Turkmenistan gradually going towards market regulation of prices

Photo: Turkmenistan gradually going towards market regulation of prices / Finance

Ashgabat, Turkmenistan, May 3
By Huseyn Hasanov- Trend:

Turkmenistan has taken another step in gradual transition to the market price regulation, namely, in the fuel and energy complex, according to the analytical article of Turkmen Dovlet Habarlary (TDH) state news service.

The article is timed to the recent decision by the Turkmen government. The country's president Gurbanguly Berdimuhamedov signed a decree to develop the national economy, to achieve the rational use of petroleum products and to regulate their sale on the domestic market.

Turkmen citizens, namely, the owners of private passenger cars and motorcycles won't be provided with all types of petrol and diesel fuel free of charge from July 1, according to the document.

This temporary exemption was introduced more than five years ago. It was determined at that time that the cars would refuel over the approved monthly norm at the prices approved by the Turkmen government.

TDH draws attention to the fact that this measure was implemented in 2008 when the country was preparing for the introduction of the new national currency. At the time it was necessary to carry out a smooth transition so that neither the population, nor economy would suffer.

The article stresses that the population's benefits for electricity, natural gas, water, salt, and a formal fee have been fully preserved.

The salaries of those working in the budget-financed institutions, self-supported enterprises and public organizations, as well as state benefits, pensions and scholarships have increased five times in the last five years.

The article brings up another example, as the authorities made the decision about free delivery of the dwellings of the public housing stock to further provide the population with own houses, according to the of privatization procedure.

Thus, the achieved level of population welfare of the country "allows to successfully, without convulsions, implement gradual transition to the market economy," according to the TDH's article.

The measures taken to improve the monetary, currency, financial, fiscal and tax-budget spheres, laid a solid foundation to achieve high economic performance in the country, said the article.

Thus, the dynamic growth of the national economy, comprising an average of 11 percent over past five years, has led to a transitional GDP increase per capita.

The article said that in due time denomination of the Turkmen manat was implemented successfully, which, according to experts of leading international financial institutions, was timely.

Among the key factors contributing to the strengthening of confidence in the national currency and the increasing role of the banks, TDH also names the introduction of a single official exchange rate of Turkmen manat to foreign currency.

"It allowed to strengthen the position of the manat considerably, increase its purchasing power. This is evidenced by the fact that the set rate remains stable to this day," the article said.

"The chosen course by Turkmenistan course will not only minimize the impact of the global financial and economic crisis on the national economy, but also maintain high GDP growth rates, industrial production volumes, foreign trade, price stability in the domestic market for goods and services, and increase the volume investments allocated to the social sphere," the TDH said.

Translated by NH, SI
Edited by SI

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