BISHKEK (TCA) — Many state-owned enterprises in Kyrgyzstan are loss-making, get annual subsidies from the state budget, and continue to be used as an instrument for organization of corruption schemes, Kyrgyzstan’s Prime Minister Sooronbai Jeenbekov said at a Government meeting on March 14, the governmental press service reported.
The prime minister said that following his instruction, since August 2016 the Government jointly with the State Property Management Fund has done work on optimization of the number of state-owned enterprises and joint stock companies.
To date, the government has decided to liquidate 114 and reorganize 63 state-run enterprises.
At the meeting, Chairman of the State Property Management Fund, Bolsunbek Kazakov, said that today Kyrgyzstan has a total of 1,130 state-owned enterprises. Of them, 900 enterprises are non-operating and only 164 are operating.
“The analysis of activities of the operating state-owned enterprises has shown that the number of enterprises with state participation should be reduced, and many state-run enterprises are subject to transformation, privatization, or liquidation,” he said.
In Kazakov’s words, while the overall income of some 33 state-owned enterprises in 2016 amounted to 42.8 billion soms, the overall expenditures of these enterprises totaled 41.9 billion soms. It means that the state budget received as little as 364 million soms from these inefficient enterprises.
The prime minister also said that the Government has drafted a decree on the creation of an electronic trading platform, according to which state property will be sold and offered for rent not by the State Property Management Fund, but through online trade.
