ASHGABAT, Turkmenistan, September 5. The Asian Development Bank (ADB) has revealed a new country partnership plan for Turkmenistan aimed at promoting a competitive, diverse, and knowledge-based economy, with a heavy emphasis on improving economic competitiveness through diversification and private sector development, Trend reports.
With economic diversification essential for inclusive growth and quality employment, ADB will prioritize private sector and human capital development in Turkmenistan. Investments in the finance sector improve financial access for SMEs targeting export markets, expand banks' lending capacities, streamline credit processes, and improve risk management.
ADB will also provide knowledge support and capacity building to improve the business environment, reduce the dominant role of state-owned enterprises (SOEs), and rationalize policies and regulations. The bank plans to promote the use of International Financial Reporting Standards (IFRS) and collaborate with the World Trade Organization (WTO) to expedite Turkmenistan’s accession.
Reviewing the efficacy of public investments, gauging the state of SOEs, and enhancing government capacity to analyze their performance are all steps that can be taken to further encourage private sector development. International special economic zones, simplified subsidies and incentives, and an examination of oil and gas industry taxes in light of global best practices are all on the agenda for ADB's next investigation.
In addition, ADB will support the development of a comprehensive strategy for public-private partnerships (PPPs) and resolve issues related to the framework agreement necessary for nonsovereign operations. The bank will also aid in creating a dedicated PPP website and a comprehensive PPP road map, ensuring effective fiscal management and long-term perspectives for a PPP pipeline.
Investing in human capital is still a top-notch concern for the government. ADB will put its money where its mouth is and invest in reforming the health sector to improve access and quality of services. They will go the extra mile by focusing on medical education and fostering international collaboration. The strategy includes pushing the envelope on digital skills, giving a leg up to workforce development and entrepreneurship, and toughening up to economic shocks.
Emphasizing smart agriculture, digitalization, and the green transition, a comprehensive human development plan will be entwined with the national economic strategy To increase educational and research capacity, boost entrepreneurial education, and deepen relationships between local businesses and higher education institutions, ADB will work with top universities and companies.
Covering 2024 to 2028, "Turkmenistan: Country Partnership Strategy" will focus on three main priorities: advancing a green transition to achieve a sustainable and climate-resilient economy; boosting economic competitiveness through diversification, with an eye toward the private sector and human capital development; and supporting structural reforms and institutional development.
Supporting developments in transport infrastructure, economic diversification, human capital, and climate action, the ADB has been a main partner to Turkmenistan. ADB awarded $225,000 for private-sector development and public-private partnership planning in 2023 and advanced projects in health, finance, and transportation. With $592.54 million disbursed thus far, ADB's commitments to Turkmenistan as of December 31, 2023 comprise $634 million in loans, grants, and technical assistance.