Council of Ministers of Bosnia and Herzegovina Holds Its 98 Session

MEDICAL USE OF CANABIS APPROVED

The Council of Ministers of BIH took the Ministry of Civil Affairs-proposed decision on amendments and supplements of a Regulation on Narcotic Drugs, Psychotropic Substances, Herbs and Precursors.

Under the decision cannabis, cannabis resins, extracts and tinctures are shifted from a table of banned substances and herbs to strict monitoring table, which opens the way for medical use thereof in Bosnia and Herzegovina.

The further amendments of by-laws to define conditions in more detail for substances medical application, i.e. use of complete medicines and preparations, rests within competence of the Agency for Medicines and Entity health authorities. The aim of the project is that preparations containing cannabinoids, which are present at black market in our country for high price and without any quality check, get standardised with safe use guarantee and put under monitoring, in addition to supressing the back market of illegal medicines and preparations.

By the decision, Bosnia and Herzegovina joins countries of the EU and region, like Italy, Croatia, Slovenia and North Macedonia, where use of cannabis has been enabled for medical purposes-.

The United Nation Commission for Narcotics took a decision, at its Dec.2000 session, to remove cannabis from the 1961 WHO Single Convention on Narcotics Regulation IV, having regard of WHO recommendation. Thereby cannabis was removed from an international list of matters considered especially dangerous, allowing its use for medical purposes at national level.

Development of the Law on Suppression of Misuse of Narcotics should be accelerated for the aim of overall regulation of the mater.

AMLFT LAW IMPLEMENTATION REGULATION ADOPTED

The Council of Ministers of BIH took the Ministry of Security-proposed Implementation Regulation on the Law on Antio Money-Laundering and Financing of Terrorism.

The Regulation represents a key step in fulfilment of obligations Bosnia and Herzegovina has towards international bodies, with a special emphasis on harmonisation with recommendation of a Task Force for Financial Menasures against Money Laundering (FATF). The Regulation is directed at implementation of FATF recommendations, enabling Bosniia and Herzegovina to apply the highest global standards in combating financial crime, including meeting requests by the Council of Europe Expert Group (MONEYVAl). This is to prevent putting BIH on a” black list”, which would have negative consequences to country’s economic standing and international transactions.

The Regulation sets forth risk assessment, identification measures and client monitoring, in addition to data exposing to the State Investigation and Protection Agency Financial-Intelligence Sector.

The session adopted a piece of information on obligations of Bosnia and Herzegovina towards MONEYVAL, recommended measures and risks of their non-fulfilment, all attached to the Activity Plan for Implementation of MONEYVAL Recommended Measures.

MONEYVAL report from the fifth evaluation cycle recognised a progress by BIH in setting-up Legal framework, including adoption of the Law on Prevention of MLFT and National Risk Assessment, however it points at considerable faults requiring a urgent attention. Among key weaknesses there are limited understanding of financing of terrorism risk, delay in establishing an effective seized property management system at state level, lack of state-level coordination in implementation of AMLFT policies.

To prevent entering FATF “grey list”, institutions must accelerate implementation of recommended actions, especially in the area of AMLFT capacity strengthening, monitoring of non-financial sector, international cooperation, and targeted UN financial sanction. It is key to demonstrate sizable progress by February 2026 in all priority areas referred to by MONEYVAL.

In that regard, responsible bodies of the Council of Ministers of Bosnia and Herzegovina are tasked to initiate immediately fulfilment of remaining activities from the Action Plan for Implementation of MONEYVAL recommendations. the Entity Governments and Government of the Brčko District to BIH are urged to implement activities they are due to.

The Ministry of Security of Bosnia and Herzegovina should monitor implementation of planned activities and report periodically to the Council of Ministers of BIH.

REFORM AGENDA

The Council of Minister of BIH took note of a piece of information by the Directorate for Economic Planning on status of the Reform Agenda of Bosnia and Herzegovina, obligations as per the Western Balkans Growth Plan and following institutional steps of BIH.

