Finance

Home page

Finance

IMF: Profitability of state-owned enterprises in Azerbaijan should be increased, subsidies reduced

20 February 2026 09:36 (UTC +04:00)

“The profitability of state-owned enterprises in Azerbaijan should be increased, and subsidies should be reduced,” APA-Economics reports.

This was stated in the report of the International Monetary Fund’s (IMF) mission on Azerbaijan.

It was noted that medium-term fiscal consolidation is appropriate and that this approach will serve both to ensure intergenerational equity and to strengthen the country’s external resilience.

The mission believes that a clear and comprehensive strategy based on identifying specific revenue and expenditure measures will enhance the credibility of fiscal consolidation.

The document emphasizes that reforms aimed at increasing the profitability of state-owned enterprises and reducing the subsidies allocated to them should be continued. At the same time, the optimization of tax exemptions, as well as the strengthening of tax administration and tax discipline, were identified as priority areas.

According to the IMF’s assessment, these measures will contribute to strengthening the sustainability of public finances and preserving macroeconomic stability.