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The magazine is registered by the Federal Service for Supervision of Compliance with Legislation Governing Mass Communications and Protection of Cultural Heritage, certificate of registration Ō» Ļ ‘—77-21265 of 08.06.2005
2017 †N11-12(152-153)
ECONOMY
KEY TRENDS
Turkmenistan demonstrated the key trends in the country's economy at the Exhibition of Economic Achievements in Ashgabat. The inter-industry exhibition was held at the Exhibition Center of the Chamber of Commerce and Industry of Turkmenistan, the event organizer, on the eve of the 26th anniversary of Independence Day. It brought together representatives of the production organizations of the public sector of the economy, educational, cultural, sports and tourism organizations, as well as private Turkmen businesses.
The topic of diversification of the national economy, import substitution and export growth, as well as accelerated industry modernization was the leading idea of the exhibition.
The pace of development in the spheres of construction and construction materials, industry and power engineering, oil and gas, petrochemicals, transport, communications, textile industry, carpet weaving, chemical industry, agro-industrial complex, medical industry, education, culture, sports and tourism, printing, protection of environment was perfectly demonstrated by short video films, colorful mock-ups and printed materials.
The Ministry of Industry presented modern electrical appliances that meet high international standards. They include vacuum cleaners, electric furnaces, LED lamps, new generation electric meters and other devices.
The fuel and energy sector set up a large exposition demonstrating the dynamic pace of the industry's development. A special emphasis was placed on new products for export and import-substituting goods.
The Turkmenbashi complex of oil refineries presented a wide range of finished products, including gasoline of different grades, diesel fuel, industrial oil, kerosene, polypropylene, etc. The high quality products and their variety prove the successful introduction of new technologies for deep processing of raw materials that help increase Turkmenistan's competitiveness at the oil products market.
The stands of Turkmen entrepreneurs demonstrated the private sector's growing contribution to developing the national economy. Visitors to the exhibition had an opportunity to see beautiful furniture, confectionery, dairy and cheese products, various types of ice cream, fruit juices and stalls with local meat products.
Turkmenistan's private enterprises started production of various household appliances, including gas stoves, kitchen extraction fans, irons and other electronic devices. At the exhibition, they also presented many ceramic products for bathrooms that were made exclusively of local raw materials and according to the original technology.
The Ministry of Construction and Architecture presented the mock-ups of the completed facilities and new buildings that will be built by domestic specialists and companies. Among them are modern buildings, industrial and social facilities, high comfort residential houses, kindergartens, educational institutions and world standard medical centers.
The Ministry of Education as well as educational institutions also demonstrated their achievements. Students of these educational institutions presented their inventions, such as robots, a smart house system and computer programs.
This year, the pavilion of the State Sports Committee was of much interest to the visitors. They had a chance to speak live with many medalists of the recent Asian Indoor and Martial Arts Games in Ashgabat. As is known, Turkmenistan's sportsmen triumphed at the Games. They won 245 medals, including 89 gold, 70 silver and 86 bronze. The national team was and undisputed leader in the team medal standings, demonstrating the rapid development of sport in the country.
It should be noted that this October the Council of Elders adopted the Program of Social and Economic Development of the Country for 2018-2024 that sets major tasks and principles, as well as priority areas for the further modernization and improving the efficiency of the national economy.
In particular, it is expected that Turkmenistan will maintain a high annual GDP growth rate (6.2 - 8.2 percent) in the following 7 years. In this period, the share of industry in the national economy will make up an average of 33 percent, construction - 14 percent, agriculture - 10.9 percent. This indicator will amount to 9.1 percent for the transport and communications sectors, 12 percent for trade and 21 percent for various services.
The work on defining and implementing the national priorities, supporting scientific and technical initiatives to ensure an industrialized economy will continue. This work will create conditions to significantly increase the export potential and build facilities in all regions of the country to produce import-substituting goods.
The Program sets a goal on the full utilization of all resources and opportunities to ensure stable growth of the national economy, accelerated transition to market relations and dynamic development of the private sector. It also provides for establishment of joint ventures and joint-stock companies, strengthening the activities of stock exchanges and equity market.
The Program will oversee the active investment policy. It is expected that a major investment exceeding 240 billion Manat will be allocated for the social and economic development of the country in 2018-2024.
Investments in the oil and gas complex alone will amount to 159.9 billion Manat. Over 6.900 thousand new jobs will be created.
It is planned that an under-construction plant in the village of Ovadantape of Akhal province will start producing 600,000 tons of A-92 ecology friendly gasoline from natural gas in 2024. By this time, construction of a gas compressor station at the Malay field for the Turkmenistan - Afghanistan - Pakistan - India gas pipeline should be completed.
It is expected that the total amount of electricity produced in the country will increase to 33 billion kilowatt-hours by 2024, which is 27.2 percent more compared to 2018.
The priority tasks for 2018-2024 include construction of a large gas chemical complex for production of polypropylene, polyvinylchloride, caustic soda, hydrochloric acid and liquid chlorine in the village of Kiyanly in Balkan province. It is expected that in Balkan province a carbamide plant will be put into operation in the city of Garabogaz and the plants for production of iodine, bromine and their products based on the processing of iodine-bromine waters will be upgraded.
In the following 10 years, Turkmenistan intends to strengthen the gas chemical industry through construction of new plants and gas chemical complexes. The fulfillment of this task will be facilitated by the project prepared in mid-2017 using the analysis of the situation at the regional and international markets, the current and expected demand for gas-chemical products.
According to President Gurbanguly Berdimuhamedov, construction of such facilities is one of the key factors for the further development of the country's economy, enhancing its technological security, expanding and diversifying the markets for hydrocarbon resources and incentivizing the development of virtually all sectors of the national economy.
The new plants that will be built in all provinces of the country are designed for deep processing of natural gas and production of a wide range of finished gas-chemical products that are in demand at the international markets. They include polyethylene, polypropylene, polyvinyl chloride, liquefied gas, automobile gasoline and diesel fuel, methanol, rubber, polystyrene, etc.
According to the estimates of Turkmenistan's experts, the demand for A-95 gasoline and diesel fuel will double in the country by 2030. With this in mind, a set of measures has been developed to further upgrade the capacity of the Turkmenbashi complex of oil refineries and the Seyidi oil refinery.
These large investment projects will be implemented jointly with foreign companies that have significant experience in the oil and gas sector, as well as the advanced, resource-saving and environmentally safe technologies.
It is also important that the development of the gas and petrochemical industry will contribute to the industrialization of the regions, diversification of the economy and increasing the output of import-substituting and export products.

Oleg LUKIN


©Turkmenistan Analytic magazine, 2005