Chaired by Prime Minister Nikol Pashinyan, another hearing on public agencies’ performance reports was held in the Office of Government.

Minister of Economy Tigran Khachatryan reported on the activities implemented in the period under review as part of the Government’s 2019-2023 Action Plan. 56 activities were completed in 2019 in addition to six activities implemented in the first four months of 2020.

The measures taken in 2019 were aimed at improving the business environment, establishing legal regulations for public-private sector partnerships, deepening international cooperation, improving tourism infrastructures, promoting agriculture, and the measures taken in the first four months aimed at removing barriers to mutual trade within the EAEU and with third countries, establishing import and export procedures in Armenia with third countries, creating a database of public-private sector partnerships, etc.

The Minister of Economy noted that some of activities were not completed in 2019 and will be implemented in 2020, in parallel with the program of activities for the current year. In priority areas benefits for exemption from customs duties under investment programs were provided to 57 programs worth 175 billion drams, VAT deferral was provided to 15 programs worth 58.8 billion drams.

As part of tourism development programs, the roads leading to Tatev Monastery and Sochut Arboretum, 6 streets in the Kumayri Historical District, and the road leading to the Natural Monument Symphony of Stones have been improved. , information measures have been taken to increase Armenia’s tourist attractiveness.

A number of agreements have been signed to strengthen cooperation between the EAEU and third countries. Several programs have been implemented for more than 400 service sector and industry representatives, including over 100 businessmen. As part of complex measures aimed at mitigating the adverse economic impact of COVID-19, assistance worth AMD 49,4billion was made available to the population, more than two dozen webinars were organized for business people, which are available online.

The Minister next referred to the programs implemented by the Investments Support Center and the State Interest Foundation of Armenia. He stressed that the strategies targeting industry, SMEs, tourism and metrology are being finalized in order to reflect the situation caused by the pandemic.

23 projects are underway in the framework of the Strategy for Sustainable Development of Agriculture, and a strategy has been adopted to improve the business environment. In the context of upcoming events, long-term measures will be taken to improve the business and investment environment, develop industry, promote SMEs, and support and modernize agriculture.

After the Minister’s report, Nikol Pashinyan asked about the process and quality of the work carried out in priority areas. The following was stated in response to the Prime Minister’s inquiry:

- Procedures have been developed to streamline the legal framework which regulates the public-private sector partnership. The Prime Minister was briefed on the key principles for building public-private partnerships. The Minister noted that a relevant draft is being discussed in the government.

- As part of the efforts aimed at improving Armenia’s Doing Business standing, the results of individual government departments’ activities were summed up, owing to which Armenia’s position is expected to improve in a number of spheres.

- concerning the development of the analytical potential of the Ministry of Economy, proposals were developed on the formation of necessary tools, involvement of qualified specialists and the improvement of legislative regulations for information availability. It is planned to have an appropriate model in the first half of 2021.

The Prime Minister next asked about the implementation of the agriculture development strategy. The Minister said work is being done to improve support programs and tax regulations, to implement a land reform, implement a cattle numbering program and launch a system of mandatory slaughterhouses.

As part of support action, 12 programs are being implemented, including subsidizing interest rates on loans for agriculture and agro-processing (60 billion drams), state support for leasing of agricultural machinery and food processing equipment (more than 5 billion drams). The process of introducing intensive orchards, drip irrigation systems and anti-hail networks was also presented.

The Prime Minister emphasized the importance of effective implementation of state support programs for agriculture and instructed to take measures to accelerate the pace of the ongoing activities.

The land reform is expected to start in Armavir and Ararat marzes. Steps are being taken jointly with farms. Measurable results may be achieved after the epidemiological situation has been eased by the end of the year.

The Prime Minister was told that the cattle numbering program is ready and will soon be submitted to the government for discussion. Once approved by the government, it will be launched along with an awareness raising campaign. In this context, the Minister reported progress in sheep, pedigree cattle breeding and slaughterhouse construction programs. Coming to tax regulations applicable in agriculture, he noted that the goal is to support small farms by harmonizing and improving tax regimes and stimulating local production. In response to the Prime Minister’s question, he noted that a package of specific proposals would be submitted in July this year.

The Prime Minister approved the performance of the Ministry of Economy as a whole. At the same time, he emphasized the need to speed up the pace and increase the efficiency of the ongoing efforts and gave relevant instructions.

 

The Prime Minister of the Republic of Armenia