Mongolia to Slash Thousands of State Inspections in Major "Set Free" Economic Push

ULAANBAATAR — In a sweeping move to revitalize the national economy, the Mongolian Government has announced the cancellation of nearly 10,000 scheduled state inspections for 2026. The decision, aimed at stripping away bureaucratic "red tape," marks a significant shift in the state’s relationship with the private sector.

During a cabinet meeting on Wednesday, officials confirmed that 9,376 planned inspections targeting individuals and businesses would be scrapped. The move is the centerpiece of the government’s "Cholooleye" (Set Free) initiative, a policy designed to transform the state from a "punitive overseer" into a "business partner."

A "Culture of Fines" Under Fire

The Prime Minister delivered a stinging critique of current regulatory practices, citing data that exposed an extreme level of oversight. According to government monitoring, some businesses were subjected to more than 30 inspections a year. In the construction sector, certain sites were visited by various inspectors as many as 16 times in a single month.

"State activity must be directed toward supporting entrepreneurial spirit, not searching for reasons to impose fines," the Prime Minister stated, noting that roughly half of all current inspections result in financial penalties. He argued that such "administrative harassment" has become a bottleneck for economic growth during a period of global financial challenges.

The Regulatory Maze

The scale of the oversight being curtailed is immense. Currently, Mongolia’s inspection landscape involves:

1,713 inspectors operating across 11 ministries and multiple agencies.

The enforcement of a staggering 112 laws, 3,600 regulations, and 4,500 individual standards.

Industry leaders have long complained that this "regulatory maze" creates opportunities for corruption and forces small-to-medium enterprises (SMEs) to spend more time on paperwork than on production.

Safety vs. Deregulation

While the government is pulling back on routine bureaucratic checks, it clarified that this is not a total surrender of oversight. The state will maintain its mandate to protect public health and national security. "The government will continue to fulfill its duty to ensure the safety of its citizens," the Prime Minister assured, suggesting that future inspections will be more targeted and risk-based rather than routine.

As Mongolia navigates a complex economic recovery, the "Set Free" initiative signals a bet on deregulation as the primary engine for attracting investment and boosting local productivity