The Ministry of Finance and Treasury, Directorates for Economic Planning, and Directorate for European Integrations should cooperate with all-level authorities in Bosnia and Herzegovina to continue further activities and draft decisions on establishment of an institutional framework for implementation of the Reform Agenda in Bosnia and Herzegovina, in line with constitutional competences.

Following final harmonisation of the proposal and reflection by all-level authorities, they should report it, within 30 days at latest, to the Council of Ministers and pass the proposal for relevant decision-making procedure.

After the European Commission and its member-states approve the Reform Agenda, it will be necessary to start a procedure of conclusion of international agreements (Agreement on Instrument and Loan Agreement), pursuant to the Law, and appoint national coordinator for the Reform Agenda.

SUPPORT TO ECONOMY

The Council of Ministers of BIH took the Ministry of Foreign Trade and Economic Relations-proposed decision on temporary suspension and temporary decrease of customs tariffs for import of certain goods by December 31, 2025, for the sake of support to domestic economy.

In accordance with the Law on Customs Tariff, goods covered by the decision are materials and raw materials used by BIH producers in their own production of end products, in production of products for export or they are substitution for imported products not possible to purchase at domestic market in quality and quantities required for production of final products.

The decision follows requests of the Foreign Trade Chamber of BIH, Entity Chambers of Commerce and economic entities in textile industry, letter, footwear, chemical, metal, electro-industry, food industry, graphic, automobile industry and production of hygiene products.

By decision for 2026, 71 tariff mark were covered, among which 64 had been contained in the previous decision, five deleted from the list, while seven tariff marks are new ones.

The decision take force as of the day of adoption and will be published in the “Official Gazette of BIH”; it will be applied from January 1, 2026.

MULTI-ANNAUL MODERNISATION PROJECT OF ARMED FORCES OF BIH APPROVED

The Council of Ministers of BIH took the Ministry of Defence-proposed decision on approval of a Multi-Annual Project “Modernisation and Renewal of Armament and Military Equipment of the Armed Forces of Bosnia and Herzegovina – Purchase of Specialised Vehicles for Light Infantry Battalion Level”.

The project worth total Km 10,035,000 should become a part of 2025-2030 multi-annual capital projects. The project provides for a purchase of total 46 specialised vehicles to replace the obsolete armoured transporters (M113 A2 model), in use since the 1970s.

HELICICOPTER PURCHASE PROEJCT EXTENDED TO 2032

The Council of Ministers of BIH took the Ministry of Defence-proposed decision on amendment and supplement of a Decision on Multi-Annual Project of Helicopter Purchase for the Ministry of Defence and Armed Forces of Bosnia and Herzegovina.

Under the decision, the original project time span to 2027 is prolonged to 2032, and funds in amount of KM 20,000,000.00 will be secured for the project needs by remarking of the approved budget for 2025 from budge position for basic salaries and reimbursements to be allocated for helicopter purchase.

Reasons behind the decision are in a need for securing operativity of the Armed Forces of BIH, since the existing aircrafts are weary, endangering both human and material resources, the helicopter purchase was defined as strategically important, representing zero priority for operativity of the Armed Forces of BIH.

MULTI-ANNAUL PROJECT OF AMMUNITION MINE-EXPLOSIVE DEVICES PURCHAASE FOR ERVERVES REPLENISHMENT OF ARMED FORCES OF BIH APPROVED

The Council of Ministers of BIH took a Decision to approve a multi-annual project of purchase of ammunition and mine-explosive devices for replenishment of reserves of the Armed Forces of BIH, to be included into 2025-2030 Programme of Multi-Annual Project, totally worth KM10,035,000.

FUNDS APPROVED FOR PURCHASE OF NEW UNIFORMS TO MEMBERS OF ARMED FORCES OF BIH

The Council of Ministers of BIH took the Ministry of Defence-proposed decision on approving a multi-annual project “Purchase of New Field Uniform for Armed Forces of BIH”, of KM 8,600,000 estimated value.

Funds for the project implementation will be secured from 2025 budget in amount of KM 3,000.000, from 2026 budget in amount of KM 3,600.000, and KM one million for each 2027 and 2028.

