he Parliamentary Committee on Budget, Banking and Financial Issues of the Republic of Uzbekistan held a meeting at the Supreme Assembly on Tuesday.

The meeting discussed the implementation of the state budget for the first nine months of this year and main macro-economic forecasts for 2001. The meeting was chaired by Abdurafiq Ahadov, chairman of the Committee on Budget, Banking and Financial Issues. Deputy Prime Minister and Minister of Finance Rustam Azimov delivered a speech, mentioning the following figures which bear eloquentl witness the growth of budget receipts this year.

The budget revenue was 639.4bn soms, which is 100.6 per cent of what was planned. Budget expenditure stood at 633.1bn soms. The main element of state budget expenditure was directed to social support for the population. The total amount of expenditure for these purposes was 43 per cent.

As regards the macro-economic forecasts for 2001, preliminary calculations envisage all strategic prospects of economic reforms mentioned in the speech of the head of state at parliamentary sessions.

These plans include increasing GDP up to 105 per cent, the level of currency devaluation should be no more than 16 per cent, budget revenues in terms of GDP should be 29.8 per cent, budget expenditure in terms within the same parameters should be 31.3 per cent.

Welfare spending, financing expenditure connected with the implementation of a programme of training national specialists, reforms in the health care system, developing villages' social infrastructure, expenditure for guaranteeing security and reinforcing the country's military potential have been named as priority sectors for budget expenditure in the next year.

There are plans to reduce income tax from 31 per cent to 26 per cent. This means that an additional 22bn soms will earmmarked for the development of production.

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ith the aim of forming a climate of competition in the republic, carrying out measures for demonopolization, denationalization and privatization of enterprises and organizations of railway transport, energy and cotton processing industry, the Cabinet of Ministers of Uzbekistan has adopted a resolution "On setting up special commissions aimed at the demonopolization of structures in the Uzbek market".

The commissions for demonopolization, denationalization, issuing and selling shares of the railway transport enterprises, as well as enterprises and organizations which are in the structure of Uzgoskhlopkopromsbyt [Uzbek state cotton industry and sale] are to be headed by Prime Minister Otkir Sultonov, and the enterprises of the energy sector by the deputy prime minister, Valeriy Otayev.

In line with the government resolution, the special commissions pledge themselves within a month to carry out detailed analysis of the structure and composition of enterprises and organizations of Uzbekiston Temir Yollari [Uzbekistan State Railway Company] State Association, the Ministry for Power Engineering and Electrification Ugol [Coal] joint-stock company and the Uzgoskhlopkopromsbyt association.

They will also inspect the enterprises' organizational and legal structure, its authorised funds, and the mechanisms of mutual relations between structural subdisions on republican and regional levels.

Taking foreign experience into account, the commisisons are to submit suggestions to the government on demonopolization and denationalization of organizations of these sectors, consecutive denationalization, and the issuing and selling of shares of enterprises and organizations in their structure.

The commissions also should prepare drafts of decisions on improving the structures of Uzbekiston Temir Yollari State Association, reforming the Ministry for Power Engineering and Electrification into a state joint-stock company and include Ugol joint-stock company into it, and on the basis of Uzgoskhlopkopromsbyt to set up an open-type joint-stock company for buying and processing raw cotton and selling cotton products.

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zbekistan is trying to impose an economic blockade on Tajikistan and strangle business and trade there by introducing a visa regime for transit travel by citizens of Tajikistan through Uzbekistan, Iranian radio said on 1st November, quoting unnamed experts. It quoted a senior Tajik official as saying that the Uzbek Foreign Ministry told Tajikistan in September that it was suspending the provision on visa-free transit travel between the countries. The radio said that this provision could be suspended only when there was a threat to national security, public order or health. It also said that the visa requirement for transit travel through Uzbekistan was creating problems for traders and pilgrims to Mecca. The following is the text of the report:

[Presenter] Relations between Tajikistan and neighbouring Uzbekistan, two countries with a long history of coexistence, have been sensitive since the collapse of the Soviet Union.

The sensitivity increased, particularly, following the introduction of the visa regime between the two countries. Our colleague, Abdulvosit Salimzoda, has a commentary on this subject, which is ready to be put on air.

[Correspondent] The introduction of the visa regime by Uzbekistan for Tajikistan's citizens and transit transport traffic has been causing concern amongst people in Central Asia and has created many difficulties for Tajikistan's residents.

A reliable source, who did not want to be named, said that the Uzbek Foreign Ministry on 6th October 2000 sent a note to the Tajik Foreign Ministry connected with the introduction of the visa regime for citizens of Tajikistan.

The Uzbek Foreign Ministry note said: Under Article 18 of the agreement between the governments of Uzbekistan and Tajikistan on [transit] travel by the two republics' citizens to each others' countries, which was approved on 16th May 2000, the Uzbek side warns Tajikistan that it is suspending the regulations stipulated in the second paragraph of Article 8 of the agreement [presumably on visa-free transit travel].

Article 18 of the agreement says: In case of need, when there is a threat to national security, public order or residents' health, including the outbreak of an epidemic, the sides have the right to fully or partly cease the operation of the aforementioned agreement. However, none of the situations mentioned in the agreement's aforementioned provision has been observed.

Senior officials from the relevant departments [of Tajikistan] said that there has been no threat from Tajikistan to Uzbekistan or a dangerous epidemic of an epidemic disease in Tajikistan to cause concern in Uzbekistan.

Over 100 tonnes of fruit used to be exported to Kyrgyzstan and Kazakhstan from Tajikistan and wheat and other essential goods used to be imported to Tajikistan from there every day, before the visa regime was introduced.

