Shavkat Mirziyoyev: Our main task is to ensure macroeconomic stability and curb inflation in the process of economic reform.
24/01/2020 12:47
Shavkat Mirziyoyev: Our main task is to ensure macroeconomic stability and curb inflation in the process of economic reform.
24/01/2020 12:47
Tashkent, Uzbekistan (UzDaily.com) -- President of Uzbekistan Shavkat Mirziyoyev dwells on program and target tasks in the economic sphere, which we must fulfill in 2020 and subsequent years:
“Firstly, in 2020, our main task is to ensure macroeconomic stability and curb inflation in the process of economic reform.
Starting this year, we have begun implementing the inflation targeting system. In this work, the Ministry of Economy and Industry, the Central Bank, the Ministry of Finance should ensure a balance of economic growth and inflation, as well as take into account external risks.
Today, the state regulates prices for 37 types of goods and services, and this negatively affects free competition. In this regard, in the future, the main attention should be paid not to determining prices, but to lowering and improving product quality due to healthy competition between enterprises.
Based on the study of international experience, it is necessary to open the way for the private sector in those monopolistic spheres where conditions for competition and the formation of a competitive environment can be created. In this regard, it is necessary to update laws on natural monopolies and competition, as well as develop a Strategy for the formation of a competitive environment.
The only way to ensure stable prices for food products in the consumer market is to increase production of fruits and vegetables, livestock and other food products, as well as create an effective continuous chain “field - counter”. The government, together with local authorities, must ensure the fulfillment of this task.
Control over the targeted and rational use of budget funds should be strengthened.
This year, we have determined the maximum upper limit of state external debt. From now on, serious attention will be paid to the study of payback and the effective use of loans from international financial organizations.
The Cabinet of Ministers is instructed to develop draft laws “On State Financial Control” and “On Government Debt” with the help of international experts within 3 months.
Until we eradicate the “shadow economy,” which seriously impedes our reforms, there can be no talk of creating healthy competition and a favorable investment climate.
Within two months, the Cabinet of Ministers, with the involvement of foreign experts, needs to deeply analyze the factors behind the emergence of a “shadow economy” and approve a program to counter it.
Currently, to restore order in the market of alcohol and tobacco products, the introduction of a digital labeling system for goods has begun. In the future, we will use the same system in the sphere of pharmaceutical product turnover.
The Cabinet of Ministers is entrusted with taking under special control the project of introducing digital marking and online cash desks, which is carried out through direct investments in the amount of US$200 million.
Secondly, to develop the economy at a fast pace, we need to consistently continue an active investment policy.
This year, investments of US$23 billion will be mastered with the commissioning of 206 new large production facilities. In particular, on the basis of the Shurtan gas-chemical complex, capacities for the production of liquid synthetic fuel will be commissioned, and in the joint-stock company Navoiazot nitric acid, ammonia and carbamide.
The commissioning of the Tashkent Metallurgical Plant, the Sergeli branch of the Tashkent Metro, the completion of the first stage of the construction of the elevated ring metro is planned.
I would like to emphasize that a significant part of investments mastered in 2020 will be foreign direct investment and loans.
In order to support investors, they are introducing installment plans for paying taxes and partially compensating the state for the costs of creating infrastructure.
At the same time, the practice of deduction of expenses for the purchase of new technological equipment, construction and modernization of new facilities when calculating income tax was expanded.
An inventory of about 3 thousand enterprises with a state share should be made and measures should be taken to drastically reduce government participation in areas where the private sector and competition are developing.
It is necessary to implement new strategic projects at such strategic enterprises as the Navoi and Almalyk mining and metallurgical plants and at the same time turn them into full-fledged participants in the international financial market. To do this, in 2020 - to complete the preparation of financial reports based on international standards, revaluation of stocks and introduce modern corporate governance.
In the oil and gas sector, with the involvement of foreign experts, it is necessary to increase the efficiency of managing state enterprises and optimize costs, and achieve reduction in existing debt.
In view of these tasks, the Cabinet of Ministers is tasked to develop a Management Strategy and Reform of Enterprises with State Participation within two months.
In order to actively attract foreign investors, it is necessary to hold the Tashkent International Investment Forum at a high organizational level in March this year.
One of the effective means of attracting investment is the mechanism of public-private partnership, it should be widely implemented in the fields of transport, energy, road construction, utilities, medicine, education and others.
Currently, the construction industry has become one of the important “drivers” of the economy. This is also confirmed by the fact that its share in gross domestic product exceeded 6 percent. In order to further develop the industry, it is necessary to harmonize norms and rules in the field of construction with international standards, introduce modern building technologies and materials, and radically reform the training system.
At the same time, specific criteria for tendering should be developed and information technologies should be widely used in this system.
The Cabinet of Ministers is instructed to develop a strategy for the development of the construction industry until 2025 within 2 months.
Thirdly, we need to take decisive measures this year to develop the banking system.
Unfortunately, the banking system is 10-15 years behind modern requirements for the development of digital technologies, the introduction of new banking products and software.
Starting from 2020, a large-scale transformation program will be implemented in each bank.
Our focus will be on increasing the capital, resource base and profitability of banks.
In the banking system, we should establish the activities of a “factory of projects” aimed at supporting entrepreneurs.
Our banks must enter the international financial markets, attract affordable and long-term resources. It is advisable to issue Eurobonds this year by the National Bank and Mortgage Bank.
Banks with a state share will be gradually sold to strategic investors.
