President Gurbanguly Berdymuhamedov chaired an enlarged sitting of the Cabinet of Ministers. The President addressed the policy statement to the audience.

Addressing the participants including the high-ranking officials of the economic establishments, the specialists of the planning and budgetary institutions, the economists and the chancellors of the higher educational establishments the Turkmen leader presented the agenda emphasizing that the sitting was held to discuss what trends and principles should be used to reorganize national economy, what measures should be prioritized, what should be the goals and tasks set to the economic ministries and departments and the governmental authorities.

The Turkmen leader noted that the foundation for the national economic development model, in particular the Turkmen way of development had been laid during the years of independence through the supreme effort of the Turkmen people, who overcome the hardships of the transition period. The active investment policy enabled to effect the fundamental structural transformations in national economy and to ensure the considerable positive progress in the social sphere.

The President said that Turkmenistan had entered a new stage of development, which mass media called “the epoch of revival”, and the main task was to clearly define the goals in economy and other spheres to be achieved immediately and in the nearest future.

Emphasizing that the modern economic and social development model should be based on the economic achievements gained during the years of independence Gurbanguly Berdymuhamedov said that the ultimate goal of the reforms was the wellbeing of the people, their spiritual and intellectual development.

The Turkmen leader defined the high GDP growth rates – about 8-10 percent exceeding the dynamics of the population growth was as high as 4-5 times, as the key condition for intensive economic development. Noting that the demands were made to each national ministry and department the President specified the measures to be taken to achieve these goals including creation of transportation links, free economic zones, international tourism zones and relevant social and economic institutions through taking advantage of the geopolitical location.

Citing the succesfull examples of the effective approaches to creation of the new economic environment, the projects on construction of the North-South transport corridor and the Avaza national tourism zone the President said that those measures were the beginning of the important work to fundamentally diversify national economy. The strategy would require the qualitative changes in the national investment policy through creating the favourable conditions for the inflow of funds and effective investments by subjects of all patterns of ownership.

Touching upon the state ownership Gurbanguly Berdymuhamedov said that the reserves were not used in full. The President mentioned establishing joint ventures of various organizational and legal forms as the resource, which would open the gate to up-to-date equipment and advanced technologies, modern marketing techniques and best management practices, promote scientific and technological advance and formation of the brain capital.

Specifying the tasks to develop Turkmenistan’s competitiveness on world market and noting that fruitful co-operation with the international community had positively impacted on the growth of the foreign trade turnover and expanded its geography Gurbanguly Berdymuhamedov emphasized that the country had the profound capacities to increase its exports through comprehensive development of national economy and expansion of its export potential.

The President said that improving the national legislation was the task of paramount importance. The work was in progress, and emphasis was put on development of the non-governmental sector of national economy, creation of the favourable business environment and functional conditions for market economy. Emphasizing that the transition process should be phased and progressive, meet the interests of the people Gurbanguly Berdymuhamedov focused on some aspects of Turkmenistan’s social policy.

Confirming that citizens of Turkmenistan would use free gas, water, electric power and salt till 2030 Gurbanguly Berdymuhamedov informed that the state would steadily increase the investments in education, healthcare, cultural and professional development of the people, in other words ‘human capital’. In this regard the President focused on the specific aspects of further development of education, science and healthcare in the country.

Focusing on the programme on social and economic development of rural areas the Turkmen leader said that the main task – to tackle the problem of employment through creating new jobs in the non-government sector of national economy as well.

Touching upon further development of the basic sector of national economy – oil and gas industry the President emphasized that the government should attach paramount importance to the large-scale projects on development of hydrocarbon and mineral resources and the opportunities of exports to world market. The Turkmen leader said that the principle of transparency of Turkmenistan’s fuel and energy sector should be fundamental enabling to design the investment plans aimed at improving the sectoral infrastructure and increasing the country’s energy potential and to establish the multivariant system of hydrocarbon export.

Putting emphasis on the necessity to expand exploration and development of oil-and-gas-bearing areas the Turkmen leader said that the international audit of the hydrocarbon deposits in Turkmenistan would be conducted in 2008.

Focusing on Turkmenistan’s profound resource potential to develop chemical and construction industries and the agro-industrial sector Gurbanguly Berdymuhamedov presented the goals of the new agrarian policy. The President said that the efficient use of land resources and application of the scientifically-based methods of economic management would strengthen the food security, offer a powerful incentive to improve the agro-industrial infrastructure aiming to accelerate food production oriented to the domestic and foreign markets. The Turkmen leader put emphasis on the necessity of searching the ways to manage the sector on an economic paying basis, to cultivate other crops in order to increase the export earnings.

