Press Release "On the outcomes of social and economic development of the Republic of Uzbekistan in the first half of 2006"

On July 19 this year the session of the Cabinet of Ministers of the Republic of Uzbekistan was held, which has summarized the results of social and economic development of the country in the first half year and defined additional measures, aimed at achieving the set forecast parameters for 2006.
Analysis of implementation of the most important priorities of deepening the economic reforms, defined by President Islam Karimov at the session of Government on February 10, 2006, was at the core of attention of the session participants.
Prime Minister of Uzbekistan Shavkat Mirziyaev presided over the session. Participants of the session underscored that measures on extending the scale of structural reforms, modernizing and liberalizing the economy, and strengthening the private sector, taken on the first half of this year, promoted the achievement of high paces of economic growth. For example, the gross domestic product against the same period last year grew by 6,6 percent, manufacture of industrial products increased by 9,7 percent, products of agriculture – by 7,2 percent, trade – 11,6 percent, and services – 13,3 percent.
Positive balance of the foreign trade turnover accounted for more than US$ 883 million.
State budget has been executed with a surplus of 1,2 percent towards the GDP. The level of inflation did not exceed 3,5 percent. Volume of the loans, allocated by banks, has made up UZS 240 billion. Joint-Stock Commercial Bank" has been established in the country and began its operations. Increase in the share of small businesses in the GDP is also observed.
For over the past period 240 enterprises and large facilities, and 107 from amongst them – at zero purchasing cost, were sold to private ownership. Within the framework of the ongoing strategy of accelerated modernization and technical re-equipment of the basic branches of economy the Reconstruction and Development Fund of the Republic of Uzbekistan was established. Proportion of non-centralized investments has also increased. Number of large projects, including the construction of the railway line Tashguzar-Baysun-Kumkurghan and Uzbekistan electric power line, are now being implemented.
A range of complex measures on socially protecting various layers of population has been adopted. In particular, for over the course of improving the system of remuneration of labor and material stimulation the wages of teachers and health care system personnel have been increased.
For over the last months the head of the state adopted a number of important decrees and resolutions on approving the target complex programs of development of economy, which differ on their social orientation. Reports made at the session have had a critical analysis of implementation of initial stages of the program for stimulating the development of animal husbandry, development of services, creation of new jobs and increasing the people’s incomes based on extending the home-based labor, deepening reforms in fruit, vegetable and grape farming. More than 12,000 heads of cattle were sold at the auctions. Yet only through an Employment Support Fund UZS 6 billion 150 million were allocated and assimilated.
In the sphere of home-based labor more than 78,000 jobs were created, including about 22,500 – based on labor contracts with enterprises. The volume of paid services for the population has been significantly increased, which accounted for UZS 890 billion.
On the basis of 210 specialized fruit, vegetable and grape farming agricultural entities 39,000 farms were created and 195 agriculture industrial firms began operating.
The issues concerning the implementation of Investment Program for this year were also discussed. It requires an introduction of foreign highly efficient technologies and equipment, attraction of significant foreign direct investments. The session participants stated that capital investments worth UZS 1 trillion 625 billion have already been assimilated in a number of spheres of economy and provinces of Uzbekistan.
Heads of ministries, agencies and other bodies of the state power in provinces were instructed to design and implement specific measures to commission the priority industrial capacities and enterprises.
On the outcomes of the session the decision was adopted, which defined the measures on unconditional fulfillment of priority tasks of social and economic development of the country this year, set by President Islam Karimov, and creates the solid foundation to deepen the economic reforms in 2007.