Input of trade sector to the GDP of Turkmenistan is growing
The volume of trade turnover is the main indicator of the development of economy of the country in general. Owing to the increment of production of local consumer goods, creation of new import substitutive production and to other integrated measures taken under the leadership of President Gurbanguly Berdimuhamedov, the input of trade sector to the GDP of Turkmenistan is growing.
It was said at the extended session of the Cabinet of Ministers on July 5 that the growth rate of the GDP was 6.2 percent for the first half of the year including 7.4 percent in trade. Comparing with the same period of the last year, the production increased by 4.4 percent in general.
In particular, it was informed that comparing with the relative period of the last year, increment of many production volumes has been provided. The growth rate of oil production increased by 0.2 percent, gasoline by 1.5 percent, kerosene by 1.9 percent, petroleum coke by 9.3 percent, polypropylene by 6.1 percent, mineral fertilizers by 7.2 percent, cement by 0.7 percent, plastic and glas fibre pipes by 9.4 percent, cotton fibre by 12.3 percent, cotton fabrics by 15.7 percent, leather by 7.3 percent, fish and fish products by 23.8 percent, sewing and knitted garments by 8.9 percent, bread and bakery by 2.3 percent. In addition, development of new industrial production has been observed. 2.6 million square meters of glass have been produced for the period under review. Positive indicators have been achieved in agricultural complex.
The state programme of import substitutive production and increment of export oriented production, establishment of electronic industry is successfully realized under the diversification of the economy.
President Gurbanguly berdimuhamedov noted that production of computers has been started in Turkmensitan for the first time and it put good basis for further development of the programmes of switchover of the economic infrastructure.
The volumes of export have been increased by 41.5 percent in the result of these measues.
The President of Turkmensitan outlined the support of entrepreneurship, creation of the conditions for small and medium business activity, transit to market relations in different spheres of the economy, increment of export volumes and expansion of foreign economic relations among the main factors of further stable development.
In this regards, Turkmen leader put the requirements for renewal and correction of organizational approaches to the work of Tade and Industrial Chamber, provision of efficient advertising promotion of the production made in the country on foreign markets as well as for activity of the State Commodity and Raw Material Exchange as the main authority for regulation of export and import operations.
Increment of agricultural production, infrastructure for import substitutive production, support of production abundance in the country by increment of volumes and expansion of the variety of local high quality food products and other are among the key objectives set out by Head of the State Gurbanguly Berdimuhamedov to Turkmen business community.
Resolution on beneficial crediting of farmers associations, joint stock ventures, farmers, leasers and private entrepreneurs – the agricultural producers, which has been signed by the President of Turkmenistan in March 2917, is aimed at the stiumulation of agricultural production.
According to the document, authorised banks of Turkmenistan are entitled to grant beneficial credits for procurement of agricultural equipment, spare part and tool, water saving and irrigation equipment under 1 percent of the interest with equal payback of the credit within 10 years; for financing of investment projects related to livestock and poultry farming, processing and service as well as for procurement of the main means and properties within 10 years under 5 percent of the interest per year.
Special attention is paid to the establishment of import substitutive production facilities in industrial complex. The Ministry of Industry together with the Union of Industrialists and Entrepreneurs establish profile organizations based on onnovative technologies under the State Programme of development of electronic equipment production. For example, «Hojalyk harytlary» business association is oriented to the production of various household equipment like gas and electrical stoves, electrical and microwave ovens, vacuum cleaners.
The production of quality electrical equipment for local market will allow reducing the volumes of import in this sphere and will provide thepopulation with affordable goods.
As for today, representatives of non-governmental sector of Turkmenistan work successfully in construction, agriculture, food and light industry, in trade and service sphere as well as in education and tourism. Around 160 thousand working places have been created at the facilities and organizations of the UIET, which unites more than 16 thousand members.
Togather with the provision of local market with food products, local entrepreneurs develop new directions of export of high quality food and other products.
Turkmen construction companies started working abroad. For example, fulfilling the order of Turkmen leader, they have built kindergarten in the Republic of Moldova and school for 190 students in Astrakhan Region of the Russian Federation.
Success of local entrepreneurs is demonstrated by following fugures: the volume of the industrial production of the UIET increased by 23.7 percent from the beginning of the year, agricultural and food products by 14.6 percent. The volume of trade turnover increased by 2.4 percent and in service sphere by 2.1 percent.