THREE AGREEMENTS DEFIEND FOR VLAŠIĆ WINDMILL

The Council of Ministers of BIH defined a Proposal Loan and Project Agreement among KfW, Frankfurt am Main (KfW) and Bosnia and Herzegovina, represented by the Ministry of Finance and Treasury (Borrower), Federation of Bosnia and Herzegovina, represented by the Federal Ministry of Finance and Public Company Power Utility of Bosnia and Herzegovina, Ltd. Sarajevo (project implementation unit) in amount of EUR 16,500,000 for the Vlašić Windmill Development Project.

The session also defined a Proposal Grant Agreement among KfW, Frankfurt am Main (KfW), Bosnia and Herzegovina (Borrower) , represented by the Ministry of Finance and treasury, Federation of Bosnia and Herzegovina, represented by the federal Ministry of Finance, and Public Company Power Utility of Bosnia and Hrzegovina, Ltd, Sarajevo (EPBiH) (project implementation unit) in amount of EUR 19,930,000 for Vlašič Windmill 50 MW Travnik – (Vlašić Windmill Project.

Also, a Proposal Grant and Project Agreement  was defined among the KfW, Frankfurt am Main (KfW), Bosnia and Herzegovina (Borrower), represented by the Ministry of Finance and Treasury of Bosnia and Herzegovina, and Federation of Bosnia and Herzegovina, represented by the Federal Ministry of Finance and Public Company Power Utility of Bosnia and Herzegovina, Ltd Sarajevo (EPBIH) (project implementation unit), in amount of EUR 2,000,000 – Vlašić Windmill – accompanying measures.

The Project includes development of the windmill to 50 MW on the Vlašić Plate in the Central Bosnia Canton.

The aim of the project is production of electric power for the needs of BIH electro-energy system and increase of renewable sources of energy in Bosnia and Herzegovina’s energy mix. The project contributes to a more sustainable economic and social development of Bosnia and Herzegovina.

Both loan and grant are allocated to the Federation of BIH; the project implementor is the Public Company Power Utility of Bosnia and Herzegovina, Ltd. Sarajevo; the loan term is 15 years with 10-year grace period.

The several proposal agreements on loan and on grant with platform for their conclusion will be sent to the BIH Presidency for further procedure, with a proposal for and the Minister of Finance and Treasury of BIH as the BIH signatory thereof.

GRANT SECURED FOR POKLEĆANI WINDMILL

The Council of Ministers of BIH defined a Proposal Grant Agreement between Bosnia and Herzegovina and the European Investment Bank for Poklećani Windmill (WB-IG08-BIH-ENE-02), contract No. (Fi No) 98.449, operation No. (SERAPIS No.) 2022-0241, worth EUR 42,174,600 within WBIF - EU.

The investment component covers development of windmill of 123 MW in Western Herzegovina Canton in Bosnia and Herzegovina, including accompanying facilities, as transformer station and connection to nearby national grid.

The grant funds are allocated to the Federation of BIH and the project implementor is the Public Company Power Utility HZHB,Ltd. Mostar.

The Proposal Gant Agreement will be sent to the BIH Presidency for further procedure, and the Minister of Finance and Treasury will acta as the BIH signatory thereof.

INITIATIVE FOR CONCLUSION OF AGREEMNT FORPOKLEĆANI WINDMILL PROJECT ADOPTED

The Council of Ministers of BIH adopted an Initiative by het Ministry of Finance and Treasury and set a negotiation delegations for conclusion of a Loan and Project Agreement among KfW, Frankfurt am Main, and Bosnia and Herzegovina, represented by the Ministry of Finance and treasury (Borrower), Federation of Bosnia and Herzegovina, represented by the Federal Ministry of Finance, and Power Utility of the Corat Community Herzeg-Bosnia, Ltd. Mostar (project implementation unit), in amount of EUR 75,000 for Poklećani Windmill.

The Poklećani Windmill will be situated at the North part of the Posušje Municipality, about 13 km North-East from the neighbouring municipality, on wider aera of the Štitar Mount, north-East from Rakitin.

