Total Assets of Banking Sector Rise by 15 Percent www.montsame.mn

Mongolia's banking sector remains relatively stable and continues to grow, with total assets increasing by 15 percent compared to the same period last year.
During the presentation of the Banking Sector’s Semi-Annual Review for 2025, Executive Director of the Mongolian Bankers Association, Amar Lkhagvasuren, highlighted that bank-issued loans continue to play a significant role in supporting economic recovery.
Moreover, newly issued loans to businesses have increased by 19 percent year-over-year. As a result, the share of non-performing business loans has declined, and both individuals and enterprises have begun shifting their funds into term deposits. Despite the depreciation of the Mongolian tugrug, public confidence in the national currency remains strong, which has contributed to a 15 percent increase in tugrug-denominated deposits.
Mongolia’s economy grew by 5.6 percent in the first half of this year. The agricultural sector has demonstrated a strong recovery, becoming the primary driver of economic growth. In contrast, the mining sector performed below expectations, which negatively impacted related sectors such as trade and transportation, thereby slowing overall growth. Additionally, the decline in commodity prices has led to a reduction in export volumes, placing pressure on the national currency.
Revenue from taxes on mining products has decreased by 12.3 percent, contributing to a decline in overall budget revenues. Recurrent expenditures continue to account for the majority of total government spending, and the fiscal balance currently shows a deficit of MNT 758 billion.
Senior Economist at the Banking and Finance Academy, Sosorbaram Chingel, emphasized, “When formulating the state budget, it is essential to carefully assess both internal and external risk factors, ensure coherence between fiscal and monetary policies, and support the real economy. Otherwise, we risk creating a system in which the recovery of one sector leads to the decline of others.”

Zandanshatar Gombojav: Eurasian Market Open to Mongolia’s Agricultural Sector www.montsame.mn

“The Eurasian market, with a population of 183 million, is open to Mongolia’s agricultural sector. We have the opportunity to introduce our products there. The agricultural sector must continue to shoulder a significant share of the economic burden,” highlighted Prime Minister of Mongolia Zandanshatar Gombojav during his visit to Darkhan-Uul aimag, where he reviewed the operations of the Ministry of Food, Agriculture and Light Industry (MoFALI) and its affiliated agencies and met with officials.
Head of the Department for Coordination and Implementation of Crop Farming Policy of the MoFALI, D. Yesun-Erdene, noted that working capital and investment loans have been provided through commercial banks for crop production, food processing, and livestock farming. He added, “With the Government’s decision to subsidize 10 percent interest rates, a model integrating crop production and livestock farming has been created to develop food and agriculture into a backbone sector of the economy.”
Head of the Light Industry Policy Implementation Coordination Department, M. Dondogdorj, underlined that concessional loans are being extended to increase capacity and support the operations of wool, cashmere, and leather processing industries. “Within the framework of the ‘White Gold’ national movement, 6,000 tons of cashmere have been procured, enabling domestic producers to process about 70 percent of total raw materials. As a result, the production capacity of the wool, cashmere, and leather industries has doubled,” he emphasized.
Within the framework of the “Food Revolution” national movement, more than 2,525 individuals and enterprises engaged in crop production, livestock farming, and food processing industries have received concessional loans amounting to MNT 1.26 trillion. Consequently, 25 new food processing plants have been commissioned, 22 have been expanded, and 22 have upgraded their equipment. Last year, storage capacity increased by 15 percent, threshing facilities by 7 percent, and cultivated land by 13 percent. As a result of the program, producers have expanded their product range by 37 percent and created about 2,500 new jobs.
Prime Minister Zandanshatar underlined that relocating MoFALI to Darkhan-Uul aimag has proven to be a correct decision. He added, “Livestock farming, crop production, and small and medium enterprises must develop in an integrated manner. Agriculture played a key role in Mongolia’s 5.6 percent economic growth in the first half of this year. Since the agricultural sector generates the most employment, diversifying and further developing it will remain a priority goal of the Government.”

