Azerbaijani economist Natig Jafarli announced that he attended a meeting on October 22 with Central Bank Governor Taleh Kazimov and a group of economists to discuss key financial and economic issues.
In a post on his Facebook page, Jafarli said the nearly three-hour meeting featured open discussions on a wide range of topics.
He noted that while many of the concerns raised by participants related to government functions beyond the Central Bank’s authority, the Ministry of Finance and other institutions often avoid such open dialogue, leaving experts to voice criticism directly to the Central Bank.
Jafarli highlighted two major takeaways from the meeting:
Support for raising the turnover limit for small businesses.
Kazimov reportedly agreed that the current 200,000-manat annual turnover cap, which has remained unchanged since 2006, is outdated and unfair.Exceeding this threshold automatically subjects small businesses to 18% value-added tax (VAT) obligations.
Jafarli said the limit should be raised to at least 500,000 manats, arguing that this would significantly ease pressure on entrepreneurs.
Concern over slow GDP growth and high inflation.
According to Jafarli, the Central Bank is worried about low GDP growth and persistent inflation, yet lacks sufficient policy tools to address these challenges effectively.He added that the country’s economic system is overly primitive, restricting the Central Bank’s ability to perform its regulatory functions.
“We need structural reforms in the economic system so that the Central Bank can effectively carry out its regulatory duties,” Jafarli wrote.
He also commended the Central Bank for being open to criticism and dialogue, calling it a positive example for other state institutions.
However, Jafarli added that the Bank should evolve into an “internal critic within the government system” – a role it has not yet fully assumed.
