Ulaanbaatar
Government to Cut Number of State-Owned Companies by 22
Politics
Ulaanbaatar, August 7, 2025 /MONTSAME/. At its regular Cabinet meeting held on August 6, 2025, the Government of Mongolia has resolved to reduce the number of state-owned and state-involved enterprises from 109 to 87.
As of the first half of 2025, a total of 109 companies—including 86 parent companies and their subsidiaries—have been operating in 11 sectors such as energy, road, transport, mining, banking, and finance.
Director of the Government Agency for Policy Coordination on State Property (PCSP), B. Tsengel, stated, “We have been tasked with improving the profitability of these companies, liquidating, or consolidating loss-making entities, and reducing unnecessary expenditures, including executive compensation. An efficient salary system will be developed and urgently submitted for Government approval. We believe there is potential to reduce the total number of state-owned companies by 20 percent in phases.”
In addition, relevant officials were instructed to evaluate the implementation of privatization-related resolutions approved by the State Great Khural and the Government. A strategic plan must be developed by August 15, 2025, to open the shares of state-owned legal entities to public trading, sell Government-held shares, and restructure state-owned enterprises.
Officials were further tasked with preparing a roadmap titled “Key Directions for Public Offering of Shares of State-Owned Legal Entities, Sales and Restructuring of State-Owned Assets in 2025–2028.”
The
Government also emphasized the need to review the successes and failures of
privatization efforts over the past 35 years, concluding that, in line with
the Constitution, legal definitions of public ownership, asset types, and
transfer mechanisms should be clarified. These reforms will be implemented
through a revised Law on State and Local Property and amendments to the Law on Companies, reflecting current socio-economic demands and international best practices.
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