AKIPRESS.COM - The Mongolian government announced its decision on Wednesday to establish two special economic zones "Agro-city" and "Naluu-Ukhaa" in Ulaanbaatar, Xinhua reports.

The special economic zone "Agro-city", set to be established in Songinokhairkhan district of Ulaanbaatar, is designed to bolster food security, foster the production of export-oriented food and agricultural goods, and enhance overall food supply, the government's press office said in a statement.

Another special economic zone, "Naluu-Ukhaa," slated for establishment in Nalaikh district, aims to catalyze the production, trade, and services of building materials, thereby mitigating reliance on international transport logistics and imports through the creation of a dedicated cluster, the statement said.

In 2022, Mongolian President Khurelsukh Ukhnaa called for special attention to be paid to ensuring the economic security of Mongolia, including improving food supply and security, which are the most important indicators of the country's sustainable development.

According to a UN study, about 20% of Mongolia's population lacks access to nutrient-rich food.

Currently, the agricultural sector accounts for more than 10% of Mongolia's GDP. Agriculture is most dependent on nomadic livestock breeding, with about 75% of the land used for pasture.