OREANDA-NEWS. January 28, 2013. President Islam Karimov signed a decree of the Cabinet of Ministers on the results of socio-economic development of the country in 2012 and main priorities of economic program for 2013.

The document mentions that despite persistent severe problems in the global economy, thanks to implementation of key priorities of economic program for 2012 Uzbekistan was able to maintain sustainable rates of economic growth, steady rise in living standards of populations and to reinforce its standing in world markets.

The gross domestic product grew by 8.2 percent. The volume of manufacturing goods increased by 7.7 percent, and that of agricultural production expanded by 7 percent, construction works by 7,7 percent, retail turnover by 13.9 percent. Inflation rates were kept within projected levels and did not go over 7 percent.

The State Budget was executed with a surplus of 0,4% of GDP. Around 59.2 percent of all government expenditures were assigned for funding the social sector. In 2012 salaries of employees of budget organizations, pensions, social benefits and stipends rose by 26,5%, real income of population expanded by 17,5%.

The most important source of sustained high growth rates of the economy was the growing volume of investments into the fixed capital, which amounted to 22.9 per cent of GDP. Domestic and foreign investments in the equivalent 11.7 billion US dollars were drawn in Uzbekistan, an increase by 14 percent over the previous year. In excess of 22 percent of all investments, or more than 2.5 billion dollars constituted foreign investments, of which over 79 percent is foreign direct investment. About 74 percent of all investments in the past year were channeled to industrial construction. The construction of 205 major investment projects was completed.

The volume of exports has grown by 11.6 percent, foreign trade surplus amounted to more than 1,12 bln. US dollars. The share of non-raw ready goods in the structure of exports constituted more than 70 percent.

The financial and banking system functioned stably, aggregate capital of which increased in 2012 by 24,2 percent, bank deposits by 31,5 percent, including the deposits of physical persons by 34,6 percent. Long-term loans for investment purposes rose by 30,7 percent.

Measures aimed at cardinal improvement of business environment were continued – 80 permission procedures, 15 licensable activities were cancelled, reporting forms and frequency of statistical, tax and other filings were reduced 1,5-2 times. This allowed to create 23 thousand new small business enterprises last year, the share of which in national GDP rose to 54,6 percent, while export volumes by small businesses exceeded 2,2 bln. US dollars.

Services sector demonstrated high rates of growth. Particularly, communications and IT services grew by 24,5 percent, computer software by 18 percents, repairs and maintenance of technological equipment by 17 percent, financial and banking services by 17,6 percent. Services accounted for 52 percent of country’s GDP.

Within realization of the population employment program, 973,5 thousand new workplaces were created, of which 602,4 thousand are in rural areas. Above 450 thousand graduates of professional colleges, who finished their studies in 2012, gained employment.

Nevertheless there still remain non-utilized reserves and opportunities on ensuring development of regions, particularly through encouraging manufacturing, full reprocessing of agricultural and mineral raw materials, creation of service facilities in rural areas, rapid development of small business and private entrepreneurship. The available potential is inadequately put into use in Samarqand, Bukhara, Sirdarya, Jizzakh, Surkhandarya regions.

In times of continuing economic crisis and slowdown in growth rates of the world economy acceleration of realization of projects on modernization, technical and technological renovation of production, expanding the range and types of quality, competitive products and services, reducing power intensity of production gains special importance.

The decree identifies the following as the main directions and priorities of economic program for 2013 based on the achieved economic results, long-term goals, real and forecast situation in the global markets:

- maintaining sustainable high growth rates, macroeconomic stability and increasing competitiveness of the country’s economy;

- accelerating and enhancing the scope of modernization, technical and technological renovation of the main spheres of economy, diversification of production;

- advanced development of road-transport and communications infrastructure;

- conducting active investment policy and attraction of foreign investments, creation of business environment necessary as conditions and sources of modernization and renovation of the country;

- creation of workplaces and securing employment of the population;

- ensuring steady rise of living standards and quality of life of the population.

According to the document the Cabinet of Ministers is tasked with systematic control of realization of main priorities of economic program for 2013 with quarterly reporting by heads of ministries, agencies, commercial banks, business entities and enterprises on the situation in specific spheres of the economy.

The first deputy Prime Minister R.Azimov and Ministry of economy (G.Saidova) jointly with the Council of ministers of the Republic of Karakalpakstan and regional khokimiyats (governor’s office), relevant ministries, agencies and business entities are to conduct critical review of the programs of socio-economic development of regions for 2012-2016, adopted earlier.

On the basis of assessment of non-used reserves and production capacities, corrections are to be made to the adopted programs, paying special attention to complex development of regions, identifying priority directions for the region, accelerated growth of reprocessing sectors of the manufacturing, construction and construction industries, information-communication technologies and service sector and through this securing employment of the youth, achieving financial sufficiency and reducing subventions.

The Cabinet of Minister is to conduct quarterly reviews of the implementation pace of programs of economic and social development of regions.

The Ministry of economy (Saidova) in cooperation with ministries, agencies, business entities and local administrations is tasked with adopting measures to ensure close integration of sectoral and regional development, rational placement of production factors taking into account specific conditions in the region, their complex development.

