Distinguished heads of delegations!

I am sincerely glad to greet you all. I would like to echo the words of gratitude to the President of the Republic of Kazakhstan, H.E. Kassym-Jomart Tokayev, for the warm welcome and excellent organization of our meeting.

I am grateful to the distinguished Federal Chancellor of Germany, H.E. Mr. Olaf Scholz, for his commitment to expanding the multifaceted partnership with the countries of our region.

Our first meeting in Berlin and today's summit reaffirm shared intention to continue an open and constructive dialogue and our focus on achieving concrete practical results.

We are interested in holding regular meetings in this format, with setting up the mechanisms for expert review and implementation of the initiatives put forward.

Distinguished Federal Chancellor!

We highly value Germany's firm and unwavering support for the ongoing democratic transformations and socio-economic reforms in our countries, partnership and integration in Central Asia.

I would like to highlight that our multifaceted relationship has deep historical roots.

In the 18th century, the great composer of the Age of Enlightenment Handel created one of his greatest works – the opera "Tamerlane" – in just 20 days.

The great poet and philosopher Goethe dedicated a number of his famous works to our ancient cities - the centers of civilization.

I would like to mention another historical fact.

At the beginning of the 20th century, a group of talented, progressive young people from Central Asia studied at the leading German universities and subsequently made a great contribution to the promotion of the enlightenment ideas and socio-economic development of our region.

I would like to emphasize that today we see Germany as one of our important partners in achieving national goals of sustainable development.

Let me briefly highlight the profound and fundamental changes that have taken place in Central Asia in recent years.

We have established an open and productive dialogue and are independently addressing many issues related to borders, water, energy, trade and transit.

Recently, the Sixth Meeting of the Heads of State of the region was held here in Astana.

The international stance of the region is strengthening, cooperation with the leading countries via "Central Asia Plus" format is expanding.

The volumes of trade turnover, investment, freight transport and tourist travel by our citizens have increased many-fold.

We are discussing major regional projects in green energy and the development of transport communications.

We are exchanging experience and technologies, creating modern industrial and agricultural enterprises, and introducing financial instruments to stimulate cooperation projects.

Most importantly, we clearly understand that the future of our region, its security and sustainable development depends solely on our political will and efforts.

We sincerely welcome the interest of our European partners, first of all Germany, as the main initiator and driving force behind the promotion of EU strategies and multilateral cooperation programmes with our countries.

We are preparing to hold another summit in Uzbekistan in the format of "Central Asia - European Union" next year, having defined the investment in the future of the region as the main topic of the agenda of the meeting.

Dear colleagues!

Conflicts and wars, the overall global instability and unpredictability, sanctions policy, increased protectionism and many other factors are causing extremely negative impact on our countries and are becoming a serious test to the implementation of national programs and reforms.

Earlier, during our talks in Samarkand, I shared with Chancellor Scholz my high expectations from today’s meeting.

In this regard, I would like to outline our vision of the main directions for developing cooperation with Germany in Central Asia.

First. We highly value the establishment of a strategic regional partnership between Central Asia and Germany, which meets the common interests of maintaining stability, ensuring sustainability and prosperity of the region.

We consider it appropriate to adopt a long-term Concept for the development of our partnership with program activities in priority areas.

In order to develop this document, we propose to consider the possibility of establishing the “Central Asia – Germany” Forum of Analytical Centers. We are ready to hold its first meeting next year in Khiva - one of the region’s historic cities where a large community of German Mennonites used to live.

We also assign an important role to the annual meetings of the heads of the foreign ministries of our countries in preparing the agenda of our summits.

Second. Investment and technological partnership with the leading German companies.

I would like to note that the portfolio of ongoing and promising projects in Uzbekistan with the participation of German companies exceeds 20 billion Euros.

This includes energy, chemical and extractive industries, machine building, textile and food industry, agriculture, transport and logistics, production of construction materials.

The leading German companies, such as Siemens, Linde, BASF, MAN, Claas, Henkel, Knauf and many others are among our partners, which have invested about 6 billion euros into Uzbekistan’s economy in recent years.

Today we will have the opportunity to discuss long-term plans with the representatives of the German business.

In this regard, I have a number of specific proposals:

– developing a "road map" for expanding investment and technological cooperation between the Central Asian countries and Germany;

– participation of the leading German companies and banks in the implementation of joint projects in the special economic and industrial zones being created in the border areas, as well as large infrastructure projects of regional significance;

– launching of a permanent business dialogue platform – “Central Asia-Germany” Council of Investors and Entrepreneurs. We are ready to hold its first meeting next year in Uzbekistan within the Tashkent Investment Forum;

– study of the possibility of adopting a multilateral intergovernmental agreement on promotion and protection of investments.

