Aze.US
REAL party chairman Natig Jafarli says the core problem in Azerbaijan is the gap between rising incomes and faster-growing living costs, calling for an economy where citizens can earn independently of the state.
Natig Jafarli, chairman of the REAL party, has outlined why increases in wages and pensions in Azerbaijan are often followed by higher consumer prices, pointing to structural imbalances between supply, demand, and income growth.
Speaking on Musavat TV, Jafarli said that when imports of certain goods decline – for example by around 15% – domestic producers are unable to expand output quickly enough to compensate. With demand unchanged and supply reduced, prices rise in line with basic economic principles, while producers may add further increases of 5-10%.
He argued that the deeper issue is the mismatch between income growth and real household expenses. Even when pensions rise by roughly 9%, actual monthly costs for citizens can increase by 15–20%, leaving public dissatisfaction largely unchanged.
Jafarli said long-term stability requires an economic environment in which people can earn income beyond state support, including through small business activity, secondary employment for retirees, and broader access to accumulated pension capital.
He also questioned current rules governing pension savings after death. If outstanding loans can pass to heirs, he argued, then accumulated pension funds should likewise be accessible to families – potentially for education expenses or debt repayment.
Overall, Jafarli described the existing economic model as structurally weak in linking income policy to price dynamics, calling for systemic reforms capable of improving living standards rather than temporary income adjustments.