MP: Creation of Azerbaijan Investment Holding can free economy from oil dependency

Politics Materials 10 August 2020 17:48 (UTC +04:00)
MP: Creation of Azerbaijan Investment Holding can free economy from oil dependency

BAKU, Azerbaijan, Aug.10

By Eldar Janashvili - Trend:

Creation of Azerbaijan Investment Holding is a strategic decision which can free the national economy from oil dependency, Azerbaijani MP Hikmat Babaoglu told Trend on August 10.

Babaoghlu noted that Azerbaijan implements sustainable structural and institutional reforms in all sectors along a horizontal and vertical vectors, that is, they are becoming more complex and radical every day in all socio-economic spheres of the society, starting with a new type of management and the creation of new mobile institutions for optimization.

According to the MP, the global situation caused by the COVID-19 pandemic is making necessary to revive the economy and form a post-pandemic economy in conditions of social isolation.

“Therefore, it’s especially important to search and apply new effective methods of protecting and developing our national economy,” he said. “At the same time, now, that the whole world has faced a shortage of capital, the mobilization of national resources, especially the economic potential of state-owned companies, should be considered an important step to maintain the national economy.”

“Due to this, as noted in the relevant order of the Azerbaijan’s president, currently, the economic development can be accelerated only through comprehensive development of market relations, sustainable expansion of private property, and management based on healthier principles,” Babaoglu pointed out.

“It’s necessary to deepen structural reforms to improve the management system of state-owned enterprises, increase their efficiency and transparency, as well as ensure their full recovery by optimizing costs and risks. In fact, this should also further optimize the conditions for economic liberalization during the new stage, which will lead to the formation of a new system of relations based on free economic competition,” MP added.

“Given the above, the [president’s] order has especially focused on the comprehensive development of free market relations and the expansion of sustainable private property,” he noted. “Another important aspect of the issue is the large share of state-owned enterprises in the economy of Azerbaijan. The share of those employed in these enterprises is about 25 percent.”

"The assets of the 15 largest state-owned enterprises are comparable with the country's GDP. This means a huge economic and financial potential, the realization of which in the system of economic relations may even create a leap in economic dynamics. This could open up an entirely new stage in our economic development," added Babaoglu.