Economy & Industry

On 20 May, 2020 President of Turkmenistan Gurbanguly Berdymukhammedov held a working session devoted to facilitating the economy development.
The state information agency TDH reports that Deputy Prime Minister overseeing transportation, communications and industry Bairamgeldi Ovezov and Deputy Prime Minister overseeing economy and finance Gadyrgeldy Mushshikov gave progress reports to the head of state.
Raising the topic of the state budget, Berdymukhammedov instructed that when drafting the document, “the available potential and analytical forecasts” be taken into account.
The President reminded that the situation in the global economy remains complicated and charged the officials with the task of modernizing industries, reducing non-operating expenses, stabilizing the financial system and maintaining the investment activity.
Based on the results of the meetings, the officials were ordered to:

promptly respond to any restrictions imposed on international passenger and cargo transportation services to lower the impact on the development of the industry;
review deadlines for paying bank loans, taxes and investments (it is unclear whether this refers to deferring payments as a measure of support rendered to entrepreneurs or conversely, expediting fee payment);
to ensure self-financed ministries and agencies fund organizations and companies under their jurisdiction, whereas state-run agencies funded from the federal budget be funded from the investments allocated for the present year and from extra-budgetary funds;
review the possibility of using local resources to address objectives related to the development of tourism;
review the possibility of providing the private sector with benefits with regard to access to raw material resources, bank loans; reciprocal payments an export transactions;
in connection with the falling global demand for textile products consider the possibility of selling textiles to domestic customers; evaluate the needs of the export market and envisage online sale options;
in a short-term perspective finalize the revised state budget as well as identify additional sources of the state revenue.

At the Cabinet session held on 8 May, 2020, the President stated that the current sharp drop in oil prices can lead “to a more unfavourable situation compared to the financial crisis of 2008 and the fall in oil prices in 2014-2015”. In this connection Deputy Prime Ministers were charged with the task of putting together proposals on cutting expenditures and drawing up an amended state budget based on the results of the first six months of the year.
At the Cabinet session held on 15 May, 2020 Berdymukhammedov instructed that 100% of incoming foreign currency funds be transferred to the Stabilization Fund and that the foreign currency conversion commission be set up.