1 ZANDANSHATAR GOMBOJAV APPOINTED AS PRIME MINISTER OF MONGOLIA WWW.MONTSAME.MN PUBLISHED:2025/06/13      2 WHAT MONGOLIA’S NEW PRIME MINISTER MEANS FOR ITS DEMOCRACY WWW.TIME.COM PUBLISHED:2025/06/13      3 ULAANBAATAR DIALOGUE SHOWS MONGOLIA’S FOREIGN POLICY CONTINUITY AMID POLITICAL UNREST WWW.THEDIPLOMAT.COM PUBLISHED:2025/06/13      4 THE UNITED NATIONS CHILDREN’S FUND (UNICEF) IN MONGOLIA, THE NATIONAL FOUNDATION FOR SUPPORTING THE BILLION TREES MOVEMENT, AND CREDITECH STM NBFI LLC HAVE JOINTLY LAUNCHED THE “ONE CHILD – ONE TREE” INITIATIVE WWW.BILLIONTREE.MN PUBLISHED:2025/06/13      5 NEW MONGOLIAN PM TAKES OFFICE AFTER CORRUPTION PROTESTS WWW.AFP.MN PUBLISHED:2025/06/13      6 GOLD, MINED BY ARTISANAL AND SMALL-SCALE MINERS OF MONGOLIA TO BE SUPPLIED TO INTERNATIONAL JEWELRY COMPANIES WWW.MONTSAME.MN PUBLISHED:2025/06/13      7 AUSTRIA PUBLISHES SYNTHESIZED TEXTS OF TAX TREATIES WITH ICELAND, KAZAKHSTAN AND MONGOLIA AS IMPACTED BY BEPS MLI WWW.ORBITAX.COM  PUBLISHED:2025/06/13      8 THE UNITED STATES AND MONGOLIA OPEN THE CENTER OF EXCELLENCE FOR ENGLISH LANGUAGE TEACHING IN ULAANBAATAR WWW.MN.USEMBASSY.GOV  PUBLISHED:2025/06/12      9 MONGOLIA'S 'DRAGON PRINCE' DINOSAUR WAS FORERUNNER OF T. REX WWW.REUTERS.COM PUBLISHED:2025/06/12      10 MONGOLIA’S PIVOT TO CENTRAL ASIA AND THE CAUCASUS: STRATEGIC REALIGNMENTS AND REGIONAL IMPLICATIONS WWW.CACIANALYST.ORG  PUBLISHED:2025/06/12      БӨӨРӨЛЖҮҮТИЙН ЦАХИЛГААН СТАНЦЫН II БЛОКИЙГ 12 ДУГААР САРД АШИГЛАЛТАД ОРУУЛНА WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/06/15     ОРОН СУУЦНЫ ҮНЭ 14.3 ХУВИАР ӨСЖЭЭ WWW.EGUUR.MN НИЙТЭЛСЭН:2025/06/15     МОНГОЛ УЛСЫН 34 ДЭХ ЕРӨНХИЙ САЙДААР Г.ЗАНДАНШАТАРЫГ ТОМИЛЛОО WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/06/13     SXCOAL: МОНГОЛЫН НҮҮРСНИЙ ЭКСПОРТ ЗАХ ЗЭЭЛИЙН ХҮНДРЭЛИЙН СҮҮДЭРТ ХУМИГДАЖ БАЙНА WWW.ITOIM.MN НИЙТЭЛСЭН:2025/06/13     МОНГОЛ БАНК: ТЭТГЭВРИЙН ЗЭЭЛД ТАВИХ ӨР ОРЛОГЫН ХАРЬЦААГ 50:50 БОЛГОЛОО WWW.EGUUR.MN НИЙТЭЛСЭН:2025/06/13     МОНГОЛ ДАХЬ НҮБ-ЫН ХҮҮХДИЙН САН, ТЭРБУМ МОД ҮНДЭСНИЙ ХӨДӨЛГӨӨНИЙГ ДЭМЖИХ САН, КРЕДИТЕХ СТМ ББСБ ХХК “ХҮҮХЭД БҮРД – НЭГ МОД” САНААЧИЛГЫГ ХАМТРАН ХЭРЭГЖҮҮЛНЭ WWW.BILLIONTREE.MN НИЙТЭЛСЭН:2025/06/13     ЕРӨНХИЙЛӨГЧИЙН ТАМГЫН ГАЗРЫН ДАРГААР А.ҮЙЛСТӨГӨЛДӨР АЖИЛЛАНА WWW.EAGLE.MN НИЙТЭЛСЭН:2025/06/13     34 ДЭХ ЕРӨНХИЙ САЙД Г.ЗАНДАНШАТАР ХЭРХЭН АЖИЛЛАНА ГЭЖ АМЛАВ? WWW.EGUUR.MN НИЙТЭЛСЭН:2025/06/13     “АНГЛИ ХЭЛНИЙ МЭРГЭШЛИЙН ТӨВ”-ИЙГ МУИС-Д НЭЭЛЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/06/13     Г.ЗАНДАНШАТАР БАЯЛГИЙН САНГИЙН БОДЛОГЫГ ҮРГЭЛЖЛҮҮЛНЭ ГЭЖ АМЛАЛАА WWW.EGUUR.MN НИЙТЭЛСЭН:2025/06/12    

