TASHKENT, DEC 25 (DNA) – The event, held in the Palace of Symposiums in Tashkent, was attended by members of the Senate and deputies of the Legislative Chamber of the Oliy Majlis, heads of the Cabinet of Ministers, ministries and departments, representatives of diplomatic corps and representative offices of international organizations accredited in our country, activists of non-governmental non-profit organizations.

Deputies of district, city and regional Kengashes of people’s deputies, heads of executive bodies and economic management at all levels, representatives of non-governmental organizations and the public, ambassadors of our country in foreign countries observed the event through video conferencing.

The Address reflected the results of the main activities carried out in 2017, as well as the most priority areas of socio-economic development of the Republic of Uzbekistan in 2018.

The concept of the Address is based on the Strategy of actions on five priority areas of development of the Republic of Uzbekistan in 2017-2021.

The results of the implemented activities and priorities on improving the system of the state and public construction, ensuring the rule of law and further reforming the judicial and legal system, developing and liberalizing the economy, ensuring security, interethnic harmony and religious tolerance, as well as in foreign policy are comprehensively outlined in it in five parts.

The Address became a kind of report of the Head of our state to people on the results of the year. At the same time, priority tasks on comprehensive development of our country in the future are outlined in the Address, a number of legislative initiatives are forwarded.

At the suggestion of the Head of our state, 2018 is declared as the Year of supporting active entrepreneurship, innovative ideas and technologies.

The event was held in the spirit of sincerity and openness. The President of our country openly spoke about many problems concerning people, impeding our development. True indicators, no matter how bitter they are, were sounded. Such courage and determination won trust, respect of people.=DNA

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Here is the full text of the speech of President of Uzbekistan, Shavkat Mirziyoyev 

Distinguished deputies and senators!
Dear fellow countrymen!
Dear guests!
Today, we are all witnessing an important change and a significant event in the
political life of our beloved Motherland.

For the first time, the President of the Republic of Uzbekistan is delivering his
Address to the parliament of the country – the Oliy Majlis.
You are well aware that many developed countries of the world have a practice
when the head of state addresses the members of the national parliament on the
major urgent political and socio-economic issues, as well as on democratic
development of society.

I believe, such democratic form of state governance is indeed in harmony
with large-scale reforms, which are now underway in Uzbekistan, primarily, with the
principle of dialogue with the people, and will serve to further increase the
efficiency of our work.

Along with the representatives of the Senate and the Legislative Chamber of
the Oliy Majlis, the people’s deputies elected to the local councils of district,
municipal and regional level, as well as the heads of the bodies of executive power
and economic entities of all levels, the representatives of NGOs and the public are
participating today in this high-profile forum via videoconferencing.

Now, allow me to present to you the Address on the outcomes of the major
works carried out in 2017, which marked a new stage in our development and the
priority areas of socio-economic development of the Republic of Uzbekistan in
2018.

In the first place, we should note that the entire strength and capabilities of our
state and society have been mobilized during the year to fulfill the tasks and
objectives provided for in the Strategy of Action on the further development of our
country.

It will indeed be true to say that implementation of measures set out in the
State Program of “The Year of Dialogue with the People and Human Interests” has
become an important step in this regard.

The large-scale reforms underway now in our country enjoy the support of our
nation. Today, the initial results of these changes are being vividly reflected in the
everyday life of our population, social activeness, as well as the confidence of our
people in the future is increasing.

We are adopting each and every decision related to country’s life in
consultation with the people, through direct dialogue. The idea that “It is not the
people who should serve the state bodies, but the state bodies should serve the
people” is turning into a criterion of our activity in this regard.
Civil servants, primarily, senior level officials are not sitting in their offices,

but travel across the country and are busy with finding practical solutions to the most
urgent problems, which cause concern among the population.
In this regard, we have all the grounds to say that 2017 has become the year of
establishment of a new system for maintaining a close dialogue with the people,
efficiently addressing their concerns, and resolving their vital problems.
The People’s Reception offices and the Virtual Reception Office of the
President of the Republic of Uzbekistan, which make up the core of this system, are
justifying themselves in practice as a unique democratic institute for consideration
of citizens’ appeals.

The fact that over 1.5 million citizens appealed to these reception offices in a
short period of time and the fact that long-standing problems of a whole lot of
people have been positively resolved demonstrate that the rule of the people is being
introduced in Uzbekistan not in words but in practice.

Toughening of personal responsibility of senior level officials on the ground
for swift elimination of errors and shortcomings has become an important result of
this system.

Taking into consideration the interests of our people, big changes are also
being carried out in judicial and legal system, which is the crucial institution in
terms of ensuring social justice, the prosecutor’s office and the bodies of internal
affairs.

Since this topic was covered in detail at the solemn ceremony dedicated to the
25th Anniversary of the Constitution of the Republic of Uzbekistan,
I believe, there is no need to dwell on it today.

Specific measures have been carried out this year in terms of establishing the
Youth Alliance of Uzbekistan and improve the activities of the Women’s
Committee, “Makhalla” and “Nuroniy” foundations.
The citizenship of Uzbekistan was granted to 1,100 individuals who have been
residing in our country, but had no citizenship. I believe this is yet another
confirmation of our works aimed at ensuring the human rights and interests in
practice.
In 2017, we made initial steps in terms of implementing the efficient reforms
in the sphere of economy, which meet the modern requirements and have a new
essence and content.
A number of laws, decrees and resolutions, comprehensively thought-out
programs have been adopted and are being consistently implemented in terms of
shaping the economy on a completely new basis, further liberalizing and improving
its legal framework, modernizing and diversifying production.
One hundred and sixty one large industrial enterprises have been
commissioned in the country for over a short period of time. It will allow us to
additionally produce 1.5 trillion soums worth of products in the forthcoming year.

For example, a combined cycle gas turbine was installed at the Tashkent
thermal electric power station. It will allow to additionally generate 2.5 billion
kilowatt of electric energy.
At the same time, the works are underway to install the second combined cycle
gas turbine at Navoi thermal electric power station, as well as to construct a leach
plant at Amantoy gold deposits in Kyzylkum desert.
Currently, the Almalyk mining and smelting plant has started developing
“Yoshlik-1” and “Yoshlik-2” deposits, construction of Sardoba, Fergana and
Tupalang water reservoirs is underway. These large facilities will undoubtedly
become an important event in the economic life of our country.
The Fergana-Margilan railway section is being electrified now.
Commissioning of yet another large enterprise – the Kandym gas refinery
complex will allow to additionally refine 4 billion 100 million cubic meters of
natural gas in 2018, and produce over 67 thousand tons of condensate and over
106 thousand tons of sulfur.
Next year, the sulfur separation units for 6 billion cubic meters of natural gas
will reach their installed capacity at Mubarak gas refinery which is one of the
locomotives of Uzbekistan’s economy.

Along with this, in the forthcoming year, “Uzagrotex-sanoatholding” Joint-
Stock Company will launch the production of over 5 thousand modern tractors, over

1,000 cotton-harvesting machines and over 2,000 trailers.
We can give a lot more of such examples.
Most importantly, in economic policy of the country we have abandoned such
unacceptable method of work as chasing unreal figures and passing off
infeasible nonsense as reality. Practical efficiency, human interests and once
again human interests have been defined as the prime object of reforms.
As a result of measures carried out on this basis, in 2017, the rates of
sustainable economic growth made up 5.5 percent, exports increased by 15 percent.
Surplus of foreign trade reached 854 million US dollars.
We have started the free conversion of our national currency. Legal and
physical entities now can freely buy hard currency from commercial banks and sell
without any limitations.
Exchange transactions increased by 1.5 times against the period of
liberalization and averaged 1.3 billion US dollars.
At the same time, during the year, foreign exchange reserves of our state grew
by 1.1 billion US dollars.
This year, 12 free economic and 45 industrial zones have been launched in the
country and these organizational measures are allowing us to rapidly develop the
regions of Uzbekistan. Practical works are underway to launch 50 new industrial

zones soon.
The issue of job creation, which is of crucial importance to us,
has been in the focus of our attention throughout the year. In 2017, over 336,000
new jobs were created by means of constructing new industrial enterprises,
commissioning of service establishments, developing small business and private
entrepreneurship.
Since we have defined employment as our priority task, it is natural that we
need to pay special attention to increasing not only the number, but the quality of
employment as well.
Implementation of programs adopted in terms of reforming the social sphere,
which is an extremely important direction of state policy in Uzbekistan, is
continuing gradually.
It is an open secret that the problem of housing has been a longstanding
concern for our population, especially for state employees and low-income families.
It is also true that we have been almost ignoring this acute social problem.
Taking into account the requests and aspirations of our people, this year we
have launched a subsidized mortgage loan-financed project on construction of
affordable housing.
The standard design houses and multi-storey apartment buildings with a total
area of 3.5 million square meters have been constructed in our cities and villages. If
we compare this figure to previous years, it is 20 times more than in 2007, 3.5
times more than in 2010 when the housing construction program started and 2 times
more than 2014.
It is worth especially noting that for the first time in the last 25 years, we
started building affordable and comfortable multi-storey apartment buildings for the
population. In 2017 alone, such housings with a total area of 800,000 square meters
were commissioned.
In Tashkent alone, the multi-storey apartment buildings with a total area of
420,000 square meters were commissioned which is 3 times more than the last year.
Taking into consideration the acuteness and urgency of this problem in
ensuring the vital needs and interest of our people, we will certainly continue and
increase the volume of these works in the forthcoming year.
As our people wish to see the positive changes in their lives not tomorrow or
in some distant future, but today. Our diligent, sincere and generous people fully
deserve it.
We have taken specific measures to improve the environmental situation in the
Aral Sea region. The Foundation for the Development of the Aral Sea Region was
established under the Ministry of Finance and funds in the amount of over 200
billion soums were channeled to this Foundation.
Drinking water supply and living standards of the population of the Republic

