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2020 year - Turkmenistan - Home of Neutrality
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Stable development of financial and economic sector of Turkmenistan
2020 year - Turkmenistan - Home of Neutrality
Stable development of financial and economic sector of Turkmenistan
Published 13.10.2020
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President Gurbanguly Berdimuhamedov has defined stable progress of national economy, efficient development of industrial, investment, social, agricultural, transport and communication spheres and sphere of services, rational use of natural resources, strengthening of foreign economic relations, improvement of competiveness of local manufacturers as the main components of economic policy of Turkmenistan. All of these is aimed at solution of the main goal – the stability of social and economic development, steadfast growth of wealth and life quality of the population. In the context of modernization of national economy, t is important to benchmark all what was achieved against the indicators and data existing today in the world, to aim at the achievements of the world experience, President Gurbanguly Berdimuhamedov notes. Our goal is to move toward further social and democratic development steady and purposefully. All reforms, which we have initiated, pursue one goal to merge organically to the system of the world economy organically as soon as possible. 1991, when Turkmenistan received its independence, has come a starting point of the country’s development. Grandiose successes have been achieved in the formation of own national model of socially oriented market economy in the country in following years and at present time, the process of its improvement is continued taking into account internal interests and common tendencies of globalization of the world community. Solid foundation of stable country’s development in long-term perspective has been made in Turkmenistan in historical short period and profile structure of the economy has been improved as the result of fundamental changes. As of today, the country has developed production infrastructure, ramified transport and communication system and rich human potential. At present time, Turkmenistan is at the stage of new economic reforms based on application of modern equipment and advanced technologies, digitization of all branches, establishment of innovative production structures, intensification of the integration to the world economic system, expansion of international cooperation and activation of investment activity. National economy is successfully diversified by use of rich natural, economic and investment capabilities and expansion of interstate cooperation enhancing its foreign economic potential. Turkmenistan has entered its way of development of market relations continuing socially oriented course and greening of economic branches, rational use of natural reserves and efficient adaptation to the climate change. Large-scale reforms are introduced gradually in the country, big international and national projects are implemented, hundreds of production and social facilities have been built and put into operation. Important projects, which are to add stability to economic development in future and provide qualitative developments in its structure as well as to improve life of Turkmenistan citizens, have been successfully implemented in the last years. These include the projects of National Avaza tourist zone, construction of Turkmenistan – China, Turkmenistan – Iran, East- West gas line, the North – South transnational railroad, Serhetabat – Turgundy railway, motor and railway bridge across Amudarya River, international airports in Ashgabat, Turkmenbashy, Turkmenabat, International Seaport in Turkmenbashy. Such industrial giants as Garlyk Potassium Plant, carbamide plants in Mary and Garabogaz, petrochemical complex in kiyanly, plant for production of gasoline from natural gas and glass factory in Ahal Region and many other can be added to this list. At the same time, the construction of Turkmenistan – Afghanistan – Pakistan – India gas pipeline and Turkmenistan – Afghanistan – Pakistan power and fibre optic lines is actively continued. All of these will allow strengthening position of our country in the world market and providing additional income of foreign currency. Transition to the model of sustainable development, which is based on macroeconomic regulation, diversification of branches and market reformation, development of small and medium entrepreneurship are important conditions of solution of current economic objectives. In particular, it is carried out under Turkmenistan’s implementation of the Sustainable Development Goals announced by the United Nations Organization. Today, economic policy is targeted at innovative development, establishment of powerful industrial potential, strengthening and expansion of profile infrastructure. Qualitative and gradual formation of efficient economy with modern market relations, which is targeted at the achievement of high stable growth rates is the priority. Based on the status of permanent neutrality, which marks its 25th anniversary this year, Turkmenistan increases its production potential every year. This is confirmed by international financial institutes including the World Bank, according to which classification our country is among the states with upper-middle-income. All of these makes significant prepositions for provision of stable increment of national revenue and, despite negative tendencies in the world economy at present, the branches of national economy keep stable growth rates. Thus, during extended session of the Government dedicated to the outcomes of 9 months of 2020, President Gurbanguly Berdimuhamedov has brought up such data: the growth domestic product has increased by 5.8 percent comparing with the same period of the last year, the growth rate in trade sector was 18.1 percent, the production volume has grown by 4.2 percent. Stability of the growth of national product is based on increment of production volume in all sectors of the economy – industry, agriculture, construction and service sphere. Economic progress of the country is stimulated by significant resource potential, stability of demand as well as by big investments to priority directions of the state development. Social and economic policy of Turkmenistan is aimed at improvement of life conditions and wealth of the population. Major part of the State budget is sent for improvement of health protection, education, culture and municipal services. Financial and economic system, which forms up the balance of monetary circulation, purchasing power of national currency and dynamics of social and economic growth, plays an important role in stable development of the country. Provision of access to financial services and economic resources to all citizens of the country is an important objective of the Government policy pursued by President Gurbanguly Berdimuhamedov in financial and economic sphere. Being an important entity of the currency issue and the main institutional conductor of the monetary policy of the state, supporting and providing financial flows in the country and development of the economy, the banking sector plays the main role in operation of the system of local and international payments. Two-tiered banking system, which has been established for the years of independence and represented by the Central Bank of Turkmenistan and nine banks of various ownership, works successfully today. President Gurbanguly Berdimuhamedov notes that further support of stable exchange rate of manat, expansion of scales and improvement of quality of banking services with their entry to international level, introduction of the best world practice to activity of profile facilities are the main objectives of the banking sphere of Turkmenistan. The banks also play an important role in