On Aug 18 marks the 200th day since the formation of Mongolia's new government. In connection with this, the “Economy in the midst of the pandemic - Public-Private-Investors Meeting” was held, involving foreign investors and representatives of the international organizations in Mongolia.

During the meeting, Prime Minister L.Oyun-Erdene announced that the Government of Mongolia is announcing a policy to intensify public-private partnerships, marking the 200th day since the formation of new government.

The government has focused on acceleration of the vaccination rollout in the country in its first 100 days. The PM noted that Mongolia was able to immunize its 62.2 percent of the total population against COVID-19, which currently ranked 14th in the world, thanks to the generous support provided by the partner countries.

It has also been underscored during the meeting that the government's implementation of the ‘MNT 10 trillion Comprehensive Plan for Health Protection and Economic Recovery’ has played a significant role in reviving the economy and protecting the citizens’ health. In particular, as a result of a MNT 320 billion loan to support agriculture under the comprehensive plan, this fall is expected to yield more than the 30-year average. More importantly, the successful implementation of the plan so far helped keep 130 thousand jobs and save 225 thousand others.

It was reported that the following five national committees headed by the Prime Minister will be set up at tomorrow’s cabinet meeting:

National Committee for Intensifying the Economy, Increasing Exports, Supporting Import-Substituting National Production, Strengthening Public-Private Partnerships, and Increasing Investment;

National Committee for Reform to E-Government and Create a Bureaucracy-Free and Competent Public Service;

National Committee for Reducing Road Congestion in Ulaanbaatar, Balancing Urban and Rural Development and Decentralization;

National Committee for Increasing Housing, Establishing a Unified Savings Fund, National Wealth Fund and Expanding the Middle Class;

National Committee for the Promotion of Olympism, Human Development Indicators and Quality of Life;

Prime Minister L.Oyun-Erdene said, "A sub-working group consisting of investors and representatives of the private sector will be established under the National Committees. It takes time for the public and private sectors to define their coordination. Therefore, national committees are being set up with the aim of creating a system of coordination. In the future, the government will draft a law to revive the economy during the pandemic and submit it to the State Great Khural which is expected to be a great impetus to:

Revitalize the post pandemic economy and increase capacity;

Provide policy support to increase exports and develop domestic import-substituting industries;

Increase foreign and domestic investment and expand the economy;

Intensify further public-private partnerships and create a favorable business environment.”

The Prime Minister stressed that the government plans to establish a Ministry of Economic Development and Planning in 2022 after establishing the aforementioned National Committees and the law to revive the economy.

The prices of Mongolia’s main export products are increasing in the world market. For example, iron ore prices have doubled, copper prices have risen by 50 percent, gold prices by 19 percent and oil prices by 13 percent. He noted that this growth is expected to continue for the next five years and called on investors to take advantage of this period.

Investors and representatives of international organizations expressed readiness to cooperate in agriculture, renewable energy and food production. They expressed support for the Prime Minister's plans to create a legal environment for economic recovery amid the pandemic, digitalize the state procurement and the establishment of the Ministry of Digital Development. They also asked the Prime Minister to hold such meetings more often than once.

According to the statistics, a total of USD 29 billion was invested in Mongolia between 1990 and 2020, and USD 2.5 billion in 2020. During the same period, 15.2 thousand companies were registered, of which 50.2 percent were Chinese companies. In terms of economic sectors, foreign direct investment accounted for 70.2 percent in geology, mining exploration and mining, 16.56 percent in trade and catering, 3.2 percent in banking and finance, and 1.2 percent in transportation and logistics. 1.3 percent was in construction, construction materials and other sectors. Canada accounts for 26.9 percent of total foreign investment, China for 19 percent and the Netherlands for 14.7 percent.

In 2020, due to the pandemic, the amount of foreign investment in the world decreased by 38 percent, while it decreased by 18.5 percent in Mongolia.