Turkmenistan set to amend foreign investment laws

20 Jul '13

2 min read

Turkmenistan President Gurbanguly Berdimuhamedov has stressed on the need for amending the existing laws on foreign investments, as doing so could help in further development of industries like cotton and textile.

In recent times, some of the factors like waning domestic currency, merger of exchange rates, etc. have taken place, and have brought about major changes in global accounting standards. Hence, there is a need to accordingly adjust the country’s foreign investment laws to draw more and more investments in domestic sectors like textile and cotton, which have great potential to draw foreign investments, Mr. Berdimuhamedov told the Turkmen Parliament.

Amendments are needed in areas like tax and regulatory concessions for industrialists, easing credit availability for businesses and introduction of market mechanism, the President said, Azer News reported.

These amendments would help in complete transition and diversification of not just individual sectors but of the economy as a whole, and would also help in strengthening economic relations, he added.

Turkmenistan is rich in cotton production, and its textile industry has also developed well in recent years. To give a further boost to these and other industries and to transform them into integrated, modernized, high-tech industries, it is necessary to update the country’s foreign investment laws, which have become outdated, the President said.

Turkmenistan’s textile industry grew by a record 105.4 percent during first four months of the current year. This resulted from huge sums spent by the country towards reformation and upgradation of its textile units, post-Independence. However, it needs to be highlighted that a considerable portion of the amount so spent came from foreign investments.

Turkmenistan grows cotton on around 550,000 hectares of land, and most of the locally produced cotton is supplied to the domestic textile industry.

Fibre2fashion News Desk - India

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