On the session of the Cabinet of Ministers of the Republic of Uzbekistan

Session of the Cabinet of Ministers of the Republic of Uzbekistan took place on October 16, 2007 in Tashkent dedicated to the discussion of outcomes of social and economic development of the country for over the past of nine months, as well as elaboration of additional measures in terms of accomplishing the objectives of intensifying the economic reforms set by President Islam Karimov at the government session of February 12, 2007.

It has been noted that the systemic measures now underway to implement the seven most important priorities of economic program for 2007 provide for the dynamic achievement of the country’s macroeconomic development indicators, as well as successful realization of the main directions of the tax and budget policies, and timely execution of the State budget for 2007.

According to the Ministry of Economy, State Statistics Committee and Ministry of Finance of Uzbekistan for over the January-September 2007 the gross domestic product (GDP) growth has accounted for 9,8%. The economic growth has been secured thanks to the increase of the industrial production volume by 11,9%, agriculture – 3,5%, contractual construction works – 20,4%, retail trade – 18,4%, and paid services – 25,2%. The foreign trade circulation saw the high growth rates, above all, thanks to the growth of exports at the level of 41,8%. The State budget has been executed with a surplus.

Thanks to the favorable investment climate and conditions for attracting the investment, which have been created in the country, the investment volume has increased by 31,3%, including the direct foreign investments – more than twofold. A number of large industrial productions, the railroad line “Tashguzar-Baysun-Kumkurghan”, the booster station at the deposit of “Zevardy”, and other sites have been commissioned. Besides, the implementation of large investment projects to master the Tyubegatan deposit of potash fertilizers and deposit of polymetallic ores of “Khandiza” has been started.

The measures to support the entrepreneurship, liberalize the conditions for their operations and curb the tax burden have served to increase the net share of the small business in GDP to 43,1% against 39% in the same period of last year.

The participants of the session have underscored that the adoption and implementation of a number of important decrees by President of the Republic of Uzbekistan for over the past time have significantly provided for further strengthening of targeted measures to socially support various layers of population, consistently undertaking the purposeful national programs in the sphere of education, cadres training, and healthcare. Thus, starting August 1, 2007 the amounts of salaries, pensions, stipends and allowances were increased by 25%. Within the framework of the State program “Year of social protection” alone UZS 370 billion have been channeled to the accomplishment of measures of social significance, including UZS 153 billion of the budget funds.

Besides, the session has paid a particular attention to the discussion of implementation of the key objectives defined at the joint session of chambers of Oliy Majlis, Cabinet of Ministers and Staff of President of the Republic of Uzbekistan on August 30 this year.

Also, the participants of the session have tackled the issues of further rational use of labor resources and raising the population’s life standards. They have also comprehensively analyzed the state of implementation of purposeful complex programs of expanding the home labor, sphere of services and development of cattle breeding at the personal subsidiary and farming entities. In line with territorial programs of employment nearly 490,000 jobs were created this year, including 82,000 – on the work contracts with enterprises, and 120,000 – in the sphere of services. 275,000 citizens engaged in the stockbreeding have received the workbooks.

The delegates to the session have underlined that the timely and quality preparation to the fall and winter period is the basis of successful work of all branches of economy, full functioning of housing resources, and social sphere facilities.

The session also saw the comprehensive discussion of efficiency of economic reforms being carried out in the agriculture. The cotton growers of the country harvested over 3,6 million tons of raw cotton, and harvesting is still underway in Uzbekistan. The countryside workers grew the good harvest of fruit and vegetable products, and vine. The network of agricultural firms on the processing of such products is on the rise. The systemic implementation of the purposeful complex programs provide for the consistent growth of the level and quality of life of the countryside population.

On the discussed issues the Cabinet of Ministers adopted a protocol resolution. According to the document, the main objective of heads of the Cabinet complexes, central economic agencies, all bodies of state and economic governance is to unconditionally implement the most important priorities set for 2007, as well as create the reliable guarantees for the sustainable development of economy with the early start of the next year.