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MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2024 London UK MBCCI London UK Goodman LLC

NEWS

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President U.Khurelsukh: I will not support constitutional amendments www.gogo.mn

In light of recent political discussions, President Khurelsukh Ukhnaa expressed his position on proposed constitutional changes via his social media account.
“Recently, the idea of amending the Constitution of Mongolia and introducing a presidential system has been circulating in political circles and among the public. I have previously stated and I reiterate with full responsibility that I will not support any constitutional amendments during my presidency. This position remains unchanged.
Mongolia is a parliamentary republic, as enshrined in its Constitution, and that this form of governance reflects the choice and values of the Mongolian people.
As Head of State, I firmly believe that Mongolia should further strengthen its parliamentary system and refine democratic governance. This is essential to safeguard the country’s independence, national security, and the unity of its people”.
President U.Khurelsukh also noted that he publicly maintained the same position during his time as Prime Minister.

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Mongolia Equity Investment: Unlocking Hidden Value and Long-Term Returns www.delphos.co

The Mongolian Stock Exchange’s Top 20 Index (MSE Top 20) has delivered a striking performance, rising more than 200% over the past decade—from 10,000-15,000 points in 2014 to 52,433.3 points by February 2025. Mongolia’s equity markets are gaining traction as investors seek growth opportunities in this frontier economy, with Delphos, a leader in frontier market finance, playing a pivotal role. This surge underscores the country’s expanding potential in key sectors such as energy, fintech, and infrastructure. Supported by regulatory reforms, increased investor confidence, and Delphos’s expertise, Mongolia is emerging as a compelling destination for equity investors seeking exposure to a rapidly evolving economy.
Often overlooked, Mongolia offers more than a strategic link between China and Russia—it is a land of immense investment opportunities. With strong fundamentals, growing liquidity, capacity-building initiatives, and underexposure ripe for early movers, Mongolia is quietly shaping up to be the next big frontier for equity investors.
Explore Mongolia’s growing equity market and learn why investors are turning to energy, fintech, and infrastructure in this frontier economy. How to invest in Mongolia's equity market. Why Mongolia is the next frontier for equity investors. Graph showing the Mongolian stock exchange about how Mongolia equity market tripled since 2017. 
With GDP growth projected at 6.3% by 2025 and public debt levels steadily declining, Mongolia offers a foundation of economic stability balanced by strategic regional importance.
Bart Turtelboom, Chairman & CEO at Delphos, captures the unique appeal, noting, “Frontier investors look for asymmetric upside with real fundamentals. Mongolia checks all three boxes.”
This blog explores key focus areas poised for equity expansion, from renewable energy to fintech, and demonstrates why Mongolia is an untapped reservoir for institutional capital.
Investing in Mongolia’s Emerging Economy
Mongolia has demonstrated significant economic growth in recent years, fueled by its abundant natural resources and strategic position within the Asia-Pacific region. However, as with many emerging economies, it faces the dual challenge of reducing dependency on its mining sector while fostering sustainable and diversified growth. By prioritizing innovative business models and strengthening its private sector, Mongolia is working to attract global investors and deepen its integration into the global trade network.
To support this transformation, the government has introduced policies aimed at enhancing the business environment, improving the investment climate, and expanding access to financing. These measures have successfully drawn foreign investment, with companies implementing modern business models across a range of industries. Mongolia’s commitment to economic diversification and innovation positions it as an emerging market poised for transformation and long-term growth.
Top Reasons for Equity Investors to Invest in Mongolia Now
Mongolia’s location and growing economy offer exciting opportunities for equity investors in emerging markets. Here’s why Mongolia deserves attention:
Critical Mineral Exports Drive Growth: Mongolia isn’t just a coal economy. In 2024, it exported a record 83.7 million tons of coal, but its equity potential is increasingly tied to copper, gold, and rare earth elements (REE). The Oyu Tolgoi copper mine, one of the world’s largest, is ramping up production under Rio Tinto, while Mongolia expands partnerships in rare earths and uranium to diversify revenue and meet regional demand.
Resilient Growth, Broader Economy: GDP grew 4.9% in 2024 after a strong 7.0% in 2023, driven by services and investments in energy and mining. Non-mining sectors like agriculture and tech contributed 27% of GDP, highlighting Mongolia’s pivot to a more diverse economy.
Rising Trade and Openness: Foreign trade turnover hit US$25.2B in the first 11 months of 2024—up 13.4% year-on-year. Mongolia trades with over 150 markets, with growing exports to South Korea and Japan alongside major flows to China.
Investor-Friendly Policies: Mongolia is easing forex regulations, stabilizing taxes for equity investors, and digitizing permits through E-Mongolia reforms. These changes reduce barriers, support deals, and simplify exits—key for private equity and venture strategies.
