The self-appointed transitional government in Syria is undertaking sweeping internal reforms, including privatizing state-run enterprises and laying off a third of the public sector, as authorities say they are shifting to “a competitive free-market economy.”

In an interview with Reuters, ex-officials of Hayat Tahrir al-Sham (HTS) who are serving as cabinet ministers for transitional President Ahmad al-Sharaa – former ISIS and Al-Qaeda commander Abu Mohammad al-Julani – say they have a “wide scope” of plans to shrink the state, including removing thousands of “ghost employees.”

“The goal is to balance private sector growth with support for the most vulnerable,” interim Minister of Finance Basil Abdel Hanan told the British outlet.

Hanan previously served as economy minister in Idlib’s HTS-led administration. During this time, the group financed its operations by imposing high taxes on citizens, including taxes on humanitarian aid delivered by the UN. Reports from Arabic media in 2022 disclosed that HTS authorities funneled hundreds of millions of dollars into Turkiye by confiscating humanitarian aid shipments and subsequently selling them on the black market.

The Syrian officials also told Reuters that they want Syrian factories to “serve as a launchpad” for global exports.

Nonetheless, discontent is growing throughout Syria due to the layoffs, despite the assurances from western-backed officials. “My salary helps me manage basic needs, like bread and yogurt, to sustain the household. If this decision goes through, it will increase unemployment across society,” stated Adham Abu al-Alaya, one of the many public sector workers currently on a three-month paid leave while their job status is evaluated.

The reforms also come as the country is gripped by a wave of sectarian killings and executions carried out by armed groups under the command of the transitional government’s Military Operations Department.

“[The killings are] normal and may continue for two or three years,” Sharaa said behind closed doors, according to Syrian sources who spoke with The Cradle.

On Wednesday, the Military Operations Department dissolved Syria’s constitution, the People’s Assembly, the national army, security services, and all armed factions—including HTS—and named Sharaa president during a “transitional phase.”

Sharaa and his acolytes are expected to hand over power to a new government in March, but it is unclear how the transition will happen. Moreover, in an interview with Al Arabiya last month, Sharaa said that holding elections could take up to four years, and rewriting the country’s constitution could take three.

Despite the uncertainty, western nations are moving ahead at full steam to lift economic sanctions that have devastated Syria’s economy for over a decade. “We are closely monitoring the situation, and we stand ready to support the international community’s efforts to assist serious reconstruction as needed and when conditions allow,” the International Monetary Fund (IMF) said last month, just days after the Turkish-backed coup ousted president Bashar al-Assad.

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