of Karakalpakstan and Khorezm regions are being improved at the expense of these
funds.
At the same time, over 3,000 kilometers long on-site roads have been
overhauled and reconstructed in these regions.
Special attention has been attached to the construction of new educational
facilities and renovation of existing ones. Twelve secondary schools were built from
scrtach, 320 reconstructed, 152 overhauled. One hundred and seven pre-school
educational facilities were reconstructed and newly constructed, 195 kindergartens
were overhauled.
Taking into account an important place and significance of pre-school
education system in the life of our society, which is the main element in upbringing
our children, we have established the Ministry of Pre-school Education.
We need to improve the material and technical resources of this sphere, built
thousands of new kindergartens in the next 3-4 years, elevate the quality standards of
education to a new level.
Based on the proposals expressed by numerous parents, teachers and
students, as well a broad public, the 11-year education system has been restored in
our country.
In order to meet the demand for teachers, the Chirchik State Pedagogical
Institute has been established in the Tashkent region.
In addition, special extension departments established at 15 institutes of
higher learning created the opportunity for obtaining a graduate degree to over 5
thousand pedagogues who hold a diploma on secondary professional education.
On the basis of innovative and creative approaches in the educational system,
Mukhammad Khorezmi and Mirzo Ulugbek special schools have been established
which provide in-depth studies of exact sciences.
Much work is being carried out in terms of improving the system of higher
learning as well. In particular, we have adopted a Comprehensive program for the
development of the system of higher learning for 2017-2021.
By means of establishing new institutes and branches, the number of
institutes of higher learning in our country reached 81, regional branches now total
15 and the branches of foreign universities have reached 7.
Along with it, we can should the agreements on the establishment of the
branches of the Moscow Institute of Steel and Alloys (Russian Federation) in
Almalyk city and the Webster University (USA) in Tashkent.
Proceeding from demand and supply in the real sector of the economy, the
extension and evening departments were established at institutes of higher learning.
The system of the Academy of Sciences of Uzbekistan, as well as its material
and technical resources have been improved, the activity of a number of scientific

and research institutes and centers was restored in its structure.
After several years long pause, elections were held to the Academy of
Sciences and talented scientists who gained prominence with their scientific research
in our country and on international level were awarded a high title of academician.
Now all of us expect practical results from the Academy of Sciences in terms of new
research and development, as well as prospective scientific results.
We pursue only one objective from all of this. That is to say, Uzbekistan
must be competitive in the world in terms of science and education, intellectual
potential, modern personnel and high technologies.

Dear friends!
Speaking about the works carried out this year in terms of developing cultural
and humanitarian spheres, primarily, we should note the fact that 12 important
documents were adopted in the spheres of culture, literature, art and the mass
media.
In order to increase the significance and prestige of the country’s creative
associations in our social life, improve their technical and material resources, we
have established “Ilkhom” Social Fund for the Support of Creative People of
Uzbekistan, as well “Friends’ Clubs” of cultural and art associations with large
companies and banks.
Another important news has become the inauguration of the Writers’ Square
on the territory of the National Park in Tashkent city, construction of a new building
of the Writers’ Association, establishment of creative schools named after prominent
writers and poets in the Republic of Karakalpakstan and in a number of regions of
the country.
In addition, the Kokand city, Khorezm and Jizzakh regional drama theatres
were reconstructed, the Fergana regional branch of the Uzbek State Institute of
Culture and Art has been established.
Speaking about such projects, which became an important event in our
spiritual life, we should especially underline the fact that the works have started on
the establishment of such scientific and educational institutions as the Center of
Islamic Civilization, Imam Bukhari and Imam Termizi International Scientific and
Research Centers, as well as the Islamic Academy.
At the same time, special schools on such religious and spiritual directions as
hadith studies, Islamic law, tasawwuf, Quranic studies, aqidah studies have been
established at the memorial complexes of our great religious scholars.
Certainly, our works in this regard have deep scientific and practical basis.

It is an open secret that our country which is the crossroad of ancient cultures
and civilizations is also a birthplace of thousands of medieval scholars, great
thinkers, poets, and holy persons.
Their invaluable heritage in exact sciences and religious studies is the spiritual
wealth of the entire humanity.
Currently, over 100,000 manuscripts are stored in the book stocks of
Uzbekistan. Unfortunately, these unique books have not been thoroughly studied and
are still waiting for their researchers.
These unique works provide answers to numerous urgent problems of
modernity. In particular, the profound ideas, which thoroughly explain the truly
humanistic essence of the Islamic religion, which call upon all people to unite on the
path of kindness, mercy, and harmony have not lost their value and significance.
At the same time, we should openly admit that while being the heirs of such a
unique heritage and of such wealth, we have not done enough to thoroughly study it,
promote it among our people, primarily our youth, and the world community.
We speak a lot about the need to fight religious ignorance and dangerous sects
with enlightenment. This is certainly correct. But, where is enlightenment and
enlightened knowledge – aren’t they in these holy books left to us by our forefathers
in the first place?
All of our practical efforts in this regard are aimed at this noble goal and draw
profound interest and attention not only in the country and the Muslim world, but
across the globe as well.
As a nation and a state which has such invaluable wealth, which is a birthplace
of thousands of scholars and active intelligentsia, which is putting forth such
significant initiatives in this area, tell me please if can put up with the fact that some
fundamentalists, followers of religious sects originated from our country?
Dear participants of the meeting!
In 2017, large-scale works were carried out in the sphere of physical culture and
sports as well. All of us are pleased with the successes of our youth in sport. New
world and continental champions, international chess masters are being trained.
This year the Uzbek sportspeople achieved high results in various international
competitions in boxing, judo, tae kwon do, weight-lifting, freestyle wrestling,
sambo.
2017 has become a bright page in the history of Uzbek kurash (national
wrestling). The General Assembly of the Asian Olympic Council at its meeting in
Turkmenistan in September this year, decided to include this type of national sport
to the program of the Asian Games.

That is to say that at the 18th Asian Games in Indonesia in 2018, the wrestlers of
our continent will compete in the Uzbek national kurash as well.
Henceforth, the words “halol”, “ghirrom”, “chala”, “yonbosh” will ring in
the world sport arenas and spread the name of the Uzbek nation and Uzbekistan
across the world.
At the same time, we are working on the improvement of the activity of the
National Olympic Committee of Uzbekistan. From now on, preparation for the
forthcoming Olympic games and other prestigious sports competitions will be
arranged in a totally different way.
Today, standing on this high podium, allow me to express profound gratitude to
all our sportspeople, their trainers and coaches for their services along the path of
development of our national sport and wish them new successes.
Dear compatriots!
Over the past period we have achieved significant results in foreign policy in
terms of developing friendly and mutually beneficial relations with foreign states,
primarily, the neighboring countries.
Twenty one top level visits were organized in 2017. Meetings with the heads
and representatives of over 60 states and international organizations were held.
As a result, over 400 agreements were secured, trade and investment
agreements worth almost 60 billion US dollars were signed.
In order to timely implement the adopted documents and agreements, 40
“Road maps” were developed and are being implemented jointly with our foreign
partners.
We have started to put in practice the principle “Central Asia is the main
priority in foreign policy of Uzbekistan”. As a result, completely new political
climate has been shaped in our region, the ties are developing based on mutual trust
and good neighborliness.
We have established strategic partnership with Turkmenistan and Kyrgyzstan.
A number of important documents were signed with Kazakhstan in order to further
intensify our strategic partnership. We signed economic agreements worth 2 billion
US dollars. Our cooperation with Tajikistan is comprehensively strengthening.
Flights between Tashkent and Dushanbe cities have been launched.
Signing of the Agreement on state borders with Kyrgyzstan has become a
significant step in ensuring security and stability in Central Asia.
Important agreements were reached with the neighboring Afghanistan in terms
of mutually beneficial cooperation, the work has started on new economic projects.
In addition, we have reached efficient agreements with Russia, China, South
Korea, Turkey, USA, states of the European Union, as well as Muslim countries.

Uzbekistan is continuing the ties of cooperation with such international
structures as the UN, the OIC, the SCO, and the CIS on a new level.
We have restored cooperation with EBRD, established partnership wit the
European Investment Bank. Cooperation with the World Bank, International
Monetary Fund, Asian Development Bank, Islamic Development Bank, Asian
Infrastructure Investment Bank is developing productively.
Positive transformations, which are taking place in our country are increasing
the interest of the world community in Uzbekistan, serve to consolidating the
country’s prestige on the international arena.
Certainly, we can speak a lot about the works carried out by us during the year.
However, I will telling the truth if I say that these are only primary steps on a long
and difficult, yet the only right path chosen by us.