Digitized nomads: Lessons we can learn from Mongolia’s nomadic herders in the age of AI www.weforum.org

A circle of gers – traditional Mongolian yurts – dots the golden steppe, a vast grassland stretching endlessly beneath a cloudless sky. Camels graze nearby, each recognized by name, their silhouettes shifting in the early morning light. In this boundless landscape, where wind is constant and seasons arrive without warning, life is lived in motion – shaped by instinct, tradition and a deep respect for nature.
This way of life may seem worlds apart from the digital revolution. Yet, as artificial intelligence (AI) reshapes global society, the philosophy and practices of Mongolia’s nomadic herders offer unexpected lessons in adaptability, community and sustainability.
According to the BBC, approximately 40% of Mongolians live nomadic lifestyles – an extraordinary statistic in an increasingly urbanized and digitally-focused world. Nomadism in Mongolia is characterized by mobility, adaptability and a harmonious relationship with nature.
Mongolia is now actively embracing digital transformation through the launch of the AI Academy Asia’s National AI Campaign, a bold initiative to train teachers and software engineers, bridging the digital divide and preparing Mongolians to thrive in an AI-powered world.
The campaign aims to train 250 AI engineers and 2,250 teachers from all 21 aimags (provinces) in Mongolia by 2029.
The Girls AI programme has trained 150 girls and is now training 100 female teachers and 100 girls from the most disadvantaged communities of Mongolia in collaboration with Golomt Bank, which has already been actioning a digital inclusion initiative across Mongolia in the past 30 years.
This commitment to digital inclusion is especially relevant for Mongolia’s nomadic herders and rural pastoralists, who are already experimenting with drones, sensors and other advanced digital tools to monitor herd health, access weather data and optimize land use. What if the wisdom of nomads could shape how we build, deploy and govern AI?
Here are three lessons from Mongolia’s steppe that can inspire our approach to governing AI.
Lessons for Mongolia’s digital transformation
1. Resilience in the face of volatility
Nomads adapt in real time to volatile weather, shifting grazing conditions and the uncertainty of seasonal migrations. This mindset offers valuable lessons for AI governance. Technology evolves at a breakneck pace and so too must our policies.
The European Union’s AI Act is one early model of this adaptive governance. This legislation categorizes technologies based on risk and requires high-risk AI systems to meet strict transparency, safety and ethical standards.
Importantly, it is intentionally designed to be broad and evolve in tandem with the technology itself. When institutions can pivot swiftly, they can better anticipate change and manage the disruptions of the AI era.
Just as nomads don’t expect stability but prepare for volatility, our digital systems must be built not only for security but for agility and responsiveness.
2. Community as infrastructure
Mongolian nomads are not only hospitable out of kindness but because it helps them survive as a community. Often at the mercy of nature, families share resources, tend to each other’s livestock in times of illness or absence and pass down oral knowledge that reinforces communal responsibility.
This ethos should inspire how we design and govern AI. Digital infrastructure must not reinforce existing divides between those with access and those without. Just as herder communities ensure no person or animal is left behind, AI must be inclusive by design.
Like nomadic communities, our technological systems must embody a spirit of collective responsibility – not just optimizing for speed or efficiency but ensuring no one is left behind.
“
The future of AI should not only be technically sophisticated but it must also be culturally grounded, ecologically sustainable and human-centred.
”
3. Environmental harmony
As AI scales globally, we must confront its growing energy and resource demands. Training a single language model can require vast amounts of energy, resulting in increased carbon emissions and pressure on electric grids.
The environmental cost of AI isn’t abstract. In Memphis, Tennessee, Elon Musk’s Grok data facility has drawn scrutiny for tapping into the Memphis Sand aquifer, a vital freshwater source and using gas-powered turbines, raising alarm among residents about water depletion and environmental justice.
Nomadic life is inseparable from the rhythms and limits of the natural world. Survival depends on listening to the land, not extracting from it. This philosophy should also guide the future of AI.
AI development must learn to do the same – aligning innovation with stewardship and using technology to restore rather than deplete the ecosystems we rely on.
Mongolia’s model: Tradition meets innovation
As an article in the Harvard Business Review recently noted, “AI won’t replace humans – but humans with AI will replace humans without AI.”
This quote underscores a pressing global risk: digital exclusion. Without intervention, entire groups risk being left behind. This mirrors the displacement of traditional farming knowledge during the Green Revolution, when top-down modernization erased centuries of ecological wisdom. Without digital inclusion, the AI revolution may repeat this history.
Mongolia is taking a different path. The National AI Campaign is more than a technical upskilling programme – it’s a human-centred, ethically grounded movement.
It embeds data, coding, ethics, digital literacy and equity into its curriculum and seeks to ensure that no community, no matter how remote, is left behind. This is a powerful blueprint for other emerging economies to co-lead in shaping ethical and inclusive AI.
In an interview with the academy, Cambridge University researcher Ander Biguri notes that “AI has the potential to be uniquely democratizing,” because the quality of the technology is the same whether you’re in the United Kingdom or the remotest regions of the Gobi Desert, as long as you have an internet connection.
This levels the playing field for nations like Mongolia, presenting a rare opportunity to leapfrog into leading a global digital transformation.
Holistic path of AI
The future of AI should not only be technically sophisticated but it must also be culturally grounded, ecologically sustainable and human-centred.
By learning from Mongolia’s nomadic heritage, we can reimagine a digital future that doesn’t sever us from tradition but strengthens our collective resilience, interdependence and harmony with the environment.
To navigate the AI era wisely, we must listen to those who have long thrived in the face of uncertainty so that we can adapt with integrity.

