Government support of entrepreneurship – factor of development of market economy

President Gurbanguly Berdimuhamedov outlined complex of objectives related to further development of non-governmental sector of the economy among current vectors of coming work at the session of the Government dedicated to outcomes of development of branches for six months of the year.

It is worth to remind that the Union of Industrialists and Entrepreneurs unites more than 24,000 members in its ranks, which carry out activity almost in all branches of national economy. For 12 years since the UIET has been founded, number of big projects indicating successfulness and perspective of government and private partnership has been implemented.

The entrepreneurs made significant contribution to expansion of import substitution and improvement of export potential of the country, development of competitive production.

Big work has been carried out in the country on the last few years for dynamic and efficient development of small and medium business, private initiatives. Favourable legal, economic, financial and social conditions have been made. This and improvement of tax system, facilitation of order of registration and licensing of entrepreneurial activity and beneficial crediting.

Many of objectives set by the Head of the State for legal support of non-governmental sector were reflected in new editions of the Law on the Union of Industrialists and Entrepreneurs of Turkmenistan adopted by the Parliament in October 2019. This documents extends authorities of the UIET and specifies rights and obligations of the Union.

Big attention paid by the Government of the country to stimulation of small and medium business support to fundamental modernization of its activity.

The work in this direction is continued. Thus, the President of Turkmenistan has signed the Resolution allowing the State Bank of Foreign Economic Affairs to enter into credit agreement with the OPEC’s Fund of International Development for financing of projects of entrepreneurs – individuals and legal entities.

These measures are taken for attraction of financial resources to national economy, support of small and medium business, provision of financial support to development of provate entrepreneurship.

The Resolution on allocation of financial resources to the amount of 1.5 billon US dollars from the government resources, which has also been signed by the President of Turkmenistan this year, is also aimed at successful realization of large-scale and unique project of construction of new administrative centre of Ahal Region.

On March 24, the Head of the State held working session on development of trade and entrepreneurship in the context of realization of the Concept of development of digital economy in Turkmenistan in 2020 – 2025.

The President highlighted an important role of non-governmental sector in modernization of national economy, increment of volumes and variety of competitive production, provision of food abundance and enhancement of export potential of the country, opening of new import substitutive production facilities and working places.

At the session of the Cabinet of Ministers of Turkmenistan on June 5, President Gurbanguly Berdimuhamedov noted importance of stimulation of entrepreneurial activity and ordered to develop measures of the government support of private sector of the economy and to present relative proposals.

At the same time, the Head of the state instructed to increase production of consumer goods as well as to activate work of private companies engaged in agricultural production, construction of industrial cold storage facilities for fruit and vegetable production.

At the session of the Cabinet of Ministers dedicated to outcomes of work for half of the year, provision of financial, material and technical support to small and medium business has been defined among measures of government support to private sector of the economy. In particular, the Head of the State ordered to simplify the order of hand over of land plots, to facilitate procedures of registration of credit, customs and trade operations for entrepreneurs.

Intensification of opening of free economic zones in the regions by implementation of preferences for export as well as study of opportunity to introduce benefits of visa, registration of land plots, grant of credits and payment settlements have also been specified among the utmost objectives.

Despite the complications in the economy caused by the spread of COVID-19 pandemic in the world, national small and medium business keeps stability. Thus, 66 percent in the production structure belong to private sector in the country. From the beginning of the year, representatives of non-governmental sector have increased volumes of industrial production by 18.9 percent, agricultural and food production by 28.7 percent.

The entrepreneurship is developed in all regions taking active part in realization of large-scale projects and objectives for provision of labour occupancy of the population.

Turkmen business are entrusted with fulfilment of big orders related to development of Ashgabat, Avaza National tourist zone, cities and villages of the country, construction of roads, hydro technical facilities, infrastructural facilities of civil aviation and other.

Number of agricultural complex facilities have been put into operation in the first half of the year. These are big hothouse farms; production and processing poultry, livestock, fishery, vegetable, fruit and cucurbitaceous processing complexes are also under construction.

Representatives of private business continue confidently developing new segments of the market and technologies allowing achieving improvement of competiveness of agricultural complex, satisfaction of demand of the population in various eco-friendly food and crop production due to support of the Head of the State.

Therefore, according to economic strategy of President Gurbanguly Berdimuhamedov, Turkmen entrepreneurs have the role of one of system forming factors in industrialization of national economy and production of competitive goods in the world market. The Government provides all necessary conditions and opportunities for this.

Turkmen entrepreneurs have big future plans for solution of important objectives. Developed and permanently improved mechanisms of efficient government and private partnership serve as reliable guarantee of their successful implementation.



Source: Turkmenistan State News Agency-TDH