Azernews.Az

By Nigar Abbasova

Azerbaijan, which is keen to diversify its economy, is seeking to enter a qualitatively new stage of its development and switch to the economic policy of import-substitution, which stands for replacing foreign imports with domestic production.

President of Azerbaijan Ilham Aliyev has signed a relevant decree, which envisages putting of restrictions on the state purchases of imported goods and services. Executive authorities of the country financed by the state budget will halt the purchase of imported goods till January 1, 2018.

The measure is expected to significantly reduce dollarization in trade operations of the country, economize financial means of the budget due to the difference in prices of domestic and foreign goods, as well as increase demand for domestic production.

Moreover, local entrepreneurs will make use of the funds, being assigned from the state budget for the purchase of goods, which will also positively affect development of money turnover and economy of the country. The decision will also minimize outflow of money from the country.

The restrictions will not be implied in reference to such important spheres as public health (medicine, medical equipment), and the state security (armament, military equipment). Moreover, the restrictions will cover only state purchases, while neither private trade networks nor individuals will be subjected to any restrictions.

Certain projects are currently implemented in the country and are expected to broaden entrepreneurial activity, increase export potential and competitiveness of the economy, as well as import-substituting output.

Moreover, Azerbaijan is currently engaged in developing the road map which is aimed to ensure sustainable economic growth, to correctly define the development strategies for auxiliary sectors and to create a new export-oriented economic model in the country.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

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