Speaker Amarbayasgalan to Visit Kazakhstan www.montsame.mn

Russia inks Siberia–Mongolia mega-pipeline deal with China, sidelining seaborne LNG www.splash247.com

Russia has secured agreement to build a colossal natural gas pipeline through Siberia and Mongolia to feed China’s insatiable demand, a deal that threatens to redraw the global energy map — and sideline a chunk of seaborne LNG trade in the process.
Dubbed Power of Siberia 2, the Gazprom pipeline will have a capacity of up to 50bn cu m annually, rivalling the Nord Stream lines that once linked Russia with Europe before the invasion of Ukraine severed those ties. Additionally, the first Power of Siberia pipeline, from Siberia to China, transports about 38bn cu m a year and could be increased to 44bn cu m.
For Moscow, the pipeline cements a pivot away from European buyers; for Beijing, it guarantees long-term energy security at a discount.
Shipping players, however, are watching warily. A landlocked artery of this scale could siphon demand from the global LNG carrier fleet, which has relied heavily on China’s voracious appetite in recent years. Analysts warn that while Chinese LNG imports will continue, pipeline gas could increasingly crowd out long-haul seaborne supply from the likes of Qatar, the US, and Australia.
The potential expansions of around 58bn cu m represent approximately 10% of global LNG volume today, and 6-7% of expected 2030 volumes, according to analysis by SEB, a Swedish investment bank, which views yesterday’s big energy pact in Beijing as a negative for the long-term fundamentals in LNG shipping.

President of China holds talks with President of Mongolia www.akipress.com

President of China Xi Jinping met with President of Mongolia Khurelsukh Ukhnaa in Beijing on September 2.
President Xi Jinping stated that China and Mongolia, as friendly neighbors, are continuously deepening their exchanges and cooperation in various fields. He highlighted the positive progress in implementing key projects and stressed that both nations should be guided by a vision of building a shared community of destiny. This involves strengthening strategic mutual trust, deepening the integration of development, and bringing the two peoples closer together to provide a sustained impetus for their comprehensive strategic partnership.
Xi Jinping affirmed that China will remain a reliable and trustworthy partner for Mongolia, regardless of the global situation. He proposed that the two sides should protect the political foundation of their relationship, better coordinate development strategies, and jointly promote their modernization initiatives. He also offered to collaborate with Mongolia on the Global Governance Initiative (GGI) to address governance challenges more effectively.
President Khurelsukh stated that maintaining stable good-neighborly relations and developing mutually beneficial cooperation with China is a priority of Mongolia's foreign policy. He expressed his country's desire to unlock the full potential of bilateral trade and economic cooperation, strengthen connectivity, and ensure even more fruitful bilateral relations.
During the meeting, the leaders discussed and reached a consensus on several specific areas of cooperation, including trade, the economy, cross-border railway construction, renewable energy, environmental protection, agriculture, and light industry.
To achieve the shared goal of increasing bilateral trade to $20 billion, Mongolia proposed increasing the export of its mining products, accelerating the connection of the Shiveekhuren-Sekhee, Bichigt-Zuunkhatavch, and Khangi-Mandal ports, speeding up the Gashuunsukhait-Gantsmod railway project, and collaborating on renewable energy projects.
Xi Jinping noted that jointly implemented projects, such as the Gashuunsukhait-Gantsmod railway, the Erdeneburen Hydropower Plant, and the Presidential Sports Complex, are important achievements of their bilateral cooperation.
The two countries also signed several bilateral agreements in areas including customs, metrology, and media. The signed documents include a protocol on honey exports from Mongolia to China, a memorandum on technical cooperation for animal and plant import/export quarantine, a memorandum on cooperation in metrology, a memorandum on cooperation in conformity assessment, and a national information memorandum on a partnership between the Mongolian Montsame Agency and China Media Group.