Taking this opportunity, I express my sincere gratitude to all state and non-
state organizations, economic entities and companies, each and everyone who

participated in the implementation of the State Program “The Year of Dialogue with
the People and Human Interests” and contributed to this noble cause.

Dear participants of the meeting!
In accordance with a good tradition of our country, now we need to agree with
you on how to name the forthcoming year 2018.
We have pondered a lot on this issue. We have taken into consideration
numerous appeals and letters received to the People’s Reception Offices, and the
Virtual Reception Office of the President, to the state bodies during the year, as well
as proposals put forward during the meetings on the ground, we have studied the
public opinion.
Taking into account all proposals and recommendations, I propose to name the
new year 2018 as the Year of support of proactive entrepreneurship, innovative
ideas and technologies in our country.

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In this regard, we should briefly dwell on the concept of proactive
entrepreneurship. Proactive entrepreneurship is the area of the economy which
organized the business activity on the basis of innovative, i.e. modern approaches,
advanced technologies and the methods of governance.
Under proactive entrepreneur, we understand business persons who are
capable of producing competitive products, most importantly, creating new jobs and
supporting not only their families but benefit the entire society.

Our first and foremost task must be to expand the ranks of such entrepreneurs,
create favorable conditions for them to bring and introduce high technologies and
latest equipment in the country.
If necessary, we must create all possibilities for them to develop their skills at
leading foreign companies and organizations, establish mutually beneficial
cooperation.
Today we are stepping on the path of innovative development aimed at
reforming all spheres of state and social life.
Certainly, it is not for nothing. Who will win in this rapidly changing time? A
state, which is based on new thoughts, new ideas, and innovation.
Innovation means future. If we to start building our great future today, we
should start it on the basis of innovative ideas and innovative approach.
To this end, we have established the Ministry of Innovative Development
and put specific tasks before it. We are confident that this Ministry will play the role
of a driving force in implementing the most important projects not only in the
economy, but in the life of the entire society.
Next year our attention will be focused on the development of scientific
research and innovative activity, mobilizing the necessary funds, encouraging the
participation of talented youth, creative ideas, as well research and development in
this process.
I. Priority areas of improving the system of state and social building

Distinguished people’s deputies!
Today, the need to effectively address the existing problems in the life of
society and consistently continue the large-scale reforms, require the creation of a
completely new system in the sphere of state governance.
I believe the time has come to draft and adopt the Law “On civil service”
Along with other urgent issues, it is necessary to create the system of
remuneration of labor of civil servants and their decent social protection, while
providing for increasing the responsibility of office holders.
In the sphere of governance, in the first place, we must introduce the clear-cut
criteria and regulations in terms of improving the activity of the bodies of executive
power, personnel and reasonable use of resources.
Second, it is necessary to clearly define the functions and scope of authorities
of the bodies of executive power
Third, it is necessary to reduce the administrative influence on sectors of the
economy and extensively use the market mechanisms. That is to say, we need to

limit the creation of state business structures, develop market mechanisms, and
delegate certain functions of the state to the private sector.
Fourth, it is necessary to gradually abandon the centralized governance by
improving methods and approaches that will promote closer cooperation between the
bodies of representative power and executive authorities.
It is necessary to provide public services directly at lower levels, as well as to
increase financial and other capabilities of local authorities. We need to optimize
and simplify the procedures and introduce innovative forms of governance.
Fifth, we need to reform the institute of public service and introduce effective
anti-corruption mechanisms.
Today, life itself requires the development of a professional, fast and effective
system of civil service, we need to develop an effective system that opens broad
opportunities for action-oriented cadres with innovative ideas committed to the
country.
In order to fulfill the above-mentioned tasks, we must consistently implement
the Concept of Administrative Reforms in the Republic of Uzbekistan.
As you are aware that in order to effectively combat corruption in our country,
we adopted a specific law in this area.
On this basis, the state program, which includes specific targeted measures, is
being consistently implemented.
As a result of these efforts, during 9 months of this year, corruption-related
crimes decreased by 33 percent compared to the last year.
We must see these results as an initial outcome of our long-term and
continuous work in the fight against corruption, and we must carry out yet more
resolute work along this path.
Dear friends!
I believe it is necessary to emphasize the place and role of the parliament,
lawmakers and senators in improving the efficiency of our reforms.
At the meeting with the members of the Oliy Majlis on July 12, 2017, we
approved a program of practical measures, stressing the need for the parliament to
become a real school of democracy, the initiator and the main reform
implementer.
But how have our people benefited from the implementation of this program?
How did the MPs or senators help to ease the burden of our people and solve their
problems in the spheres of health, ecology, public services, education or in any other
area?
Unfortunately, our people don’t see the vivid examples in this area neither in
the press nor on TV. It’s true. Unfortunately, the words that our MPs and senators
should wake up, that this is the requirement of time went in vain. I repeat once
again, there is no expected real result.
Out of 136 legislative initiatives put forward during the year, only 27 belonged
to the MPs and they consisted of the amendments and additions to the currently

effective laws, which needed to be made due to the adoption of Presidential decrees
and resolutions. Doesn’t it alone demonstrate the lack of efficiency of the
parliament?
Does the President alone have to adopt decrees and resolutions to implement
the reforms?
When the parliament will draft a decision or a law aimed at drastically
improving not a lot but at least one sphere? When will this happen?
Our people are waiting for your response, distinguished people’s deputies, on
this issue. The time when deputies or senators could be on their after being elected
have long passed. Once again I repeat, you must wake up.
Unfortunately, in many cases, the activity of our parliament is limited to
official meetings only. Why are the identified problems or issues raised by voters not
resolved by the adoption of appropriate laws or by resolutely raising this issue with
the executive branch? Tell me who needs inefficient control and useless meetings?
It was suggested that the parliament needs to guide the work in public
healthcare, preventing crimes and offences, as well as creating an atmosphere of
efficiency and self-criticism in local councils.
However, the role of the parliament and MPs in these areas is still inadequate.
Today, we can say that the system of public healthcare doesn’t meets the
requirements and adequately serves the people in any of the regions.
The Legislative Chamber (N. Ismailov) would be better focus on resolving
these critical issues on the ground.
It would be excellent to establish a separate Healthcare Committee in the
Legislative Chamber whose members would mainly work in the regions.
When we look at the reports, it seems that there are positive changes in local
councils, but they are only reflected in figures. We need results, not numbers.
The activity of local councils can be assessed positively only when the
situation in the regions changes positively, budget is fully implemented, crime rates
fall, new jobs are created, and most importantly, the living standards of our people
improve.
Unfortunately, no district was able to properly organize the activity of the
Council of People’s Deputies.
The leadership of the Senate (N. Yuldashev) would better to critically review
the activity of the upper house in this regard, taking into account the views of the
population and take the necessary measures to radically change the activity of
representative bodies.
In addition, the efforts on prevention of offences and improvement of the
effectiveness of the fight against crime should not be weakened.
The most important function of our parliament – lawmaking is not without
shortcomings.
We should openly admit that in most cases, adoption of inefficient,
contradicting laws and by-laws in fact, create many problems.
Tell me please who needs inefficient working groups and “dead” laws that do
not influence the law enforcement practice and don’t have the enforcement

mechanisms?
In order to eliminate such negative situations, we need to develop and
implement the Concept of improving the lawmaking and development of
regulatory documents.
From now on, we will critically revise the practice of lawmaking in the
framework of implementation of various programs.
None of us should forget one truth: people must be the only source and
author of the law.
There is a need to broadly introduce the procedure for getting the opinions and
suggestions on each draft law from citizens and local councils of people’s deputies.
During the adoption of the law, we must effectively use the system of its
comprehensive discussion among the population.
The leadership of the Oliy Majlis should involve the general public in the
discussion of laws, and to this end it is necessary to introduce modern information
and communication technologies, including the creation of special “platforms” on
the Internet.
In this regard, it is advisable to create a special web page titled “My
Opinion” on the Internet so that our citizens can express their opinion on important
state and social issues.
In particular, as and advanced mechanism of democracy, we need to introduce
a collective electronic appeal. That is to say that the law will provide for
consideration of the initiatives put forward by a group of citizens by the Oliy Majlis
or the Council of People’s Deputies.
Recently, we established the Institute of Legislative Problems and
Parliamentary Studies under the Oliy Majlis.
This institution should be a scientific center, which will deeply analyze and
sort out various proposals put received by the Oliy Majlis.
Another important issue is the need to further strengthen the role of the
chambers of parliament and political parties in developing effective measures for
studying the situation in all areas and solving existing problems.
In this process, we must also abandon the chase of numbers. Instead of
resolving hundreds of problems on paper alone solve few of them in practice and
people will be pleased with you.
Most importantly, people need to be aware of the changes occurring life, and
they must feel that they have a real representative in the system of state governance.
Otherwise all our work will be in vain.
Ensuring competition between parties, creating equal conditions for all
political actors is a necessary prerequisite for strengthening the role of the
parliament.
It is a well-known fact that the Ecological Movement of Uzbekistan
established in 2008, has turned into a real political force. However, we should admit
that the inclusion of the Movement’s members in the lower house of the parliament
basis a quota to some extent affects its pro-activeness and initiatives.
I believe the time has come to create equal conditions for all political forces