The Uzbek side has also introduced a procedure named "Depozit" [deposit], according to which every vehicle which uses Uzbek territory for transit travel has to pay a sum equal to the value of its cargo and can get it back only when leaving the territory of Uzbekistan. However, while trying to get back the sum they encounter many artificial obstacles created by Uzbek customs officers, who usually try to acquire at least a part of this sum.

The situation of the traders who used to make business trips from Soghd [Leninobod] Region of [northern] Tajikistan to Bishkek [Kyrgyzstan] or Almaty [Kazakhstan] is also causing serious concern. Demands are also being made to them to present visas, for which they need an invitation from Bishkek or Almaty, which is impossible.

The situation has also caused concern amongst clergymen and the Council of Ulema [religious scholars] in the [Soghd] Region, because the continuation of such an attitude by the Uzbek side may create many additional problems for those who want to go on a pilgrimage to the house of God [Mecca] because a greater part of them travel to Saudi Arabia by vehicle.

At the same time, experts think that Uzbekistan wants to impose an economic blockade on Tajikistan and to strangle business and trade in this country.

Some experts think that the Uzbek authorities do not much like the calm, peace and stability in Tajikistan and the gradual development achieved in various sectors of Tajikistan's national economy in recent years, while people in these two republics have had close friendly relations and mutually beneficial cooperation for a long time.

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outh Kazakhstan Region is receiving 60 per cent less natural gas than it requires to meet its needs because of the 563.6m tenge (the current exchange rate is 142.65 tenge to a dollar) debt to the Uzbek supplier and domestic [gas] transport companies, the Regional administration's energy department told Interfax-Kazakhstan agency.

According to the department, the total amount of the debt, owed by the Region to Uztransgaz [Uzbek gas transport] stands at 120.6m tenge and that to the supplier, Interprombiznes (Uzbekistan), at 391m tenge. South Kazakhstan Region owes another 52m to a Kazakh gas transportation company, IntergazTsentralnayaAziya (Inter Gas Central Asia). (Kazakh news agency Interfax-Kazakhstan, October 31)

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wo defendants in the trial of alleged Islamic extremists in the Uzbek capital, Tashkent, pleaded guilty, Uzbek TV reported on 31st October. A third defendant pleaded partially guilty.

The Uzbek Supreme Court is trying 12 men for allegedly carrying out "terrorist, anticonstitutional and subversive acts". Only three of the 12 are present at the hearing.

"In all, 23 victims testified today and asked the court to give the accused the severest punishment," the TV said.

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he trial of twelve men accused of organizing a subversive Islamic campaign in Uzbekistan continued on Tuesday, with testimonies heard from victims of the miltants' armed actions, Uzbek radio reported.

The radio said that so far, 15,000 people have been questioned as part of the the criminal inquiry. Some 763 are victims, and 650 of them have become plaintiffs in the case.

A member of the Spiritual Directorate of Muslims of Uzbekistan, Abduqodir Mardonkhoj Oghli, whom the radio described as a "social accuser" in the trial, branded the suspects as traitors because they had declared a Jihad, or holy war, against their own country.

"A man does not declare Jihad against his own country. Jihad means protecting the homeland. They are villains, traitors and criminals. Their aim is not Jihad. Let them carry out Jihad, let them come here and jointly protect their homeland... But what are they doing? They are shedding the blood of their homeland," he said in comments broadcast by the radio.

"They are betraying their fathers, mothers, people of their neighbourhoods, their brothers, the country where they have been born... They have betrayed their homeland, religion, faith and their hands are bloody. They should expect no favours; they should never be forgiven. We are ashamed to call them our countrymen," he said.

The trial continued on Wednesday.

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zbekistan's state budget surplus in the first nine months of the year amounted to 6.3bn soms or 0.98 per cent of revenues, the press service for the Uzbek parliament has informed Interfax.

Uzbekistan's state revenues reached 639.4bn soms and spending 633.1bn soms over this period.

The press service also said that the implementation of the state budget during the first nine months, along with draft state budget and the main macroeconomic indicators for 2001, had been discussed by the parliamentary committee for the budget and banking and financial issues.

Deputy Prime Minister and Finance Minister Rustam Azimov said that the draft budget for 2001 sets GDP growth at 5 per cent and the rate of inflation at not more than 16 per cent. State revenues are projected at 29.8 per cent and spending at 131.3 per cent of GDP.

The indicators of the draft budget for 2001 will, if implemented, accelerate Uzbekistan's economic development, Azimov said.

The official sum exchange rate for 31st October was 307.25 soms to one dollar. (Russian news agency Interfax, October 31)

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ndependent International Humanitarian Organisation "Medicins Sans Frontieres" has been very active in the health sector of Uzbekistan in the past years. Under the agreement with Ministry of Health, the organisation has been providing population of Uzbekistan with free of charge medical service.

Since July 1997 the organisation has been running health programmes in Aral Sea suburbs for the population of Kungrad and Muynak. In particular, "Medicins Sans Frontieres" have directed their efforts on the fight with tuberculosus. Presently they are involved in training of local doctors in accordance with special strategy worked out by World Health Organisation, which have been used in more than hundred countries of the world.

This programme is maintained jointly with specialists of the Ministry of Health of Uzbekistan and WHO.

In 2000, the organisation begun extending its programme in Nukus, and later on throughout Karakalpakstan and Khorezm Regions. The regional educational center has been set up for that purpose. Similar operations are run by organisation in Navoi and Tashkent regions as well.

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