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Cabinet Addresses Energy Restoration, Social Welfare, and Cross-Border Cooperation

At its regular meeting on October 1, the Cabinet discussed and resolved several key issues concerning energy restoration, social welfare, foreign economic cooperation, and the 2026 state budget.

Energy Restoration Efforts

A major focus of the meeting was the ongoing restoration of Thermal Power Plant III, which experienced an accident at its high-pressure section. The Ministry of Energy reported that five major measures are underway to restore operations, including equipment replacement and reconstruction of fire-damaged facilities.

Three packages of work, now 90 percent complete, are scheduled for completion before the peak winter demand, while the remaining two will be finalized before the following winter. With prompt financial and legal support from the Government, restoration has progressed successfully. Officials emphasized that disruptions in Ulaanbaatar’s heating supply have been eliminated, while electricity production is expected to reach 50 percent of last year’s level. The remaining demand will be met by new energy sources.

Revised Social Welfare Regulation

The Cabinet also revised and approved the Regulation on Aiding and Benefits to Persons with Developmental Challenges. First adopted under Government Resolution No. 197 in 2017, the regulation has been updated to simplify the provision of assistance from the Social Welfare Fund and to resolve challenges encountered in its implementation. Under the new rules, citizens will no longer be required to submit paper documents already available through the ehalamj.mn welfare system and the E-Mongolia public service platform.

Cross-Border Economic Cooperation with China

In foreign economic cooperation, the Government approved the General Plan for the Joint Development of the Mongolia–China Zamiin-Uud and Erlian Economic Cooperation Zone, following the intergovernmental agreement signed between the two countries. Deputy Prime Minister S. Amarsaikhan and Minister of Foreign Affairs B. Battsetseg were tasked with overseeing implementation, while other Cabinet members were instructed to support development of the free zone in line with existing legislation.

Preparations for the 2026 State Budget

The meeting also reviewed progress on preparations for the 2026 State Budget. According to the draft budget law submitted to parliament, a total of 579 projects and measures are included for financing, comprising 149 new initiatives and 430 continuing projects.

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G.Zandanshatar: The Government Has Laid the Foundation for a Digital Future in Its First 100 Days

The “ICT Forum” was held on September 26, as part of “Tech Week 2025,” a comprehensive national event dedicated to discussing innovation, technology, future trends, investment, and policy issues in the information and communications technology sector. The forum also provided a platform for exchanging experiences and ensuring active participation of stakeholders.

Prime Minister of Mongolia G.Zandanshatar delivered the keynote speech at the opening of the event.

In his remarks, the Prime Minister highlighted that the day marked the 100th day since the formation of the Government, noting that historic and innovative steps had been taken in the ICT sector during this period, laying the groundwork for a new digital era.

He underlined that the Government has established a “Virtual Zone to Support Information Technology Production” and approved seven principles and 74 recommendations under the “Digital First” policy. In addition, the adoption of the “National Strategy for Big Data and Artificial Intelligence” has created a solid foundation for Mongolia’s digital future.

According to the Prime Minister, these measures will boost government productivity and open new opportunities to address challenges faced by citizens and businesses through quick, smart technological solutions.

He also emphasized that by accelerating its digital transformation, Mongolia has risen to 46th place among 193 countries in the United Nations’ global e-governance ranking, elevating the country’s level of digital governance to a new stage.

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Prime Minister G.Zandanshatar Visits the 20th Harvest Days Exhibition

On September 25, Prime Minister G.Zandanshatar visited the 20th Harvest Days exhibition and met with representatives of vegetable farmers.

The exhibition brings together more than 200 farmers from all 21 aimags, along with over 300 representatives from the food, agriculture, light industry, small and medium-sized enterprises, trade, catering sectors, and cooperatives.

The event aims to strengthen the competitiveness of Mongolia’s food, agriculture, and light manufacturing industries, expand the production of import-substituting and export-oriented goods, and promote as well as support regional and local farmers and producers.

The Harvest Days exhibition is being held at the Central Stadium from September 22 to 28.

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Cabinet Discusses Draft of Five-Year Development Plan for Mongolia

Highlights of the Cabinet Meeting on September 24

Cabinet Reviews Five-Year Development Plan (2026–2030)

First Deputy Prime Minister and Minister of Economy and Development N.Uchral presented the draft of Mongolia’s Five-Year Development Plan (2026–2030) to the Cabinet.

