Fiscal Year 2027
Capacity Development Activities
Financial Supervision and Regulation
Workshop On SRP: Supervisory Tools and Techniques (May 10-14)
With METAC support, supervisors at the Central Bank of Syria (CBS) enhanced their understanding of risk-based supervisory approaches and gained practical experience in assessing inherent risks, risk management practices, and key risk areas, including credit, liquidity, operational, and governance risks. The mission strengthened participants’ knowledge of the Supervisory Review Process (SRP) and related supervisory tools and techniques in line with the Basel Core Principles and Basel Pillar 2 framework. It also achieved initial alignment with the authorities on the conceptual design of an SRP implementation roadmap. At the same time, the mission identified significant gaps in supervisory methodologies, regulatory requirements, and data and IT infrastructure that need to be addressed to support the transition from compliance-based to risk-based supervision. Recommendations were provided to strengthen supervisory frameworks, improve data availability and reporting, develop qualitative assessment tools and SRP methodologies, and enhance IT systems to support more forward-looking and risk-based supervisory practices.
Basel III Capital Adequacy Framework Development (June 8-18)
The Central Bank of Syria (CBS) strengthened its understanding of Basel III Pillar 1 capital adequacy requirements and the application of IFSB-23 standards for Islamic banks within the Syrian context with support from METAC. The mission enhanced supervisory capacity to assess key components of a risk-based capital framework, including regulatory capital, risk-weighted assets, and minimum capital requirements, while promoting a proportionate approach tailored to local conditions. Practical methodologies were introduced to simplify and strengthen the draft capital adequacy framework, improve internal consistency, and incorporate appropriate national discretions. The mission also supported alignment on a phased implementation roadmap and preparations for a future quantitative impact study. In parallel, it identified important institutional and data-related constraints, including weaknesses in reporting frameworks, supervisory systems, and the availability of reliable financial information, which will require continued attention to support effective implementation of the revised framework.
Real Sector Statistics
GDP - Annual national accounts (July 26-30)
With METAC support, the Central Bureau of Statistics (CBS) strengthened its capacity to compile and maintain rebased national accounts, building on the recently developed 2023 GDP benchmark. The mission enhanced understanding of the methodologies and compilation techniques underpinning the new benchmark and supported the review of annual GDP estimates for 2022–24. It also facilitated discussions on key methodological issues, including the compilation of constant-price estimates and the selection of an appropriate base year, contributing to greater alignment among stakeholders. In collaboration with UNESCWA, the mission supported the development of a work plan for completing the rebasing process and strengthening the sustainability of national accounts compilation. The mission also identified priority areas for continued technical assistance to address remaining methodological and capacity gaps.
Revenue Administration
Diagnostic assessment of Syria’s customs and tax administration (June 10-21)
The first METAC-FAD diagnostic assessment of Syria’s customs administration helped establish a shared understanding of the key institutional, legal, and operational challenges facing the General Authority for Borders and Customs (GABC). Based on the findings, the mission and GABC agreed on a sequenced reform plan that includes review of the new customs law, development of secondary legislation, a roadmap for transitioning from specific to ad valorem tariffs, and strengthened collaboration with the General Commission for Taxes and Fees. The mission also clarified priority capacity development needs and provided a framework for future METAC and FAD engagement in support of customs modernization.
Developing a Tax Administration Reform Plan for Syria (June 10-21)
The mission conducted a diagnostic assessment of Syria’s tax administration to support the development of a prioritized reform plan for the General Commission for Taxes and Fees (GCTF). The review covered institutional arrangements and core tax administration functions and identified significant weaknesses in governance, human resources, digitalization, data quality, compliance management, and taxpayer services. Based on these findings, the mission developed a sequenced and actionable reform plan for implementation over the next 24 months and emphasized the importance of establishing a strong reform governance framework to coordinate, monitor, and drive implementation of the reform program.
Review tax Laws 3rd review (May 5-22)
The mission reviewed the tax administration provisions included in the draft tax legislation and provided recommendations to support the development of a modern and coherent tax procedures framework. The recommendations focused on harmonizing procedures across taxes and introducing international good practices in taxpayer registration, record keeping, information powers, self-assessment, audit, dispute resolution, payment and collection, and penalties.
Tax Policy
Desk-based drafting of model PSC (July 10-15)
This mission followed up on the April oil and gas mission and provided legal drafting for key components of a model Production Sharing Contract (PSC) for Syrian oil and gas projects. These include articles pertaining to fiscal aspects such as production sharing and cost recovery, and various non-fiscal contractual issues.