The President said that textile industry ranked among the priority, strategic sectors of national economy noting that concentration of the financial and material resources for the purposes of construction, modernization and reconstruction of the existing enterprises, enhancement of the competitiveness of domestically manufactured products, increase in exports, development of marketing services, support of private businesses and textile exports was of paramount importance.

Touching upon the issued of laying the foundations for market economy the President focused on the financial policy, the tasks of strengthening the national currency, attracting the spare cash into the official financial turnover. In this regard the Turkmen leader noted the importance of establishing the integral, highly liquid stock market regulated by the state and integrated into the world securities markets. The financial institutions called upon to ensure stabilization of the market dynamics – banks, investment funds, insurance companies, etc. should be brought to a new qualitative level.

In this regard the Turkmen leader set the tasks to the newly-established Ministry of Finance emphasizing that the ministry should prioritize the work on the financial rehabilitation of national economy and enhancement of the national currency. Gurbanguly Berdymuhamedov said that in 2008 the common exchange rate and smooth transition to the new manat should be ensured so that neither population nor national economy would experience the hardships.

The Turkmen leader said that the same tasks were set to the newly-established Ministry of Economy and Development emphasizing that the ministry should aimed its activity at elaborating the national economic development conception for the next five years in collaboration with the Institute of Strategic Planning and Economic Development and other government agencies.

Introducing G. Gurbanmyradov as a candidate to the Minister of Economy and Development of Turkmenistan the President gave him the floor.

G. Gurbanmyradov reported on the key directions of the activities of the newly established ministry, which was to coordinate the work of the ministries and departments on implementation of the national development programmes, to provide effective assistance in tackling the issues of employment, efficient allocation of labour resources, increase of labour productivity and remuneration of labour.

Introducing H. Geldimyradov as a candidate to the Minister of Finance of Turkmenistan the President gave him the floor.

H. Geldimyradov reported on the measures to improve the financial and economic and money and credit relationships in the context of the priority tasks set by the Turkmen leader. H. Geldimyradov said that the steps promoted reducing the rate of inflation, created the favourable conditions for fixing the uniform exchange rate and strengthening the national currency.

Then the Turkmen leader gave the floor to Director of the Institute of Strategic Planning and Economic Development A. Gurbnagulliev, who reported on the key directions of the activities of the Institute including the comprehensive analysis of the on-going economic processes, creation of the scientific basis for the national development programmes, determination of the priority fields of the reforms, preparation of the economic forecasts.

Chancellor of the Turkmen Institute of National Economy H. Bayramov assured that the higher educational establishment would continue to train young qualified specialists called upon to contribute to the wellbeing of the Motherland. The Chancellor reported on the activities aimed at establishing close co-operation with the leading educational establishments worldwide.

Head of the Statistical Department of the Turkmengaz State Concern A. Orazov reported on the main parameters of development of the national fuel and energy sector in the current year.

Chief Expert of the Supreme Attestation Commission of the Supreme Council for Science and Technology under President of Turkmenistan E. Rakhmanova reported on the work done to adopt scientific and technological advances and the specific steps aimed at increasing the research potential of the country.

Director of the Institute of State and Law B. Zakhirov reported on the work done and noted the Institute aimed its activity at improving the national legislation in the context of the policy of social, economic, democratic and cultural reforms implemented in the country.

Vice Premier T. Tagiev reported that the provisions on the favourable terms of selling petrol and diesel fuel to citizens of Turkmenistan had been drafted in accordance with the President’s instructions.

The Vice Premier informed of the limits of petrol and diesel fuel to be supplied free to the people of Ashgabat and the regions as well as the measures on further improvement of the quality of services. In particular, the Vice Premier informed of the plans to build petrol stations meeting the international standards and to apply the card payment system.

The President issued the relevant resolution.

Minister of Communications R. Khojagurbanov presented the project on construction of the TV tower. The facility would be built in the southeast of Gindivar at the picturesque foothills of the Kopetdag Mountains in ten nearest future.

Ashgabat Khaykim D. Orazov presented several construction projects including the Wedding Palace, which would build in the southwest of the Turkmen capital, the complex for conducting the cultural, sports events consisting of the stadium, hotel, restaurants and cafes, and the Monument to Constitution, which would be built to commemorate the 20th anniversary of Turkmenistan independence on Archabil Avenue opposite the building of Halk Maslakhaty under construction.

Chairman of the Board of the Central Bank G. Abilov informed of the results o f the tender for construction of the building of the Turkmen Institute of National Economy. G. Abilov said the tender commission had selected the Kylych Insaat project (Turkey)

During the sitting the Turkmen leader issued the resolutions appointing the high-ranking officials.

Upon concluding the sitting Gurbanguly Berdymuhamedov wished all those present good health and success in fulfilling the designated tasks.