and abandon the practice of allocation of seats for the representatives of the
Ecological Movement in the lower house of parliament. This change will improve
true competition in the political arena and serve the Ecological Movement to become
a separate political force.
In this regard, I would also like to emphasize on the electoral legislation,
which has an important significance in our political life. Unfortunately, six laws and
a number of by-laws adopted in this area haven’t still been integrated into a single
consolidated document.
Therefore, it is necessary to develop and adopt a single Electoral Code, which
would meet international norms and standards.
In addition, it is necessary to begin the development of the program of events
on preparing for elections, which will be held in 2019 to the representative bodies
of power. Particular attention should be paid to the introduction of new progressive
practices that will ensure more transparent political process.
Dear friends!
Another important problem, which we are facing today, is the drastic
improvement of the quality of public services and creation of favorable conditions
for the population by expanding their scope.
To this end we have created a new structure – the Public Services Agency
under the Ministry of Justice, which will coordinate and monitor the services
provided by all government agencies.
From now on, the Public Service Centers of the Agency, which will be
functioning under the People’s Reception Offices will be an agency which will
provide fast and high-quality services not only to entrepreneurs, but the entire
nation.
Planning and improving the efficiency of state bodies remains an urgent
issue.
Today, there is no clear criterion which would allow to objectively assess the
activity of an organization in the past period. For example, today I still do not know
on what criteria the activities of the Ministry of Economy or other ministries is
assessed.
Therefore, ministries and departments, mayor’s offices of all levels in defining
the forecast indicators should determine the exact number and quality indicators
expected in their activity.
It is necessary to revise the structure and functions of state bodies. Most
importantly, in order not to make errors and adopt well-thought decision, a positive
conclusion must be obtained from the Commission for the Implementation of
the Concept of Administrative Reforms.
It is extremely important that the bodies of executive power act in harmony
for the effective implementation of measures taken in our country.
Unfortunately, today the lack of clear level of responsibility and the
mechanisms of authority hinders our work.
In this regard, it is necessary to introduce a system of effective decision-

making in public state governance on the basis of transparency.
It is desirable to revise the principles and mechanisms of cooperation
between state bodies and the Cabinet of Ministers. Each ministry must ensure the
implementation of state policy in the field of its activity and bear full responsibility
for the final result.
The agencies, committees, inspections and centers that operate on an equal
basis with the ministries and directly interact with the government and the
parliament, must be subordinated to the relevant ministries.
Taking this into account, it is necessary to critically revise and optimize the
role and functions of the government.
These changes will allow to drastically reduce the number of government
agencies that almost duplicate each other in state and governance and economic
affairs.
One of the most difficult issues for us is the over centralization of functions
and powers of the state.
For example, at present there are 64 types of licenses, of which 21 are issued
by the Cabinet of Ministers and 40 by the central authorities. Three of these licenses
refer to the power of regional administrations, and only one to district mayor’s
office.
This can also be witnessed in the formalization of permitting documents as
well.
Out of 220 documents related to the issuance of permits, only 11 maybe
obtained at city or district level. To obtain the remaining 209 it is necessary to apply
to the national-level and regional authorities. Do you think this is right?
For example, in order to obtain a license to open a private kindergarten in
Shavat district, an entrepreneur is forced to travel a thousand kilometers and come to
Tashkent and wait 3-4 months for the result.
Similar situation can be witnessed in selection and appointment of personnel,
allocation of credit and financial resources, and approval of many important
decisions at the local level.
What does this mean if local authorities do not have the authority to solve
ordinary problems?
All of this negatively affects the independent activity of local structures in
resolving social and economic problems in the regions.
It is necessary to delegate many powers from the central government to
territorial bodies and get rid of excessive centralized state administration.
To this end, the position of deputy mayors for the attraction of investment was
introduced on the ground – district, city and regional administrations.
At the same time, it was decided to increase the responsibility of the territorial
bodies of tax, financial and economic authorities for the formation of budgetary
resources and creation of reserve resources. The powers of local authorities in the
sphere of budget reforms were expanded.
From now on, each head of the region should take advantage of the provided
opportunities and take a full responsibility for the results.

One of the urgent problems in the near future is the delegation of powers for
the selection and appointment of managers responsible for socio-economic
issues in the regions to district and city mayors.
From now on, the heads of medical association, department of public
education, economy, financial departments, tax inspectorate and other bodies will be
appointed and dismissed by district mayors.
The powers to select, appoint and dismiss the employees in the regional
administrations and the city of Tashkent will be revised.
At the same time, by granting local heads such broad powers and
independence, we must radically increase their responsibility for the final outcome.
Another important task is the division of powers of mayors as the head of
executive and representative power.
In the near future, it is necessary to create a unified platform on the Internet for
all public procurement and sale of state property. This will reduce budget
expenditures, and allow to effectively manage state property and save large financial
resources.
Dear compatriots!
It should be noted that non-governmental non-profit organizations play a
unique role in the reforms aimed at creating free civil society, protecting human
rights and freedoms.
Currently, there are over 9,000 non-governmental non-profit organizations in
the country, as well as 29 branches and representative offices of international and
foreign non-governmental organizations.
In 2017, the presidential Decrees and Decisions were adopted in terms of
improving the activity and supporting such non-governmental organizations as the
“Nuroniy” Foundation, the Youth Alliance, the Council of Farmers and Household
Plot Owners of Uzbekistan, the Chamber of Commerce and Industry and the
Republican Council for the coordination of the activity of self-governing bodies.
However, despite these significant efforts, the participation of these
organizations in the systemic study and resolving the population’s problems,
especially in supporting the vulnerable women, preventing of crime and offences
among the youth and women, providing them with jobs is not noticeable. They are
only engaged in holding formal meetings.
We believe that non-governmental and non-profit organizations will be able to
make a turn in their work, drawing conclusions from today’s critical opinions.
In order to establish an effective dialogue with these social structures I believe
it is expedient to set up an Advisory council for the development of civil society
under the President of the Republic of Uzbekistan.
I would like to dwell on another important issue in this area. So far, there are
no specific legal mechanisms for effective public control over government bodies.
This impedes an impartial assessment of the activities of state structures and
officials by non-governmental non-profit organizations.
Therefore, in order to implement effective and practical mechanisms of social

control over public and state administration, it is necessary to adopt the Law on
“Public Control”. In this regard, I propose to create public councils at all
government agencies.
These public councils should serve as a bridge that will ensure the openness of
state bodies and will directly link them with the population.
The mass media are an important and influential factor in strengthening
democratic principles in our society.
In this regard, we need to form a truly professional, modern journalism, focus
on financial support of non-state media, information and analytical websites and
create a separate state fund to this end.
Today, there are more than 1500 media outlets in our country. They vary
depending on the form of ownership, specialization and forms of broadcasting.
Obviously, they all need highly qualified staff.
Unfortunately, there is no basic institution of higher learning that could solve
this large-scale task in the country.
In this regard, I believe it is necessary to establish a University of Journalism
and Mass Communication.
II. Priority areas for ensuring the rule of law and further reforming
judicial and legal system
Dear deputies and senators!
I never become tired of repeating one idea: our prime goal must be to ensure
justice in our life, which our people cherish the most.
Over the past year, the large-scale work were started to ensure the true
independence of the judiciary. In particular, the Supreme Council of Judges was
established, in order to further improve the structure of judges, select and appoint
candidates for positions of judges who are not subject to any branch of power.
The Council established effective public control over the selection and
appointment of candidates for judges.
We must continue reforms in this area. To this end, I consider it necessary to
create a Commission for the support of independence of the judiciary under the
Oliy Majlis.
The commission must consider appeals received from people, summarize the
issues raised during dialogue and communication with people, analyze the situation
through parliamentary inquiry and solve problems in coordination with the Supreme
Court and the Supreme Council of Judges.
In order to ensure the true independence of the judiciary, first of all, judges
should be protected from factors affecting access to justice. It is extremely important
to identify cases of interference in the activity of the court, toughen liability and
ensure that punishment is inevitable.
We will consistently continue to work on the implementation of the Habeas
Corpus Institute and strengthening judicial control over investigation. Proceeding
from this, it is necessary to transfer to the court the right to obtain permission to

search and tap the phone conversations of suspects.
We will pay special attention to the elimination of certain deeds from the
category of offences and their liberalization, changing the criminal punishment from
humanistic point of view.
To this end, we need to adopt and implement the Concept of improvement of
criminal and criminal-procedural legislation for 2018-2021.
Based on such eternal values of our people as forgiveness and tolerance, we
need to revise the terms of bringing to criminal liability.
We also need to establish the Academy of Justice of the Republic of
Uzbekistan, which will train highly qualified judges.
As I noted at the meeting on the occasion of the Constitution Day, from now
on we will not allow for torture, psychological and physical pressure and other forms
of inhuman violence against persons arrested and convicted in Uzbekistan.
An officer who committed such acts or any person who fulfilled someone’s
«order» would inevitably be brought to liability irrespective of who he/she is.
In view of the creation of additional mechanisms to ensure the rights of
prisoners, further improvement of criminal justice legislation is of particular
importance.
Within the framework of critical examination and drastic improvement of the
system of penal institutions, we intend to adopt a Program of relevant activities for
2018-2022.
In order to prevent the human rights violations, all temporary and pre-trial
detention facilities and penal institutions will be equipped with video surveillance
equipment.

