Azerbaijani Finance Minister Sahil Babayev met with a World Bank delegation to discuss ways to improve dividend policy and corporate governance at state-owned enterprises.
Report informs that the delegation included Roland Pryce, the World Bank's regional director for the South Caucasus, and Abebe Adugna, its regional practice director for prosperity in Europe and Central Asia.
The talks covered the state and prospects of Azerbaijan's partnership with the World Bank, as well as macroeconomic stability, fiscal sustainability, economic diversification, public financial management and reforms at state-owned enterprises.
Babayev said Azerbaijan placed particular importance on its long-standing partnership with the World Bank and valued its contribution to the country's economic development, institutional reforms and public sector modernization. He said the 2025–2029 Country Partnership Framework opened up opportunities to work together on diversifying the economy, developing the private sector, raising productivity and sustaining economic growth.
The minister said maintaining macroeconomic stability and strengthening fiscal sustainability were government priorities. He outlined measures to improve public financial management, strengthen fiscal discipline, make budget spending more efficient and gradually reduce reliance on oil and gas revenues. The meeting also highlighted the importance of developing the non-oil sector, encouraging private investment and expanding export capacity to support long-term growth.
Babayev outlined work on a digital public finance information system that will bring budget planning and execution, treasury operations and financial reporting onto a single platform. He also discussed efforts to expand program- and performance-based budgeting and digitize public procurement. The meeting underscored the importance of continued cooperation with the World Bank in these areas.
The two sides discussed reforms to financial management and oversight at state-owned enterprises and explored ways to work together on improving financial discipline, corporate governance and dividend policy, as well as managing potential fiscal risks.
They also discussed preparations for the Global Conference on State-Owned Enterprises, which is planned for April 2027 in Baku in partnership with the World Bank Group. The conference is expected to provide a forum for sharing international experience in enterprise governance and financial sustainability.
The two sides reviewed a draft Report on the Observance of Standards and Codes (ROSC) on accounting and auditing, prepared with World Bank support, and its recommendations. They stressed the importance of improving legislation, raising the quality and transparency of financial reporting, strengthening audit oversight and continuing discussions on outstanding issues.
The meeting also covered the next phase of the World Bank's analytical work on economic growth and diversification, along with potential investments in agriculture, water resource management, transport and urban infrastructure.
World Bank representatives welcomed progress in the partnership and expressed interest in continuing to support Azerbaijan's economic and institutional reforms through technical, analytical and financial cooperation on public financial management and state-owned enterprises.