Economic achievements of Turkmenistan

As the result of successful realization of state policy by President of Turkmenistan Gurbanguly Berdimuhamedov that is aimed at ensuring sustainable development of the Motherland, Turkmenistan has become economically strong country actively integrating in the world economic ties.

The confirmation of the “Economic, financial and banking system development Program for the period 2018-2024” in March 2018, as well as the Action Plan of its implementation has become the main event of current.

The compound work on applying leading technologies in all the spheres, elevating the quantity of competitively advantageous goods, widening the output of import substituting products, providing support to private sector is carried out.Along with the policy of extensive crediting and diminishing the irrational expenditures, the industrialization programs, as well as the development programs not related to hydrocarbon resources were implemented.

Based on the development of manufacturing various types of high quality national produce with the usage of local resources, the foreign inflow of raw materials, food and non-food merchandise has decreased.

The stability of macroeconomic indicators is peculiar for contemporary Turkmenistan that has been frequently noted by the experts of world financial structures, particularly the International Monetary Fund.

A special meaning has the “Program of the President on social and economic development of the country for the period 2018-2024” aimed at development and acceleration of structural reforms, stimulating stable and overall growth of diversified market economy in the future.

The head of state noted that the key vector of monetary policy is the use of legal mechanisms aimed at preserving stability of national manat, widening the types of services and elevation of reliability of banking guarantees.In accordance with macroeconomic indicators, the rate of manat stays at stable level while inflation is within the projected limits.

Turkmenistan pays great attention to widening cooperation with the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development, the Asian Development Bank, the Islamic Development Bank and others.The main goals in this context are improvement of investment climate and attracting large investments in technological restoration of main production funds, renovating infrastructure that contributes to active integration of our country in global economy and elevating the competitiveness of national economy.As an example, it is possible to note the financial contribution of the Asian Development Bank and the Islamic Development Bank in the investment programs of Turkmenistan.

Considering the vast energy resources of our country and its strategic location, the operations of mentioned banks is focused on perfecting the transport and energy sector, assisting the development of entrepreneurship and promotion of large-scale projects initiated by President Gurbanguly Berdimuhamedov on widening regional cooperation and trade.

Among them the transnational gas pipeline Turkmenistan-Afghanistan-Pakistan-India which is being constructed and is going to increase significantly the potential of our Motherland thus contributing to strengthening of energy security and economic stability in Central Asia as well as becoming the strong base for attaining the Stable Development Goals.

In addition, let’s underline the working plan proposed by the Asian Development Bank that provides for investments in Turkmen economy in 2019-2021 in the amount of approximately 1 billion US dollars for realizing projects in different fields.Particularly this bank finances the construction of electrical and fiber-optic communication system on Turkmenistan-Afghanistan-Pakistan route, building the ring energy system, as well as other important infrastructural projects in transport-communication sphere.

One more direction of the investment cooperation is the transport of hydrocarbons.Having vast amounts of natural resources, Turkmenistan highly contributes to energy provision and energy security of the people of the planet.Especially this global aim determines the elevation of interest shown to our country by leading business circles of the world.

The development of international cooperation in the area of investments secures realization of multilateral economic potential of Turkmenistan, its further dynamic development.

The readiness of major financial structures to invest vast resources in the economy of Turkmenistan serves as a proof of high trust to our country as a reliable and responsible partner, having high standing and great opportunities.

The opening of Serhetabat - Turgundy railway, Turkmenabat International Airport, Turkmenbashy International Sea Port served as a proof of revival of the Great Silk Road in our country in a new format.

Besides the next stage of transnational gas pipeline Turkmenistan-Afghanistan-Pakistan-India, as well as the electrical and fiber-optic communication system on Turkmenistan-Afghanistan-Pakistan route is being constructed and the foundation of modern villages and settlements, as well as numerous other complexes aimed for different usage is laid.

The main coordinating mechanism of establishing fruitful partnerships with world governments, as well as attracting foreign investments in the economy of the country lies in refining the system of financial reporting.

In current setting, the successful application of innovative technologies serves as an integral factor of stable economic growth, creating a base for attaining the country prosperity on long-term basis.

Here, it is vital to note the adoption of the Concept of digital economy development in Turkmenistan for the period of 2019-2025.This Document was confirmed by the Decree of the President of Turkmenistan Gurbanguly Berdimuhamedov and consists of 7 parts that determines in detail the goals and objectives of the Conception, including the approaches and mechanisms of implementation, as well as the results awaited.

It should be realized in three stages (first to be completed in 2019, second in 2020-2023 and third in 2024-2025) that will contribute to the multilateral progress of the Motherland, assist the business and investment activity, create new jobs and elevate the prosperity of people.

In modern conditions, the pace and quality of economic growth is highly affected by the use of intellectual potential of the society, high level of education, scientific researches and qualification of work power. The special place in the government strategy holds the adoption of measures on effective management of labor resources and formation of conditions on implementing constitutional rights of citizens to work.

In the process of active industrialization of the country, transfer to digital economy and forming the informative society, as well as the development of market economy and entrepreneurship great attention is given to the strengthening of personnel potential.In this regard, it is vital to note the significance of the Program on improving the labor system of young specialists in Turkmenistan for the period of 2018-2020.This document confirmed by the Decree of the President of Turkmenistan Gurbanguly Berdimuhamedov is aimed at further growth of social and domestic level of youth, creation of wide opportunities and better conditions for its effective and productive labor, renewed system of work resources.

One of the key aspects of state vector is the development of entrepreneurship that is progressing at high pace in last years due to multilateral support and initiatives of Turkmen leader.Great attention is paid to realization of the program on privileged crediting of small and mid-sized businesses.

Today, the representatives of private sector actively participate in attaining objectives determined by President of Turkmenistan Gurbanguly Berdimuhamedov for different segments of the national economy.Projects in construction sphere and industry of construction materials, as well as on ensuring food abundance are implemented while investments are being made to the high technological production.This enables the growth of amounts in products output, increasing its quality and making the price attainable that will also create additional jobs.

Today the powerful resource, hydrocarbon and transit potential of Turkmenistan is actively involved in the global system due to the reforms of President of Turkmenistan Gurbanguly Berdimuhamedov.

The policy of “open doors” implemented by Turkmen leader serves as a significant argument for the establishment of long-term business contacts.

The interest of leading foreign investors are determined by the availability of vast natural resources, export opportunities of our country, its intensive industrialization and developing market of trade and services.

Implementing the large scale programs aimed at the modernization and diversification, as well as the increase of the competitiveness of national economy, our state expands mutually beneficial and productive cooperation with the representatives of foreign businesses, providing to them significant support in the form of tax, customs, visa and insurance benefits.

The adoption of the relevant legal acts regulating the basis of investors’ work on the territory of the country, as well as the course of the privatization of state property and denationalization conducted by the national leader Gurbanguly Berdimuhamedov plays a major role in this.Another proof of this is the increase from year to year of the share of foreign investments in the Turkmen economy and the growth of the number of joint enterprises.

Today foreign companies participate in financing of projects in such sectors as heavy industry, textile industry, agriculture, electronic industry, production of building materials based on local raw materials, tourism, transport and communications, modernization of the infrastructure of civil aviation, railway and sea transport, construction of high-speed highways, as well as the use of a national satellite.

The work of joint intergovernmental commissions on economic cooperation, bilateral business councils, as well as conducting business forums and international exhibitions on regular basis contributes to the increase of foreign investments.

Relevant agreements and memorandums reached between Turkmenistan and a number of states positively influence the establishment of favorable conditions for effective long-term interactions with the world community in the all fields and areas.

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