Ulaanbaatar, December 25, 2024 /MONTSAME/.  On December 20, 2024, Prime Minister of Mongolia Oyun-Erdene Luvsannamsrai addressed the public, providing details on the decisions made at the irregular session of the Cabinet of Mongolia.

“The Cabinet of Mongolia held the irregular session with three main objectives. First, it's been 100 days since the Mongolian Government's Action Plan was approved. We assessed the fulfillment of the tasks assigned to the Ministers. Second, we discussed the preliminary economic indicators for 2024, taking December 20th as a cutoff point. Third, we scrutinized the conclusions of the National Committee and the capital city on air pollution in Ulaanbaatar and approved an Emergency Action Plan,” highlighted Prime Minister of Mongolia Oyun-Erdene Luvsannamsrai.

As of today, the economy of Mongolia has grown by 5 percent, and foreign exchange reserves stand at USD 4.9 billion. There is a positive outlook for reserves to reach USD 5 billion by the end of the year. The State Budget of Mongolia has resulted in a surplus of MNT 1.3 trillion.

Exports have reached USD 15.7 billion, with coal exports hitting a historic high of 81.8 million tons. These figures were discussed today because this marks the earliest opportunity to observe the initial tangible results of implementing the Law on Mongolia’s Sovereign Wealth Fund. The leaders of the Mongolian People's Party, the Democratic Party, and the Hun Party submitted the Law on Mongolia’s Sovereign Wealth Fund to the State Great Khural of Mongolia. Then, on April 19, 2024, the State Great Khural passed the Law. Since the Law came into force, its first outcomes are being seen today. Following the examples of the Sovereign Wealth Fund of countries, we will name Mongolia’s Sovereign Wealth Fund after our Great Emperor Chinggis Khaan as a symbol of development and prosperity. From now on, this Fund will be known as the "CHINGGIS FUND" internationally.

MNT 4 trillion has been generated in the Future Heritage Fund of the Sovereign Wealth Fund. Additionally, MNT 495 billion, or MNT 135 thousand per citizen, has been deposited into the Savings Fund, which is now accessible to all Mongolian citizens through the E-Mongolia platform. This allows every Mongolian citizen to see the direct connection between their savings and the nation's wealth.

As we utilize our mineral resources, our savings will grow. This accumulation will arise from 34 percent of the national wealth and the royalties from mineral resources, leading to increased savings for every citizen. This legal framework ensures that citizens' savings will increase as new mega-projects are implemented in Mongolia. It is projected that once the Mongolian Government’s 14 mega-projects are fully implemented, the Savings Fund could reach MNT 18 trillion by 2030. Preliminary estimates indicate that the Development Fund could accumulate MNT 500 billion. Also, the Development Bank has been transformed into an EXIM Bank.

The Loan Agreement for the Erdeneburen Hydropower Plant, one of the 14 mega projects of the Government of Mongolia, has been finalized. Also, the Cabinet decided to establish a Coke and Chemical Plant based on the Baganuur Coal Mine.

Previously operating at a deficit, Erdenes Tavan Tolgoi Company is now generating a profit of MNT 4.3 trillion. The dividend payout is expected to be around MNT 350 thousand per shareholder. Considering the upcoming cold season and inflation, it has been decided to distribute the dividends in three installments. The first installment will see citizens receiving MNT 135 thousand each.

We have also made decisions regarding air pollution. Multiple factors contributed to traffic congestion and air and soil pollution in Ulaanbaatar. We must approach this issue comprehensively and resolve it from the root of the problem. Therefore, Ulaanbaatar city must have the financial, human, and legal capacity to alleviate these issues. The State Great Khural and the Government must provide all necessary political support to the capital city.