Mongolia to Implement Affordable Housing Program with World Bank www.montsame.mn

The Prime Minister of Mongolia, Zandanshatar Gombojav, received the Vice President of East Asia and the Pacific at the World Bank, Manuela V. Ferro, on September 2, 2025.
Prime Minister Zandanshatar expressed his gratitude to the World Bank for its valuable contribution to Mongolia’s social, economic, and infrastructure development over the past 34 years, since 1991. He acknowledged the Bank’s consistent partnership through the financing of numerous projects and programs. During the meeting, the Prime Minister also outlined the Government’s key policy priorities and strategic objectives. He emphasized that human development lies at the core of Mongolia’s policy agenda, alongside goals such as green transition, digital transformation, public sector productivity, and tax reform. He further highlighted the Government’s efforts to reduce the country’s dependence on the mining sector by diversifying the economy, including targeted support for the private sector and expanding the range of exportable products.
Vice President Manuela V. Ferro praised Mongolia’s swift economic recovery following the COVID-19 pandemic and noted the country’s progress in recent years in both social and economic development. She stressed the importance of diversifying the economy through the development of agriculture, particularly the wool and cashmere sectors, as well as the potential of renewable energy and tourism industries.
Prime Minister Zandanshatar underscored the urgent need to implement an affordable housing program and to establish a financing system that improves access to credit, as part of efforts to reduce air pollution in Ulaanbaatar and enhance citizens’ quality of life. In response to the Prime Minister’s proposed collaboration with the World Bank in this area, the World Bank expressed its readiness to continue working in partnership with Mongolia to support these development goals.

Mongolia to Fully Meet Domestic Flour Demand with Harvested Wheat www.montsame.mn

According to the preliminary harvest balance, Mongolia is projected to fully meet its domestic flour demand with this year’s wheat harvest.
From the autumn harvest, 255.8 thousand tons of wheat are planned to be collected. Of this, 38.6 thousand tons are reserved for next spring’s sowing, 12.5 thousand tons for seed stock, 24.8 thousand tons for animal and poultry feed, 11 thousand tons for alcohol production, and 168.9 thousand tons for flour production. As a result, a shortfall of about 100 thousand tons will need to be met through wheat imports.
Minister of Food, Agriculture, and Light Industry of Mongolia Enkhbayar Jadamba stated at the press conference on the draft state budget of Mongolia for 2026 and the Government’s policy priorities in the economic sectors that the demand for wheat for livestock, pigs, poultry, and alcohol production will be met through imports.
He also noted that with the implementation of the “White Gold” national movement, Mongolia has been purchasing 100 percent of domestically produced cashmere and has achieved full washing and combing capacity. The decision to prioritize combing alone has generated more than MNT 700 billion in added value in the cashmere processing sector. Foreign investment has also been flowing into food, leather, and textile manufacturing, with new factories under construction.
Minister Enkhbayar added, “According to the National Statistics Office of Mongolia, in the first half of this year, GDP grew by 5.6 percent, of which 3.6 percent was contributed solely by the agricultural sector, creating 58,000 new jobs. These positive indicators demonstrate the effectiveness of the Government’s ‘Atar-4’ Sustainable Agriculture Development Campaign, the 'White Gold' national movement to boost the value of livestock-derived raw materials, and the nationwide ‘Food Revolution’ movement.”
Regarding the State Budget of Mongolia for 2026, the Government will continue its private sector-supporting policies, expanding concessional loans for business operations and investment. The Ministry has reflected in the draft budget measures to reduce its own investment and expenditure while increasing financial resources for loans to the private sector and enterprises.
Meat exports are set to expand significantly as quarantine restrictions are being lifted. Mongolia’s pastureland is overburdened by the equivalent of 25 million head of livestock. With 70 percent of the country affected by drought this year and pasture capacity insufficient, about 20 million head of livestock must be directed into economic circulation.