The Project includes development of 20 wind turbines of 6.6 MW of total installed power to 132 MW and expected annual production of about 436.96 GWh of el4ectric power.

The Ministry of Finance and Treasury of BIH should, following relevant negotiations concluded, act pursuant to the Law on Borrowing, Debt and Guarantees of Bosnia and Herzegovina.

BIH ACCEEDS TO 2019 HAGUE CONVENTION

The Council of Ministers of BIH defined a Proposal Basics for Accession of Bosnia and Herzegovina to 2019 Hague Convention on Recognition and Execution of Foreign Judicial Decisions in civic and commercial matters, in line with an obligation stemming from the Stabilisation and Accession Agreement.

Acceding to the Convention, Bosnia and Herzegovina secures harmonisation of rights with the EU acquis, improves judicial cooperation, decreases a number of duplicated procedures and costs, and saves time needed for recognition and execution of court decisions, with decreased agreements to arbitrage and dispute solving-related costs.

Acceding to the Convention is relevant from the point of improvement of investment and business environment in BIH, as well as for securing effective mechanisms in absence of bilateral contracts, with strengthening of international legal position of Bosnia and Herzegovina.

PREPARATION OF STRATEGY OF PUBLIC FINANCE MANAGEMENT IMPROVEMENT TO 2030

The Council of Ministers of BIH took the Ministry of Finance and Treasury-proposed Decision on setting-up a Work Gorup for development of a Strategy for improvement of public finance management in institutions of Bosnia and Herzegovina, in a new text.

The Work Group, composed of representatives of the Ministry of Finance and Treasury of BIH, Ministry of Finance and Treasury Central Harmonisation Unit, Directorate for Economic Planning of BIH, Indirect Taxation Administration and Public Procurement Agency of BIH,  should develop a strategy with accompanying action plan and pass it via the Ministry of Finance and Treasury to the Council of Ministers of BIH for consideration and adoption by the end of 2026 QI.

The strategic document is aimed to secure stable and transparent financing system in BIH, management and control of public finances, and fulfilment of international financial obligations.

CONDITIONS CREATED FOR FUNCIONAL OPERATION OF EU4HEALTH DESK

The Council of Ministers of BIHDOOK THE Ministry of Civil Affairs-proposed decision on appointment of Coordination Desk for the European Union Programme in Health - EU4 Health Programme, thus creating conditions for tis functional operation.

Following the completed public call procedure, appointed to the Coordination Desks are the most successful candidates, namely: Coordinator Arapović, Assistant Coordinator Aida Hasečić and six sub-coordinators (two from the Federation of BIH and two from Republika Srpska).

The Desk will have a key role in promotion of the EU4Health Programme in Bosnia and Herzegovina, extension of advisory assistance to potential applicants in the application process within the Programme, as well as strengthening of cooperation and exchange of information between relevant institutions and partners.

The EU4Health is the main financial instrument of the European Union in Health for 2021-2027, established for the purpose of strengthening of health institutions capacities, promotion of prevention and readiness to crisis, and improvement of access to health services and medicines. Bosnia and Herzegovina participates in the Programme based on signed Agreement on Accession to the EU4Health programme.

APPOINTEDBIH REPRESENTATIVES IN JOINT COMMITTEE FOR MONITORING OF EMPLOYMENT AGREEMENT WITH KATAR

A decision was taken, upon a proposal of the Ministry of Civil Affairs on appointment of BIH representatives into a Joint Committee for implementation monitoring of an Agreement between the Council of Ministers of Bosnia and Herzegovina and Government of the State of Katar on regulation of employment of citizens of Bosnia and Herzegovina in the State of Katar.

Having regard that mandate of BIH representatives in the Joint Committee expired in October 2025, the Council of Ministers appointed  Alma Spahi of the Agency for Labour and Employment of BIH, Andrea Milinčić of the Ministry of Labour and Veteran-Disabled Protection of Republika Srpksa, Jasmina Kehechan Babić of the Federal Ministry of Labour and Social Policy, and David Ikić from the Brčko District of BIH Government to the Joint Committee to a three-year mandate.

