Turkmenistan, Ashgabat, Dec. 27 / Trend H.Hasanov /
Turkmenistan has great potential in terms of diversification, which would allow the state to effectively implement actions for the intensification of investment and economic growth, the Strategic Planning and Economic Development Institute of Turkmenistan said.
"The plan is for this investment to serve as a resource for the sustainable development of the energy sector, and investing in other sectors," the institute said.
In addition, "the country creates economic incentives for the cross-flow of financial resources from the commodity export industries in the manufacturing sector".
Turkmenistan stands as one of the key suppliers of natural gas in the Caspian region. Gas exports go to China, Iran and Russia. An announcement on the acceleration of the implementation of the TAPI (Turkmenistan-Afghanistan-Pakistan-India) project pipeline followed an intergovernmental agreement, signed in December. The country is also studying developments in the European market.
The Institute indicates that apart from the oil and gas industries, numerous enterprises will come under the scope for development: electrical power, the petrochemical and natural gas chemical industry, the chemical industry, machinery, construction materials, the light industry, the agro-industry, transport and communications, tourism and related services.
The challenges facing the development of the processing industries are manifold. These include the external competitiveness of high technology products, the expansion of markets and trade relations with foreign partners, and the search for long-term customers.
"This, in turn, contributes to Turkmenistan's integration into the world economy," the report reads.
This process will accelerate industrial restructuring, especially since large foreign companies are likely to arrive on the national market, bringing with them the necessary technological and marketing infrastructure and culture.
Development is already underway in the textile and food industries. There is also potential for expansion in metallurgy, the power and chemical industries, as well as in construction and the production of materials.
The Institute also notes that the substantial resources of natural gas reserves in the country, and the presence of valuable chemical components, predetermine the urgent need for gas processing plants.
"The directions in which to proceed with effectiveness are clear: we need the complete processing of gas condensate, the production and manufacture of polyethylene, as well as stepping up production in other areas to expand the product range."
The complete processing of gas condensate and the manufacturing of products from it, as well as the involvement of methane gas in processing will reduce the import of these items. It will also increase exports in the medium and long-term.
In recent years, several important steps were taken to stimulate small business. The country introduced a simplified tax system as well as concessional lending.