Turkmenistan Boosts Development of Its Non-State Sector

BUSINESS TURKMENISTAN
Turkmenistan Boosts Development of Its Non-State Sector
The Union of Industrialists and Entrepreneurs of Turkmenistan presently includes more than 24 thousand members, operating in practically all sectors of the national economy.

President of Turkmenistan Gurbanguly Berdimuhamedov at a government meeting dedicated to the results of the industries' activities for six months of the year outlined a set of tasks related to the further development of the non-state sector of the economy, State News Agency of Turkmenistan (TDH) reported on Thursday.

Reducing the state's share in the national economy and expanding private sector participation in it are among the priorities, according to the TDH.

The list of objects to be privatized includes objects of state-owned enterprises of various sectors, a large number of infrastructure and other facilities. In the regard, the development of the stock market, the creation of market funds and the organization of specific transactions were identified as the main financial instruments, the report said.

Focusing on the implementation of new projects to expand the potential of the energy sector, generate and export electricity to foreign markets, and on the reconstruction of highways, the Head of State instructed to study the possibilities of attracting the Union of Industrialists and Entrepreneurs of the country (UIET) in these activities.

President Gurbanguly Berdimuhamedov noted the need to study the best practices in the international trading system and the sale of goods, and to study the demand in foreign markets, adding that the policy of broad support for small and medium-sized businesses will continue.

Today, the UIET includes more than 24 thousand members, operating in practically all sectors of the national economy. Over the 12 years since its foundation, the UIET members have implemented a number of large projects.

The new edition of the Law "On the Union of Industrialists and Entrepreneurs of Turkmenistan", adopted by the Mejlis in October 2019, expanded the reach of the UIET, and specified the rights and obligations of the Union.

On February 20, the President of Turkmenistan signed a Resolution authorizing the State Bank for Foreign Economic Affairs to conclude a loan agreement with the OPEC Fund for International Development to finance projects carried out by entrepreneurs - individuals and legal entities.

The resolution on the allocation of funds in the amount of $1.5 billion from public funds, signed by the President of Turkmenistan this year, is also directed to the successful implementation of the construction of Ahal velayat’s new administrative center.

During the meeting of the Cabinet of Ministers on June 5, Turkmen President highlighted the importance of stimulating entrepreneurship and instructed to develop regular measures for state support of the economy’s private sector and submit relevant proposals.

During the meeting, the Head of State instructed to simplify the procedure for transferring land plots, to simplify the procedures for processing credit, customs and trade transactions for entrepreneurs.

Opening of free economic zones by introduction of preferences for export and the research of the possibilities of introduction of visa, registration of land plots, introduction of credits and payment settlement benefits were outlined among the priority tasks.

Despite the difficulties in the economy due to the global COVID-19 pandemic, domestic small and medium-sized businesses remain resilient, according to the TDH. Thus, 66% in the structure of production in the country falls on the share of private businesses. Since the beginning of 2020, representatives of the non-governmental sector have increased the volume of industrial production by 18.9%, and production of agricultural and food products by 28.7%.