With its critical mineral resources, robust growth, expanding trade, and supportive policies, Mongolia offers unparalleled opportunities for equity investors looking to maximize returns in emerging markets. Investors looking for high-growth markets should keep Mongolia on their radar.
Unlocking Mongolia’s Potential: A Prime Opportunity for Equity Investors
With simplified tax codes and improved FX regulation, Mongolia is shaping a welcoming space for FDI. Integrated payment systems and digital tools further enhance operational viability for global investors.
Impact-driven projects and development finance play a crucial role in Mongolia’s investment landscape, aligning with the goals of project sponsors and investors to foster economic growth and address complex financial and societal needs.
Financial Advisory Firms like Delphos are already helping local companies align with international standards. In a capital-scarce environment, these dynamics create an edge for those who invest early and strategically.
Explore Mongolia’s markets with Delphos—discover equity opportunities in energy, fintech, and infrastructure for forward-thinking investors. How to invest in Mongolia's equity market. Why Mongolia is the next frontier for equity investors. Photo of Bart, Chairman and CEO of Delphos on how Mangolia is one of the few frontier markets where the fundamentals, policy environment, and demand trends are all moving in the right direction. 
Investment Opportunities in Mongolia for Equity Investors
Mongolia’s investment environment is evolving in step with its economic ambitions. The government has prioritized investor engagement, offering tax incentives, streamlined regulatory procedures, and newly empowered investment promotion agencies. Strategic sectors such as mining, renewables, and infrastructure are backed by policy frameworks that aim to de-risk early-stage capital.
As the regulatory landscape matures and investor confidence rises, Mongolia is becoming a viable choice for global capital seeking stable entry points into frontier markets.
Bart Turtelboom, Chairman & CEO of Delphos, shares his perspective on Mongolia’s promising investment landscape: “Mongolia is one of the few frontier markets where the fundamentals, policy environment, and demand trends are all moving in the right direction. For equity investors, these conditions do not come around often—and when they do, the advantage goes to those who act early.”
The Energy Sector: High-Performing Real Assets Driving Regional Growth for Equity Investors
The energy sector in Mongolia presents a significant opportunity for equity investors, as the country accelerates its mission toward renewable energy. Mongolia has committed to renewable energy, aiming for 30% capacity by 2030. With vast solar and wind potential, it is emerging as a key exporter of green energy across Asia. However, fossil fuels still dominate, making this transition essential to the country’s long-term climate strategy. Mongolia’s heavy reliance on coal for electricity generation underscores the urgent need to transition to renewable energy sources to meet future energy demands and environmental goals. The use of solar panels is increasing but remains in its early stages.
The IFC-backed 50-megawatt Battery Energy Storage System (BESS) bond in Ulaanbaatar showcases global confidence. Integrating clean energy into existing infrastructure is still a challenge, but the shift unlocks high-return investment opportunities in energy technologies and storage.
The financial services sector in Mongolia is emerging as a high-potential space for equity investors seeking growth in frontier markets. Driven by rapid modernization, supportive regulation, and rising demand, Mongolia’s financial system is undergoing a major shift. As of 2024, nearly 98% of the adult population holds a bank account, highlighting significant progress in financial inclusion.
Yet despite these gains, approximately 50% of Mongolians remain underserved—particularly in rural areas and among small businesses. This underserved segment offers first-mover equity opportunities in fintech, microfinance, and SME banking, where innovation and scale are ready to accelerate.
Delphos, a global leader in impact-oriented finance, has been instrumental in catalyzing this momentum. Through a US$15MM facility for Bogd Bank, Delphos is advancing financing solutions for women-led SMEs. These aligned capital strategies not only contribute to inclusive growth but also offer scalable equity investment opportunities in Mongolia’s evolving banking ecosystem.
“Banking in Mongolia today presents vast potential for equity investors, driven by modernization, digitalization, and a strong push for financial inclusion.” – Bart Turtelboom – Chairman and CEO – Delphos.
He highlights the vast opportunities in the financial sector as it modernizes, not just in Mongolia but across other Central Asian countries. With adaptive regulations fostering competition and innovation in digital payments and e-commerce, the region is becoming fertile ground for forward-thinking investors.
Digital Infrastructure: Investment in AI and Data Center is the Next Big Opportunity in Mongolia
Investments in broadband networks, data centers, digital platforms, and emerging new technologies like AI, IoT, and 5G are essential to unlocking new economic potential, boosting productivity, and fostering innovation across sectors. In an increasingly interconnected global economy, these advancements play a critical role in driving competitiveness and collaboration. With supportive government policies and growing interest from international stakeholders, digital infrastructure development presents a promising avenue for sustainable growth in the region.
