The increasing foreign exchange reserves play an important role in maintaining the stability of the exchange rate and thriving settlement of foreign debt payable in the medium term. It also encourages maintaining a steady upgrade in credit ratings. Mongolia’s foreign trade surplus reached USD 1.5 billion as of November 2019. Thus, the increase in foreign trade surplus had a positive effect on the accumulation of foreign currency reserves. BoM also announced that it will continue to implement policies and measures aimed at maintaining the stability of the national currency and stabilizing economic growth.

Upon the recommendation issued by the National Security Council of Mongolia, the Government of Mongolia wrote a bill on the one-time forgiveness of pension debts. The law states that, to fund the approved repayment of pension loan debts, government securities will be issued by putting up the future benefits from the Salkhit silver and gold mine revenues as collateral.

The approved one-time cancellation of pension-secured loan debts is subject to outstanding pension loan balance of up to MNT 6 million and pensioners who hold debts more than MNT 6 million will pay off the remaining amount themselves.

There are reportedly around 194 thousand pensioners, who did not borrow money out of their state retirement fund savings and the government will distribute vouchers for the government bonds worth MNT 1 million to them. Bond vouchers will be issued starting May 1, 2021.

Pensioners who took out pension loans less than MNT 1 million are entitled to receive bond vouchers equal to the amount they have in their loan balance.

In the event of the death of the bond voucher recipients, their bond vouchers will be granted to their children. In case of death of pensioners, who took pension loan before December 31, 2019, their loan debts will be forgiven.

All senior citizens are entitled to pension-backed loan with 6-month term once a year, according to the law.

The bill was backed by 79.5 percent of 44 parliament members present, with 9 opposed votes.

Within the mid-term target program, it is planned to develop energy and infrastructure sectors and 20 objectives have been set for five fundamental directions: Ulaanbaatar and satellite cities, Urban planning, regional development and rural areas, Infrastructure development and Industrialization.

With great constructions to be carried out nationwide, the program aims to bring development of urban planning, energy, basic infrastructure and auto road network into the international standards, improve housing supply, provide citizens with jobs, make comprehensive solution of socioeconomic issues and ensure rights of the people to live in healthy and safe environment, said Chairman of National Development Agency B.Bayarsaikhan in his report.

The program’s implementation for 2021-2030 requires MNT66 trillion 968.9 billion, which will be funded with the state budget, foreign loan and assistance, public and private partnership, private investment, Development Bank of Mongolia and special fund of the government.

At the discussion, a member of Citizens’ Representative Khural of the capital (City Council) P.Bayarkhuu made a presentation lecture themed ‘Ulaanbaatar city development issues in the New Construction Program’, and State Secretary of the Ministry of Construction and Urban Development S.Magnaisuren provided a lecture ‘Development of rural areas in the New Construction Program’.

Aimed to ensure population to live in healthy and safe environment, the mid-term target program ‘New Construction’ was first adopted with the Parliament’s resolution No:36 in 2010. During the past 19 years since the program’s adoption, many works have been done, but there are still tasks that have been insufficiently realized, such as reduction of air pollution, increase of jobs and development of auto road network, energy sector and basic infrastructure.

Participants of the discussion touched that the program reflects numerous pressing issues including issues related traffic jam, connecting 21 aimags and border points with paved roads as well as housing program for ger area residents, but they were not realized actually; thus it must be on focus. They also advised that a newly developed program needs to be actual works, but not just a declaration.

The meeting touched on implementation of an extension and renovation works of 204.11 km auto road between Ulaanbaatar-Darkhan in scope of the Regional Road Development and Maintenance Project, causes of their delay and further measures to take to tackle the issue.

After informing that road construction work contracts for ‘Package-3’ and ‘Package-4’ were cancelled due to insufficient performance, Minister B.Emkh-Amgalan expressed his concern of no solution has been reached yet.

Asian Development Bank in Mongolia visited the road development sites several times and gave notices on potential damages and risk to be imposed by the delay and cancellation of service contracts. The ADB delegates pointed out that all activities and issues concerning the projects’ implementation carried out by ADB in Mongolia are directly managed by its Resident Mission in Ulaanbaatar, starting February 2020, which facilitates the process for quick solution. Until then, headquarters of ADB in Manila, the Philippines has been in charge of ADB Mongolia’s decision-making activities.