The main goal of reforms in the banking sector is to teach commercial banks customer-oriented work.
In order to train modern personnel, the Banking and Finance Academy will be completely reorganized together with foreign specialists.
In order to introduce modern banking practice and management in state banks, new banking services to leading positions, the involvement of qualified specialists and leading foreign financial institutions has been started. Work in this direction will be continued.
It is necessary to fundamentally update the software of banks through the widespread introduction of modern information technologies.
Until 1 July 2020, it is necessary to fully launch the information system of “credit histories”.
It is important to build public confidence in the banking system and not allow outside interference in the activities of banks.
Fourth, the production of competitive products, the search for new international markets and increased exports, the full use of transit potential are key to sustainable economic growth.
This year, the Export Support Fund will be formed, which will provide exporters with a guarantee and compensate for part of their expenses, as well as the Export Credit Agency, which will organize pre-export financing.
It is planned to introduce modern export insurance services, mechanisms for compensating the state for part of the costs of using automobile and air transport.
The control system and infrastructure in foreign trade should be improved. In particular, on the basis of foreign experience, to reform the activities of sanitary, quarantine, veterinary and other departments that exercise control at customs posts.
In 2020, about 3 thousand standards are to be adopted, their number will be increased to 10 thousand, and the level of compliance with international standards - up to 40 percent.
In Andijan, Termez and Kungrad regions, we envisage the creation of free trade zones and the development of cross-border trade through them.
Private trading companies should deal with determining the types of products that are in demand, searching for markets and selling them. For this, a package of laws should be developed that streamlines their activities.
This applies to trade in both foreign and domestic markets.
The Cabinet of Ministers is instructed to develop a concept for regulating foreign economic activity and adopt relevant acts to ensure the fulfillment of these tasks within a month.
In order to timely deliver our products to foreign and domestic markets, reduce its cost, we need to develop the transport and logistics sector.
In the railway sector, it is necessary to distinguish between the transportation of passengers and goods, operation and maintenance, that is, to separate the natural monopoly part and separately develop those areas where the private sector can be attracted.
According to international experts, by improving infrastructure, ensuring tariff transparency and opening new routes, the transit potential of our country can be increased from the current 7 million tons to 16 million.
I want to draw your attention to another important issue.
To increase population incomes, create additional jobs, and increase production, we need new markets.
Today we make many laws and decisions taking into account the requirements of a modern market economy. However, unfortunately, many managers responsible for their implementation still cannot get rid of the old methods of work, an indifferent, formal approach.
The open market dictates the need to improve product quality, reduce costs, attract new technologies, and promote market reforms. Therefore, we must integrate into international production chains, meet the requirements of the labor market and go in line with economic integration.
To be ready for dialogue and competition in the international market, industry leaders must work hard on themselves.
Given all these factors, we well understand the need to expand economic integration.
Today, eighty percent of our foreign trade cargo is transited through Russia, Kazakhstan and Kyrgyzstan. At the same time, 50 percent of finished goods exports, and for some items - over 80 percent, account for these countries.
Given this, and also in order to create favorable conditions for our citizens working in Russia and Kazakhstan, the issue of establishing cooperation between Uzbekistan and the Eurasian Economic Union is currently being studied. Of course, in this serious matter we will proceed primarily from the interests of our people, rely on their will. Therefore, our deputies and senators, who are representatives of the people, should comprehensively discuss this issue in the chambers of parliament and express their justified position with full responsibility.
The Cabinet of Ministers needs to complete the analysis and a comprehensive assessment of this issue and, based on the results, present the relevant conclusions and proposals to the Chambers of the Oliy Majlis.
Along with this, we will continue our dialogue with the World Trade Organization and work on concluding a new Agreement on Enhanced Partnership and Cooperation with the European Union.
We will also develop our participation in other international and regional economic organizations.
Fifthly, it is necessary to provide uninterrupted supply of industries with raw materials and create an appropriate modern infrastructure.
In order to provide raw materials for a number of important sectors of the economy, including the chemical, oil and gas, energy, electrical industries, the production of building materials and the jewelry industry, we should first of all seriously intensify our exploration activities.
This year, 2 trillion soums are allocated from the budget to study promising areas and increase explored mineral reserves.
The State Committee for Geology is tasked, using these funds effectively, to explore 35 percent more new promising areas and deposits this year, and increase another 40 percent next year.
The State Committee for Geology together with the Ministry of Investments and Foreign Trade is instructed to form a package of finished projects for at least 20 fields to attract potential investors to their development.
At the same time, the Goskomgeologiya should put into practice an international system of accounting, classification and management of hydrocarbons and their reserves.
To ensure economic growth, it is extremely important to create a modern and efficient infrastructure. Over the next three years, 9.8 trillion soums will be allocated for the construction of roads, 4.6 trillion soums for the construction of water supply networks, 18.2 trillion for the construction of electric networks, 1.2 trillion for gas supply. This funding is many times more than in the last ten years.
At the same time, the creation of modern infrastructure and modernization of existing systems requires 10 times more funds. No matter how difficult it is, we will annually allocate funds as part of investment programs and will certainly continue to work in this direction.
At the same time, the direction of half of the over-forecasted revenues of the republican and local budgets to the development of infrastructure should become one of the main tasks of the Ministry of Finance and khokims this year. It is advisable, with the participation of the Legislative Chamber and the Audit Chamber, to organize a field study of the targeted and effective use of these funds. ”
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