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Turkmenistan is largely a desert country with intensive agriculture in irrigated oases and significant natural gas and oil resources.
The two largest crops are cotton, most of which is produced for export, and wheat, which is domestically consumed. Ashgabat has explored two initiatives to bring gas to new markets: a trans-Caspian pipeline that would carry gas to Europe and the Turkmenistan-Afghanistan-Pakistan-India gas pipeline.
Both face major financing, political, and security hurdles and are unlikely to be completed soon. High energy prices in the mids allowed the government to undertake extensive development and social spending, including providing heavy utility subsidies. The government has cut subsidies in several areas, and wage arrears have increased. There is a widening spread between the official exchange rate 3.
Currency depreciation and conversion restrictions, corruption, isolationist policies, and declining spending on public services have resulted in a stagnate economy that is nearing crisis.
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