Mongolia’s national AI strategy is more than policy—it is an economic lever. From agri-tech to digital identity systems, the country is building data infrastructure to support digital governance and citizen engagement. This trend supports the rise of new technologies in both public and private sectors.
Egune AI’s US$3.5MM raise is one of several signals that Mongolia’s tech innovation is investment-ready. These initiatives will help shape a digital future that is inclusive, scalable, and exportable.
Strategic Infrastructure Investment Opportunities
Infrastructure development underpins every other sector. Mongolia has significantly increased spending on energy, digital systems, and transportation. It continues to seek private capital through financing partnerships and impact-aligned concessions.
The emphasis on shifting away from fossil fuels to more sustainable practices is accompanied by strong public support for renewable deployment—especially in energy-poor urban areas.
Mongolia – Leveraging PPPs and Private Capital for Economic Growth Opportunities
Mongolia is at the forefront of embracing innovative investment approaches to fuel its economic growth and development. The country is exploring new financing models, such as public-private partnerships (PPPs) and green bonds, to support the expansion of its renewable energy sector. By leveraging technologies like solar panels and wind turbines, Mongolia aims to reduce its reliance on fossil fuels and minimize its carbon footprint.
The government has launched several initiatives to foster innovation and entrepreneurship, including startup incubators, accelerators, and funding opportunities for small and medium-sized enterprises (SMEs). These efforts are designed to create a vibrant ecosystem that supports sustainable growth and positions Mongolia as a leader in renewable energy and technological innovation.
Creating an Investor-Friendly Business Landscape
The Mongolian government is creating a business-friendly environment to attract foreign investment and boost economic growth. By adopting new technologies and reforms, Mongolia has simplified regulations, cut bureaucracy, and introduced solutions to make doing business easier. However, challenges remain in ensuring fair access to opportunities while maintaining sustainable growth.
Here are three strategic initiatives designed to enhance Mongolia’s appeal to equity investors:
Tax Incentives for Equity Capital: Mongolia offers tax benefits like reduced corporate tax rates, investment credits, and temporary tax holidays. These are especially beneficial in sectors like renewable energy, mining, and infrastructure, boosting post-tax returns for foreign investors and driving capital into key industries.
Streamlined Business Regulations: The E-Mongolia platform and recent permit and licensing reforms have simplified starting and running businesses. Digital systems, along with updated laws on data protection, e-signatures, and cybersecurity, have reduced entry barriers and operational costs for foreign companies, increasing Mongolia’s investment appeal.
Robust Legal Protections: Mongolia’s Investment Law ensures equal treatment for foreign investors and offers tax stabilization agreements lasting up to 27 years. These guarantees provide predictability and confidence for long-term investments, strengthening Mongolia’s global competitiveness.
With targeted initiatives in high-growth sectors like renewable energy, mining, and manufacturing, Mongolia is becoming a top destination for international investment. By focusing on stability, transparency, and efficiency, the government is building a strong foundation for economic growth and attracting investors seeking long-term value in frontier markets.
Delphos: Unlocking Equity Investment Opportunities in Mongolia
If you are interested in investing in Mongolia or seeking competitively priced capital, Delphos is your ideal partner. Navigating frontier markets requires insight and proven structure, and we specialize in mitigating challenges while delivering scalable solutions that balance return and impact.
Delphos Explores the Evolution of Capital Raising Efforts in Mongolia
Delphos drives impactful financial solutions across Mongolia’s key growth sectors, mobilizing capital for inclusive banking, housing, and digital finance. Here’s how we’ve partnered with leading organizations to unlock growth and innovation:
Bogd Bank: Delphos successfully closed two transformative financing facilities for Bogd Bank:
In 2022, Delphos structured a US$15 million senior facility to boost credit access for women-owned small businesses and climate-focused enterprises, backed by international development finance institutions.
In 2024, Delphos secured an US$8 million blended capital transaction, further advancing inclusive finance and solidifying Bogd Bank’s leadership in green and gender-lens banking in Mongolia.
MIK (Mongolian Mortgage Corporation): In 2025, Delphos advised MIK on a groundbreaking US$150 million housing finance transaction. As one of Mongolia’s largest capital raises in housing finance, this deal expands mortgage-backed securities and increases affordable homeownership through long-term, structured investment.
LendMN: In 2026, Delphos advised LendMN, a leading mobile-first digital lender, on raising an up to US$20 million senior secured debt facility. This funding supports fintech-led SME lending and enhances digital credit access for underserved Mongolian borrowers.
Delphos combines decades of experience in emerging markets with unmatched expertise in structuring capital for high-growth sectors. Our focus on renewable energy, digital finance, and inclusive infrastructure ensures alignment with opportunities driving Mongolia’s next growth cycle. Backed by global insights from Africa, Asia, and Latin America, we deliver a strategic edge for frontier markets.