DISTRIBUTION OF CURRENT RESERVCES FOR I-IX 2025

The Council of Ministers of BIH adopted a piece of information on distribution and use of current reserves resources for I-IX 2025., to be passed by the Ministry of Finance and Treasury to the BIH Parliamentary Assembly.

The piece of information suggests that 2025 budget had not been adopted since in the reporting time, the budget reserve was defined by the Law on Financing of Institutions of Bosnia and Herzegovina, Law on Budget of Institutions of Bosnia and Herzegovina and international obligations of BIH for 2024, and instructions on temporary financing for three quarters this year.

Therefore, the planned budget reserve for I-IX 2025 was in amount of KM 3,177,000.00, of which total KM 365,500,000 was approved, KM 282,500,000 was made available to beneficiaries, and KM 214,073.73 was implemented.

Within the remainder of current reserves in amount of KM 2,962,926.27 there are funds in amount of KM 149,426.27 approved by the Council of Ministers of BIH decisions, and which were not implemented in the reported time.

The Council of Ministers of BIH planned KM 1,557,000.00 in the current reserve for I-IX 2025, approved KM 251,000.00, and implemented was KM 102,573.73.

Total KM 270,000.00 was planned for members of the Parliamentary Assembly both Chambers collegium and approved and implemented was KM 66,500.00.

For BIH Presidency members the sum planned was KM 810,000.00, and nothing was approved not implemented.

For Chairwoman of the Council of Ministers of BIH and her Deputies planned was KM 540,000.00, and approved and implemented was KM 45,000, based on decision by Deputy Chairwoman, namely, Minister of Foreign Trade and Economic Relations Staša Košarac.

The Council of Ministers tasked the Ministry of Finance and Treasury to inform on the current state of the current reserves.

PIECE OF INFORMATION ON “DEFENCE REVIEW” PLAN IMPLEMENTATION

The Council of Ministers of BIH adopted a piece of information on a “Defence Review” Implementation Plan realisation and Action Plan of “2017-2027 Development and Modernisation of Armed Forces of Bosnia and Herzegovina” implementation and tasked the Ministry of Defence to continue with implementation activities per defined plan dynamics.

According to the piece of information, “2017-2027 Modernisation and Development of Armed Forces of BIH Plan” was realised in about 8.5 per cent due to limitation of budget investments, and that happened mainly through support by partner countries, and the Plan implementation continues.

DOCUMENT ADOPTED ON ECONOMIC TRENDS FOR FIRST HALF OF 2025

The Council of Ministers of BIH adopted a document “Bosnia and Herzegovina - Economic Trends for January-June 2025”, drafted by the Directorate for Economic Planning.

The preliminary data show the continuation of growth trend of economic activities with simultaneous inflation rise and fall in certain industrial sectors.

The estimated real GDP growth rate in the first half of 2025 was 1.8%, relevant to the same time last year, and viewed by quarters, 1% growth was marked in QI, while in QII the growth rate was 1.8%.

The main driver of the economic growth was domestic demand, with services sector contributing most to the growth, while industry (mining, processing industry, energy) and civil construction had negative record.

A fall of physical volume of industrial production of 1.0% was noticed. Viewed by sectors, mining had a fall of 2.7%, processing industry of 1.3%, while electric power production made an increase of 1.1%.

The number of employees over the reported time was 852.9 thousand and is less for 0.2% relevant to the same time last year, and the average number of registered unemployed persons in BIH continued to decrease relevant to the same time last year (-3.5%) and it reached 320.8 thousand.

The average net salary in BIH in January-June 2025 was KM 1,539 and is nominally higher for 13.2%. Taking regard of price rise, the real growth of average net salary was lower and was 9.3%. The average pension in BIH was KM 694 and is higher for 4.8% relevant to the same time 2024, with a slower rise (1.1%) due to inflation. The inflation increased, and it was 3.6% in the first half of 2025. The most notable price increase was in food and beverages (8.5%), health, alcohol drinks and tobacco.

