period of three months or four months maximum, a new tax system will emerge that achieves tax justice for taxpayers in general.”