Following the discussion, N.Uchral was tasked with finalizing the draft, incorporating the Cabinet’s recommendations in line with relevant laws and long-term development policies, and resubmitting it by October 15.

The draft plan outlines 10 key goals across eight priority areas: Human Development, Social Development, Economic Development, Environment, Governance, Regional Development, National Competitiveness, and Science and Technology. These align with Mongolia’s long-term development vision.

Government Launches Digital First Initiative Across Public Services

The Cabinet approved the Digital First policy to accelerate Mongolia’s digital transformation and enhance government efficiency.

The initiative prioritizes technology in decision-making, policy formulation, and service delivery across all levels of government. It calls for abandoning paper-based processes and emphasizes collaboration among citizens, government, and the private sector.

“The Digital First policy sets the principle that all decisions, services, and activities should be electronic, with the full participation of the state, citizens, and legal entities,” said E.Batshugar, Minister of Digital Development, Innovation and Communications.

The policy serves as a guiding framework for implementing Mongolia’s long- and medium-term digital development goals, as well as the adoption of advanced technologies.

Mongolia and Australia to Sign Air Services Agreement

The Cabinet approved the draft Air Services Agreement between Mongolia and Australia, authorizing its formal signing.

In October 2024, representatives of the two countries’ civil aviation authorities signed a draft agreement and a Memorandum of Understanding on bilateral air relations.

The agreement establishes a legal framework for direct flights between Mongolia and Australia, opening new opportunities for domestic carriers, expanding access to international logistics networks, and strengthening tourism, trade, investment, and economic ties.

Mongolia and Australia established diplomatic relations in 1972 and have since expanded cooperation in politics, education, mining, trade, culture, and civil aviation.

Economic Development Board Re-Established

The Cabinet re-established the Economic Development Board, tasked with providing research-based policy recommendations and professional support to the Prime Minister. Its new composition and operating regulations were also approved.

The Board includes:

  • The Prime Minister
  • Deputy Prime Ministers and relevant Cabinet members
  • Governor of the Bank of Mongolia
  • Chairman of the Financial Regulatory Commission
  • Representatives from the Mongolian National Chamber of Commerce and Industry, professional associations, universities, and major enterprises

Draft National Strategy for Big Data and Artificial Intelligence Discussed

Minister of Digital Development, Innovation and Communications E.Batshugar presented the draft National Strategy for Big Data and Artificial Intelligence to the Cabinet.

Ministers were instructed to integrate the strategy’s objectives, measures, and indicators into the draft Five-Year Development Plan (2026–2030).

The strategy outlines 66 measures to be implemented in two stages (2026–2030) across 13 methods and four objectives. Key goals include:

  • Developing an AI ecosystem and export-ready models in mining, fintech, and environmental sectors
  • Introducing AI applications in healthcare, education, and agriculture
  • Enhancing government efficiency and service quality
  • Creating an investor-friendly legal and regulatory environment for international data centers

The strategy aims to boost Mongolia’s competitiveness and position the country among the top 10 AI leaders in Asia.

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Mongolia Marks International Week of the Deaf with Blue Light Campaign

Every September, the International Week of Deaf People is observed worldwide. This year, it is celebrated from September 22 to 28 under the slogan “No Human Rights Without Sign Language Rights.” The week is dedicated to supporting the rights of the deaf, protecting sign language, and encouraging greater involvement of governments and civil society. As part of the global tradition, landmark buildings are illuminated in blue to symbolize solidarity.

On September 23, Mongolia joined the movement by lighting the State Palace in blue, reaffirming the international principle that sign language is a true language that must be protected by the state.

Representatives of the Mongolian Association of the Deaf, along with citizens and community members, took part in the event. Holding banners calling for the recognition of the national sign language, participants voiced their concerns about protecting their rights.

Organizers emphasized that the blue light represents not only a color, but also a symbol of human rights and equal participation. They called for wider public awareness of deaf rights and sign language, stronger promotion through the media, and closer cooperation with deaf people’s organizations at both national and local levels.

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Government to Review Farmers’ Requests for Expanding Cultivated Land

On September 3, Prime Minister G.Zandanshatar visited Selenge aimag to meet with local farmers.

Farmers expressed concern that drought and low rainfall this summer pose risks to the harvest, and requested long-term soft loans, as well as support for storage and crop sales. They also raised issues related to fuel reserves, labor shortages, and access to storage tanks for wheat and grains.

