Arzuw NEWS - Turkmenistan news

Market relations are actively developing in Turkmenistan

Market relations are actively developing in Turkmenistan

Economic CentralAsia.news editorial board expert Valentin Trapeznikov analyzed in his article trends of economic development of Turkmenistan in recent years, taking into account the influence of external macro factors of the global world pandemic. In the article of the expert the emphasis is made on the significant achievements of Turkmenistan in various sectors. It is noted that market relations in various sectors have significantly intensified in Turkmenistan over the past 10-12 years.

Modern tools of the banking sector and securities market

An important link in economic reforms is the growth of financial stability and stability of the banking sector, its modernization and integration into the global system, the expansion of the range of services based on digitalization.

Together with the Central Bank and the State Bank for Foreign Economic Affairs of Turkmenistan, other banks are becoming active participants in improving the banking sector by introducing new remote digital services.

Over the last decade, the activity of stock exchanges in Turkmenistan has intensified. Now the State Commodity and Raw Materials Exchange, the Interbank Currency Exchange and the Ashgabat Stock Exchange are functioning.

Development of free economic zones

One of the vectors of the development of market relations in Turkmenistan was the reform of pricing policy and the system of social benefits. Unreasonable benefits had a negative effect on the productivity of market relations, the expedient use of resources, the rate of economic growth. As a result, comprehensive measures of synchronization of prices of goods and services with the market reality were introduced.

The adoption of the legislative act "On Free Economic Zones" defining taxation, currency and customs conditions of free economic zones and the "Concept of establishing free economic zones in Turkmenistan for the period until 2023" should also catalyze market processes in the state.

The priority vectors of state policy were to support business at various levels, and to maintain equal activity of various forms of ownership. It is worth emphasizing that from 2013 to 2019 five hundred state-owned objects were privatized. Privatization carried out by SPPT members in the livestock, fishery and tourism sectors should be especially noted.

Emphasis on private business

The percentage of private companies in Turkmenistan increased from 65.7% to 72.3% in 2013-2020. Significant subjects of market relations of the state are independent entrepreneursThe volume of net income of IEs in different sectors has shown a growth of 2.9-4.2 times since 2010. Since 2010, the volume of net income of individual entrepreneurs in various sectors has shown an increase of 2.9-4.2 times.

The state program to support SMEs for 2018-2024 also accompanies modernization and integration processes.

Entrepreneurs are actively involved in the digitalization of the national economy. For example, SPPT is investing in the formation of the Training and Practice Center for the Digital Economy, which will develop and support software, improve the skills of industry specialists, and adapt innovative global experience.

In the light of the implementation of the Concept of Digital Economy in 2019-2025, the participants created the CJSC "IT-Park", aimed at the development of SMEs in the IT industry, strengthening the communication of scientific, industrial, investor circles in Turkmenistan.

Public-private partnership is actively developing in Turkmenistan. The Ashgabat-Turkmenebat highway, the XIVth, XVth, XVIth stages of development of the capital of Turkmenistan and Annau, a social and industrial complex near the lake "Altyn Asyr", the II-th potash fertilizer plant (Lebap region), Lebap and Kerky airports - this is an incomplete list of large-scale projects in which private Turkmen companies have taken part.

Entrepreneurship is actively developing in industry, extractive industries, and the agro-industrial complex. The number of successful enterprises in cattle breeding, food textile spheres, manufacturers of household and computer electronics, control and measuring devices, building materials, polymers, medical products has increased rapidly. Intensive activity has been developed by small enterprises processing plastic, polyethylene, paper, wood, rubber.

Private companies also dominate retailers: as of 2020, the percentage of private companies in retail sales reached 93.9%. For the state, retail turnover increased by 18.1%. It should be noted that retail turnover of the private sector increased by 19.3%, while that of the public sector increased by 2%.

State support

An important component of Turkmenistan's state policy is to support investment activities and business initiatives by Turkmenistanis, the continuation of the privatization process, and the growth of the private banking sector.

It is noted that the regular participation of the SPPT in world forums and expositions favors the expansion of contacts with potential foreign partners

Summing up, the expert notes that the continuous activation of market relations in various spheres and forms has become an integral part of the dynamic socio-economic development of Turkmenistan.

Source: centralasia.news

Photo: pixabay.com

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