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Inflation to Be Maintained at 7 Percent in 2026 www.montsame.mn

On May 28, 2025, during the regular session of the Standing Committee on Budget of the State Great Khural (Parliament) of Mongolia, Members held the final discussion on the draft Law on the Fiscal Framework Statement for 2026 and the Budget Outlook for 2027–2028, along with the accompanying draft Resolution.
In accordance with the Law, the Parliament of Mongolia is required to deliberate and adopt strategic documents and the draft medium-term Fiscal Framework Statement by June 1 each year. The draft Law projects economic growth at 6 percent in 2026 and 6.5 percent in both 2027 and 2028. It also sets the inflation target at 7 percent for 2026, 6.4 percent for 2027, and 6 percent for 2028.
To curb inflation, the Government of Mongolia plans to implement comprehensive reforms in the agricultural sector, ensure a stable increase in food supply, boost Mongolia’s foreign currency reserves, and limit the expansion of budget expenditures.

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Funding Sources from Banks to NBFIs Have Doubled www.montsame.mn

A total of 575 non-bank financial institutions (NBFIs) operated in the first quarter of 2025 under licenses issued by the Financial Regulatory Commission of Mongolia (FRC), marking an 8.3 percent increase compared to the same period in 2024.
Of these licensed institutions, 4.9 percent are foreign-invested, while 95.1 percent are funded by domestic investors.
Currently, 48.7 percent of NBFI funding comes from liabilities, and 51.3 percent from equity. Compared to 2024, the amount sourced from trust services increased by 57.6 percent, bank and financial institution funding doubled, and the issuance of debt securities by NBFIs rose by 79.4 percent.
Among foreign-invested NBFIs, 13 are backed by Japanese investors, 7 by South Korean investors, 2 by American investors, and the remainder by investors from the United Kingdom, Canada, Malaysia, Seychelles, and the People's Republic of China. These foreign-invested NBFIs account for 12.6 percent of the sector’s total assets and serve 5.8 percent of all customers.
The total assets of NBFIs are equivalent to 8.9 percent of Mongolia’s GDP. The sector's outstanding loans have reached MNT 6.325 trillion, which is an increase of MNT 2.2 trillion compared to the same period in 2024, and MNT 4.4 trillion more than in 2021.

