Azernews.Az

By Aynur Jafarova

A high-ranking official says the share of private sector in the country's gross domestic product (GDP) has exceeded 80 percent.

Azerbaijan's Economy and Industry Minister Shahin Mustafayev said the trend is the result of measures adopted by the government during the last ten years.

Speaking at the conference on the implementation of the state programs for social and economic development of Azerbaijan's regions in 2004-2008 and 2009-2013, Mustafayev also said the share of the private sector in employment increased from 68 to 74 percent, in tax revenues from 42 to 72.5 percent. He went on adding that the number of business entities has also increased by 2.5 times.

"Meanwhile, in parallel with the construction of infrastructure facilities, we have seen that the improvement of business and investment climate strengthened the economic potential of the regions, as well as contributed to the acceleration of economic diversification, growth of non-oil export and strengthening of food security," he said.

The minister went on to say that in accordance with strategic line "the country's development depends on the development of entrepreneurship", defined by the Head of State, Azerbaijan has adopted successful measures on sustainable improvement of the business and investment climate.

"From this point of view, improving the legal base, strengthening the combat against corruption, expanding the state support for entrepreneurship, reducing the taxation burden, ensuring healthy competition, providing more than 400 e-services and applying "one window" principle, holding about 1,200 educational events for more than 100,000 entrepreneurs in 10 years, as well as other measures have led to the formation of a strong private sector in the regions of Azerbaijan," Mustafayev stressed.

He also emphasized over the past 10 years the ministry has allocated 1.2 billion-manat preferential loans for the projects of 19,000 entrepreneurs with a total worth of 2 billion manats through the National Fund for Entrepreneurship Support (NFES).

"Thanks to these projects some 110,000 new working places were created. Some 78 percent of allocated loans and 81 percent of created working places accounts for the regions. In the reported period the Azerbaijan Investment Company adopted targeted measures on development of non-oil sector and establishment of new enterprises, and participated in the projects of Milk Pro, Agstafa Agroservis, Azertokhum and Devechi Broyler companies," he said.

The minister also noted in the past 10 years over 500 industrial enterprises started operating in the regions, including technology and textile parks in Sumgayit, enterprises producing cement, marble and cars in Nakhchivan, cement and aluminum plants in Gazakh and Ganja and other enterprises.

"Some 104 industrial projects with a total worth of 730 million manats were financed through the preferential loans. Some 80 enterprises on these projects were commissioned, and work over the remaining 24 enterprises is still underway," Mustafayev noted.

The Economy and Industry minister went on to say that Azerbaijan fixed a record level of grain harvest in the pilot grain farm. The country harvested 55 centners of grain and over 100 centners of corn at per hectare.

"Currently work on establishment of five more large farms in Beylagan, Hajigabul, Jalilabad and Khachmaz regions is being completed," Mustafayev noted.

He went on to add that 64 percent of preferential loans allocated in the reported period, was directed to projects on production and processing of agricultural products.

"Establishment of 40 logistics centers with a capacity of 203,000 tons of products, as well as 21 grain storage complexes plays an important role in year-round providing of population with qualitative local products, procurement of produced goods, increase of export and ensuring price stability," Mustafayev said.

Also, Azerbaijan has started the establishment of large logistics center in Kazakhstan's Aktau city. Over the past 10 years Azerbaijan has increased the export of non-oil products by 4.7 times, including the production of vegetables and fruits by 2.5 times, the range of exported non-oil products by 1.7 times, and the list of export destinations has reached 20 countries, he stressed.