provision of credit resources to various branches of the economy, they are financial sources of big investment projects and working capital. Thus, credit facilities of the country give loans for development of farms, industrial facilities, service sphere and processing of agricultural production. At the same time, long-term crediting is rapidly developed in the country at the account of such directions as crediting of private producers under the program of credit support of investment projects of national entrepreneurs for opening or expansion of production facilities. Beneficial financing conditions have been made for fulfilment of strategic economic objectives related to restructuring of branches, industrialization, introduction of innovations as well as with enhancement of the role of private entrepreneurship, which provided the growth rate of crediting including the crediting of non-government establishments. At the same time, beneficial mortgage credits for procurement of comfortable living on beneficial terms are granted to the citizens for improvement of living conditions and wealth of the population. In particular, the credit is granted on long-term basis up to 30 years with one percent annual rate and with 5-year grace period. Further protection of interests of the creditors and investors, improvement of efficiency of activity of banking sector in accumulation of financial resources of the population and organizations, transformation into credits and investments, expansion of existing and introduction new services as well as support to the development of the economy remain priority objectives of the banking system of Turkmenistan. Specific measures have been taken by financial institutes of the country throughout last years for introduction of new banking operations and innovative technologies, improvement of business process management, increasing capitalization of national banks and other measures and other services. The banks of Turkmenistan work purposefully on improvement of quality of services, implementation of perspective ideas and entry to new level of service. According to the instructions of the Head of the state, works for improvement of the system of non-cash payments, in particular for wide introduction of cards to various spheres of the economy, as well as for development of electronic document management system are carried out in the financial and banking sphere of regular basis. Internet banking services, which allows reporting on account statements and conducted bank operations by ‘client – bank’ system, are expanded. The banks make beneficial conditions for attraction of financial resources and active participation of the population in financial market sphere. Development of technological types of service was observed in the growth of number of remote devices for provision of certain banking services. Thus, more than 2,200 ATMs have been installed and operate in the country. Introduction and use of digital technologies are among the most important priorities of stable development of the state. The transition to digital society in our country is implemented in accordance with the Concept of development of digital economy. Development of digital economy opens wide capabilities for introduction of effective systems, which support long-term economic growth and are the main objectives in achievement of stable development of the economy. Big range of activities for rapid transition to digital society is carried out at present time. Many elements of digital economy work in different spheres in the country these days. Active work is carried out for implementation of modern resources, which expands the range of non-cash payments, banking cards, transport services, health protection systems, education and other services. The banking sector of Turkmenistan does wide-scale work for introduction of digital technologies and provision of digital services to the population. High-technology transformation allows expanding the list of banking services and opportunities of national payment system, enhancing competiveness of credit facilities. Fir examples, Joint Stock Commercial Rysgal Bank actively works on implementation of payment system using QR-codes in the country, which allows making payments using smartphones. Implementation of the Sustainable Development Goals, which were adopted by all UN state members in September 2015 and representing the foundation of the 2030 Global Agenda, is one of the key directions of social and economic policy of Turkmen leader. Gradual work is carried out in the country these days for achievement of the SDGs. The country has already managed to achieve significant results in social and economic policy, to intensify the transit to market relations, continue socially oriented course of economic growth, keep positive indicators for provision of the population with affordable and qualitative medical services and education, take efficient measures for adaptation and mitigation of the impact caused by the climate change. Implementation of these measures in Turkmenistan is a logical continuation of social policy of President Gurbanguly Berdimuhamedov, which is aimed at provision of food abundance, improvement of common wealth of the population, widespread adoption of healthy life style, making of conditions for all-inclusive, fair and qualitative education, provision of gender equality, efficient use of water and energy resources, industrialization and innovation of all spheres of the economy. Stable economic growth directly depends on successful implementation of the programs of improvement of wellbeing of the population, life quality of the citizens of protection of social guarantees. In this regard, National Program of Reduction of the impact of complicated situation in the world economy on the economy of the country and stable development of national economy for 2020 – 2021, which is additional measure to the activity carried out by the Government of the country for prevention of negative external impact, has been adopted in July 2020 taking into account global situation. At the same time, the Plan of Social and Economic Activities against severe infectious disease pandemic in Turkmenistan have been adopted in July 2020. The Plan covers such important directions as improvement of quality and access to the main health protection services, provision of social security and basic social services, protection of work place, support of small and medium business, macroeconomic stimulation and multilateral cooperation. All of these indicates that Turkmenistan confidently move forward along the way of progress and further enhancement of wellbeing of the people. At the same time, implementation of the Sustainable Development Agenda is a strategic objectives of our state, which provides the provision of stable and all-inclusive growth of national economy. Therefore, implementation of all planned program activities will give opportunity to form up developed market infrastructure, to integrate fully into global economic system and to increase foreign trade significantly in the nearest future. Wide implementation of innovative technologies to all spheres of production will give opportunity to enhance the competiveness of national producers, to expand the volume of local commodity and service market and to strengthen financial and economic system. In particular, it will allow accumulating credit resources for financing of new production facilities, coming over to information society, which in its turn will make positive effect of economic power of Turkmenistan. These success and achievements of national economy are provided by the policy of neutrality, which 25th anniversary will be celebrated by the world community together with Turkmen people on December 12, 2020, of President Gurbanguly Berdimuhamedov. Gadyrgeldy Mushikov, Deputy Chairman of the Cabinet of Ministers of Turkmenistan

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