January 22, 2014
Resolution of the Cabinet of Ministers of the Republic of Uzbekistan.. 2
Priorities of Uzbekistan’s Economic program for 2014. 5
Building Industry Hits Boost. 6
Press-service of MFA
POLICY
Resolution of the Cabinet of Ministers of the Republic of Uzbekistan
On the outcomes of socio-economic development in the country in 2013 and the critical priorities of economic program for 2014
1. The Cabinet of Ministers notes that the preservation of high sustainable growth rates, macroeconomic balance, modernization and diversification of the national economy has been secured as a result of well-directed and systemic realization of the most critical priorities of the economic program for the year 2013.
The gross domestic product grew by 8 percent, volumes of manufacturing industry production increased by 8.8 percent, of agricultural goods by 6.8 percent, of contract construction works by 16.6 percent, of services by 13.5 percent, of retail turnover by 14.8 percent. The share of services in the GDP reached 53 percent.
The State Budget has been executed with a surplus. The inflation rate has been preserved below the forecast level and equaled 6.8 percent.
The volume of drawn investments in the year 2013 accounted for 13.0 billion dollars in the equivalent, registering an 11.3 percent growth when compared to that in 2012. The amount of foreign investments exceeded 3.0 billion US dollars, more than 72 percent of which were foreign direct investments. As part of the Investment Program, the realization of 150 projects in the manufacturing industry totaling some 2.7 billion US dollars has been complete.
As a result of measures aimed at rationalizing the production expenses and introducing power-saving technologies, the reduction in the net costs of goods produced has been secured at 11.2 percent, and that of the energy intensity of the GDP – at 15.3 percent.
In spite of the instability in the global markets, the growth in exports has been ensured at 10.9 percent, with a surplus in the external trade turnover at 1.3 billion US dollars. Non-crude goods accounted for more than 72 percent of aggregate exports.
The banking system of the country has been operating dynamically, whose self-sufficiency in capital is sustained on a level that exceeds the minimum international standards threefold, while its liquidity is 2.2 times as high as maximum requirements. For the review period, the aggregate capital of commercial banks increased by 25 percent. Around 80 percent of the entire loan portfolio of banks is shaped with the help of internal sources.
The realization of systemic measures directed at improving the business environment facilitated the further development of small business. More than 26 thousand new entities of small entrepreneurship have been established, while the sector’s share in the gross domestic product has reached 55.8 percent.
The approved measures in the execution of program for the promotion of population employment helped provide some 970 thousand people with jobs in 2013, including 60.3 percent in rural areas. In excess of 500 thousand graduates of professional colleges have been employed.
A complex of measures has been taken to uplift the standards and quality of life of the population. In 2013, wages in the public sector, retiree pensions, student scholarships and social allowances increased by 20.8 percent, while real incomes of population enhanced by 16 percent. The share of entrepreneurship incomes accounts for more than half of aggregate incomes of the population.
In 353 residential quarters in rural areas, 10 thousand comfortable houses with living area exceeding 1.5 million square meters have been built, which constitutes a 17 percent rise from the previous year indicators.
In the meantime, measures being adopted and implemented to shape a full-fledged competitive environment and the conditions for doing business still fail to meet the requirements and principles of free market economy and universal international norms.
High production costs, high material capacity and energy intensity of produced goods, excessive commitment to tax privileges and preferences constitute a grave barrier in the way to boost the competitiveness. More than 140 enterprises, including 67 major enterprises, remain detrimental.
2. Pursuant from the policy targets in the long-term development of the country, define the following as the most critical tasks and priorities of the economic program for the year 2014:
Continuation with the adopted strategy that helps secure steadily high economic growth rates, hence mobilization of the available reserves and resources to further this end;
Commissioning crucial high-technology and modern facilities and production capacities in the manufacturing industry, growth and perfection in the investment process;
Forming a full-fledged competitive environment in the country as a key factor in the technical and technological renewal and modernization of production capacities, in access to global markets;
Shaping a business environment (on the principle “do business”), comprehensive support and further stimulation of small business and private entrepreneurship;
Promotion of social sphere, creation of jobs and securing employment of population, construction of housing and improvement of living conditions, further reforms and perfection in the education process and healthcare system;
Implementation of the State Program “The Year of the Health of the Child”.
3. The Cabinet of Ministers establish a systemic scrutiny over the realization of the most critical priorities of the economic program for the year 2014 with a quarterly hearing of reports of heads of relevant ministries, other government agencies, production and economic entities on the state of affairs in certain industries and economy sectors.
