Finance Minister Sahil Babayev Discusses Economic Diversification and Development with World Bank Regional Director

On June 2, Minister of Finance of the Republic of Azerbaijan Sahil Babayev received a delegation led by Ms. Rolande Pryce, the World Bank’s Regional Director for the South Caucasus. During the meeting, the World Bank’s report entitled “Diversification and Development in Azerbaijan” was presented, and its key findings and potential implications for the country’s economic diversification process were discussed. Minister Sahil Babayev noted that the partnership with the World Bank has made a significant contribution to Azerbaijan’s socioeconomic development. He stated that cooperation continues successfully in such areas as infrastructure modernization, the energy transition, stronger transport connectivity, improvement of the social protection system, and the development of public administration. Emphasizing that economic diversification is one of the key priorities of the Government of Azerbaijan, the Finance Minister provided information on measures being implemented to expand the non-oil sector, improve the investment climate, increase export potential, develop human capital, and introduce digital solutions. Addressing the importance of maintaining macroeconomic stability and strengthening fiscal sustainability, Sahil Babayev noted that the introduction of modern approaches to public financial management, the reinforcement of fiscal discipline, and the increased role of non-oil revenues are of particular importance for long-term economic resilience. It was also noted that the development of the information and communication technologies, financial services, and tourism sectors, as well as the expansion of regional transport and logistics links, are among the principal areas of the country’s diversification policy. The meeting also reviewed the measures being taken to improve the corporate governance of state-owned enterprises and enhance transparency and accountability. The importance of strengthening monitoring mechanisms and ensuring the effective management of fiscal risks was emphasized. For her part, Ms. Pryce expressed satisfaction with the development of the partnership between Azerbaijan and the World Bank. She noted the Bank’s interest in expanding cooperation in the areas of private-sector development, green growth, the energy transition, digitalization, improved public administration, and human capital development. She added that the World Bank would continue to support Azerbaijan’s long-term development agenda. At the conclusion of the meeting, the parties exchanged views on economic and financial matters of mutual interest and emphasized the importance of continuing cooperation and constructive dialogue.