Mongolia is seeking to strengthen its support for the wool, cashmere, and leather processing industries, according to a statement from the presidential press office on Thursday.

As part of the national campaign "White Gold," initiated by President Ukhnaa Khurelsukh, the Ministry of Food, Agriculture, and Light Industry, in collaboration with 10 major commercial banks, signed a financing agreement on Thursday.

Under the agreement, enterprises in these sectors are expected to receive 788.9 billion Mongolian tugriks (over 231 million U.S. dollars) in circulating capital and concessional investment loans in the coming year alone, the press office announced.

Within the framework of the national campaign, which will run until 2028, Mongolia aims to significantly enhance its cashmere processing capacity.

The Asian country is expected to increase the level of full cashmere processing from the current 20 percent to 40 percent, and expand exports from 398 million U.S. dollars to 690 million U.S. dollars under the framework of the campaign.

Additionally, the campaign seeks to increase the level of wool processing from 25 percent to 55 percent, with exports projected to grow from 52 million U.S. dollars to 119 million U.S. dollars.

Meanwhile, the level of deep processing of leather and hides is estimated to increase from 30 percent to 50 percent, and exports are expected to grow from 9.6 million U.S. dollars to 22.4 million U.S. dollars.

Altogether, the campaign is expected to significantly boost Mongolia's economic growth, creating over 8,000 new jobs across the wool, cashmere, and leather sectors, while enhancing the country's industrial capacity and export potential.

Mongolia has an average annual production capacity of 37,000 tons of sheep wool, 10,000 tons of goat cashmere, 2,000 tons of camel wool, 400 tons of yak fur, and 18 million pieces of hides and skins, according to the presidential press office.

Promoting livestock husbandry is considered a key strategy for diversifying Mongolia's mining-dependent economy.

As one of the world's last remaining nomadic nations, Mongolia had 64.7 million livestock at the end of 2023, according to the National Statistics Office.

In commemoration of the centennial of the establishment of the Museum Sector in Mongolia, an Honorary Session was held at the State Palace of Mongolia on December 24, 2024.

The first museum in Mongolia was established and opened to the public in December 1924. Since then, the museum sector has expanded to include over 40 museums, housing more than 336,000 artifacts and employing more than 1,200 people.

In 2021, Mongolia became one of the few Asian countries to pass the Law on Museums. A museum is a non-profit cultural and academic institution responsible for registering, collecting, preserving, studying, promoting, and disseminating cultural values and heritages.

Minister of Culture, Sports, Tourism, and Youth of Mongolia Nomin Chinbat opened the Session, emphasizing, “100 years ago, a museum sector was established in Mongolia and began to make a valuable contribution to enlightenment. Since then, museums have fulfilled their role in collecting, preserving, promoting, and showcasing our national heritage to the world.

Over the past four years, we have passed the first Law on Museums, allowing children under 16 to visit museums for free while offering discounts to people with developmental challenges and senior citizens. Moreover, we have made it a tradition to organize the Museum Open Day during the first week of March each year, providing free entry for the public. The Chinggis Khaan National Museum of Mongolia and two local museums have been put into operation, and the construction work on four museums has been completed. We have also upgraded the security and preservation systems in all state and local museums. Compared to 2019, the number of museum visitors has increased by 40 percent, reaching 1.1 million, and revenue has grown by 1.5 times, amounting to MNT 4.2 billion. The number of museum staff has increased by 12.5 percent compared to 2019.

The Chinggis Khaan National Museum of Mongolia was named one of the must-see museums in 2024 by National Geographic, while the French magazine Historia named the exhibition “Chinggis Khaan: How the Mongols Changed the World” displayed in Nantes, France, the best exhibition of 2023.

In the future, we aim at opening the National Museum of Natural Sciences, and the Museum of Archeology and Ethnology, further developing the museum sector regionally and internationally.”

At the Session, Head of the Documentation and Monitoring Department of the Office of the President of Mongolia Yanjinsuren Sodnomdorj read out the congratulations of President of Mongolia Khurelsukh Ukhnaa. Furthermore, Chairman of the Standing Committee on Education, Culture, Science and Sports of the State Great Khural of Mongolia Undram Chinbat delivered greetings.

The Session was attended by more than 700 representatives from public and private museums.

According to the Mongolian Customs General Administration, over the first 11 months of 2024, Mongolia earned USD 8.181.5 million from coal exports, which is an increase of USD 250 million compared to the same period of the previous year.

The amount of coal exported since the beginning of the year has reached 78,519.7 thousand tons, a 21.1 percent increase compared to the same period last year.