Third. Partnership in critical raw materials based on the introduction of advanced German knowledge and technologies.

As it was mentioned our region is abundant in mineral resources.

The German Mineral Resources Agency and German companies could become our key partners in this area.

Here, we are referring to the geological survey projects, intensive exploration, processing and production of products with high added value, as well as arrangement of shipments to Germany and other EU countries.

Uzbekistan is ready to take part in the joint implementation of such projects in neighboring countries.

The technical assistance from Germany and European institutions in implementing the Digital Mapping Program of Critical Minerals and Rare Earth Metals in our region holds promising opportunities.

We also believe it is important to establish a reliable legal framework for such cooperation.

Fourth. “Green” energy. In recent years, all our countries have been actively developing solar, wind and hydropower, modernizing thermal power plants and networks, and promoting green hydrogen projects.

We propose to consider launching an Energy Dialogue between Central Asian countries and Germany, involving energy ministries, companies, operators, scientific organizations, design institutes and industry experts.

We are interested in preparing a Comprehensive Capacity Building Program for specialists in the low-carbon economy with the German technical assistance.

Fifth. Joint response to climate change.

Experts predict that the Central Asian region will remain most vulnerable to the effects of global warming. The rise in average temperatures will be twice as high as the world average.

We are grateful to the German side for launching the second phase of the “Green Central Asia” program, assistance provided for the implementation of environmental projects.

We are also interested in the following:

- implementation of joint educational programs and scientific exchanges at the Central Asian University of Environmental and Climate Change Studies;

- adoption of cooperation programs for the introduction of German water management technologies, modernization of irrigation systems, conservation of biodiversity and training of environmental specialists.

We support and are ready to take an active part in the practical implementation of the initiative of the German Chancellor to create a Central Asian Nature Partnership.

Sixth. The biggest barrier to deepening our partnership is the lack of transport connectivity, including land and air.

We count on Germany’s support in engaging European institutions in the development of alternative transportation corridors connecting Central Asia with Europe.

We propose to hold a joint Ministerial Conference next year on improving the transit capacity of such routes.

Dear heads of delegations!

The exhibition of cultural and historical heritage of our region last year at the Neues Museum in Berlin once again demonstrated the need for regular organization of such events.

Over several months, more than half a million of residents and guests of the German capital city enjoyed the exhibition.

We propose to adopt a Joint Plan for Cultural Activities in our countries, consider the possibility of holding Central Asian Art and Film Days in major cities of Germany, and establish cooperation between museums.

In the field of scientific and educational exchange, it is important to launch a platform for partnership among leading universities,
to develop programs aimed at expanding cooperation in the field of dual education, to train German language teachers with the involvement of the Goethe Institute and other German organizations.

The high interest of our youth in learning German is evidenced by the victory of an Uzbek schoolgirl at the World Olympiad held this summer in Göttingen.

Dear colleagues!

We believe it is important to continue close cooperation with Germany in the fields of combating terrorism, extremism and cybercrime, preventing radicalization of youth.

The security situation in Central Asia is inextricably linked with the processes taking place in Afghanistan.

We believe it is important to prevent the aggravation of the humanitarian crisis in this country, which is left alone with its own challenges.

In this regard, we are ready to cooperate with Germany and other European partners in the implementation of joint projects aimed at involving this country into regional economic cooperation and training personnel, including girls and women, in skills that are on-demand for the peaceful life in Afghanistan, at the Educational Center located in the border town of Termez.

In conclusion, I would like to emphasize that Uzbekistan is interested in untapping the potential of Germany’s multifaceted cooperation with the Central Asian region.

I am confident that today’s meeting will serve to further bringing our countries and peoples closer and fill our strategic partnership with concrete projects and programs.

Thank you!

The head of our state familiarized himself with the presentation on the development of master plans of districts and cities.

This task was set at the video conference call dedicated to priority tasks in the economy, which took place on January 16 this year. The responsible persons presented information on the work done, as well as the expected results from the implementation of master plans.

During this time master plans were developed for 14 districts and cities. They provide for the construction of 759 apartment buildings, 22 shopping centers and more than 800 service facilities.

In addition, 136 more master plans are planned based on driver areas in 112 neighborhoods.

For example, 38 high-growth neighborhoods need to build sufficient housing, public spaces and recreational parks.

In 20 districts with high tourism potential, there is an opportunity to increase the flow of tourists by 2.5 times by increasing the number of hotels and developing ecological, hunting, medical, sports and extreme tourism.

More than 400 motels, campgrounds, canteens, stores and car services can be created in 68 districts, through which main roads pass.

