AZERBAIJANI PRESIDENT LEADS THE CABINET’S MEETING ON OVERALL RESULTS OF FIRST TERM

Azeri Press Agency, Azerbaijan
April 13 2007

Azerbaijan’s President led the Cabinet’s meeting on overall results
of the first term, APA reports. Ilham Aliyev underlined that the
development observed in the country recently continued in the first
term of 2007.

"The amount of GDP rose by 26% in 2005 and 35% in 2006. This figure
was 40% in the first term of 2007. Industrial production increased
39%. Our state policy is social-oriented. Minimum salary increased
by AZN50, pensions by AZN70m 55,000 families involved in the program
of targeted social aid," he said.

Noting that Azerbaijan’s monetary resources are $41bn Ilham Aliyev
said there is social imbalance in the countries rich in oil.

"But as principles of justice and transparency are strictly observed
in Azerbaijan every citizen can make use of oil revenues," he said.

Azerbaijani President noted that Oghuz-Gebele-Baku water pipeline
was also constructed at the expenditure of oil revenues. Azerbaijani
president mentioned important events in the first term of the year,
full capacity operation of Baku-Tbilisi-Ceyhan pipeline, transportation
of natural gas from Shah Deniz gas field, signing the contract on
the construction of Baku-Tbilisi-Kars railway project.

"All these factors will contribute to Azerbaijan’s image in the region
and international arena," the president said.

President said Armenia’s non-constructive position on the settlement
of the Nagorno Karabakh conflict will surely fail and noted that
negotiations on the settlement of the conflict are being carried out
in the framework of the Prague process.

"Armenians should understand that Nagorno Karabakh will not gain
independence," he said.

Following this, Finance Minister Samir Sahrifov, Economic Development
Minister Heydar Babayev, Taxes Minister Fazil Mammadov, Youth and
Sport Minister Azad Rahimov, Chairman of the Board of the National
Bank Elman Rustamov, president of State Oil Company of the Azerbaijan
Republic (SOCAR) Rovnag Abdullayev reported about the overall results
of the first term of the year.

Azerbaijani President spoke about the existing problems in economic
and social sphere and underlined the importance of paying special
attention to the solution of these problems. He gave orders on
minimizing inflation rate. Touching upon the subjective causes of the
increase of prices, the president linked it with lack of strong rivalry
and existence of monopoly. Ilham Aliyev underlined the necessity of
attaching importance to the development of entrepreneurship.