As Mongolia set a target to export 78 million tons of coal in 2024, the performance has already exceeded the plan for this year, and the export is expected to surpass 80 million tons for the first time. For 2025, coal export is planned to be increased to 83 million tons.

According to the socio-economic report for November 2024 presented by the National Statistics Committee, the country's sales in the foreign market for the first 11 months of 2024 amounted to MNT 34.1 trillion, of which 33 trillion were from the mining sector. The composition of foreign sales of mining products was as follows:

· 60.4 percent from coal extraction,

· 35.3 percent from metal ore extraction,

· 3.1 percent from oil extraction,

· 1.2 percent from other mineral extraction.

The industrial production index was 256.8 in November 2024, down 44.6 percent from the same period last year.

The sales of mining and extractive industries increased by over MNT 3.8 trillion (11.4 percent) from the same period last year, mainly due to an increase in sales of coal by MNT 1.9 trillion (9.9 percent), metal ore by MNT 1.9 trillion (15.8 percent), and other minerals by MNT 82.6 billion (19.7 percent).

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.

The Ministry of Road and Transport of Mongolia and the Ministry of Land, Infrastructure and Transport of the Republic of Korea are jointly implementing the "K-Smart" Electronic Traffic Management Project to improve the management of road maintenance in Mongolia.

Director of the National Road Transport Center of Mongolia D. Oyunbold met with the representatives of the South Korean side of this project, Dr. Lim Jae-Kyu and Dr. Lee Jae Hoon from the Korea Institute of Construction Technology, and Choi Jun-seong, Chairman of the Korean Society of Road Engineers. At the meeting, the parties discussed the planned works and the successful implementation of the project within 4 years.

Under the project, with a grant of KW 6.5 billion from the Ministry of Land, Infrastructure and Transport of the Republic of Korea and the International Development Assistance Organization (ODA), Mongolian engineers and technical workers will be trained in the Republic of Korea, road maintenance equipment will be provided, as well as effective technology, including using artificial intelligence in road maintenance, automatically monitoring, detecting and measuring road surface damage and anomalies, will be introduced in Mongolia.

The Mongolian government on Wednesday decided to designate 2025 as the year to promote infrastructure development in the capital of Ulan Bator.

"The government made the decision to declare 2025 as the year to advance infrastructure development of Ulan Bator," said Khishgee Nyambaatar, the city's mayor, at a press conference following a regular government meeting.

As part of this initiative, cabinet members have been tasked with providing comprehensive support and coordination for projects and initiatives aimed at addressing the city's most urgent challenges and accelerating its development.

Ulan Bator is currently grappling with a range of critical issues, including severe air pollution, traffic congestion, energy shortages, and urban planning inefficiencies.

In response to these problems, the Mongolian government has recently declared a heightened state of preparedness in the capital.

Originally designed to accommodate 500,000 residents, Ulan Bator now hosts approximately half of Mongolia's total population of 3.5 million.

More than half of the city's residents live in its ger districts, where there are no running water, central heating, or sewage systems.

Deteriorating air quality, largely driven by the use of processed fuel for heating, has become a growing concern, particularly as the city faces harsh winter conditions.

PM2.5 levels in both the ger districts and central areas of the city often far exceed the World Health Organization's recommended safety limits during the winter months.

In addition to air pollution, traffic congestion remains one of Ulan Bator's most significant challenges.

The city currently has 720,000 registered vehicles, further exacerbating its urban issues.

The month of December in Mongolia has been filled with controversy around the interim free trade deal the country intends to sign with the Eurasian Economic Union (EEU), consisting of Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan. The Mongolian government plans to sign a 3-year free trade agreement with the bloc, removing all tariffs and quotas on 375 items and paving the way for local companies to gain access to large foreign markets with a total population of over 200 million people.

The negotiations started in 2019 but entered an active stage in 2024, with both sides expressing interest in completing the agreement by the end of 2024. In early December, the government shared a list of products that would be part of the trade agreement. The Mongolian side is hopeful that it will allow its economy to grow by exporting meat, wool, and leather products worth USD 15.5 billion.

The government is adamant that signing the agreement is in Mongolia’s best interests. Its main argument is that Mongolia's economy cannot grow by catering to a small domestic market of 3.5 million people. This growth is expected to draw foreign investment, diversify the economy, and reduce dependence on the mining sector.

However, all the business stakeholders in the country seems to hold the exact opposite opinion. Representatives of Mongolian businesses, whom the deal will affect directly, have all spoken against it and called to either cancel or at least postpone its signing.