In general, thanks to the projects based on master plans, 40 thousand jobs are expected to be created, as well as annual budget revenues of 350 billion soums.

The head of our state emphasized the need to accelerate the creation of convenient infrastructure, shopping and entertainment places, as well as high-income jobs for the population.

The task has been set to create a vertical system of development and monitoring of master plans.

The state visit of the President of the Republic of Korea Yoon Seok-yol at the invitation of the President of the Republic of Uzbekistan Shavkat Mirziyoyev has ended.
During the three-day visit, high-level talks were held, at the end of which the leaders signed a joint statement on further deepening and comprehensive expansion of the Special Strategic Partnership. A bilateral set of documents was received.
The heads of state participated in a joint business forum with the participation of representatives of leading Korean companies and banking and financial institutions.
The presidents visited the Technopark in Tashkent and got acquainted with the existing potential for industrial cooperation.
Today, the dialogue between the heads of state continued in Samarkand. The presidents and their wives got acquainted with the historical and architectural masterpieces of the ancient city.
After the end of the visit, President Yun Sok Yol and his wife were escorted by President of the Republic of Uzbekistan Shavkat Mirziyoyev and his wife at the airport.

The text of the article is in Uzbek language!

The text of the article is in Uzbek language!

President Shavkat Mirziyoyev was reported the current work and plans for 2025 in automotive industry.

The share of automotive industry in the country's industry is 10 percent. Over the past ten months, 338 thousand passenger cars were produced. Components of 1.4 thousand types were localized. Thanks to economic measures, the cost price in the industry decreased by 4 percent. Exports amounted to $455 million.

The chairman of “Uzautosanoat” JSC presented information on plans and future tasks.

Next year it’s planned to manufacture 450 thousand cars and elevate exports to $700 million. It’s planned to strengthen cooperation with regional enterprises and boost localization. In particular, 63 projects worth $325 million on developing production of 700 components will be implemented. 

As is known, together with “BYD” company an automotive plant was built in Jizzakh. Currently such automobiles as Chazor and Song Plus Champion are produced there. In the upcoming years the model range is planned to be expanded. At the second stage worth $300 million it’s planned to expand the share of electric cars’ production to 200 thousand per year, at the third – to 500 thousand.

The Head of our state instructed to consistently master the production of components and spare parts for electric cars in agreement with the Chinese partners. 

The task was set to form orders for local enterprises based on cooperation.

Today, civil society institutions, particularly non-governmental non-profit organizations (NGOs), play an active role in Uzbekistan's development and the implementation of the “Uzbekistan – 2030” strategy. It is impossible to build a new Uzbekistan without organizing the activities of NGOs, the most important institution of civil society, according to democratic principles. On this basis, effective work is being done to support NGOs and civil society institutions, strengthen social partnerships with state bodies, implement effective public oversight, and improve the legal framework governing this area.

As a result of the measures implemented, the legal and regulatory framework has been improved to provide legal guarantees for NGOs while also meeting modern democratic requirements and international standards. The laws "On non-governmental non-profit organizations," "On guarantees for the activities of non-governmental non-profit organizations," and "On public oversight," as well as the Presidential Decree "On approval of the civil society development concept for the period 2021-2025" and a number of Governmental decrees, have all been adopted.

The civil society development concept for the period 2021-2025 aims to increase state support for civil society institutions in the form of subsidies, grants, and social orders by 1.8 times, as well as increase the volume of allocated funds to 70 billion soums by 2025.

A number of goals, objectives, and indicators related to the further development of civil society are set out in conceptually significant documents such as the Strategy for Action, the Development Strategy of New Uzbekistan for 2022-2026, and the "Uzbekistan - 2030" Strategy. Upon that basis, it is worth noting that the State programmes adopted annually include provisions for further strengthening the activities of civil society institutions and NGOs.

The chapter titled "Civil society institutions" and the term itself were included for the first time in the new version of the Constitution adopted through a referendum in 2023.

It should be mentioned that the President of Uzbekistan prioritizes civil society institutions and NGOs in his publications, speeches, and reports. Shavkat Mirziyoyev's book titled "Strategy of New Uzbekistan" includes a separate paragraph titled "Free and Open Civil Society" and it includes comments on priority areas for civil society development as well as proposals for implementing a number of tasks based on a thorough examination of relevant national legislation, law enforcement practice, and best foreign experience.

According to the figures, there were only 95 NGOs operating in the country on January 1, 1991; by January 1, 2000, there were 2,585, by January 1, 2016, there were 8,417, and by January 1, 2024, there were over 9,000. These NGOs are critical in protecting individuals' and legal entities' rights and legitimate interests, as well as democratic values and the achievement of social, cultural, and educational objectives. 