 

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South Korea Leads OECD Plan to Safeguard Mongolia’s Water Future www.koreabizwire.com

South Korea, in partnership with the OECD, has unveiled a comprehensive strategy to help Mongolia confront its growing water crisis, as climate pressures and overreliance on groundwater threaten supplies across the country.
The proposal, announced Wednesday at the Mongolian Agency for Meteorology and Environmental Monitoring in Ulan Bator, marks the culmination of the third-year phase of the “Investment Program to Enhance Sustainable Water Security in Asia.” The five-year initiative, jointly led by South Korea’s Ministry of Environment, the OECD, and the Asia Water Council, supports water resilience planning across eight Asian nations.
Mongolia’s economy is heavily dependent on water-intensive sectors such as mining, textiles, and agriculture, which together account for roughly 40% of national output. Yet the country remains reliant on groundwater — a finite resource increasingly strained by urban demand and climate change.
The report warns that without policy intervention, many regions — including the capital — could face acute water shortages before 2040.
To mitigate this, the report recommends phasing in water tariffs for currently exempt users, such as households and public institutions, and introducing national-level water allocation frameworks and abstraction caps in high-risk areas.
Further proposals include expanding public-private partnerships (PPPs) to boost investment in water infrastructure, modernizing hydrological monitoring systems, and implementing performance-based contracts for utilities to reduce leakage and improve supply reliability.
The initiative reflects South Korea’s growing role in shaping environmental policy and infrastructure development across Asia through multilateral cooperation.
M. H. Lee (mhlee@koreabizwire.com)

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President of Turkmenistan to pay state visit to Mongolia www.qazinform.com

At the invitation of President of Mongolia Khurelsukh Ukhnaa, President of Turkmenistan Serdar Berdimuhamedow will pay a state visit to Mongolia on June 1-2, 2025, Montsame reported.
This will be the first visit of the Turkmen President to Mongolia since the establishment of diplomatic relations in 1992.
It is a reciprocal visit following the state visit of President of Mongolia Khurelsukh Ukhnaa to Turkmenistan in 2024.
During the state visit, President of Mongolia Khurelsukh Ukhnaa and President of Turkmenistan Serdar Berdimuhamedow will hold official talks and exchange views on expanding and developing friendly relations and cooperation between the two countries, as well as cooperation in regional and international fora.
Mongolia and Turkmenistan established diplomatic relations on April 23, 1992.
On May 21, the Majilis (lower chamber) of the Kazakh Parliament ratified the Treaty on mutual investment promotion and protection between Kazakhstan and Turkmenistan.

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Before the Great Wall, Chinese rulers built a shallow ditch www.newscientist.com

Long before the Great Wall of China was constructed, other monumental walls were built across the Eurasian steppes – but they weren’t designed to defend against Mongol armies. Recent excavations reveal that they were erected to control movement of people or demonstrate power, much like border walls today.
The Great Wall of China spans many thousands of kilometres, the longest stretch running some 8850 kilometres. This part dates from the Ming dynasty (AD 1368 to 1644) and served as a physical barrier to defend against Mongol raids.
Unlike the Great Wall, which is – as the name implies – made up of large walls, the earlier system is a network of trenches, walls and enclosures stretching approximately 4000 kilometres across more northerly regions in China, Mongolia and Russia.
It was built between the 10th and 12th centuries by several dynasties, chiefly the Jin dynasty (AD 1115 to 1234), which was founded by Jurchen people from Siberia and north-east China, who were mainly pastoralists.
Gideon Shelach-Lavi at the Hebrew University of Jerusalem and his colleagues had already surveyed and mapped the walls using satellite imagery and drones, but now they have studied a section running for 405 kilometres through what is now Mongolia and excavated at one of the enclosures.
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The structures were made up of a ditch about 1 metre deep and 3 metres wide, with the earth from it piled up on one side, creating a wall of compressed earth that may have been a metre or two tall. Then, every few kilometres along the wall, there was a thick, square, stone enclosure, about 30 metres across.
What the walls were built for hasn’t been clear. There is very little historical documentation about them and they weren’t built at natural geographic borders, says Shelach-Lavi.
Many historians thought they were built to stop the armies of Genghis Khan, who ruled the Mongol Empire from 1206 until 1227, says Shelach-Lavi.
The structures wouldn’t have been particularly effective defensively, though. “This was not meant to stop invading armies,” says Shelach-Lavi.
Instead, he suggests it was more of a show of power – to demonstrate that the area was under the control of the Jin dynasty. The wall would also have funnelled people through gates at the enclosures, so the flow of people, goods and animals could be managed. It might also have been used to prevent small raids, even if not stopping armies, he says.
“The idea, I think, is to channel those people to where you have those enclosures, so you can control them, you can tax them,” he says. “It’s a matter of controlling who is moving, and in this respect, it’s not very different from what we see today.”
Read more
Pompeii’s streets show how the city adapted to Roman rule
Finds at the enclosure also shed light on how the people there may have lived. “This is a pastoralist area,” says Shelach-Lavi. “We find a lot of evidence in the region of people living off herding and hunting and fishing.”
And yet, at the enclosure, the researchers found coins from the Han Chinese Song dynasty, which was at war with the Jin dynasty, as well as ceramics, a plough head and a stone platform or bench that could be heated and used as a stove or bed.
This implies that significant resources were invested into the garrison’s construction and maintenance, says Shelach-Lavi, and also that the people lived here all year round and practised agriculture. “That’s surprising because even today, they don’t do agriculture in this place,” he says.
By Chris Simms

