Finance

Finance

Azerbaijan needs to minimize oil dependence not to depend on oil prices, says president

10 January 2016 15:25 (UTC +04:00)

Baku – APA. The development of the non-oil sector and economic diversification in Azerbaijan will remain a priority in 2016 and all necessary measures will be taken in order for oil dependence to be minimized, Azerbaijani President Ilham Aliyev said Jan.10.

He made the remarks at the meeting of the Cabinet of Ministers dedicated to the results of socio-economic development in 2015 and objectives for the future.

The president expressed confidence that greater strides will be made in this area in 2016.

“The structure of gross domestic product is getting better, with the non-oil sector gaining more weight. This is a positive case. Dependence on oil is declining. But still, we have to minimize this dependence so that we may not depend on oil prices in the future. That’s the challenge. I think we will be able to achieve it through a well-considered policy and hard work,” he said.

Aliyev said Azerbaijan needs to attract more foreign investment in 2016.

“There is an ongoing global competition to win foreign investment, that is true, but Azerbaijan is a special country for foreign investment; foreign investment is under protection. Although foreign investment is mostly focused in the oil and gas sector, the non-oil sector too is attracting foreign investment. We have to try to attract foreign investment into our country, especially the non-oil sector and areas whose development is likely to boost our foreign potential and reduce our dependence on imports,” he stressed.

President Aliyev also underlined the importance of protecting the assets of the country’s State Oil Fund (SOFAZ), decreasing transfers from SOFAZ to the state budget, extending tax base, strengthening customs clearance, providing transparency in import and export transactions and tightening financial control. The head of state gave necessary tasks in this regard, noting the necessity of activating mechanisms of public control over these issues.

Moreover, the president said there is a need to improve the business environment in the country, increase cashless payments, extend fiscal promotion mechanisms, continue giving preferential loans to entrepreneurs, implement reforms in banking sector and expand private banks’ involvement in the country’s economy.