Starting from next year, we will be providing traffic police and post-
patrol police with video cameras, which will allow them to tape their

conversations, especially with citizens. This system will help prevent possible
extortion and abuse of office.
At present, the old disposition of road checkpoints in the regions restrict the
freedom of movement and impact the development of trade and economic relations,
internal and external tourism.
Just think, today there are over 60 such posts across the country. And imagine
that in order to come from Khorezm to Tashkent one needs to pass 17 checkpoints.
And a person travelling from the Fergana Valley will have to pass eight of such
checkpoints.
In this regard, it is necessary to remove all road patrol checkpoints in the
regions and drastically reduce the number of fixed checkpoints.
It is necessary to emphasize that, since we are building a democratic state, we
need to improve the training of well-educated, highly qualified, self-sacrificing
professional lawyers who would meet international standards.
Currently, about 600 students are admitted in law specialty of higher education
institutions in Uzbekistan annually. This is only one percent of the total number of
admitted students.

Do you think that it is possible to satisfy the ever growing demand of our state
and society for lawyers?
Definitely not.
Along with expanding the educational and methodological base of the
Tashkent State Law University, it is important for us to establish branches of large
and reputable foreign higher education institutions in this direction in our country.
It is well known that in recent years a worthy work has been carried out in our
country to develop the legal profession. Now we need to take measures to improve
the work of counseling services for lawyers – legal advice and legal assistance to
entrepreneurs.
Lawyers should expand their activities in particular on the most demanded
types of legal advisory services including registration of entrepreneurship, assistance
with state bodies, pre-trial settlement, labor disputes and increasing the legal
awareness.
We all know that until now the main task of law enforcement agencies and the
judiciary has been to punish people in many cases. This is a bitter truth.
In this regard, I would like to emphasize one thing: law enforcement officials
should be well aware that our people are tired of being responsible for what they say
“check-ups” and “rumors”.
The time is passed when it was possible to move beyond the competence and
intervening in all the fields, to overlook the interests of the Homeland and the
people, acting for own benefit in the name of “office”.
That is to say, no one should be held liable for fake evidences and slander. We
have to create reliable guarantees for the unconditional performance of the
Constitution and laws.
We must create a system in which each law enforcement agency does not go
beyond its competence and repeat the functions of the others.
In other words, internal affairs bodies should ensure public order and security
and national security service to protect the state from internal and external threats.
The prosecutor’s office must oversee the implementation of laws. The main
objective of the courts is to establish justice. To do this, the court must make a legal,
just and fair decision on each case.
To this end we have done extensive work over the past year to radically reform
the work of the courts, prosecutors and internal affairs bodies. The functions of these
agencies are clearly defined and their activities are directed to serve the interests of
the people.
But it is still too early to say that of a number of laws, decrees and decisions in

this regard has been fully implemented.
In spite of the measures taken, the internal affairs bodies have not yet turned
into a “People’s Internal Affairs Offices”.
The efforts of the prosecution authorities to ensure the priority of the rule of
law in society are insufficient.
The courts have not yet become a place of justice in any cases.
We can’t say that the activities of all the staff in these agencies are fully
mobilized to protect the constitutional rights of citizens.
Therefore, we will consistently continue reforms in this area in the future.
The work of judiciary and the law enforcement agencies are evaluated only by
the people themselves.
The only and most stringent requirement for them is to serve the legitimate
interests of citizens and to protect their rights in any case.
And most importantly we should not allow a single body to collect all the
powers and resources and prevent violation of the principle of checks and balances.
In this regard, it should be noted that the bodies of the National Security
Service have been acting till the present day on the basis of the Regulation approved
by the government 26 years ago.
This Regulation has not been changed for a quarter of a century and every
ordinary issue has been regarded as a threat to national security which led to the
groundless expansion of the agency’s powers.
However, the tense situation that is developing in some parts of the world is
aggravated by increased migration of the population, which in turn leads to the
spread of terrorism and extremism and turning them into one of the global problems.
In such a situation, our national statehood, our independence, peaceful life of
our people become a priority for us.
From this point of view and taking into account all the threats of the
globalization era it is time to reform the National Security Service.
In this regard, I propose to draft and adopt laws “On Law Enforcement
Bodies” and “On National Security Service”.
I believe that the adoption of these laws creates a legal basis for further
strengthening the constitutional rights and freedoms of citizens and guarantees of
prosperous life

III. Priority directions of economic development and liberalization

Dear friends!
We all understand that any reform and change can not be achieved without
sustainable economies.
We have begun extensive work on this subject over the past year.
However, we still have many tasks to strengthen our national economy and
bring our country to the circle of developed countries.
Today, the number of developing countries is growing due to the introduction
of innovative models of development, advanced ideas, export of know-how and
smart technologies in the world.
Unfortunately, the work done in this direction in our country is not
satisfactory. I think you will agree with it.
According to the International Monetary Fund, Uzbekistan ranks 134th
in the

world ranking of gross domestic product per capita.
However, Uzbekistan is a country rich in natural resources with a huge
economic potential. There are large reserves of natural resources such as gold, silver,
copper, uranium, oil, natural gas and coal.
In general, all the elements in Mendeleyev’s chemical table can be found in our
country.
Our fertile soil, sunny comfortable climate of four seasons and unique nature,
where else can you find it?
The thing is to use this priceless treasure wisely and effectively in the interests
of our people. But we must admit we are lagging behind in this.
For example, the volume of gas production in our country in 2017 amounted to
56.5 billion cubic meters. However, the sphere has not been modernized for many
years. That’s why the loss is very big – 20-23%. Of course, all of us should think and
worry of wasting much of this wealth.
God did not give such a blessing to everyone. It is important to value and
preserve it.
Economy means calculating. In each case careful calculation should be given
priority. Otherwise our whole work will be in vain.
For example, we need to produce 66 billion cubic meters of gas in 2018.

About 17 billion cubic meters of gas will be delivered to “Uzbekenergo” company.
It generates 56 billion kilowatt of electricity. Unfortunately, we have outdated
transmission lines. As a result, 15-20% of electricity is lost in the network without
reaching the consumer.
Or another example, enterprises affiliated to “Uzkimyosanoat” company
consume about 10 billion cubic meters of natural gas a year.
On this basis mineral fertilizers are produced and delivered to our farmers.
Due to untimely collection of funds from farms, “Uzkimyosanoat” company has
debts for natural gas of 890 billion as of December 1, 2017.
Under the market conditions both the supplier and the consumer should fully
comply with their contractual obligations. Otherwise, we will be stuck in one place
and in continuous trouble.
A serious problem is the outdated management system, untimely introduction
of effective mechanisms to support innovative ideas.

In addition, technological backwardness, the lack of resource and energy-
saving technologies and alternative energy sources also hamper economic

development.
Worst of all, serious mistakes made in the definition and implementation of
promising large-scale projects, use of foreign loans for inefficient work hinders the
development of the economy.
For example, many experts and specialists recognize that many loans taken in
the country for 25 years did not yield economic benefits. For example the Ustyurt
Gas Chemical Complex built in Karakalpakstan does not provide the expected
economic benefits. Some “clever individuals” from the Ministry of Finance used to
shout to the whole world that this is the best project in the world. But where is the
result?
Such a pity situation can be seen in social programs related to the most acute
needs of our people. For example over the past 10 years more than $618 million of
foreign loans were attracted within the framework of 17 projects to provide drinking
water to the population.
If such amount of currency were spent for achieving the effective, concrete
results in improvement of live standards of our people, today we naturally would
thank to the leaders of the economic complex who have initiated this work. Yet,
unfortunately, this has not happened. Many of the started projects have not been
completed. Drinking water is still a sweet dream for many people. Who will answer
for their hope, because they are not justified?
First of all, we need to create an effective system attraction of foreign loans
and investment, learn how to use each loan. In this issue it is time to measure seven

times and cut once and think about the consequences.
In this context, it is crucial to prepare a innovation program for state
renovation, to prepare a new generation of cadres who effectively use innovations
and investments and prepare a new class of investors.
To do this Uzbekistan needs a strong national idea and national program
on technological development and modernization of the domestic market.
This program should enable Uzbekistan to faster join the ranks of the world’s
developed countries.
Of course we all know that in our country low prices for basic energy
resources are not justified in a market economy.
For example, the 1 megawatt of electricity in Uzbekistan for the population
and industrial enterprises costs $25. In Germany the price is $332 for the population
and $144 for enterprises. In Russia $47 and $51, in India $68 and $87, respectively.
Also, the cost of 1000 cubic meters of natural gas in Uzbekistan is $329, in
Sweden – $1552, in Portugal – more than $1132, Italy – $1045, Germany – $785, UK
– more than $770. This figure is more than $83 in Russia and $45 in Kazakhstan.
It is worth noting that in our country the cost of energy resources and natural
gas is several times less than in developed countries.
However, due to the lack of rational use of resources, there are difficulties with
reducing costs, achieving product growth.
In order to increase the efficiency of the use of energy resources, we need to
reform the energy system of our country, develop a clear strategy in this direction.
First of all, it is necessary to privatize inefficient and operating to the
detriment of enterprises, to stop monopoly. It is also important to create a
competitive environment in the electricity sector and encourage the use of
alternative energy sources. For this, it is necessary to switch to market mechanisms
for financing production with the involvement of the private sector.
Taking into account the fact that we declared 2018 as the Year of support of
proactive entrepreneurship, innovative ideas and technologies in our country, the
focus of our attention will be on the development of active entrepreneurship. The
necessary measures will be taken to support this area, remove obstacles to the
accelerated and sustainable development of business entities.
Unfortunately, there are still problems with doing business.
Why the development of entrepreneurship in our country does not meet
expectations? Because there are many cases of unreasonable checks of
representatives of this sphere. In truth, we ourselves – state bodies do not allow free
development of entrepreneurship.

