Turkmenistan's local business gets multi-billion deals
By Nigar Abbasova
Turkmen president Gurbanguly Berdimuhamedov took a decision on making the local private business responsible for the implementation of large-scale construction works which are currently underway in the country.
The multi-billion projects are aimed promoting the socio-economic development of the country.
The president stated that the share of non-state sector of economy in the volume of GDP should reach the level of 70 percent by 2020. “Entrepreneurs should create joint ventures with the foreign partners by means of attracting investments.”
The country has defined certain actions on the creation of market economy, approved several laws and other legal acts. “The government renders its assistance to the entrepreneurs, the actions of the government has already given positive results,” Berdimuhamedov said.
As much as 90 percent of agricultural food stuff as well as 60 percent of industrial products in the country are manufactured in private sector. More than 90 percent of services in the sphere of trade are implemented by local entrepreneurs.
“Turkmenistan has a potential for the preservation of all benefits envisaged by the law of the country. Global economy is currently experiencing very difficult situation. Prices for raw materials have sharply reduced. I want to underline that we have managed to maintain GDP growth at the level of 6 percent in the complicated situation first of all due to conscientious work of the Turkmen people,” he said.
The president added that the current GDP level allows the country to provide the state budget with the funds, preserve benefits and implement planned social programs.
The Turkmen president also approved the list of goods exported by the private entrepreneurs or legal entities to the foreign countries. The list is envisaged for goods that will be exempt from duties.
In compliance with the changes private individuals and entrepreneurs engaged in the fishery are exempt from the land tax for the fishery facilities as well as from land leasing tax.
The document also envisages that private entrepreneurs and legal entities are eligible for the export of surplus in the production of locally manufactured hen’s eggs which exceed the needs of the local market. The permission is considered to be given in accordance with the conclusion of the country’s Trade Ministry.
The main objective of the order is successful implementation of state programs on the development of entrepreneurship, the increase of the role of private sector in the national economy as well as further rendering of state support to private entrepreneurs.
GDP in Turkmenistan slowed to 6.5 percent in 2015 compared to 10.3 percent in 2014 due to declining natural gas export and lower public investment. Russia bought just 4 billion cubic meters of gas in 2015 compared to 40 billion cubic meters in 2008. The county stopped importing gas from Turkmenistan in 2016.
The European Bank for Reconstruction of Development (EBRD) forecasts that Turkmenistan's GDP growth will reach the rates of 6.5 percent and 7.1 percent in 2016 and 2017, respectively.
The Government’s National Socio-Economic Development Program for 2011–2030 and the National Rural Development Program are focused on the sustainable economic growth while preserving economic independence, modernizing the country’s infrastructure, and promoting foreign direct investment.
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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