President leads the Cabinet's meeting on overall results of first term

Ilham Aliyev underlined that the development observed in the country recently continued in the first term of 2007, APA reports.

"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.

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.