Turkmenistan’s economic strategy prioritized accelerating national development through the promotion of entrepreneurship, introduction of advanced technologies, establishment of joint ventures and joint-stock companies, development of the insurance sector, the stock exchange and securities market, as well as implementation of far-reaching reforms across all branches of the economy. The principal objective of the ongoing reforms aimed at overcoming the economy’s dependence on raw materials, advancing market-oriented transformation, ensuring the efficient use of natural resources and creating favourable conditions for people’s lives has found expression in the fundamental national motto – “The State is for the People!”
The consistent implementation of a strategic course toward industrial and innovation-driven development over the past historical period has ensured the country’s economic independence. Support for infrastructure transformation, commitment to the Sustainable Development Goals and implementation of the objectives of the programme “Revival of the New Era of the Powerful State: National Programme for the Socio-Economic Development of Turkmenistan for 2022–2052” have provided a powerful impetus for increasing production efficiency, promoting the prudent use of investments and supporting the development of the non-state sector of the economy.
Turkmenistan has developed a diversified economy encompassing such key sectors as electric power generation, the oil and gas industry, machinery manufacturing, metallurgy, the chemical industry, construction, electronics, light industry, food processing and pharmaceuticals.
The gas industry remains a strategic sector of the economy, incorporating both natural gas production and processing. Emphasis is placed on achieving deeper and more diversified processing of hydrocarbon resources. In the oil refining industry, the implementation of innovative production and transport infrastructure projects continues. Establishment of large-scale enterprises for polymer production is one of the most promising areas for the future development of the fuel and energy sector. Polymers serve as essential components in manufacturing a wide range of products used in industry, construction, transport, agriculture and everyday life.
The chemical industry is another dynamic and fast-growing sector, producing mineral fertilizers, technical iodine, sulphates and many other specialized products. The country’s abundant natural resources make it possible to manufacture all major types of mineral fertilizers.
It should be noted that Turkmenistan’s economy remains stable and competitive. The country maintains resilience of its financial system while implementing measures to enhance financial inclusion and attract broader investment into the financial services sector. At the same time, strong emphasis is placed on stimulating the non-state sector of the economy, whose share continues to grow year by year.
Large-scale investments have been secured over the years of independence to diversify the national economy and modernize infrastructure across all sectors. An investment policy focused on expanding the economy’s productive capacity has contributed to the effective development of production resources, steady growth in domestic demand and expansion of gross domestic product. Investment therefore serves as one of the principal instruments of the country’s comprehensive economic development.
As Turkmenistan continues to expand cooperation with countries around the world, it is actively entering new foreign markets. This process is supported by the development of modern transport and logistics infrastructure and its transformation into the key regional logistics hub along the East – West and North – South corridors.
As a result of the large-scale transformations carried out across all sectors during the years of independence, the structure of Turkmenistan’s economy has undergone significant change. In recent years, particular attention has been paid to improving the balance of key macroeconomic indicators. At the present stage of development, non-hydrocarbon sectors, including the agricultural sector, transport and communications and trade are making a substantial contribution to the growth of the gross domestic product.
The institutional reforms implemented during the years of independence have led to significant qualitative and quantitative transformations in the structure of economic entities. As of today, more than 90 percent of all businesses operate in the non-state sector of the national economy. Its growing share and increasing role are being supported by targeted measures aimed at encouraging private initiative, improving business environment, strengthening safeguards for private property rights and providing tax incentives.
The social sphere is one of the key indicators of the country’s development, its foremost purpose being to ensure the well-being of its citizens. It plays a central role in safeguarding the dignity, freedoms and rights enshrined in the Constitution of Turkmenistan. The principles governing this sphere and the way it is organized vary according to the values recognized by society. Thus, the humanism inherent in the Turkmen people finds practical expression in the substance of current social reforms and contributes to strengthening the foundations of statehood.