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IMF Report: Mongolia’s Economy Gains Most When Government Invests in Infrastructure www.devdiscourse.com

An IMF study finds Mongolia’s fiscal multipliers are low due to high import leakages, with capital spending having the strongest and most lasting economic impact. It urges a shift from current spending to infrastructure investment and cautions against overreliance on tax cuts for growth.
A new working paper by the International Monetary Fund (IMF), titled "Fiscal Multipliers in Mongolia" and authored by Tigran Poghosyan from the IMF’s Asia and Pacific Department, offers a rigorous analysis of how government spending and tax policies shape Mongolia’s economic trajectory. The study benefits from the collaboration of key institutions such as the IMF Resident Representative Office in Mongolia and the World Bank’s Mongolia office. Using a structural vector autoregressive (SVAR) model and more than two decades of quarterly data from 2000 to 2023, the research reveals that Mongolia’s fiscal multipliers, indicators that measure the effect of fiscal policy on economic output, remain disappointingly low. The findings indicate that both spending and revenue multipliers are well below one, reflecting a constrained fiscal environment where much of the intended stimulus dissipates through import leakages and structural inefficiencies.
Why Stimulus Measures Often Fall Short in Mongolia
Mongolia’s economy has long relied on fiscal tools due to its relatively rigid exchange rate and limited monetary flexibility. The government has typically used public spending, particularly in the form of current expenditures like wages, pensions, and social support programs, to stimulate economic activity. However, these measures often fail to deliver robust or sustained growth. The study points out that these recurrent outlays, especially in election years, are politically motivated and not strategically aligned with long-term development goals. Tax exemptions are also frequently employed as a short-term fix, but they have had minimal impact on improving competitiveness or encouraging private sector investment.
Adding to the challenge is Mongolia’s high vulnerability to global commodity cycles, given its dependency on mineral exports. With public debt increasingly dominated by foreign currency instruments, the country is exposed to significant fiscal risks during external shocks. In this setting, the paper seeks to measure the true effectiveness of different types of fiscal interventions.
Low Multipliers and High Leakages: The Empirical Findings
The results are striking. The total government spending multiplier peaks at a mere 0.3, implying that for every additional tögrög spent by the government, GDP rises by only 0.3 tögrög. The multiplier effect dissipates after a few quarters, highlighting the fleeting impact of government expenditures. Meanwhile, the revenue multiplier, a measure of GDP change following a reduction in taxes or increase in government income, is even lower, peaking at -0.1 and losing statistical significance after just two quarters. These low figures suggest that a significant portion of fiscal stimulus leaks out of the economy, largely through imports.
When the study adjusts for special circumstances such as IMF program periods, economic crises, and parliamentary elections, the results change only marginally. This indicates that Mongolia’s fiscal constraints are not simply a product of temporary crises or political cycles but stem from deeper structural characteristics.
A more granular analysis reveals that the composition of government spending matters greatly. Capital expenditures, such as infrastructure projects, are significantly more effective than current spending. The capital spending multiplier starts at 0.3 and peaks at 0.6 between the fifth and seventh quarters, maintaining its impact for a longer period. In contrast, the current spending multiplier tops out at just 0.2 and fades quickly. These results align with previous global research, including findings by Ilzetzki and colleagues, which show that infrastructure and investment-related expenditures tend to have stronger and more durable economic impacts.
This contrast underscores a major policy lesson: capital investment not only delivers better immediate returns but also helps lay the foundation for future growth. The persistence and scale of capital multipliers make a compelling case for reorienting fiscal strategy toward long-term investment rather than short-term consumption.
Rethinking Tax Policy and Revenue Dependence
On the revenue side, the story is equally sobering. Tax and non-tax revenues both show weak multiplier effects. The tax revenue multiplier is -0.1, while the non-tax revenue multiplier, which includes earnings from Mongolia’s mineral wealth, peaks at -0.2 and quickly loses relevance. There is little difference in their effects, and both fail to provide any sustained lift to GDP. Compounding the problem, Mongolia rarely undertakes major tax policy reforms, limiting the ability to assess or optimize revenue strategies. Furthermore, due to the lack of disaggregated quarterly data, the study could not separate mining and non-mining revenues, an omission that, if addressed, might yield further insights into sector-specific dynamics.
Policy Lessons: Prioritize Investment, Build Resilience
The implications for policymakers are clear. With fiscal multipliers below one, Mongolia cannot expect spending or tax cuts alone to meaningfully boost economic growth, especially when much of the stimulus leaks out through imports. The paper urges the government to avoid cutting capital investments during fiscal consolidations, as these have the most growth potential. Likewise, tax cuts should be approached cautiously, since their ability to spur the economy appears marginal at best.
Instead, Mongolia should focus on improving tax collection efficiency, reducing its dependence on volatile non-tax revenues, and investing more in productive infrastructure. Diversifying the economy away from mining and reducing trade-related vulnerabilities will also be crucial. Finally, future research should explore the role of governance, the interaction between fiscal and monetary policy, and the broader institutional environment to fully understand the drivers and limits of fiscal effectiveness in Mongolia.
In a country seeking to balance growth, stability, and fiscal sustainability, this IMF study serves as a critical roadmap, pointing not just to what isn’t working, but also to what could.