Mongolian National Chamber of Commerce and Industry has expressed its worries that the deal will undermine national security by killing off local food production and creating dependence on other countries for food supplies. A coalition of professional associations consisting of the NGO Food Evolution, the Food Producers’ Union, the National Association of Veterinarians and Breeders, and the Farmers’ Union has done the same.

The Chamber of Commerce added that trading with Russia and Belarus, two pariah states under unprecedented number of sanctions, poses reputational and financial risks that may scare away potential investors and result in secondary sanctions.

Director of Food Evolution, T. Monkhtor, forecasted that Russian food products, such as dairy, wheat, and flour, which are cheaper and higher quality, will flood the Mongolian market and bankrupt local companies. His estimate is that will take only one year for this grim scenario to take place. The consequences could be catastrophic with hundreds of thousands losing their jobs and sources of income.

He also recalled the failure of the free trade agreement Mongolia signed with Japan in 2017. The deal benefitted only Japan with its exports to Mongolia growing from USD 300 million in 2017 to 600 USD million in 2023. Mongolia’s exports to Japan grew only by USD 3 million, from USD 15 to 18 million. The fear is that the deal with the EEU will have a similar outcome but with a devastating effect.

On December 18, the government partially gave in to these demands and agreed to postpone the negotiations. Deputy prime minister S. Amarsaikhan announced that the deal will not be suspended. Instead, the government will proceed in consultation with non-state actors, soliciting their feedback and possibly restructuring the agreement. What appears to be an interim victory for local food producers is a loss for consumers, who ultimately bear the cost of their country’s attempts to sustain its food industry.

BY Nurbek Bekmurzaev

The installed new energy capacity, which includes wind power and solar energy, in North China's coal-rich Inner Mongolia autonomous region has surpassed 120 million kilowatts, exceeding the region's installed thermal power capacity for the first time.

Inner Mongolia has achieved this milestone one year ahead of schedule, most recently having connected a 1-million-kilowatt photovoltaic project to the grid. Its total installed power capacity is now 240 million kilowatts, and its installed thermal power capacity is 117 million kilowatts.

Inner Mongolia possesses abundant new energy resources, with a wind energy resource potential of 1.46 billion kilowatts, accounting for approximately 57 percent of the national figure. Its solar energy resource potential amounts to 9.4 billion kilowatts, representing approximately 21 percent of the national potential.

Currently, new energy installations connected to the grid in the region generate 270 billion kilowatt-hours of green electricity annually, which is equivalent to reducing standard coal use by 84 million tons and reducing carbon dioxide emissions by over 220 million tons.

Inner Mongolia also boasts coal reserves totaling 536.5 billion tons, accounting for nearly one-third of the national total. In 2023, its annual coal production output came in above 1.2 billion tons, of which approximately 60 percent was sold outside the region, with about 250 million tons used to generate thermal power within the region.

According to a bulletin posted on the regional energy bureau's official website in January, Inner Mongolia at the time planned to shut down three coal mines in 2024 with a total production capacity of 2.1 million tons.

Inner Mongolia has also made great strides in technological innovation in the field of new energy. The region has integrated wind and solar power generation with desertification control, for example, by using solar panels to provide shade and reduce surface water evaporation to enable plant growth beneath. Projects such as this ingeniously combine new energy development with desert ecosystem restoration.

Inner Mongolia can be seen as a microcosm of the rapid growth of China's new energy sector, which has maintained a double-digit annual growth rate in recent years.

Since 2013, the country's installed wind power capacity has grown sixfold, and its installed solar power capacity has surged more than 180-fold. New installations in China account for over 40 percent of the global annual total, contributing significantly to the world's green development.

In the tone-setting annual economic work conference held earlier this month, China's policymakers pledged to accelerate the comprehensive green transformation of economic and social development next year.

To achieve the country's dual carbon goals, China will tighten control over the consumption of fossil fuels, work faster to develop a new energy system, and promote the integrated development of hydro, wind and solar power, said an official from the Office of the Central Committee for Financial and Economic Affairs.

Imagine a container, fresh from its long sea journey and overland passage through China, finally disgorging its contents in Ulaanbaatar: Pakistani cotton, destined for garments, bearing stamps of a script unfamiliar to many eyes.

Picture, conversely, the tightly packed bales of Mongolian cashmere, a luxury whispered on global markets, beginning their journey southward, an aspiration to grace the bustling markets of Lahore.

World map highlighting Pakistan in green and Mongolia in orange, with the rest of the countries in gray.

This is the nascent, and still somewhat fragile, reality of trade between Mongolia and Pakistan. A reported 15% uptick in bilateral exchange this past year hints at a growing connection. Yet, to label it a booming trade route would be an overstatement.