The steady annual growth of the national economy, increasing investment in the development of human capital and improvements in other key macroeconomic indicators have made it possible to strengthen social protection and enhance the well-being of the population, including through the regular growth of household incomes.
Turkmenistan has undertaken the reform of its pension system through the introduction of a notional defined-contribution approach, which became one of the key priorities of the country’s Pension Fund. On 31 March 2012, the Law of Turkmenistan “On State Pension Insurance” was adopted, followed by the Social Protection Code of Turkmenistan on 19 October 2012. These legislative acts established the legal, economic and organizational foundations for the establishment and implementation of a state pension insurance system, which serves as the principal mechanism and financial basis for the transition to the notional defined-contribution model. The positive reforms being carried out in this area are expected to contribute to further improvements in living standards while also supporting the successful achievement of the Sustainable Development Goals at the national level.
The innovative reforms in the financial and banking sector are having a positive impact on increasing banks’ capitalization levels, strengthening the financial resource base, improving banking supervision, expanding the volume of banking operations, introducing innovative banking products and technologies and enhancing the quality of services provided to the population. The gradual integration of new technologies into the sector has made it possible to provide digital financial services. The national payment infrastructure is currently being upgraded through the application of modern information technologies and advanced software solutions to further modernize the banking sector, develop the national payment system and ensure its efficiency, reliability and security. The scale of non-cash payments continues to grow steadily, while new financial services are being systematically introduced across the banking system.
A high degree of economic stability supported by strong legal guarantees and state backing has enhanced the country’s attractiveness to foreign investment. Investments directed toward the productive and social sectors of the national economy have created opportunities for the implementation of major projects at both the national and international levels. They have also transformed the country’s production base, led to the construction and commissioning of new industrial facilities and enabled the development of social and cultural infrastructure. Foreign companies have participated in financing projects in such areas as heavy industry, the textile sector, agriculture, production of construction materials from locally sourced raw materials, tourism, transport and communications, civil aviation, modernization of railway and maritime transport infrastructure, highway construction and operation of the national artificial satellite.
As part of the state policy aimed at supporting small and medium-sized enterprises, the banking system provides the national private sector with various forms of concessional financing and access to external funding sources. The positive experience accumulated in this area continues to stimulate the development of entrepreneurship. Within the framework of programmes that provide financing for business investment projects aimed at establishing or expanding production facilities, long-term lending is developing actively, particularly through credit programmes targeted at private producers.
As the global economy becomes increasingly interconnected, new competitive realities are taking shape in international markets. Current trends in global development suggest that in the years ahead countries that create opportunities for their citizens to fully realize their professional skills and talents, while successfully transforming new knowledge and practical experience into modern technologies and competitive products, will prosper and remain at the forefront of economic progress.
In this context, Turkmenistan currently attaches great importance to vocational and professional education as one of the key components of diversified economic growth. Accordingly, in the context of the country’s active integration into the global economy, the development of a new generation of highly qualified professionals with broad knowledge across various fields of economics and a strong command of innovative technologies is being carried out in a coordinated manner within the framework of the national economic strategy.
Overall, the large-scale reforms being implemented across all sectors of the economy in line with the country’s socially oriented development policy are enabling independent and permanently neutral Turkmenistan to advance confidently toward new achievements and further improvements in public well-being. The successful implementation of the objectives set out in the state development programmes will make it possible in the near future to strengthen the country’s competitive market advantages, achieve fuller integration into the global economy and significantly expand foreign trade turnover. At the same time, the widespread introduction of innovative technologies across all sectors of production will enhance the competitiveness of domestic producers, broaden the domestic market for goods and services, and, ultimately, reinforce the foundations of the national financial and economic system.
The successful implementation of the strategy being pursued under the leadership of President Serdar Berdimuhamedov in accordance with the guiding principle “The State is for the People!” plays a decisive role in further strengthening Turkmenistan’s economic potential and enhancing the country’s international standing as a state demonstrating sustained political and economic development.