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Prime Minister G.Zandanshatar Visits Dongsheng Petroleum in Zuunbayan, Dornogovi

On November 1, Prime Minister G.Zandanshatar visited Dongsheng Petroleum Mongolia LTD in Zuunbayan, Dornogovi Province, to review the company’s operations and discuss plans for increased production.

Since its establishment in 2003, Dongsheng Petroleum has invested USD 480 million and extracted over 1 million tons of crude oil. Under the 1997 Production Sharing Agreement, the company has contributed USD 134 million to the state budget. The company currently operates 170 wells and plans to extract 56,000 tons of oil this year.

During the visit, the Prime Minister met with company executives and Chinese Ambassador Shen Minjuan, highlighting the importance of expanding exploration and production to supply crude oil for Mongolia’s upcoming oil refinery, expected to be completed in 2027.

Dongsheng Petroleum currently produces 50,000–60,000 tons of oil annually, with the capacity to increase output to 100,000 tons. Executives noted that certain legal and operational challenges remain that could limit further investment.

Under the leadership of China’s SINOPEC Group, Dongsheng Petroleum reaffirmed its commitment to continue investing in Mongolia’s petroleum and energy sectors, contributing to the country’s long-term energy security and economic development.

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Prime Minister G.Zandanshatar Inspects the Oil Refinery Project in Dornogovi

On November 1, Prime Minister G.Zandanshatar inspected the ongoing construction of Mongolia’s oil refinery in Dornogovi Province, announcing significant progress on the landmark project. The refinery, which was only 20 percent complete in June, has now surpassed 50 percent completion.

Since assuming office, Prime Minister G.Zandanshatar has prioritized the refinery as a strategic economic project, accelerating work with the aim of putting the facility into operation ahead of schedule, as early as next year.

The refinery project, financed through a USD 1.7 billion loan from the Export-Import Bank of India, consists of four development packages. The first phase was completed in 2024. Remaining packages, including the construction of a thermal power plant and technological facilities, are currently underway. Meanwhile, the 527-km crude oil pipeline that will feed the plant is 89.4 percent complete.

According to the official timeline, the construction of the refinery is scheduled for completion in December 2027, with commissioning planned for 2028. However, optimism for early commissioning remains high.

The project is expected to cover 50–100 percent of Mongolia’s domestic fuel demand, marking a major step toward energy independence. Additionally, the refinery will create approximately 1,500 new jobs and contribute significantly to the country’s industrial and economic development.

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S&P Upgrades Mongolia’s Sovereign Credit Rating to Highest Level in 13 Years

S&P Global Ratings has upgraded Mongolia’s sovereign credit rating from “B+ (positive)” to “BB- (stable)”, the country’s strongest rating in 13 years.

The upgrade reflects improved fiscal discipline, debt management, and sustained economic growth. Since taking office, Prime Minister G.Zandanshatar has amended the 2025 budget, cutting spending by MNT 2.2 trillion and reducing the fiscal deficit. The government also boosted coal exports and foreign currency inflows, helping foreign reserves reach a historic high.

S&P highlighted Mongolia’s strengthened budget performance driven by mining exports, a declining debt-to-GDP ratio, and expectations of continued steady growth with a relatively low deficit over the next one to two years. The agency also expects consistent policy implementation despite domestic political developments.

The move follows other positive ratings actions in 2025: Fitch affirmed Mongolia at “B+, Stable”, and Moody’s upgraded the country to “B1, Stable.” This is S&P’s second upgrade for Mongolia in two years.

The higher rating is expected to reduce Mongolia’s external borrowing costs, strengthen the credit outlook for banks and businesses, and boost investor confidence.

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The Government Aims to Improve Housing Access for Teachers and Doctors

Highlights from the Cabinet Meeting – October 29

Expanded Working Group Established to Improve Housing Access for Teachers and Doctors

The Cabinet has established an expanded working group, headed by Minister of Urban Development, Construction and Housing E. Bat-Amgalan, to study and propose measures to improve housing access for teachers and doctors.

The working group includes representatives from the Ministry of Health, the Ministry of Education, the Ministry of Urban Development, Construction and Housing, and the Office of the Governor of the Capital City.

Draft Revision of the Family Law to Be Submitted to Parliament

The Cabinet discussed the draft revision of the Family Law and related amendments to other laws and decided to submit the package to Parliament after incorporating suggestions from Cabinet members.

Family Law is one of the core laws governing personal legal matters. The current law, adopted in 1999, has been in effect for 26 years without major revisions. Although it has been amended eight times since its adoption, those changes primarily aligned with broader legal reforms rather than addressing emerging issues in family relations. As a result, the existing law no longer adequately reflects the evolving dynamics of modern family and social relations.

Resolution Adopted to Support Parents During Influenza Outbreak

The Cabinet approved a resolution instructing government organization to grant up to five working days of paid leave to parents caring for children under six who are diagnosed with influenza, either in hospitals or at home, from November 1, 2025, to March 1, 2026.

The measure aims to help reduce influenza transmission and prevent complications. The government also encouraged private sector and non-governmental employers to adopt the same policy.

Young children are at risk of developing pneumonia within three to five days after flu symptoms appear, and the average recovery period is around 12 days. Providing paid leave during the early stage of illness can help prevent complications and reduce the burden on hospitals.

Mongolia and Kyrgyzstan Approve Agreement on Mutual Recognition of Driving Licenses

The Cabinet approved the “Agreement between the Government of Mongolia and the Cabinet of Ministers of the Kyrgyz Republic on the Mutual Recognition and Exchange of Driving Licenses,” signed in Bishkek on July 21, 2025.

Mongolia joined the Vienna Convention on Road Traffic in 1997, which governs the mutual recognition and exchange of national driving licenses among its 87 member states. Currently, Mongolian citizens permanently residing in the Czech Republic, the Kingdom of Belgium, and the Grand Duchy of Luxembourg can exchange their Mongolian licenses without additional requirements.

The Mongolia–Kyrgyzstan agreement will enter into force once both countries complete domestic legal procedures and notify each other.

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Special Working Group to Combat Corruption and Theft in the Mining Sector Established

Prime Minister G.Zandanshatar has established a Special Working Group to combat corruption and theft in the mining sector and state-owned companies. The group includes representatives from the General Intelligence Directorate, the Independent Authority Against Corruption, the National Police Agency, the General Customs Administration, the Mongolian Tax Administration, and all ministries.

The working group will review and provide recommendations on a draft law aimed at identifying the causes of corruption and official misconduct and strengthening the legal framework.

The Prime Minister instructed the group to focus on developing laws on whistleblower protection and enhancing the national system for witnesses and victims. He also highlighted the importance of amending the Law on State and Official Secrets, ensuring contract transparency, and establishing public oversight.

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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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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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