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Law on privatisation of state property adopted in Turkmenistan

Business Materials 19 December 2013 14:58 (UTC +04:00)
During the 23rd meeting of the fourth convocation, the Turkmen Parliament approved and adopted a bill on ‘Denationalisation and privatisation of state property.

Ashgabat, Turkmenistan, Dec. 19

By Huseyn Hasanov - Trend:

During the 23rd meeting of the fourth convocation, the Turkmen Parliament approved and adopted a bill on 'Denationalisation and privatisation of state property', the Turkmen government said on Thursday.

The document includes the legal, economic and organisational aspects of the privatisation process in the country, according to the report.

'The main purpose of this document is to create the conditions for the development of an effective social market economy, as well as various forms of ownership', accords to a statement.

'Adoption of this bill will be a step towards the modernisation and development of the national economy in the context of its gradual transition to market relations and active integration of the country into the modern world economic system', the report said.

'In general, privatisation is intended to contribute to further improvement in the competitiveness of the economy of Turkmenistan, to accelerate efficiency and profitability of industrial production, as well as the dynamic development of domestic private entrepreneurship'.

Turkmenistan has approved the state programme for the privatisation of enterprises and state-owned facilities for 2013-2016. Within this programme it is planned to privatise state enterprises in various industries, construction, transport, communications and other state-owned facilities, as well as to create infrastructures of joint-stock companies.

"The revelation of new opportunities on the basis of the extensive privatisation of state property and regional integration as well as free trade policy, increases the inflow of foreign investments," a spokesperson for Turkmenistan's Institute for Strategic Planning and Economic Development said earlier.

Turkmenistan is in a transitional stage of its development. The country occupies a key position in the region for the supply of natural gas imported by China, Russia and Iran. At the same time, the country's government adopted a policy of diversification of the economy with oil and gas processing, the textile industry, cotton processing industry and enabling the production of construction materials to rapidly develop.

The International Monetary Fund (IMF) said in its early report on Turkmenistan that the privatisation programme should be implemented on the basis of consultations with international financial organisations.

'Stimulation of the growth of private entrepreneurship requires the improvement of the business environment and reducing the opportunities for corruption', the report said.

Translated by N.H., L.Z.

Edited by S.M.

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