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Mongolia exports 25 mln tons of coal in first 4 months www.xinhuanet.com

Mongolia exported 25 million tons of coal in the first four months of 2025, local media reported on Tuesday, citing official data released by the country's Ministry of Finance.
The figure decreased by 44 percent in terms of value since the beginning of this year, the data showed.
The mining sector remains one of the main pillars of the Mongolian economy, as the country is rich in natural resources such as gold, silver, copper and coal.
A significant share of Mongolia's coal production is accounted for by the Tavan-Tolgoi coal deposit, which is one of the world's largest untapped coking and thermal coal deposits, located in the southern Mongolian province of Umnugovi. It has a total estimated resource of 6.5 billion tons, one-quarter of which is high-quality coking coal.

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3.1 billion USD deficit in service recorded www.ubpost.mn

According to the Mongol Bank’s daily record of USD coming in and going out of citizens’ services accounts, as of 2024, Mongolians earned 1.5 billion USD through services such as education, finance and medical care. However, they lost 4.6 billion USD to foreign countries. In essence, the USD earned by selling natural resources are being absorbed abroad, not in Mongolia.
Mongolians often purchase medical, educational and financial services from abroad. The tourism services account alone had a loss of 954.4 million USD last year. For example, the country earned 581.7 million USD through private travel, but lost 1.5 billion USD in return. Also, it earned 42.1 million USD through educational services, but lost 602.4 million USD to foreign countries.
The next service that loses the most USD from mining is transportation. The deficit in the transportation services account continues to grow year by year. Last year, the transportation-related services account suffered a deficit of 800 million USD. Basically, while 1.4 billion USD was lost in freight transportation alone, it earned 606.5 million USD. The majority of this loss, or 1.2 billion USD, was spent on freight transportation. However, passenger transportation services last year showed a relatively positive performance compared to previous years, when they incurred a deficit of 13.6 million USD.
The construction and financial services account recorded a deficit of 396 million USD last year. Construction and financial services alone earned 43.6 million USD, while the surplus was 223.8 million USD. Of course, this figure is growing as the economy recovers. Depending on the skills of Mongolians, they pay foreign consulting companies for financial services. Last year, Mongolians earned 12 million USD through their own financial knowledge. However, they paid 228.2 million USD to foreign consulting companies.
Due to the value of Mongolian knowledge, other business services are often purchased from abroad. For example, last year, Mongolia spent 458 million USD on professional and management consulting services, while 102 million USD was imported into Mongolia.
In general, the category of other business services has a large deficit. Through this type of service, while 499 million USD were sent abroad in 2020, it has increased to 1.1 billion USD in 2024. The maximum USD that is received back is more than 230 million USD. Moreover, as of last year, 706.6 million USD were sent abroad for architectural, engineering, scientific and technological services, and 121 million USD were received back.

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