Still there are unnecessary procedures for anyone, many local officials work
exclusively for their own personal interests.
Speaking of this, we recall the words of a prominent statesman and the
politician Winston Churchill. See what he wrote: “Some regard private enterprise
as if it were a predatory tiger to be shot. Others look upon it as a cow that they
can milk. Only a handful see it for what it really is–the strong horse that pulls
the whole cart”.
I think there is no need to comment how true these statements are.
The requirement of a market economy is that resources and opportunities must
be the equal for all. Nobody has the right to a monopoly.
From this point of view, it is injustice that imports of products important for
the needs of the population are concentrated in the hands of some groups and also
that this has become a source of tangible income for them.
Granting privileges to some enterprises, we ourselves limit the
environment of free competition, we have a negative impact on price stability.
Now we will abandon this practice. In this respect, equal conditions for all
will be created. Privileges will be granted not to certain enterprises, but to
encourage special types of production and services. Complete monopolization of the
main spheres of activity, under the guise of privileges, will be absolutely
unacceptable.
In order to create an equal and fair competitive environment in a market
economy, a draft of the Decree “On Measures for Further Effective Provision of
Food Security of the Country” was developed and presented to the discussion of
general public.
Most are well aware: the complexity of customs procedures is one of the main
obstacles to entrepreneurship.
Of course, it’s disappointing that, according to the World Bank report,
Uzbekistan ranks 175th among 190 countries in processing export-import
documentation.
For example, if you need 1 hour for customs clearance in Belgium, then it
takes a whole month in our country.
Imported goods are subject to a separate inspection in each customs regime.
We have several such customs regime. Why should one cargo be inspected several
times on the territory of our country? Who is interested in this? After all, every test
requires cost! Our financial capabilities are unlimited, or what?
In addition, depending on the type, it is not allowed to export goods from the
bonded warehouse without compliance, hygienic or veterinary certificate. Are not

each our customs warehouse equipped with express laboratories? How open and
transparent are these processes, why are the concerned agencies not worried about
this?
In all developed countries, the customs inspection is carried out through a
hazard warning system. This saves the resources of the government and the time of
entrepreneurs. But we have not yet implemented this system.
Starting next year, we will introduce a warning system for customs clearance
for business entities, in particular, depending on how honest entrepreneurs are, they
will pass through the “green” and “red” corridors.
At the same time, it is necessary to strengthen counteraction to illegal
inspections, unreasonable interference in the activities of private business. For this, it
is necessary to radically revise the system of inspections of the activities of business
entities.
The work of the Republican Council for Coordinating the Activities of
Regulatory Bodies does not meet the requirements of the time. We must openly
admit this.
Think about it, and the working body of this council, as well as the controlling
body conducting the largest number of inspections, is the tax authority itself. How
can this be understood if it itself issues a permit for verification and checks itself?
In this connection, I consider it expedient to transfer the issuance of permits
for verification to a special electronic information system and to control it to
the General Prosecutor’s Office.
What if, in connection with the fact that we declared 2018 as “The Year of
Support of Active Business, Innovative Ideas and Technologies”, we will halt
for two years the verification of the financial and economic activities of all
business entities?
It is required that, under the leadership of the Prosecutor General, the heads of
supervisory bodies every month meet with exemplary and active business entities,
listen to the problems that concern them, take measures to identify and eliminate the
shortcomings that impede their legitimate activities.
The Chamber of Commerce and Industry should not sit idle in the matter of
reliable protection of the rights of entrepreneurs. At the same time, instead of talking
about shortcomings committed by state bodies or officials, the Chamber needs to
critically discuss offenses, in particular, crimes committed by entrepreneurs.
The community of entrepreneurs must be uncompromising towards
unscrupulous entrepreneurs. It is necessary to create a system in which, first of all,
not the state, but the entrepreneurs themselves show their attitude towards them and
ensure goodwill in this environment.

Another important issue is the cardinal transformation of the activities of the
Center for Coordination and Development of the Securities Market for the further
development of the stock market and the stock exchange in our country.
We will continue to work on transferring free objects of state property to the
private sector on the basis of joint partnership.
It is necessary to create a unified procedure for the allocation of land plots,
including for entrepreneurs, through electronic auctions and auctions on the
Internet. To this end, starting in 2018, an electronic system for the sale of state
assets through electronic trading platforms will be created.
A strong and stable banking and financial system is of great importance in the
development of the economy. We can not completely get rid of the “shadow
economy” without increasing the confidence of the population and business entities
in the banking system.
In the implementation of tasks to develop the banking system in 2018, the
main attention should be paid to ensuring efficient and mutually beneficial
cooperation between banks and business entities.
Despite the hesitations and “advice” of some “experts” who opposed the
reform of the foreign exchange market, we started the process of currency
liberalization on the basis of international standards in a short time. But we are well
aware that this is only the beginning of reforms in the monetary policy of our
country.
Currency policy should fully meet the interests of business and economic
development, give a positive impetus to investment activity.
In 2018, we will abandon tough measures in the conduct of tax policy. Since
budgetary sustainability is important like air and water for the smooth functioning of
the public system during the reform period.
We need to do a lot to improve the tax system to make our country attractive
for investors who intend to implement large investment projects in Uzbekistan. It is
necessary to reduce and simplify the tax burden for all categories of business,
thereby expanding the production and tax base.
The newly created small and medium-sized businesses that build facilities for
their needs should be given the right to defer a single tax payment within a certain
period of time. It is also necessary to encourage the transition of small businesses to
pay value added tax.
At the same time, it is necessary to move to a policy of stimulating rapidly
developing and growing enterprises.
I propose to abandon individual tax exemption and move to the practice of
applying them only for certain sectors of the economy.

Most importantly, from the point of view of investors, the tax system should
be clear and understandable for a long time.
Therefore, it is necessary to apply a carefully thought-out, long-term policy in
the tax system.
We need to revise the country’s budget system, ensure that budget
revenues and expenditures are open and transparent for our people.
Do you know what our biggest problem is?
We do not have an elaborate, long-term unified concept for the development of
investment programs.
During each state visit, we conclude agreements worth several billion dollars
to attract foreign investments.
However, the implementation of these agreements is very slow. This is
because there is no well-functioning system in this area.
In current investment programs there is no information on any particular
project. When developing programs, the Ministry of Economy and local authorities
are chasing only numbers.
They include in the program even those projects that do not bring economic
benefits, have no prospects and sources of funding, unnecessarily overstate the cost
of projects, in short, they are engaged in fraud.
It’s time to get rid of this unpleasant practice. We decided to eliminate these
cases and attract investments in the real sector of the economy, introduce a
completely new mechanism for project development.
The practice of accepting investment projects, developed in a reckless manner
and for the sake of diverting the eyes, is completely discontinued. From this
moment, the concepts of long-term development will be developed.
As a first step in this direction, the State Development Programs of the
Republic of Uzbekistan have been adopted and a financing fund for these
programs was established.
One of our most important tasks in the development of the economy is to
mobilize the population’s funds as investments, to strengthen the sense of
entrepreneurship in people.
To this end, I propose to open an “Investment Portal” on the Internet that
will provide local and foreign investors with the necessary statistical data, provide
information on the conditions of doing business.
Based on foreign experience, it is necessary to organize free 24-hour mobile
communication services for all investors. It is also necessary to think about creating

a system of benefits for foreign investors that encourages them to reinvest, rather
than export their capital.
It is important to intensify the work of the heads of city administrations,
government agencies and organizations to attract investment, to cooperate with
foreign investors, to create new types of production and to increase employment.
Beginning next year, the results of the rating will be announced to identify the
conditions created on the ground for foreign investors, and the activities of
regional leaders will be assessed by these standards.
As you know, today there are our embassies in 33 countries of the world. But
does the Ministry of Foreign Affairs make full use of its opportunities to promote an
increase in the investment attractiveness of our country, to attract foreign
investment? Is the activity of the embassy’s councilors on trade and economic issues
satisfactory?
Unfortunately, the issues of economy and investments have become secondary
for our ambassadors. They are only concerned with “politics.” The embassies have a
shortage of specialists in economy, finance and investment.
Therefore, it is necessary to introduce a separate system for studying the
knowledge and skills of each appointing embassy employee in the sphere of
economy.