Overall exchange increase was noted with simultaneous increase of both export and import. According to available data, export of goods from BIH was more than KM 8.4 billion, which is a nominal increase of KM 465 million or 5.8% relevant to the same time last year. The import of goods to BIH was almost KM 14.7 billion or nominally increased for KM 631 million or 4.5% relevant to the same time 2024. The total coverage of import by export in Bosnia and Herzegovina in the reported time was 57.4%, with the coverage with the EU countries of 72.8% and with CEFTA countries of 79.9%.

BUDGET EXECUTION REPORT ADOPTED FOR QI-III 2025

The Council of Ministers of BIH adopted the Budget Execution Report of Institutions of Bosnia and Herzegovina and International Obligations of BIH for I-IX 2025.

Total realised revenues and receivables in the first nine month of 2025 were KM 1,263,889,419, of which KM 748.576.368 was revenue from the Single Treasury Account of the Indirect Taxation Administration of BIH.

The total realised expenditures and costs of the Budget of BIH Institutions in I-IX 2025 were KM 1,010,936,305.

Based on foreign debt, total KM 889.96 million was paid in the first nine months this year, and all obligations were thereby duly serviced.

RECOGNITION OF DRIVERS LICEMCES OD BIH AND UAE

The Council of Ministers of BIH defined, in the second round of vote, a Proposal Memorandum of Understanding between the Council of Ministers of Bosnia and Herzegovina and Government of the United Arab Emirates (UAE) on mutual recognition and replacement of drivers’ licences and will send it to the BIH Presidency to further procedure, along with a negotiations report. The Minister of Communications of Transport of BH was proposed for the BIH signatory thereof.

Citizens of Bosnia and Herzegovina staying legally in the United Arab Emirates territory will be enabled to replace their drivers’ licences without taking drivers exam, and the same goes for citizens of the UAE staying legally in BIH .

These are “B” category drivers’ licences in BIH and “slight category” in the UAE, applying to vehicles of 2.5 tonnes and up to 14 seats, plus driver’s seat.

GRANT FUNDS FOR SUPPORT TO ROMA POPUALTION AND NON-PROFIT ORGANISATIONS

The Council of Ministers of BIH took a decision on allocation of grant funds of the Ministry for Human Rights and Refugees for year 2025.

Under the decision, the grant funds in amount of KM 1,1716,000 will be directed for support to Roma population and non-profit organisations.

APPROVED TOTAL KM 900,000 FOR FAIR EVENTS IN COUNTRY AND ABROAD

The Council of Ministers of BIH took the Ministry of Foreign Trade and Economic Relations –proposed decision on distribution of grant funds for support to fair and other events and activities in country and abroad in total amount of KM 600,000 for 51 events.

A decision was taken on distribution of grant funds for support to fair and other events and activities in country and abroad in amount of KM 300,00 for 11 fair events.

FUNDS ALLOCATION FOR HIV, TBC AND ADDICTION PREVENTION AND DONORSHIP PORMOTION

The Council of Ministers of BIH took the Ministry of Civil Affairs-proposed decision on allocation of funds intended for current grant “Co-Financing of NGO Projects in HIV, TBC and Addiction Prevention and awareness rising on donorship in Bosnia and Herzegovina” for 2025.

Under the Decision, funds are distributed in total amount of KM 48,515.27 to six associations and federations active in promotion of donorship and in HIV, TBC and addiction prevention.

DECISION ON OPENING OF TEMPORARY TARIFF QUOTAS FOR IMPORT OF MINERAL FERTILISERS

The Council of Ministers of BIH took the Ministry of Foreign Trade and Economic Relations-proposed decision on opening of temporary tariff quotas for import of mineral fertilisers in 2026.

It is an intervention measure attacking shortages and high prices caused by a rise of energy prices necessary for production thereof.

ATTACHE APPOINTMENT

The Council of Ministers of BIH granted, upon the Ministry of Foreign Affairs proposal, its consent to appointment of Brigadier Colonel Aly Mohammad Taher Awad for a Military Attaché of the Arab Republic of Egypt for Bosnia and Herzegovina, with his seat in Bangladesh, and for appointment of Adnan Džubur for Assistant Military Attaché of the Kingdom of Norway in Bosnia and Herzegovina.