Turkmen president dissatisfied with activities of financial and banking unit

Photo: Turkmen president dissatisfied with activities of financial and banking unit
 / Turkmenistan

Ashgabat, Turkmenistan, Dec. 9

By Huseyn Hasanov - Trend:

President of Turkmenistan Gurbanguly Berdimuhamedov severely reprimanded Deputy Prime Minister Annamukhammet Gochyev, for lessening control over the activities of subordinate organizations and the poor performance of his duties, the Turkmen government said on Monday.

Gochyev supervises the work of institutions in the economic, financial and banking sectors and is a regional curator for the Mary velayat (region), which has the largest gas fields in the world. His performance assessment was given at the last meeting of the government.

"The leader of the nation expressed a number of his complaints to the deputy prime minister due to an improper execution of earlier instructions, including the lessening of control over the activities of supervised ministries and agencies," according to the government's message.

The Turkmen president believes that the work of the State Tax Service "did not improve" despite dismissing service's heads from their positions because of bribery and other negative issues.

"Pointing to the weakening of control over the receipt of taxes, as well as mistakes made in assessing the level of funds received, the president also expressed dissatisfaction due to the fact that measures have not been taken to radically transform the country's tax system," according to the message.

The meeting in Ashgabat also addressed the issues related to activities of the Ministry of Economy and Development.

"Almost a year ago a resolution was adopted on the construction of model villages in the provinces, nevertheless this work has not even started in some provinces," Turkmen president said.

The Finance Ministry was also told that no action had been taken to close down unprofitable enterprises and adequate funding for adopted social programs is not provided.

Errors in the calculation and recalculation of pensions were pointed out to the Ministry of Labor and Social Welfare.

President Berdimuhamedov focused on implementation of the public investment policy. It was stressed that the country's banks have not fully engaged in financing of priority national investment projects and providing the production facilities with loans.

Turkmenistan is at a transitional stage of its development. An article on the transition to market relations has recently appeared in the updated constitution.

Turkmenistan is the region's key natural gas supplier. Its gas importers are Russia, China and Iran.

Meanwhile, the country's leadership plans to diversify the economy. Oil and gas processing, textile industry, cotton processing industry and production of construction materials have been recently developed. Turkmenistan conducted several reforms in monetary policy, namely, the denomination of the national currency, and the unification of exchange rates. Transition to international accounting standards is scheduled for 2014.

The International Monetary Fund expects that Turkmenistan's economic growth will hit 10.1 percent in 2013 and 10.7 percent in 2014.

"Sustainable economic growth is being observed in 2013 which is caused by high growth rates in the non-oil sector with a large volume of state investments," a report said.

The IMF report said that the sharp and steady decrease of the world energy prices causes the highest possible risk to Turkmenistan's economic growth.

The privatization program must be implemented on the basis of consultations with international financial institutions, the IMF said.

"Stimulating the growth of private entrepreneurship requires improving the business sphere and reducing corruption," the IMF added.

The European Bank for Reconstruction and Development (EBRD) expects Turkmenistan's economic growth to reach ten percent in 2013. The same is expected in 2014.

The economic growth of Central Asian countries will remain relatively high due to the implementation of a number of large projects for extracting natural resources. Stable growth rates can be explained by the implementation of large state construction projects in Turkmenistan and an increase in gas exports to China, the EBRD's report said.

Translated by N.H and E.A

Edited by C.N

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