The units of Cabinet of Ministers jointly with Ministry of economy (Saidova), Ministry of finance (Yusupov), Ministry of foreign economic relations, investments and trade (Ganiev), the Fund for reconstruction and development (Gulyamov), business entities in two weeks’ time are to critically analyze the state of design estimates and implementation pace of investment projects, which are of key importance in carrying out the economic program for 2013, to develop tangible measures to accelerate their implementation.

Deputy Prime Minister of the Republic of Uzbekistan G.Ibragimov, Uzbekenergo state joint-stock company (Basidov) are tasked with developing and adopting a set of additional measures to accelerate implementation of construction projects of combined-cycle power plants, to utilize alternative power sources, to install an automated system of metering and controlling electricity, to reduce technological losses in production and transportation of energy.

The Cabinet of Ministers is also tasked with preparing the draft of the Presidential resolution on supporting and subsiding exports, establishment of the Fund for export support and stimulation in a month’s period together with Ministries of economy, finance and foreign economic relations, investment, and trade.

The Cabinet of Ministers, State Committee for privatization, demonopolization and development of competition (Abduhakimov) jointly with other relevant ministries, agencies and institutes are to conduct quarterly assessment of business environment in the country in accordance with globally-accepted criteria, and take necessary measures to improve business environment, elimination of unnecessary limitations, red tape and bureaucratic barriers.

The Cabinet of Ministers (Azimov) in cooperation with the Ministry of economy (Saidova), Uzbekenergo SJSC (Basidov), Uzbekneftgaz national holding company (Faizullaev), Uzavtoyul SJSC (Abdullaev), O’zbekiston temir yo’llari national railways company (Ramatov), Uzkommunkhizmat agency (Kholmukhammedov), Tashkent regional khokimiyat (Kholmatov) are tasked with in two weeks’ time approving the schedule of accelerated construction and reconstruction of transport, production, engineering-communication infrastructure for production facilities to be commissined in 2013 at the territory of Angren special industrial zone.

First deputy Prime minister of the Republic of Uzbekistan R. Azimov in cooperation with the Ministry of foreign economic relations, investments and trade (Ganiev), Ministry of economy (Saidova) and Ministry of finance (Guskova), Jizzakh regional khokimiyat and other relevant ministries and agencies is tasked with completing all preliminary preparations and agreeing with authorized governmental bodies of the People’s Republic of China a set of constituent documents on creation of free industrial zone with an aim of attracting investment and advanced innovative technologies, development of industrial and export potential of Jizzakh region and neighboring areas.

The Cabinet of Ministers is also to review quarterly the implementation of projects, envisaged in the “Acceleration of infrastructure, transport and communications construction development in 2011-2015”.

Uzavtoyul SJSC (Abdullaev), Republic road fund (Shukurov), Council of Ministers of the Republic of Karakalpakstan, regional khomiyats are assigned to adopt measures on unconditional implementation of goals on construction, reconstruction and repairs of automobile roads and development of roadside instrastructure for 2013.

O’zbekiston temir yollari national railways company (Ramatov) is tasked with critically assessing in two weeks’ period the implementation pace of investment projects on development of railways communications. Electrification of Marakand-Karshi and Karshi-Termez railway sections, rehabilitation of 240 km railroads, as well as completion of modernization of foundry-mechanical plant of the O’zbekiston temir yollari railways company should be given priority direction.

State Committee of communications, informatization and telecommunication technologies (Mirzakhidov) is assigned to implement international and sectoral standards, systems of assessment of informatization of spheres of economy and conduct systematic monitoring; to accelerate development of the Concept and complex program for E-Government system, introduction of interactive governmental services to businesses and population; to further develop communications technologies, to increase information transmission, to finish construction of more than 2 thousand km fiber-optic lines and to ensure broadband access to information resources and information systems, to create of national web-resources; to submit to the Cabinet of Ministers a draft complex program of development of national information-communications system for 2013-2017 for approval.

The Council of Ministers of the Republic of Karakalpakstan, regional khokimiyats, Qishloq qurilish invest engineering company (Khoshimbekov), State Architecture and Construction Committee (Zakirov), Ministry of economy (Saidova), Ministry of finance (Yusupov), Qishloq qurilish bank (Mullakhonov) in collaboration with other relevant ministries and agencies are to ensure opening of financing and start of construction works of residential houses on model designs, external engineering and transport communications, social and business facilities in the residential areas of rural areas. Chairman of the Council of ministers of the Republic of Karakalpakstan, regional governors, heads of Qishloq qurilish invest engineering company, Qishloq qurilish bank, State architecture and construction committee, Uzbekenergo SJSC and Uztransgaz JSC (Juraev) are designated personally responsible for quality and timely execution of the approved Program of construction of individual houses in rural areas on model designs.

The decree also provides for development of construction industry, increasing employment opportunities of the population, especially graduates of professional colleges, and prepare of draft Program for the Year of wellbeing and prosperity.

Prime Minister of the Republic of Uzbekistan Sh.Mirziyoyev is assigned to control execution of the decree.