Qatar is set to play a key role in financing a massive boost in public sector wages pledged by Syria’s new Islamist government, a US official and a senior diplomat told Reuters.

The support for the new Syrian administration has been made possible by a US sanctions exemption issued by Washington on Monday, allowing for transactions with governing institutions in Syria for six months. The development comes a month after Bashar al-Assad’s regime was overthrown.

An Arab official said talks on Qatar funding Syrian government salaries were underway and nothing had been finalised yet, adding that other countries including Saudi Arabia may join in the effort.

A Saudi official told Reuters on Tuesday that the kingdom was committed to working with regional and international partners to help support Syria and that its current support is ”focused on humanitarian aid including food, shelter, and medical supplies.”

Qatar, a longtime backer of the Syrian armed uprising against Assad, had been lobbying Washington heavily to issue the sanctions exemption so it could provide funding in an official manner, the U.S. official and the diplomat said.

Qatar, a tiny but wealthy Gulf state that plays an outsized role in international diplomacy, has moved swiftly over the last month to establish links with the new Syrian government, sending senior officials to Damascus and re-opening its embassy. On Tuesday, Qatar Airways resumed regular flights between Doha and Damascus.

Syrian Foreign Minister Asaad al-Shibani visited Riyadh on his first official trip abroad last week, and has since made stops in the UAE, Qatar and Jordan.

On Sunday, Syria’s finance minister said that the government will hike salaries for many public sector employees by 400% next month after completing an administrative restructuring of ministries to boost efficiency and accountability.

The increase, estimated to cost 1.65 trillion Syrian pounds, or about $127 million at current rates, will be financed by existing state resources plus a combination of regional aid, new investments, and efforts to unfreeze Syrian assets held abroad.

Salaries for Syria’s public sector workers under the regime of toppled President Bashar al-Assad were approximately $25 per month, placing them below the poverty line, alongside much of the country’s population, according to Abazeed.

The planned salary increase would follow a thorough evaluation of up to 1.3 million registered public sector employees to eliminate fictitious workers from the payroll. The adjustment will target those with the relevant expertise, academic qualifications, and skills necessary for the country’s reconstruction efforts.

Syria’s state treasury is facing liquidity challenges emerging from a war. The majority of money available in the central bank is Syrian currency, which has lost much of its value. However, the new government was promised assistance from regional and Arab countries, the minister said.

Syria’s caretaker government is also discussing exempting taxpayers, as much as possible, from penalties and interest and working on overhauling the tax system within the next three months to achieve tax justice for all taxpayers, with a first draft expected within four months.

With inputs from agencies.