Discussion takes place on setting up a sovereign wealth fund in MongoliaEconomy
Ulaanbaatar /MONTSAME/. On November 30, a discussion took place on a study carried out on efficiently developing the economy using mineral resources and setting up a sovereign wealth fund. Minister of Mining and Heavy Industry G.Yondon and Country Manager for World Bank Andrei Mikhnev gave opening remarks at the event.
Regarding the main goal of setting up a sovereign wealth fund, Country Manager for World Bank Andrei Mikhnev highlighted that investment must be continuously made by accumulating the profits earned from the mining sector and the investment yields must be kept at a high level.
Noting that there are many good practices of properly utilizing a sovereign wealth fund, he then continued to say that its operations are regulated by law, with some countries allowing the fund to make investments not only in projects and programs domestically but also in other countries alongside investing in the stocks of large scale companies.
As it is important to make specific regulations for the fund’s governance, he also highlighted the necessity of reflecting in the law the mechanism that makes the fund's management transparent and professional.
During the discussion, Deputy Minister of Mining and Heavy Industry O.Batnairamdal introduced the bill currently being drafted for the sovereign wealth fund.
Regarding the basis for drafting the bill, he said, “The amendments made to the Constitution in 2019 include the fair distribution of benefits from the country’s subsoil wealth, collected to the sovereign wealth fund. Thus, the bill is being developed in order to meet the requirements set in the Constitution as well. Furthermore, the sovereign wealth fund has been reflected in the ‘Vision-2050’ long-term development policy and the Government’s action plan for 2020-2024.”