Dear friends!
It is important to emphasize the remaining vast untapped potential and
resources in the foreign economic sphere.
In this regard, we will continue to expand trade-economic relations with
Central Asian states and major partners – China, Russia, South Korea, United States,
Turkey and European Union member-states.
In the forthcoming year we need to pay special attention to consistent
development of reliable transport and transit corridors that will ensure access of
Uzbekistan’s foreign trade goods to main world and regional markets.
Today, our main goods are transported via transit routes of Kazakhstan,
especially, most of the cargo cross through the “Saryagash” station, and we hardly
can affirm that this route fully meets our demands.
While importing goods to the territory of Uzbekistan through this station, lack

of electric locomotives, modern terminals, railway traffic congestion result in long-
term cargo delays. In its turn, this has a negative impact on economy of our country.

For that reason we should diversify logistic routes, hold practical negotiations
with our neighbours in this regard.
It is necessary to increase the potential of our country in the field of transport
and communication infrastructure within the framework of the “One Belt, One

Road” project initiated by China.
We should earnestly consider the possibilities of obtaining preferences in
exporting our main goods through the territories of transit states, particularly,
Turkmenistan, Iran, Kazakhstan, Russia, Azerbaijan and Georgia.
Furthermore, in order to support national carriers and to create additional
opportunities for entities of entrepreneurship, we must establish “National Logistics
Portal”.
In the forthcoming year we will restart negotiations on accession to the World
Trade Organization. In order to further encourage export, it is necessary to adjust
respective technical regulations system to international standards. One of our core
objectives is to deliver quality and certified products to foreign markets under the
“Uzbek brand”.
Today one of perspective sectors, which generate high revenues to national
economy is tourism.
Uzbekistan is considered a state, which possess vast potential in the sphere of
tourism.
There are more than 7 thousand 300 cultural heritage sites, significant number
of them is inscribed on the UNESCO’s World Heritage List.
We should pay special attention to development of pilgrimage tourism,
ecological, educational, ethnographic, gastronomic tourism and other directions of
tourism by means of attracting of world brands into the sphere.

In this connection, we should take into consideration that fostering public-
private partnerships will expand potential in development of this sphere.

It is necessary to develop and intensify “Small Hajj” programme, which
foresees pilgrimage to holy shrines and monuments in the cities of Samarkand,
Bukhara, Tashkent.
Along with this, it is essential to untap wide opportunities in the sphere of
internal tourism as well.
Deputy Prime-Minister Mr.S.Kholmuradov and Chairperson of the State
Committee on Tourism Development Mr.A.Abdukhakimov must elaborate and
submit respective documents to address these issues within a week.
Dear participants of the meeting!
With your permission, I would like to dwell attention on most important tasks
in the leading sector of our economy – agriculture.
We discussed it in detail during the meeting on the occasion of the Day of
workers of agriculture, held on 9 December.
I will not repeat the voiced ideas and think it is necessary to focus our attention
on the following important issues.
It is well-known that today more than 51 percent of the country’s population
lives in rural areas. However, agricultural products comprise not more than 17
percent of the Gross Domestic Product.
The volume of processing of agricultural products doesn’t even reach 10
percent. Whereas, the same indicator amongst developed countries accounts for

more than 50 percent.
In this connection, we should elaborate a comprehensive program on further
reforming agriculture.
Particularly, special attention should be paid to ensuring food security,
introduction of strict control against production of genetically modified
products.
Indeed, the increasing volumes of imported fruits and vegetables into markets
of our country during recent years should warn us.
In this regard, above all we should revive disappearing ancient sorts of
products, establish efficient and effective selection work, ensure wide introduction
of scientific achievements and innovations in agriculture.
It is known that textile industry of our country has a capacity to process up to 1
million 400 thousand tons of cotton fiber. It fully meets demands of country’s
manufacturers of finished products.
However, there is a number of problems in management of cotton processing
industry. This, in its turn, results in decreasing profitability of cotton production and
processing.
With that in view, in order to address challenges in this sphere, and further
encourage local producers, we adopted a separate decree.
To this day, raw cotton was sold to our textile factories through
“Uzpakhtasanoat” joint-stock company. According to the decree, from now on,
textile factories have opportunity to purchase raw cotton directly from farmers under
direct contracts.
We started a pilot programme on production of raw cotton, formation of prices

and sales based on market requirements within the framework of establishing cotton-
textile clusters in Navoiy, Bukhara and Syrdarya regions.

Today it is an imperative that we apply such best practices across our country
in the future.
What concerns the stockbreeding sphere, we should create respective
favourable conditions in order to increase the number of cattle and poultry, and to
ensure quality and productivity.
There is a necessity to establish specialized livestock complexes, high-tech
poultry farms, as well as greenhouses in each district in the near future.
At present, we export fruit and vegetable products worth 1.5-2 billion USD.
However, in this sphere there is an opportunity to export products worth 10-15
billion dollars a year.
“UzAgroExport” joint-stock company, commodity exchanges, agrofirms and
wholesalers should play a greater role in the production and export of products.
Effective realization of agricultural products is a very important issue. To this
end, it is necessary to create a single database on the volume and quantity of
products grown on farms.
Dear people’s deputies!
I would like to briefly dwell on accelerated economic development of the

regions.
I believe it is reasonable to expand powers, capabilities and responsibility of
local authorities.
At present, there are 9 districts in the country, where there is no enterprise with
foreign investment. Direct investments are mainly concentrated in Tashkent city,
Tashkent and Samarkand regions as well as the Fergana valley.
In the regions, it is necessary to fully implement projects of modern production
and engineering-communication networks in the regions through strengthening of
public-private partnerships. However, it is worth noting that there is not enough
work done.
Therefore, we need to develop and implement the Concept on Introduction
of Public-Private Partnerships.
One of the major areas of our economy’s untapped directions with huge
potential is construction industry.
Reformation and further development of the construction sector will be one of
the main objectives for the next year.
We should seriously think over formation of a modern generation of
construction contractors and builders.
In this regard, the programme of innovative development of construction
industry till 2030 will be developed.
In this connection, we will create all the necessary conditions for attraction of
qualified specialists from abroad as well as for professional development of local
specialists in foreign countries.
So far, unfortunately, we have not paid enough attention to the important
strategic sphere – introduction of aerospace technologies in leading spheres and
sectors of the economy through satellite.
In order to develop this field, which is an essential condition and factor of
modern development, we need to create our national space infrastructure by
attracting foreign investors to implement projects based on public-private
partnerships.
It is necessary to develop scientific-research institutes involved in this area and
to strengthen their capacity.
We need to establish a separate state aerospace agency and address the
challenges associated with development of this field.

IV. Priority directions of social sphere development
Dear Members of Parliament!
Dear deputies of regional and district councils!
Based on advanced international experience we must define legal notions of
“living wage” and “consumption basket” for determining necessary income

required for adequate living standard of citizens, and establish mechanisms for their
practical implementation.
In the meantime, practical measures will be taken to gradually increase real
incomes of the population, wages, scholarships, pensions and social allowances as
well.
Despite our recent efforts in the sphere of human health protection,
unfortunately, there are still many challenges remaining at local level.
Taking this into consideration, we will consistently continue our work on
providing accessible, quality and modern medical care for the population of the
regions, early detection of diseases. In this regard, we should adapt to our conditions
the concepts of “Smart Medicine” and “Single Medical Information Center” that
provide remote medical prevention.
At the same time, we will intensify our efforts to attract foreign investors to
foster development of private medicine and to ensure permanent employment of
foreign specialists in the country.
It is an open secret that supplying the population with medicines is one of
the topical issues that people face. In order to address this issue in the near future,
we will put into operation 2 thousand social pharmacies, which can provide the
population with medicines at low prices.
Today it is an imperative to thoroughly analyze services of screening centers,
which play an important role in protecting health of mothers and children.
In 2018 we plan to establish inter-district perinatal centers on the basis of
46 district and municipal medical associations. They will be equipped with
modern medical equipment, highly qualified personnel.
Moreover, it is foreseen to establish modern diagnostic laboratories for
early detection and prevention of diseases in rural health centers, based on latest
medical science achievements.
One of the most important outcomes of the reforms undertaken throughout this
year is undoubtedly complete elimitation of child labour and forced labour in our
country.
It is noteworthy that such positive changes were recognized by the
International Labor Organization and other agencies.
Dear friends!
In order to continue our efforts on upbringing healthy and harmonious younger
generation, we adopted the new law “On State Youth Policy”. On its basis, we
introduce new practical approaches in this sphere.

When speak about youth, I always think of one thing. Today, many young
people are studying and working abroad. Of course, there are many of them who
found their way living in a foreign land not less than anyone else. But, missing
homeland is painful for everyone.

