Azerbaijan discusses economic diversification issues with World Bank

The discussion took place during the meeting of Minister of Finance Sahil Babayev with a delegation led by WB Regional Director for the South Caucasus Rolande Pryce.

The meeting presented the report "Diversification and Development in Azerbaijan" prepared by the World Bank, discussed the main results of the document and its potential impact on the process of economic diversification of Azerbaijan.

Babayev noted that the partnership with the WB has made a significant contribution to the socio-economic development of Azerbaijan, and noted that cooperation continues successfully in the areas of infrastructure modernization, energy transition, strengthening transport connections, improving the social protection system and developing public administration.

Emphasizing economic diversification as one of the main priorities of the Azerbaijani government, the minister briefed on the measures implemented in the areas of expanding the non-oil sector, improving the investment climate, increasing export potential, developing human capital and implementing digital solutions.

Mentioning the importance of maintaining macroeconomic stability and strengthening fiscal sustainability, Babayev noted that the application of modern approaches in public finance management, strengthening fiscal discipline and increasing the role of non-oil revenues are of particular importance in terms of long-term economic sustainability. It was noted that the development of information and communication technologies, financial services and tourism sectors, as well as the expansion of regional transport and logistics ties are among the main directions of the country's diversification policy.

The meeting parties also reviewed the work done to improve corporate governance of state-owned enterprises, increase transparency and accountability, and stressed the importance of strengthening monitoring mechanisms and effective management of fiscal risks.

Pryce welcomed the development of the partnership between Azerbaijan and the WB, and expressed their interest in expanding cooperation in the areas of strengthening the private sector, green development, energy transition, digitalization, improving public administration and human capital development. She noted that the WB will continue to support Azerbaijan's long-term development agenda.

In conclusion, the parties exchanged views on economic and financial issues of mutual interest and emphasized the importance of continuing cooperation and constructive dialogue.

Earlier, Qazinform reported Kazakhstan and the World Bank are developing an action plan for economic reform.