4. Deputy Prime Ministers of the Republic of Uzbekistan – heads of complexes of the Cabinet of Ministers jointly with ministries, other government agencies, stock companies, associations and major enterprises – owners, contract construction organizations approve within the fortnight’s time the network schedules of construction completion and commissioning of facilities and production capacities envisaged by the Investment Program for 2014.
To the Cabinet of Ministers: Discuss on a quarterly basis the progress in the realization of the Investment Program during sessions of the Cabinet of Ministers.
5. The Cabinet of Ministers, the Ministry of Economy (Saidova), the Ministry of Finance (Guskova), the State Committee for Privatization, De-Monopolization and Promotion of Competition (Abduhakimov) with the engagement of interested entities elaborate and approve in a three months time “roadmap” programs on each unprofitable enterprise designed to secure their exit out of the financial crisis and factual bankruptcy. Those enterprises who ultimately fail to extract positive advantage from the proposed measures in financial rehabilitation be sold to private entrepreneurs on “zero cost”.
6. The Deputy Prime Minister of the Republic of Uzbekistan U.Rozukulov, the Ministry of Economy (Saidova), the Ministry of Finance (Yusupov), the State Committee for Privatization, De-Monopolization and Promotion of Competition (Abduhakimov), the Ministry for Foreign Economic Relations, Investments and Trade (Ganiev):
Critically assess in a two months time the current state of production and financial-economic activities of the Tashkent Tractor Plant, the “Agregatniy Zavod” Open Stock Company, the “Chirchikishlokmash” Open Stock Company, the “Oniks” Open Stock Company and introduce substantial proposals to the Cabinet of Ministers on their further development path and on bolstering the profits by envisaging measures designed for modernization, technical and technological re-equipment of the sector with the engagement of leading world manufacturers, for the perfection in the organization of activities of enterprises and the establishment of a holding company in the agricultural machine building;
In a time frame by February 1, introduce proposals to the Cabinet of Ministers designed to transform the Uzeltekhsanoat Association to a stock company and a development program of the electro-technical industry for 2014-2018 by envisioning measures in it to cardinally expand the range and volume of production and export electrical home appliances.
7. The Ministry of Economy (Saidova) jointly with the State Committee for Privatization, De-Monopolization and Promotion of Competition (Abduhakimov), the Central Bank (Mullajanov), the Ministry of Finance (Guskova), the Ministry of Justice (Yuldashev), the State Committee for Communication, Information and Telecommunication Technologies (Mirzahidov) and other interested ministries, other government agencies and economic associations introduce proposals to the Cabinet of Ministers in a two months time on:
A clear-cut definition in legislative and normative acts of the notion of private property, its differentiation from enterprises of nongovernmental property, on securing the priority, support for and inviolability of the private sector of economy in practice in accordance with existing laws;
Further reduction of time frames, simplification and cost cutback of various licensing procedures for the establishment and conduct of entrepreneurship activities, elimination and exclusion of redundant bureaucratic barriers for entrepreneurship;
Acceleration of transition to electronic form of application for authorization and licensing procedures, interactive provision of municipal services as well as those in taxation and customs application.
Special emphasis be placed on elevating the role and liability of regional, municipal and district hokimiyats (administrations) for the creation of conditions conducive for doing business.
8. Place personal liability on heads of the State Tax Committee (Parpiev), the State Customs Committee (Dusanov), the State Statistics Committee (Turaev) for a complete transition to the electronic form of submitting reports and document circulation.
The State Committee for Communication, Information and Telecommunication Technologies (Mirzahidov) ensure the coordination of these works and provide practical assistance in their implementation.
9. The State Committee for Communication, Information and Telecommunication Technologies (Mirzahidov):
In cooperation with the Council of Ministers of the Republic of Karakalpakstan, hokimiyats of regions and the city of Tashkent, take additional action designed to indisputable execution of measures intended for 2014 within the Program of Development of Telecommunication Technologies, Networks and Communications Infrastructure for 2013-2020. The progress in the implementation of the Program be discussed on a quarterly basis during meetings of the Cabinet of Ministers;
In cooperation with interested ministries and other government agencies, associations, companies and major enterprises, submit to the Cabinet of Ministers, in a month time, an action plan to introduce information and communication technologies and information systems into the real sector of economy;
During the 1st quarter of this year, arrange courses at the Tashkent University of Information Technologies and its regional affiliates to raise proficiency in working with computer technologies and the internet system, to command contemporary communication technologies.
