The meeting of Working Group on Economy was held in video conference format
A meeting of the Working Group was held to assess the negative impact of the coronavirus (COVID-19) pandemic, as well as sharp fluctuations in global energy and stock markets on the national economy, identify areas of economic activity likely to be affected by the pandemic, reduce negative impact of situation on the business environment. President of the National Entrepreneurs (Employers) Confederation of the Republic of Azerbaijan, Mammad Musayev took part in the video conference.
The head of the Working Group, Minister of Economy, Mikayil Jabbarov informed about urgent measures taken under the leadership of President, Ilham Aliyev to prevent pandemic. Minister noted that a number of factors affect the national economy in the current situation. This is due to stagnation of the world economy and foreign trade under the direct influence of the pandemic, sharp fluctuations in oil prices on world energy markets, as well as declining economic activity due to restrictive measures taken to prevent spread of the pandemic. All these factors are more pronounced in a number of areas of economic activity.
In the current situation, the Minister will work intensively and extensively to identify areas most affected by the pandemic, including key areas of economic growth and employment, to strengthen country’s economic and financial stability, and to clarify steps to be taken by the state. At the initial stage, the most negative impact is on tourism, hospitality, catering, entertainment, transport, trade, etc. in the total about 12 areas of activity have been identified.
The Minister of Economy stressed state is ready to make quick and operative decisions. However, in order to accurately identify affected areas of activity, clear and transparent assessment criteria must first be developed. These criteria can be general and specific, both sectorial and subject-specific.
The situation in various areas was discussed at the video conference, and various proposals were voiced. It was noted that in order to assess damage, there is need for in-depth analysis of the reports of business entities and indicators in government agencies. This will also be determined by analyzing financial statements to be submitted in March. At present, all structures of the Ministry of Economy hold meetings with business entities, medium and large businesses, public associations of entrepreneurs and specialized associations.
During the discussions, it was noted that the Azerbaijani government will give preference to legal entities and entrepreneurs who respond adequately to challenges of the state, prevent the reduction of jobs and salary fund, build transparency and demonstrate social responsibility.
Supporting continuation of economic growth in the country will include comprehensive system of measures. This includes ensuring liquidity in the economy, providing tax benefits and strikes to entrepreneurs, facilitating access to public lending resources, maintaining the stability of financial markets, the introduction of system of targeted government orders, etc. will cover areas.
It was noted at the meeting that state will take mandatory steps to protect the health of citizens, ensure the safety of the population and reduce economic activity, which could lead to economic contraction in the short term. The state is ready to meet this process and sees the situation as new line of economic development after preventing spread of the pandemic. Production and processing industries that meet domestic demand and replace foreign imports, and establishment of new production in these areas will be encouraged.
The members of the Working Group were instructed to prepare proposals on the necessary criteria and unified approach methodology to be applied within 3 days to identify the affected areas.
The members of the Working Group include Deputy Ministers of Finance, Labor and Social Protection, Agriculture, Culture, Energy, Transport, Communications and High Technologies, Environment and Natural Resources, Food Safety Agency, State Tourism Agency, State Customs Committee, State It includes leaders of the Statistics Committee, the Central Bank and other central executive bodies, and representatives of public associations of entrepreneurs.