Azernews.Az

By Ayya Lmahamad

The lion's share of investment is channeled into the restoration of Azerbaijan’s liberated territories, Economy Minister Mikayil Jabbarov has said.

He made the remarks during a meeting of the Azerbaijani parliamentary (Milli Majlis) Committee on Economic Policy, Industry, and Entrepreneurship, Azernews reports.

The minister noted that this naturally creates a financial need for the government to implement other important infrastructure projects. In this regard, he stated that the new draft law will allow to attract these funds from the private sector and decrease the independence from state financing.

“If Azerbaijan won't use the private investments as well as the capital, which the country attracts from foreign markets, this will limit the development,” he opined.

Noting that Azerbaijan is building a lot of infrastructure facilities, Mikayil Jabbarov stated that the country doesn’t always see its effective management.

“The investment holding, created by President Ilham Aliyev, provides a full picture. Large state-owned companies have great potential for efficiency,” he added.

Need for projects with greater capital intensity

Moreover, the minister emphasized that as the economy develops, the need for projects with greater capital intensity arises.

He noted that adopting this draft law will allow attracting both external and internal private investments.

“The state will be able to do more with less capital and focus on improving legislation, better-ensuring consumer rights, and other areas. When developing the law, the international experience has been taken into account,” he said.

The minister added that the draft law doesn't cover the oil and gas industry, production of electricity, or renewable energy sources as these sectors are regulated by separate laws.

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Ayya Lmahamad is AzerNews’ staff journalist, follow her on Twitter: @AyyaLmahamad

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