Consider it a few tentative threads being drawn between two vastly different economic looms. Pakistan dispatches staples – the daily necessities of soap and packaged medicines. Mongolia, holding higher aspirations, seeks to export the treasures of its steppes: cashmere, soft as a cloud, and the durable leather honed by generations of nomadic life. Scratch beneath the surface, however, and the exchange reveals a modest current, with Pakistan enjoying a clear trade surplus. Is this the spark of a significant commercial corridor, or simply an intriguing footnote in the economic ledgers of nations navigating complex global trade flows? The question lingers: what prevents a more substantial partnership from taking root?

The idea of a "complementary tourism nexus" shimmers with potential, yet remains largely a theoretical construct. Envision, if you will, Pakistani families, steeped in history and culture, venturing onto the vast Mongolian steppes, a landscape echoing with Genghis Khan’s legacy. Or Mongolians, perhaps seeking spiritual solace, tracing the ancient paths of Gandhara Buddhism in Pakistan's north.

Hypothetical projections hint at lucrative possibilities, drawing on the dynamism of Pakistan’s growing tourism sector. Yet, the reality is starkly different. No direct flights bridge the considerable distance, forcing circuitous journeys.

The trickle of tourists flowing in either direction speaks volumes about the infrastructural gaps and a distinct lack of coordinated promotional efforts. Logistical knots tighten further with the absence of a direct maritime route; goods navigate circuitous overland paths, often through challenging terrain, adding time and cost. The dream of shared tourist dollars and vibrant cultural exchange currently bumps against the hard realities of geographical separation and logistical hurdles.

Mongolia's embrace of a "third neighbor" strategy casts Pakistan in a potentially more significant role. Landlocked and strategically positioned between Russia and China, Mongolia seeks alternative anchors for its economic security. Pakistan, geographically distant but possessing a sizable economy, offers a tantalizing possibility for diversification. The imperative to move beyond a resource-dependent economy fuels Mongolia's interest. However, the current trade figures suggest this remains more aspiration than achievement. While the vision of Pakistani investment fueling Mongolian industries beyond mining – or vice-versa – flickers, concrete examples are scarce. The economic gravitational pull of larger regional players remains a powerful force, making the realization of truly impactful diversification a considerable challenge.

Transforming this tentative exchange into a reliable trade wind requires navigating a maze of practicalities. Customs procedures diverge, product standards misalign – the everyday frictions of international commerce loom large. Moreover, neither nation operates in a vacuum. Both compete for market share in a global landscape teeming with established players. For Mongolia and Pakistan, carving out a lasting economic niche necessitates more than goodwill. It demands a concerted effort towards harmonizing regulations, fostering trust among businesses, and potentially, establishing dedicated trade mechanisms. The long-term viability hinges not just on increased volume, but on the development of higher-value exchanges and strategic investments that weave their economies together more tightly.

For now, the economic currents between Mongolia and Pakistan resemble a subtle, perhaps promising, undertow rather than a powerful surge. The increase in trade provides a glimmer of what could be, yet the overall picture is one of modest flows and unrealized potential. The aspirations for shared prosperity are evident, but the tangible economic linkages remain fragile.

Whether this initial connection blossoms into a significant trade route or remains a minor tributary in the global economic landscape will depend on deliberate choices, strategic investments, and a shared commitment to bridging not just geographical distance, but also the practical and logistical gaps that currently constrain this budding Silk Road story.

BY Abdul Rafay Afzal

Mongolia has officially commenced the export of live sheep to Uzbekistan, marking a significant step in agricultural trade between the two nations, local media reported on Wednesday, citing the Ministry of Food, Agriculture and Light Industry.

The initiative stems from an agreement made during Mongolian President Ukhnaa Khurelsukh's state visit to Uzbekistan in June, the ministry said in a statement.

During the visit, the two countries' leaders pledged to enhance cooperation in agricultural trade, specifically in the supply of wool, cashmere, leather, meat, and meat products from Mongolia to Uzbekistan and, through Uzbekistan, to other Central Asian markets.

As part of this agreement, Mongolia committed to exporting 100,000 live livestock to Uzbekistan, according to the ministry.

"The agreement has now been officially implemented, and the first shipments have already begun. Since Dec. 21, Mongolia has transported 1,440 live sheep to Uzbekistan on two flights," the ministry said.

Promoting livestock husbandry is considered a key strategy for diversifying Mongolia's mining-dependent economy.

As one of the world's last remaining nomadic nations, Mongolia had 64.7 million livestock at the end of 2023, with sheep making up 45.5 percent of the total, according to the National Statistics Office.