The UN special envoy to Syria, Geir Pedersen, said on Wednesday that he sees hope for a "new Syria" developing in the aftermath of the country's recent political upheaval while acknowledging the formidable challenges that remain.

Speaking to reporters in Damascus after days of meetings, Pedersen noted that he had conferred with leaders from Hayat Tahrir al-Sham (HTS), other armed factions, representatives of the Syrian National Coalition, as well as families of the detained and missing, civil society figures, and women activists.

"It's only been 11 days since HTS and other groups entered Damascus, so it's early days," Pedersen said. "But there is a lot of hope that we can now see the beginning of a new Syria – one that, in line with Security Council Resolution 2254, adopts a new constitution ensuring a social contract for all Syrians and eventually holds free and fair elections after a transitional period."

Pedersen welcomed the recent renewal of a truce in Kurdish-controlled areas in northeast Syria, urging a political solution and warning that the region's issues must be addressed to secure lasting peace.

The envoy also cited Syria's steep economic challenges as a major concern, calling for immediate humanitarian assistance, steps toward reconstruction, and the potential easing of sanctions. "We need to see economic recovery and hopefully start a process to end sanctions," he said.

HTS leader Ahmad al-Shara on Wednesday urged the lifting of international sanctions on Syria, saying that the country poses no threat to the world during an interview with BBC.

Al-Shara, also known as Abu Mohammed al-Julani, said that "HTS should be de-listed as a terrorist organization," as the group "did not target civilians or civilian areas."

In the interview, Al-Shara denied that he wants to turn Syria into a version of Afghanistan, noting that the two countries have different traditions and mindsets, and that he believes in education for women.

Syria's interim minister of economy in the caretaker government, Basil Abdulaziz Abdul Hanan, on Wednesday announced plans to embrace a free and competitive market economy, according to the local Al-Watan Online news outlet.

"We have intensified meetings with industrialists, merchants and specialists to gain a clear understanding of the situation and set priorities for improving the economic landscape," Abdul Hanan said.

"We will launch workshops so that the private sector, academics and experts can be genuine partners in shaping Syria's economic policy," Abdul Hanan was quoted as saying.

"We hope the private sector – industrialists, traders and investors – will be proactive partners in rebuilding Syria's economy," Abdul Hanan added.

No immediate details were provided on the timeline for these reforms.

Also on Wednesday, visiting UN humanitarian chief Tom Fletcher called for a massive aid boost for Syria to respond to "this moment of hope" in an interview with AFP. 

"Across the country, the needs are huge. Seven in 10 people are needing support right now," Fletcher said.

Half of Syria's population were forced from their homes during nearly 14 years of civil war, with millions finding refuge abroad.

UN officials have said a $4 billion appeal for Syria aid is less than a third funded.

"There are massive humanitarian needs... water, food, shelter... There are needs in terms of government services, health, education, and then there are longer term rebuilding needs, development needs," Fletcher said, adding that "We've got to be ambitious in our ask of donors.”

"The Syrian people demand that we deliver, and they're right to demand that we deliver," he said. "The world hasn't delivered for the Syrian people for more than a decade."

(With input from agencies)