PM Submits 2026 Budget and Outlines Reform Priorities www.montsame.mn

Prime Minister of Mongolia, Zandanshatar Gombojav, delivered a statement on the 2026 state budget regarding the submission to the Great State Khural (Parliament) and outlined the core priorities of the budget.
Premier underlined that the 2026 state budget was drafted for the first time with public participation, emphasizing policies aimed at reducing the tax burden, limiting state intervention, expanding opportunities for the private sector, and supporting small and medium-sized enterprises as well as individual citizens. Limiting budget overexpansion is considered an optimal reform for overcoming economic difficulties.
The 2026 budget cut government spending but focused on supporting human development. It also aimed to reduce taxes for citizens and wealth creators.
To support the tax reform initiative, VAT relief will be introduced in stages, starting with differentiated incentives based on purchase categories:
Specifically, VAT refunds will be set at 5 percent for purchases up to MNT 1 million and 2 percent for purchases exceeding MNT 1 million. However, starting in 2027, the plan is to refund 10 percent for purchases up to MNT 500,000, 5 percent for purchases between MNT 500,000 to MNT 1 million, and 2 percent for purchases over MNT 1 million.
By implementing these reforms, VAT will be applied fairly and transparently, helping expand the tax base and uncover tax evasion.
To support the private sector and reduce the tax burden, the threshold for tax relief for small and medium-sized enterprises will be set between MNT 1.5 and 2.5 billion. In addition, the draft regulation proposes raising the simplified VAT regime threshold from MNT 50 million to MNT 400 million.
All available opportunities will be explored to increase coal exports, and the target of exporting 85,000 tons in 2026 has nearly been achieved. With continued demand in the Chinese market, there is potential to raise exports to 200,000 tons annually. State-owned companies have been instructed to make tangible progress in this area.
The health sector prioritizes a strong system for emergency and intensive care services over building hospitals.
In the 2026 budget, MNT 2.27 trillion is allocated to the health insurance fund, with the program focusing not only on increasing the insurance fund but also on regulating risk bearing and strengthening public oversight.
A policy will be adopted to reduce the number of state-owned companies from 108 to 70. These companies will be required to cut costs and operate more efficiently. For instance, sales revenue, transportation, and exports at Erdenes Tavantolgoi JSC have tripled following the appointment of a team of Plenipotentiary Representatives.
MNT 70 billion has been allocated for land acquisition at 24 sites in Ulaanbaatar for the construction of schools and kindergartens. Moving forward, standardized guidelines for constructing state-owned educational facilities within residential areas will be mandatory.
The PM, along with the sectoral ministers, addressed questions from journalists and stated that the budget is publicly available on the websites of the Parliament and the Ministry of Finance of Mongolia, making it accessible for public review.

JSW Steel puts coking coal sourcing plans from Mongolia on hold www.bizzbuzz.news

New Delhi: JSW Steel has put its plan to source coking coal from Mongolia on hold, citing significant logistical hurdles in transporting the material from the landlocked Central Asian nation to India, according to a top company executive on Tuesday. Also Read - Shillong Teer Results Today, September 3, 2025: Winning Numbers, Common Numbers, and Prize Details "Mongolia was being explored as an alternative source, but there are a lot of logistics-related issues for transportation. As of now, it is not logistically feasible, and the plan is on hold," JSW Steel Joint Managing Director and Chief Executive Officer Jayant Acharya said on the sidelines of the CII Global Sustainability Summit. Coking coal is a critical raw material used in the production of steel via the blast furnace route. India is the world's second-largest steel producer. However, the country remains heavily reliant on imports for this raw material. Currently, India sources over 80-90 per cent of its coking coal requirements from a select group of nations, with Australia being the dominant supplier. Also Read - Kerala Lottery Result Today 03-09-2025: Dhanalekshmi DL-16 Lucky Draw Winning Ticket Numbers The dependence on distant sources, such as Australia, leads to long shipping durations, often several weeks, and significantly contributes to higher logistics costs for Indian steelmakers. In recent years, the government has explored the possibility of diversifying coking coal imports to reduce dependency and increase price stability. In January 2025, a senior government official had stated that discussions were underway to assess viable transport routes for Mongolian coal. Acharya said the company will continue procuring coking coal from its existing suppliers to meet operational needs.