IMF, Turkmenistan discussing private business development

Business Materials 12 November 2019 19:20 (UTC +04:00)
IMF, Turkmenistan discussing private business development

ASHGABAT, Turkmenistan, Nov. 12

By Huseyn Hasanov – Trend:

Chairman of Turkmen Union of Industrialists and Entrepreneurs Alexander Dadaev met with a delegation of the International Monetary Fund (IMF) in Ashgabat, Trend reports referring to Business Turkmenistan agency.

The sides discussed such issues as the investments in the development of the private sector, as well as financing of the small and medium-sized businesses. During the meeting, the sides spoke about activities of a number of industrial enterprises, in particular, local companies such as Deryaplastik, Parahat and Abadan haly.

The Turkmen entrepreneurs began to face difficulties due to restrictions on currency conversion after a decrease in the export of natural gas since 2016. IMF recommended that the Turkmen government to "weaken foreign exchange control on import and other current international payments" in March 2018.

Taking into account the amount of the external deficit, it is necessary to consider the need for taking additional measures, including those related to the adjustment of the exchange rate and the further tightening of the fiscal and monetary policy, IMF said.

The fund emphasized that the reforms in the real sector must focus on the great simplification of administrative procedures and rules, acceleration of reforms, privatization of the state-owned enterprises and attraction of foreign direct investments.

"The simplified basis for the operation of free economic zones will potentially help to attract new private investments, including foreign ones while the positive experience can be more widely used throughout Turkmenistan," IMF said.

Turkmenistan intends to gradually pass to the market economy, which has been reflected in the Constitution.

At this stage, a number of activities were carried out. The denomination of the national currency was implemented. The country moved to international accounting standards in 2014.

The necessary regulatory framework is being created, and conditions for free wholesale trade are being created.

Goals were set to create other institutions of market infrastructure such as the commodity market, stock market, securities market, information, advisory and audit centers in the country.