Development of the Concept of creation of free economic zones in Turkmenistan until 2023 will give new impulse to the development of market relations in the country. The document is meant to support integrated and rational use of mineral resources, increment of export potential, organization of import susbstitutive production, introduction of innovative technologies, attraction of foreign investments and creation of joint ventures.
President Gurbanguly Berdimuhamedov notes thar we are on such a stage, which requires bold, perspective projects that would be moving power of economic cooperation, would open new horizons of its development. Rich natural resurces serve as reliable foundation for the achievement of new successes by the country.
Speaking at the session of the Council of Elders in October 2017, the Head of the State outlined the main directions of the Programme of social and economic development of Turkmenistan in 2018 – 2024.
The amendments of the Land Code of Turkmenistan aaimed at the development of the ownership and management, wide attraction of the entrepreneurs to agricultural production, development of market relations, introduction of new economic mechanisms in agricultural production and more efficient use of landadopted at the session are very important. In particular, allocation of the land to the citizens of the country and to legal entities for 99 years is stipulated by the programme.
The legislation also sets out the Provisions on allocation of the land plots to the farmers who performed the obligations for the state orders within 5 years in order to establish various forms of agricultural production on these plots.
Taking into account the main trends and changes in the system of the world economy, the Programme of the President of Turkmenistan on social and economic development of the country in 2018 – 2024 has been elaborated. It is aimed at the improvement of the competiveness of national economy and life level of the population. At the same time, special attention will be paid to the establishment of efficient and environmentally friendly processing export oriented and import substitutuive production facilities, to introduction of innovative technologies to all branches and their technical rearmament.
For the last few years, several large shoppig and entertainment centres and supermarkets have been opened in Ashgabat. For example, around one hundred three-storey buildings for office centres with the premises for shopping facilities have been opened with the participation of President Gurbanguly Berdimuhamedov in Ashgabat in February this year. The project was fufliled by the Union of Industrialists and Entrepreneurs. Business park appearing in the north of the capital will be another centre of business activity, organized retail and wholesale trade. Goods produced by Turkmen entrepreneurs are presented in the shops of the complex:starting from construction materials and industrial production to househeld chemicals.
Having relied on modern technologies, local business entered serious industrial level. This is related to household electronics, various instruments, household items in differen design variations.
For example, there are decorative panels and elements of architectural decoration made of polystyrene foam, which is used for finishing of the facades of the building and interiors among new goods. Production of wide range of wood, metal and glass items for home and offices as well as the accessories for the streets has been arranged.
Big selection of local construction materials is always supplemented with new types of goods from local material. The requirements of rapidly developing construction industry will be satisfied by the production of gypsym boards.
New enterprises for production of the items for development of parks and recreation zones, attributes of landscape design, plastic products inclduign doors, windows, pipes, various components, tiles, soap liquids, which production is developed by Turkmen entrepreneurs for satisfaction of local demand, successfully work in the country.
Variety of carpet and furniture production is always renewed. Owing to successful realization of the State programmes initiated by the Head of the State, the population of Turkmenistan is provided with high comfort living. In this regards, the consumer demand on modern furniture and household items is growing.
Production of carpets from synthetic fibre, which is environmentally friendly polypropylene and acrylic yarn received from the production of local oil and gas industry, has been developed. Turkmen manufacturers of household electronics, orthopaedic matresses, bedsheets and kitchenware became known.
The Government makes all conditions for the producers keep up with the world progress. Turkmen designers track the latest market trends making not only typical but also exclusive models.
At the meeting with the businessmen on March 16 of this year, the President of Turkmenistan ordered to grant 3 billion US dollars to the Union of Industrialists and Entrepreneurs for the construction of ore and mining facility at the potassium deposit Tyubigatan in Lebap Velayat and for Ashgabat – Turkmenabat highway.
Having given such large-scale projects to the entrepreneurs, the Head of the State confirmed his confidence in their professionalism and avilities. This confidence has also been expressed in the fact that Avaza National tourist zone have been transferred to the UIET authority. Undoubtedly, the busibessmen will be able to give strong impulse to the development of this resort on Caspian coast.
These days, Turkmenistan carries out steadfast work for the provision of the abundance of local market. Wide variety of goods, their quality are another result of socially oriented policy of President Gurbanguly Berdimuhamedov, which is aimed at the creation of the most favourable conditions for people.