Azernews.Az

By Akbar Mammadov

President Ilham Aliyev has said that Azerbaijan must expand its production and export potential and replace imports with domestic production as far as possible.

The president made the remarks while inaugurating a Vocational Education Center under the Sumgayit Chemical Industry Park on September 14.

“The main task now is to find out where we have the biggest dependence on imports, and if substitution is possible and there are raw materials for this or a feasibility study allows that, then it is imperative to pay attention to these sectors. Companies showing such an initiative should be granted resident status and the state should provide them with assistance, provide low-interest loans so that we can reduce our dependence on imports as much as possible. After all, any country strives for this, in particular, a country with a growing population – Azerbaijan should definitely strive for this,” Aliyev said.

The president said that the city of Sumgayit, in particular, the Chemical Industry Park, plays an important role in increasing the country’s production potential.

Aliyev also spoke about further reducing economic dependence on oil.

“Our oil fields will eventually be depleted. True, we will start operating new oil and gas fields in the near future and will try to keep the level of production stable.”

Aliyev noted that however, a natural decline in the Azeri, Chirag and Guneshli fields, Azerbaijan’s main sources of income, is inevitable. “We must fill this gap precisely at the expense of the non-oil sector,” he added.

He emphasized that to maintain the balance of payments at a positive level, the country needs enterprises that produce high-quality export products and bring in foreign currency.

“The positive balance of payments today is maintained mainly due to the oil and gas factor. However, we must try, leaving aside this factor, to always have a positive balance in export-import operations. Therefore, it is imperative to create export-oriented manufacturing industries capable of replacing imports.”

“A cigarette factory has started functioning here and our statistics already show how much the dependence on imports has decreased,” Aliyev said.

The president stressed that Azerbaijan must, as far as possible, meet the domestic demand with local products.

Aliyev noted that the global recession, which deepened further as a result of the pandemic, has certainly affected many companies.

“However, it is in this context that we must take steps to be among the countries most prepared for the post-pandemic period and to have a new dynamic of development immediately and without delay,” the president stressed.

Furthermore, Aliyev highlighted that Sumgayit is the second-largest industrial centre not only in Azerbaijan but also in the South Caucasus today.

“Sumgayit's potential is getting stronger. A glass production plant will also start operating here this year. Major investments have also been made there and it will provide us with glass. Although the construction sector is experiencing some recession due to the pandemic today, it is recovering and will be restored. We will provide ourselves with local glass. This is also a great achievement.”

The president pointed out that the Sumgayit Chemical Industry Park is registering positive dynamics in the production and export of products now. “In general, in 2019, the Sumgayit Chemical Industry Park manufactured products worth 823 million manats, about 33 per cent of which (276 million manats) were exported. In the six months of 2020, the Sumgayit Chemical Industry Park manufactured products worth 534 million manats, and its share in the total volume of products manufactured in the country's non-oil industry (5.7 billion manats) amounted to 9.3 per cent.

Aliyev added that products worth 182 million manats have been exported and its share in the exports of non-oil industrial products (910 million manats) is 20 per cent. He also noted that currently, more than 5,500 people are provided with permanent jobs at the enterprises operating in the park.

“Before the launch of this factory, we mostly depended on imports. Today we have saved 300 million manats. At the same time, this factory has development potential as well,” the president said.

He also gave instructions to prepare proposals for the future development of the Industrial Park and choose new locations.

Apart from the Sumgayit Industrial Park, President Ilham Aliyev has inagurated a new building of secondary school No. 154 named after national hero Albert Aganurov in Baku's Surakhani district on September 14.

The president also attended the opening of new park named after Murtuza Mukhtarov in the same district.

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