Speaking at a dialogue with entrepreneurs, President Mirziyoyev said Uzbekistan’s economy grew by 8.5% in the first half of the year despite a difficult global economic environment.
Fitch and Moody’s have each upgraded Uzbekistan’s sovereign credit rating by one notch, while the World Bank’s report on the investment and business environment ranked the country 31st.
The president attributed these results in large part to reforms being implemented jointly with the business community.
New opportunities for businesses
Institutional changes have been introduced this year in industrial cooperation, public procurement, standards, food safety and urban development.
Through the National Industrial Chain initiative, private companies have received orders worth UZS 4 trillion from major state-owned enterprises. Strategic companies have also published lists of more than 650 new products targeted for localization, creating an additional market estimated at $1 billion for businesses.
The threshold for mandatory transition to value-added tax has been raised from UZS 1 billion to UZS 5 billion in annual turnover. Cafes and restaurants have received UZS 100 billion in VAT cashback, while the introduction of a zero VAT rate for agricultural products has left an additional UZS 400 billion with farmers.
Foreign trade rules have also been eased. Kazakhstan has lifted restrictions on imports of 11 types of construction materials from Uzbekistan, while a duty-free trade regime has been introduced with Turkmenistan.
Preferential trade agreements covering hundreds of products have also been concluded with Jordan, Pakistan, Iran and Afghanistan.
Major projects under way
Mirziyoyev highlighted several major infrastructure and industrial projects expected to provide an additional boost to economic growth.
They include a nuclear power plant in Jizzakh, a fourth copper-processing plant in Almalyk, and modern highways connecting Tashkent with Samarkand and Andijan.
An environmentally friendly aviation fuel complex is being built in Khorezm, while a 940-hectare modern greenhouse complex is under development in Surkhandarya. Construction of the new Tashkent airport is also under way in Yuqori Chirchiq district.
A total of 105 new industrial and infrastructure projects worth $27 billion are scheduled to begin this year.
New residential areas are being developed across the country to accommodate a combined population of around 3 million people. Local entrepreneurs seeking to supply products and services to these projects will be given the same conditions as foreign investors, the president said.
Logistics and international trade
The government has also introduced measures to reduce costs in the transport and logistics sector. Customs duties and recycling fees on imported trucks have been abolished, while the VAT rate on the provision of railcars for international freight transportation will be reduced to zero.
Next year, a logistics center with an annual capacity of 500,000 tonnes is expected to open at Georgia’s Poti port. Uzbekistan will also begin practical work related to the Anaklia port.
Large transport and logistics centers are planned in Alat, Termez, Yangiyul, Akhangaran and Khanabad.
Mirziyoyev also announced plans to launch the Tashkent International Financial Centre and the Enterprise Uzbekistan international digital technology center next year.
According to the president, the two centers are expected to help attract $20–25 billion in capital, as well as new knowledge and technologies to Uzbekistan.