The Prime Minister noted that MNT 800 billion in soft loans were provided to the agricultural sector this year and stressed that future loans will be directed to the most effective areas. He instructed relevant ministers to ensure a stable electricity supply and adequate fuel reserves for farming.

In the first half of 2025, Mongolia’s economy grew by 5.6 percent, with the agricultural sector expanding by 3.6 percent and creating 58,000 new jobs.

As part of the Atar-4 agriculture campaign, Mongolia aims to expand cultivated land by 200,000 hectares. So far, 70,000 hectares have been added. The Prime Minister confirmed that the government will promptly consider further increasing cultivated areas.

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Renovated Altanbulag Port to Triple Passenger and Quadruple Cargo Capacity

On September 3, Prime Minister G.Zandanshatar inaugurated the expanded and modernized Altanbulag border port.

The MNT 14.9 billion project included a four-lane 1.7 km road, a 7,000 m² parking lot, a 30,000 m² indoor area, and a full engineering network. With USD 7.8 million in financing, international-standard facilities such as a port building, smart electronic gates, X-ray scanners, laboratory equipment, and green infrastructure were also installed.

The development added 19 passenger buildings, 18 cargo facilities, five infrastructure units, and 6,000 m² of landscaped space. As a result, annual capacity has increased from 600,000–900,000 to 1.5–2 million passengers, and from 200,000–400,000 to 600,000–800,000 vehicles.

Funded through concessional Asian Development Bank loans, the project attracted investment without burdening the state budget.

Prime Minister G.Zandanshatar said he is confident the upgraded Altanbulag Port will boost exports, drive economic growth, and strengthen Mongolia’s role in regional transport and logistics by enhancing access to the USD 2.4 trillion Eurasian market of 183 million people.

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National Council for Children Holds Regular Session

The National Council for Children held its regular session on September 1, opened by Prime Minister G.Zandanshatar, who also serves as the council’s head. He noted the significance of convening on the first day of the new school year and stressed the need for practical policies, effective implementation, and measurable results.

Council members proposed measures including rehabilitation centers for child victims of violence, improved safety at boarding schools, stronger family education, year-round children’s camps run by the private sector, and greater involvement of children’s organizations in policymaking.

The 2025 Children’s Fund budget will help finance equipment for early detection and treatment of childhood diseases, as well as the construction of a specialized pediatric lung hospital. Funds will also be allocated to repair sports facilities at the Nairamdal international children’s complex.

The Prime Minister highlighted serious concerns over pollution levels in schools and kindergartens—five times higher than normal indoors—and ordered stricter standards, supervision, and inspections of children’s facilities.

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Government Submits 2026 Budget Draft to Parliament

Prime Minister G.Zandanshatar has submitted the 2026 state budget draft, along with related bills, to Speaker D.Amarbayasgalan. The budget projects revenues of MNT 31.6 trillion, expenditures of MNT 32.98 trillion, and a deficit equal to 1.3 percent of GDP.

According to the Prime Minister, the 2026 budget aims to maintain fiscal stability, curb expenditure growth, raise household incomes, and improve the quality of basic social services. A tax reform package, now under discussion in the D-parliament system, is expected to reduce the tax burden on citizens and businesses by MNT 3–4 trillion. The government also pledged to limit state intervention and expand private sector support.

For the first time, citizens had broad input in the budget drafting process. About 188,000 people submitted opinions via the E-Mongolia platform, while nearly 240,000 joined public discussions. Their main priorities included better education and healthcare, a safer living environment, lower spending, and reduced taxes.

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Mining Sector Requests Extension of New Royalty Calculation Method

On August 28, Prime Minister G.Zandanshatar met with mining sector representatives to discuss the government’s decision to revise the methodology for calculating royalties.

Under the new approach, royalties are calculated based on trading prices at the Mongolian Stock Exchange instead of international benchmark prices. The change aims to ease financial pressure on companies, which had previously faced higher fees than their actual sales value when global prices fell.

D.Enkhbat, Director of Energy Resources LLC, welcomed the shift to a more accurate royalty system but asked the government to extend the implementation period. Currently, the new calculation method is scheduled to remain in effect only until the end of the year.

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Contact

  • State House, Sukhbaatar Square-1,Sukhbaatar district 6th khoroo 14201, Ulaanbaatar city, Mongolia
  • (976-51) 260311, (976-51) 260124
  • info@cabinet.gov.mn

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