BAKU, Azerbaijan, November 12. Azerbaijan and the World Bank discussed priority areas for cooperation, the Ministry of Finance reported.
The discussion took place during a meeting between the Minister of Finance of Azerbaijan, Sahil Babayev, and a delegation that included the World Bank’s Regional Director for the South Caucasus, Rolande Pryce, and the Regional Practice Director for Prosperity in Europe and the Central Asian region, Abebe Adugna, held on November 12.
According to the information, the current state and future prospects of cooperation between Azerbaijan and the World Bank were discussed, covering topics such as macroeconomic stability and fiscal sustainability, economic diversification, public financial management, and reforms in state-owned enterprises, as well as other issues of mutual interest.
Babayev emphasized that Azerbaijan attaches special importance to its long-term partnership with the World Bank, highly valuing the Bank’s contribution to the country’s economic development, institutional reforms, and the modernization of the public sector. He noted that the Country Partnership Framework, covering the period 2025–2029, creates new opportunities for expanding cooperation in areas such as economic diversification, private sector development, productivity enhancement, and sustainable economic growth.
Noting that maintaining macroeconomic stability and strengthening fiscal sustainability are among the government’s key priorities, Babayev provided an overview of measures being taken to ensure the efficient management of public finances, reinforce fiscal discipline, improve the efficiency of budget expenditures, and gradually reduce dependence on oil and gas revenues. The importance of developing the non-oil sector, promoting private investment, and expanding export potential for long-term economic growth was also underscored.
Addressing reforms in the field of public financial management, Babayev highlighted initiatives such as the creation of the Digital Public Finance information system (DPFIS), which integrates budget planning, execution, treasury operations, and financial reporting into a unified digital environment, the expansion of program- and results-based budgeting mechanisms, and the digitalization of public procurement. The importance of continuing cooperation with the World Bank in these areas was noted.
Reforms in the financial management and oversight of state-owned enterprises (SOEs) were also a key focus of the meeting. The discussions covered potential cooperation with the World Bank to improve financial discipline, corporate governance, and dividend policies within SOEs, as well as to manage potential fiscal risks.
In this context, preparations for the Global Conference on State-Owned Enterprises, planned to be held in Baku in April 2027 in collaboration with the World Bank Group, were also addressed. During the meeting, it was noted that the conference would serve as an important platform for exchanging international experience on the management and financial sustainability of state-owned enterprises.
Furthermore, the parties reviewed the draft Report on the Observance of Standards and Codes (ROSC) in the areas of accounting and auditing, prepared with the support of the World Bank, along with its recommendations. The importance of improving relevant legislation, enhancing the quality and transparency of financial reporting, strengthening audit oversight mechanisms, and continuing the dialogue on issues requiring further discussion was emphasized.
During the meeting, views were also exchanged regarding the next phase of the World Bank’s analytical work on economic growth and diversification, as well as potential investment projects in the sectors of agriculture, water resource management, transport, and urban infrastructure.
Highly valuing the development of the partnership with Azerbaijan, World Bank representatives expressed their interest in continuing technical, analytical, and financial cooperation to support the country’s economic and institutional reforms, public financial management, and the state-owned enterprise sector.
