The President of the Republic of Azerbaijan Mr. Ilham Aliyev signed a Decree “On additional measures regarding enhancing the efficiency of procurements in the activities of the executive authorities and those organizations financed from state budget”. Center for Analysis of Economic Reforms and Communications said that the Decree had been signed with a view to enhancing efficiency in the activities of the executive authorities and those organizations financed from state budget, expanding the business activities in the country and further improving the suitability and competitiveness of the business and investment environment.   

Pursuant to the Decree, the executive authorities and those organizations financed from state budget shall suspend the procurement of import goods (works and services) by January 1, 2018. However, this Decree shall not apply to procurement of the goods (works and services) imported in relation to foreign loans received against government security, foreign grants, and the needs for the country’s defense and state medicines and medical tools. In case of necessity for import under the contracts entered into by the effective date of the decree, the Ministry of Economy shall pass a resolution agreed with the President of the Republic of Azerbaijan regarding issuance of permission for procurement of these goods (works and services) by the executive authorities and those organizations financed from state budget. The Ministries of Economy and Finance shall report to the President of the Republic of Azerbaijan in relation to funds spent for procurement of the imported goods (works and services).

There are taken measures for development of the non-oil sector which is the basis for optimization of import volume. As per the projections of the International Monetary Fund, with only temporary delay in the development of the non-oil sector this year, the growth rate will be restored from next year and reach 2.4 percent: the non-oil sector will grow by 1,8 percent in 2018, 2 percent in 2019 and 3,4 percent in 2020. At the same time, the volume of import will decrease by 13,7 percent this year according to IMF. The mentioned Decree of the President of the Republic of Azerbaijan is crucial in order to maintain the volume of import in the optimum level in the years to come as well. Because, executive authorities and those organizations financed from state budget have particular significance in imports into the country. It will be possible to decrease the volume of the import and to improve its structure by implementing the Decree. So, import will be more productive, the funds saved in the state budget will be directed to other areas properly and serve for socio – economic development. This Decree creates new opportunities for the entrepreneurs of Azerbaijan in substitution of import.