Thanks to the meeting, the sides agreed to intensify the construction works in accordance with the implementation plan and highlighted the importance of effective cooperation among all partners in the project, including Ministry of Road and Transport Development, investor of the project ADB, Indian consultancy in the project ICT, and other units, contractors within the project.

The figure was released in a government work report delivered Sunday at the third Session of the 13th People's Congress of the autonomous region.

In 2019, the investment in fixed assets increased by more than 6 percent, while general public budget revenue rose by 10.9 percent.

According to the report, the per capita disposable income for the region's urban and rural residents grew about 6.5 percent and 10 percent, respectively.

In addition, the region created 263,000 urban jobs last year, with an urban registered unemployment rate of 3.7 percent.

In 2020, the GDP of Inner Mongolia is expected to reach 6 percent. The region will create over 220,000 urban jobs and the urban registered unemployment rate will stay within 4.5 percent.

The minister said the Centre is looking to import coking coal, a raw material for making steel, at a reasonable price as the country has set a target to produce 300 million tonne of the metal by 2030-31.

"India has been importing coal from Australia, which is good, but high-quality coking coal is also available in Mongolia. We are looking to bring that coal at a reasonable price. We are in talks with the Mongolian government," Pradhan said at a programme here on Saturday evening.

In 2016, a delegation comprising senior officials of the Steel Ministry and state-run Steel Authority of India (SAIL) went to Mongolia's capital Ulaanbaatar for securing a deal with the east Asian country for importing of coking coal.

The initial plan was to bring the fuel through Chinese ports but it could not be materialised, sources said, adding that the Centre is trying to bring coal through Russia's Vostochny Port which is known for handling the commodity.

Pradhan, who holds the portfolios of Steel Ministry and Petroleum and Natural Gas, said, "We have also initiated talks on behalf of the Indian government with the Russian authorities and signed a memorandum of understanding for cooperation for undertaking coking coal ventures."

Around 85 per cent of the India's coking coal demand is met through imports.

"The talks are being taken forward by public sector companies in India, including Coal IndiaNSE 3.69 % and SAIL," the minister added.

President Khaltmaa Battulga, a populist businessman and former wrestler elected in 2017, said during his New Year address last week that the government would pay off all “pension-backed loans” this year.

He said the move is aimed at “relieving elderly people who dedicated their lives to the development and prosperity of Mongolia of their debt pressures.”

The president said the costs of the program would be covered by raising production at the Salkhit silver mine, which was seized by the state from private Chinese investors during a special military operation at the end of 2018.

The plan was approved by Mongolia’s parliament on Thursday. The central bank has already ordered commercial banks to stop issuing new pension loans from Jan. 1.

“The government’s proposal to cancel pension-backed loans is not consistent with the authorities’ goals under the IMF-supported program agreed in 2017,” said Geoff Gottlieb, the IMF’s mission chief in Ulaanbaatar, in a statement emailed to Reuters.

“It increases already high public debt by 2% of GDP to help one narrow part of the population, regardless of their financial need,” he said, adding that the off-budget spending by the central bank causes inflation, puts pressure on the exchange rate and also “raises concerns about governance and proper parliamentary oversight”.

Battulga’s office did not immediately respond to requests for comment on Friday.

Mongolia secured a $5.5 billion economic stabilization package from the IMF and other partners in 2017 in a bid to head off an economic crisis brought about by plummeting foreign investment, declining commodity export revenues and a collapse in its currency, the tugrik.

As part of the deal, the government agreed to cut spending and raise taxes in a bid to balance its books. It also pledged to implement fiscal reforms in order to maintain budget discipline, and to improve the way it regulates the banking and finance sector.

Reporting by Anand Tumurtogoo in Ulaanbaatar and Andrea Shalal in Washington; Writing by David Stanway in Shanghai; Editing by Kim Coghill

The move represents the government's efforts to support exporters, diversify exports and improve the quality of exports, it said.

Exporters' forums are expected to be held on the day to discuss pressing issues -- particularly in non-mining sectors, as the landlocked East Asian country's economy is largely dependent on export earnings from the mining sector.

Official data shows the mining industry now accounts for over 80 percent of Mongolia's total export.

The NSO said that it is urging citizens to review their information and actively participate in the census.

The census will last for a week, and its final results will be announced in June, according to the NSO.

A national population and housing census is conducted in Mongolia every 10 years.