10. The Central Bank (Mullajanov), the Ministry of Finance (Yusupov), the State Tax Committee (Parpiev), the State Committee for Communication, Information and Telecommunication Technologies (Mirzahidov) in cooperation with other interested entities submit proposals to the Cabinet of Ministers in a two months time to enhance electronic commerce and elaborate a new edition of the Law “On Electronic Commerce”.
11. The Ministry of Agriculture and Water Resources Management (Hamraev), the Ministry of Economy (Saidova), the Ministry of Finance (Yusupov), the Fund for Ameliorative Improvement of Irrigated Lands (Yusupov), the Council of Ministers of the Republic of Karakalpakstan, hokimiyats of regions in cooperation with the Council of Farmers of Uzbekistan and other interested agencies work out in a month time additional action directed at securing an irrefutable execution of measures envisaged in the State Program of Integrated Measures to Improve the State of Irrigated Lands and the Rational Use of Water Resources for 2013-2017.
The Cabinet of Ministers establish a systemic oversight of the execution of the Program and discuss on a quarterly basis the progress in its implementation during meetings of the panel of the Cabinet of Ministers.
12. The Council of Ministers of the Republic of Karakalpakstan, hokimiyats of regions, the Davarkhitektqurilish (Tohktaev), the Ministry of Finance (Yusupov), the Qishloq Qurilish Bank and the Qishloq Qurilish Invest company:
Take immediate action to secure by February 10 this year the opening of funding for the Program of Construction of Individual Standard-Design Housing in Rural Areas for the current year and by 15 March this year start the construction of residential homes;
Special attention be paid to provide rural settlements with all the essential engineering and transport communications, facilities of social and market infrastructure – healthcare, sports, banking, services, trade and cultural institutions on quality levels and living comforts not inferior to those in urban areas.
The outcomes of taken measures be discussed on a quarterly basis during meetings of the Cabinet of Ministers.
13. The Deputy Prime Minister of the Republic of Uzbekistan B.Zakirov in cooperation the Council of Ministers of the Republic of Karakalpakstan, hokimiyats of regions, the Davarkhitektqurilish (Tohktaev), other interested ministries and agencies elaborate in a ten days time a program of action to create specialized construction contract organizations in regions capable of carrying out an entire range of construction works under a method of “turnkey” and outfit them with modern construction machines and equipment and means of minor mechanization.
The Cabinet of Ministers consider critically on a quarterly basis the progress being made in the implementation of projects envisaged in the Program “On the Acceleration of Development of the Infrastructure, Transport and Communication Construction in 2011-2015 with the adoption of measures designed to address issues preventing the acceleration in their realization.
14. The Ministry of Labor and Social Security of the Population (Haitov) in cooperation with the Ministry of Economy (Saidova), the State Statistics Committee (Turaev) introduce into practice the elaboration of annual forecast and report balances in labor resources, employment of population, with a special significance attached to the employment of youths who reach able-bodied age and who turn up in the labor market for the first time.
15. Give advance notice to the Chairman of the Council of Ministers of the Republic of Karakalpakstan, hokims of regions, districts and towns, heads of economic associations and enterprises on their personal responsibility for an undisputed execution of the approved parameters within the Program of Creation of Jobs and Provision of Population Employment for 2014, the employment of graduates of professional colleges of the academic year 2013-2014.
The Cabinet of Ministers secure a definitive coordination of works directed at full engagement of professional college graduates into an active work activity, consider on a quarterly basis in its sessions the progress in the realization of the approved Program of Creation of Jobs and Provision of Population Employment for 2014, as well as the employment of graduates of professional colleges in terms of sectors of economy and regions of the country.
16. The Prosecutor General’s Office of the Republic of Uzbekistan (Kadyrov) secure the oversight of the realization of the Program of Creation of Jobs and Provision of Population Employment for 2014 and the authenticity of presented data on the employment of professional college graduates with making guilty officials liable in accordance with the law.
17. The Ministry of Higher and Secondary Special Education (Khodiev), the Center for Secondary Special, Professional Education (Salimov) in cooperation with the Ministry of Labor and Social Security of Population (Haitov), the Ministry of Economy (Saidova), the Council of Ministers of the Republic of Karakalpakstan, hokimiyats of regions and the city of Tashkent, interested agencies and enterprises elaborate and approve within a month time, on each district and town, targeted measures to assign graduates of professional colleges to concrete employer organizations for them to pass through production internship with their eventual employment in professions they have attained.
