Financial support of development of private sector: impulse of the economic growth

Speaking at the session of the Cabinet of Ministers of Turkmenistan on February 20, President Gurbanguly Berdimuhamedov highlighted that comprehensive support to development of private sector is one of the main aspects of national social and economic strategy. 

Favourable legal, economic, financial and social conditions have been made for effective and dynamic development of this section of national economy in the country, which builds its economy of the principles of market relations. This is indicated by improvement of tax system, facilitation of export and import operations, beneficial crediting. 

All these measures are provided by steadily implemented State programme of support of small and medium business in 2018 – 2024. It is aimed at provision of high rates of economic growth and social progress by activation of entrepreneurship activity in Turkmenistan. 

It main objectives include increment of volumes of production and services by private sector, enhancement of competiveness of national manufacturers in the world markets. 

Recently in the beginning of February, the Head of the State assigned to allocate 1.5 billion US dollars from the State funds to the Union of Industrialists and Entrepreneurs of Turkmenistan for procurement of equipment, machinery and construction materials, which are necessary for construction and provision of facilities of new administrative centre of Ahal Velayat. 

National entrepreneurs actively develop construction business and enter into bigger contracts in this field. They build major facilities including entire living estates of urban development of Ashgabat, comfortable hotels, sport and recreation centres in Avaza tourist zone, industrial facilities and processing plants. 

Earlier, the Head of the State allocated 2.3 billion US dollars to the UIET for construction of Ashgabat – Turkmenabat highway, 600 million US dollars for construction of ore mining complex at potassium salt deposit Tyubigatan in Lebap Velayat. This is just a few samples of targeted support of development of entrepreneurship in the country. 

President Gurbanguly Berdimuhamedov signed the Resolution on financing of the projects implemented by legal and entities and individual entrepreneurs at the above-mentioned session of the Government. According to the document, the State Bank of Foreign Economic Affairs will sign credit agreement with the OPEC Fund, who will allocate 10 million US dollars. 

These funds will be invested to number of projects of national private goods producers, which products are targeted to export and import substitution. 

Making its input to support of small and medium entrepreneurship, the State Bank of Foreign Economic Affairs of Turkmenistan work closely with international financial organizations attracting new credits for financing of the projects implemented in private sector of the economy of the country. The OPEC Fund for International Development is one of such organizations. 

The OPEC Fund for International Development is international financial organization established in 1976. It members include Algeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates and Venezuela. 

The main goal of the organization is to support stable social and economic development in the world. The fund cooperates with 134 countries of the world. Its main operations include provision of investment to the governments of different states for the state and private projects, financing of trade and provision of grants. 

It is important to note that while providing financial support to development of private sector, the State Bank of Foreign Economic Affairs has singed the agreement to the amount of 10 million US dollars with the Islamic Corporation for Development of Private Sector at the fields of the First Economic Forum, which was held in the country in August 2019. 

The bank is preparing to sign credit agreements to the amount of more than 42 million US dollars with USA John Credit Inc. for financing of supplies of agricultural equipment for support of private agricultural producers. Turkmen leader highlights that activity of entrepreneurs has to support integration of Turkmenistan to the system of global economy and be based on advanced methods of work, therefore, the state would continue providing active support to small and medium business supporting the expansion of its activity in national economy. 

In particular, this is related to such sections on national economy as agricultural complex, tourism, trade, textile and food industry, transport, service sphere and construction industry. 

The President of Turkmenistan pays special attention to creation of import substitutive facilities in industrial complex. At the same session of the Cabinet of Ministers on last Friday, the Head of the State signed the Resolution on construction of entire number of industrial and production facilities in 2020 – 2023. 

Electronic industry is developed in the country, profile organizations based on innovative technologies are formed under active support of members of the Union of Industrialists and Entrepreneurs of Turkmenistan. 

In addition, facilities for production of different types of household appliances like electrical and gas cooking stoves, ovens, microwaves, vacuum cleaners and fridges are opened. All of these will allow reducing import volumes in this sphere and providing the population with consumer goods at affordable price. 

At the same time, the focus is made on efficient echo-friendly production facilities, introduction of digital systems and technical innovations to all branches. Together with increment of consumer goods production, output capacities of light and food industry, big resources are invested to development of service sphere and trade. 

Wide variety of competitive goods and services, creating of high added values, economic diplomacy and growth of export are the main targets, which were given by President Gurbanguly Berdimuhamedov in development of national business.