That is why we need to keep in touch with them, protect their rights and
interests, and enhance the work on supporting those who want to return to our

country.
To this end, we should establish the International Association of Youth of
Uzbekistan and create necessary conditions for its effective functioning.
It is reasonable that young people should be in constant contact with persons
of their age abroad in the fields of science, culture, business, sports and others. This
creates a great opportunity for them to demonstrate their capacities globally.
Therefore, it is planned to hold the Central Asian Youth Forum next year in
Samarkand.
We will continue to focus our attention on deeper teaching of English and
other foreign languages as priority. At the same time, we will strengthen our work
on training and professional development in those specialties required for us.
Speaking about this, we should not say enough about the upbringing of mature
people who are worthy successors of our great forefathers.
Nevertheless, we have no right to forget about the riches of intellectual and
cultural potential, and to educate and educate rare talent.
It is true that developed countries have come to this level of development.
Unfortunately, some scholars in our country who have great scientific potential are
among the most talented young people in the world.
The more Uzbeks today are serving in large foreign companies and banks,
prominent universities and international organizations.
During my visits to foreign countries, I personally met and talked with dozens
of fellow countrymen.
Our foreigners are provided with the necessary conditions for the provision of
consular services and other services, their accession to the country, and the
development of our country. We will further expand these efforts in the future.
In this regard, I propose to develop a concept of public policy in the field of
cooperation with our compatriots living and working abroad.
Next year, we will continue to work on further improving the architectural
image of our cities and villages.
We must not forget that every building, whether it is a kindergarten or a
hospital, has a direct bearing on people’s moods, besides maintaining their basic
function. Therefore, in designing social facilities planned to be built in the regions, it
is necessary to abandon the old patterns and introduce innovative approaches.
Taking into account the needs of the population, especially young families, old
houses, and the needs of other categories of citizens, we have to continue to work
hard to build cheap and high-quality housing.
For this purpose it is decided to increase the construction of cheap housing by
1.5-2 times by 2018. Next year, 20,000 houses will be built on standard designs. In
particular, 1 thousand 491 apartments in 658 houses and multi-storey houses will be
built for young families actively participating in the social life of the country. 971
houses for 1,171 houses and civil servants will be built for preventive inspectors.
(Material from Z.Nizomiddinov).
Another important issue is the need to thoroughly revise the activities of
private homeowner associations. The newly created ministries – the Ministry of

Housing and Communal Services should take initiative.
New projects will be implemented in many new settlements, primarily in the
Republic of Karakalpakstan, Khorezm, Bukhara, Jizzakh, Kashkadarya,
Surkhandarya and Syrdarya regions to provide clean drinking water and sanitation
services. Thus, around 580,000 people in the regions are provided with drinking
water.
Distinguished participants of the meeting!
In 2018 we are planning to work on the construction of new roads, further
development of transport and logistics infrastructure, improvement of quality of
services:
First, rehabilitation of 180 kilometers of railways and electrification of more
than 200 kilometers of railways;
Second, the construction of the Tashkent-Urgench-Khiva high-speed train and
the Tashkent-Samarkand-Bukhara-Urgench-Khiva tourist train, the launch of the
South Tashkent Railway Station and the new Khiva train station;
Third, the construction of a new railroad line between Bukhara-Miskin and
Karshi-Zhetishek electrification and connecting with Shakhrisabz;
Fourth, to accelerate the construction of Tashkent-Sergeli and Yunusabad
underground routes;
Fifth, the establishment of large transit hubs on highways and railways through
the construction of modern infrastructure, providing high-quality service.
Construction of 2 thousand kilometers of fiber-optic communication systems
in remote districts and increasing Internet bandwidth 2.5 times to fully cover
telecommunication services and over 4,000 mobile base stations are planned to be
launched. As a result of these measures more than 600 settlements will be provided
with Internet and mobile communication. Measures will be developed and
implemented to ensure that the population enjoys cultural leisure and leisure time. In
order to improve the system of reliable preservation and rational use of objects of
cultural heritage, it is necessary to adopt the program of archaeological research and
preservation of archeological findings.
In the next year in Nukus city on strengthening the material and technical base
of physical education and sports, the highest sports specializing in Olympic and
national sports Youth school in Urgench, Universal sports complexes in Tashkent,
Andijan, Samarkand, Bukhara, Lay the complex, multi-functional indoor swimming
pool will be built. (Murtazo aka edits)
At the same time, material and spiritual support for our fellow citizens in the
fields of science, culture, art and literature, including improving their housing, social
and medical conditions, increasing the level of their salaries, all the decisions we
make about the potential of our owners. Because true science, real creativity, is a
difficult task like digging a well with this needle. The one who knows this is aware
of it, and if he does not know it, he will be useful.

V. Security, inter-ethnic accord and religious tolerance, as well as
priorities in foreign policy.
Deputies and senators!
We all know that global economic competition, information attacks and
terrorist threats are gaining momentum. It is crucial to ensure close cooperation
between government, religious organizations and non-governmental organizations to
protect our people, our youth from aggression aimed at masking our sacred religion,
and committing various acts of conspiracy and corruption. Therefore, in every
province, we have to increase the responsibility of the deputy khokims and all the
independent institutions directly involved in religious affairs. We need to further
improve the work on social rehabilitation of citizens who have been misled by the
ideas of extremism and return them to a healthy life. In order to prevent aggressive
ideas disseminated through information resources, special units should be
established within law enforcement agencies.
In our society, interfaith solidarity and we consider it as the most urgent and
noble duty. For this purpose, we have the work of religious organizations in our
country It is important to note that the organizational structure of the defense system
of the country, its military-combat situation, the level of spiritual and spiritual
training of soldiers and officers are far behind the requirements of today’s rapidly
changing period. In the short run, concrete steps have been taken to reform the
national army, and the radical change of the image of the Armed Forces has started.
the newly-reaffirmed Doctrine of Doctrine plays an important role.
This doctrine defines the principle of openness of Uzbekistan’s foreign policy,
the development of friendly and practical relations with close neighbors. It is clearly
defined as the priority task of strengthening the independence and sovereignty of our
state. Taking into consideration the peculiarity of the geo-strategic location of our
country, as well as the military-political situation in the region, the tasks and
structures of the Armed Forces have been revised. The National Guard has been set
up, and complex measures are being taken to provide the army with new weapons
and modern military equipment. The State Committee for Defense Industry was
established.
The Academy of Armed Forces has undergone a radical reorganization on the
basis of systemic changes in military training. A great deal of work on social
protection of servicemen, their families and veterans is underway. Speaking of this,
it is worth noting that 100 multi-storey houses are being built for military personnel.
New approaches have been introduced to the housing sector, including long-term,
preferential mortgages. At the same time, we are well aware that in the field of
defense we have new and important tasks.
First of all, the concept of the National Security Concept and the Defense Doc
we need to do much more to ensure the effective and timely implementation of the
trunks. Continue to further strengthen our defense capability, and increase the

combat capability and capabilities of the Armed Forces, as well as the Defense
Forces to provide the Armed Forces with modern weapons and military equipment. –
We need to adopt a state program on forming and developing the industrial complex.
Dear compatriots!
In accordance with the Strategy of Action adopted in our country, we
consistently pursue the policy of comprehensive development of the friendly and
mutually beneficial cooperation with the neighboring countries, primarily
neighboring countries and international structures in the foreign policy area. We take
the necessary measures to timely and qualitatively implement the agreements and
agreements concluded with all foreign states and international organizations of the
Republic of Uzbekistan. Taking advantage of this, we always support the reforms in
our country, to the representatives of international organizations, foreign
ambassadors, sincere gratitude. Dear and esteemed compatriots! the plans and
projects described in the draft law will undoubtedly contribute to the development of
our country, the welfare of our people to a new, higher level. At the same time, we
all well understand that we have to create the appropriate legal framework and
mechanisms for the full and effective implementation of these priorities. Therefore,
Prime Minister A.Aripov, State Advisers U.Ismoilov, O.Murodov are all interested
in the implementation of priority tasks, which come from this Appendix by all state
and economic management bodies, the Chairman of the Council of Ministers of the
Republic of Karakalpakstan, regional, Tashkent city, to develop and approve
complex measures until 10 January 2018.

Dear Friends!
Of course, 2018 will not be easy for us, which will be a crucial stage in
implementing the goals and objectives stated in the application. I must say this
clearly. But, in the words of our people, when it comes to water, it is important for
us not to abandon the chosen path, even if it comes to the stone. Because in this life
nothing happens spontaneously. If we do not act on our own, no one will help us
indefinitely. All of us should understand and understand the truth: today we talk
about the fate and future of our people, our Homeland, the happiness and prosperity
of our dear children. we have to mobilize our intellect, knowledge and experience,
our children’s love and devotion to our Homeland. If we do not deceive ourselves, if
we do not deceive ourselves, I am sure that we will work honestly, I really believe in
all our goals. I am convinced that this is a strong will and creative potential of our
noble people, who have gone through many trials first and foremost. I wish you all
strength, energy, happiness and prosperity on the path to achieving our goals.
Thank you very much!