18. The Ministry of Healthcare (Alimov) in cooperation with the Ministry of Finance (Yusupov) realize within a month time a complex of concrete measures to put things in order and perfect the activities of rural medical units, including the approval of new norms of work for doctors, and conduct on an experimental basis stimulating measures in a range of districts across the country to raise the productivity of works by visiting nurses.
19. The Cabinet of Ministers complete the elaboration within a fortnights time and introduce the draft State Program “The Year of the Health of the Child” with attaching a special significance to the implementation of practical measures designed to secure the protection of maternity and childhood, to uplift the quality of primary education, extensive engagement of young people in sporting activities, expand the role of public organizations in nurturing children, consolidate the economic and technical capacities of institutions within the systems of education, healthcare, physical culture and sports.
20. Lay the oversight of the execution of this protocol resolution on the Prime Minister of the Republic of Uzbekistan Sh.Mirziyoev.
President of the Republic of Uzbekistan I.Karimov
The City of Tashkent
17 January 2014
economy
Priorities of Uzbekistan’s Economic program for 2014
President of Uzbekistan Islam Karimov approved the decision by the Cabinet of Ministers on 17 January 2014 “On results of socio-economic development in 2013 and the most important priorities of economic program for 2014”.
The Cabinet of Ministers notes that as the result of purposeful and systematic implementation of key priorities of 2013 economic program, the high sustainable growth rates, macroeconomic balance, modernization and diversification of the economy were ensured.
Based on the achieved results in the economy, long-term development objectives, the following were defined as the most important tasks and priorities of the 2014 economic program:
– continuity of the strategy, providing consistently high rates of economic growth, mobilization to this end of all available resources and means;
– commissioning of the most important high-tech and modern facilities and capacities in the industry, boosting and improvement of investment processes;
– creation of fully competitive environment, which is a key factor in technical and technological renovation and modernization of production and access to world markets;
– creation of business environment (on “do business” principle), comprehensive support and further promotion of small business and entrepreneurship;
– development of social sector, creation of jobs, housing construction, further reform and improvement of education and public healthcare;
– implementation of the State program “Year of a healthy child”.
(Source: Uzreport.uz)
ECONOMY: Jizzakh region
Building Industry Hits Boost
89 investment projects worth more than $11.3 million were implemented by construction materials industry of Jizzakh region last year.
Thousands of industrial and social facilities, homes, hundreds of kilometers of roads and railways are annually built in Uzbekistan. The figures demonstrate not just the dynamics of the national economy and GDP growth, but also the evolution of related industries, without which the progress would not be so effective.
Today the national building materials industry not just fully satisfies the domestic demand in high-quality products, but also actively builds its exports. Naturally, much of it goes to neighboring countries and CIS partners, but the industry works hard to expand the range of supplies and exports. The key to success is the right combination of price and quality. These parameters are primarily dependent on the introduction of technological equipment. Under current conditions, the manufacturer should not just produce certain kinds of goods, and be flexible about the market demands, but engage the capacities that can be inexpensively refocused on the production of new goods. Energy efficiency and cost savings through optimization are another two key pillars. The first indicator largely depends on the correct development strategy of the enterprise and therefore procurement of appropriate equipment, while the second one is based on competent management and introduction of modern quality standards.
All these factors are successfully applied by domestic manufacturers of building materials. Government has provided the real sector with significant benefits and preferences, the released funds from which are forwarded to upgrade and technological extension. In addition, on a national scale Uzbekistan pays equal attention to the introduction of international quality standards. Last year, Uzbekistan ranked the fourth among the CIS countries in the number of internationally certified companies. There are currently about 950 companies certified according to international and national ISO standards.
As a result of the measures taken, the building materials industry of the republic has been showing a steady rise in recent years. In the first nine months of last year alone, the industry’s production increased by 12.1% or 2.89 trillion soums (Currency rates of CB from 22.01.2014 1$=2203.39 soums). Within the given period exports have exceeded $74.7 million (up 3.6%).
A Jizzakh enterprise Kattabek Haq with the completed project on the manufacture of plastic pipes of different diameters is a recent example of successful combination of technology, right arrangement of manufacture and good understanding of the mechanisms of supply and demand in the markets. In general, more than forty projects were implemented in the region on the manufacture of baked bricks, dry mixes, concrete slabs, aluminum doors and frames, metal structures, marble and granite slabs and other building materials.
(Source: “Uzbekistan Today” newspaper)