It is also important to note the dynamic growth of support and financial sustainability provided by NGOs. In particular, 513.8 billion soums were allocated from the state budget to support 2,074 NGOs and other civil society institutions between 2017 and 2023. If 12.3 billion soums were allocated in 2017, the figure was 226.4 billion in 2023. It is planned to allocate 1.8 trillion soums in 2024.

Furthermore, the scope of state support for civil society institutions has been broadened, and public funds to support civil society institutions have been established through the local Councils (Kengash) of People's Deputies. The legal basis for allocating funds from the local budget to support civil society institutions in the regions has been strengthened, and social projects are funded through these channels.

It should be acknowledged that favourable conditions are one of the most important factors in the effective operation of non-governmental organizations. In 14 regions of our republic, "Houses of non-governmental non-profit organizations" have been established, housing approximately 500 NGOs and providing them with the necessary office equipment, furniture, items, equipment, and other tools. As a result, the NGOs' problems with the building were resolved, and their socially beneficial activities were resumed. In particular, newly established NGOs carrying out their activities in socially significant spheres were accommodated in these buildings under the right of free use.

To regularly improve the knowledge and skills of NGOs' managers based on the best foreign experience, the Academy of Public Administration under the President of the Republic of Uzbekistan organizes training courses on a special 72-hour training programme. To date, 367 NGO leaders and managers have attended advanced training courses. These advanced training courses are expected to train 134 NGO managers by 2024.

It should be noted that NGOs express proposals and initiatives to improve State programs and legislation in their field, as well as carry out public control measures over the implementation of Regional socioeconomic development programmes and State programmes.

As mentioned above, the 83rd goal of the “Uzbekistan – 2030” strategy prioritizes the expansion of free civil society and media activities, transforming Uzbekistan into a hub for civil society development. It specifically highlights the tasks of increasing the number of projects implemented within the framework of social partnership by at least threefold and increasing the number of NGOs participating in government programs to at least 80.

To summarize, civil society institutions and NGOs are genuine supporters of state bodies and organizations in the process of reforms, sociopolitical and socioeconomic changes, achievement of strategic goals, and serving as a social bridge between society and government.

Anvarjon Mirkomilov,

Head of Department,

Development Strategy Center

The traditional annual Address of the President of Uzbekistan Shavkat Mirziyoyev delivered on the eve of the New Year, became an important programmatic statement summarizing the results of the outgoing year and outlining the country’s strategic development priorities for the period ahead.

As the Head of State emphasized, the past year marked a period of steady progress in reforms and the strengthening of Uzbekistan’s socio-economic position, despite ongoing instability in the global economy and a complex international environment. In this context, the announcement of the coming year as the “Year of Mahalla Development and Society as a Whole” gained particular significance, signaling a transition toward a deeper focus of state policy on people’s quality of life and the development of civil society.

In his Address, the President noted that the national economy continued to demonstrate confident growth. The year 2025 concluded with landmark achievements: for the first time, the country’s GDP exceeded 145 billion US dollars, exports increased by 23 percent to 33.4 billion dollars, and foreign exchange and gold reserves surpassed 60 billion dollars. Investment inflows totaling 43.1 billion dollars enabled the implementation of dozens of major projects in industry, energy, and infrastructure. International rating agencies upgraded Uzbekistan’s sovereign credit rating from BB- to BB, opening more favorable conditions for external financing.

It was particularly emphasized that these macroeconomic results were accompanied by positive changes in the social sphere. Owing to active employment policies, the unemployment rate declined from 5.5 percent to 4.9 percent, and around five million people gained sustainable sources of income. Significant attention was devoted to supporting low-income families, developing targeted social assistance mechanisms, and improving access to basic services. The poverty rate decreased from 8.9 percent to 5.8 percent within a year, lifting approximately 1.5 million citizens out of poverty.

These outcomes were the result of consistent reforms aimed at enhancing economic resilience and creating a solid foundation for social development. Economic achievements expanded the state’s capacity to address social challenges and implement long-term support programs for the population. The President noted that social policy has become more responsive to the concrete needs of citizens, which represents a fundamental achievement of the current reform agenda.

Special attention in the Address was devoted to Uzbekistan’s foreign policy course, which was characterized as pragmatic, open, and oriented toward long-term national interests. The President emphasized that an active and balanced foreign policy remains a key factor in ensuring sustainable development, expanding economic opportunities, and strengthening Uzbekistan’s international standing. It was noted that in recent years the country has significantly expanded the geographical scope of its foreign economic relations, reinforced partnerships both with neighboring states and leading global centers, and consistently continued to promote regional cooperation initiatives. This course reflects Uzbekistan’s aspiration to assume a more visible and responsible role in international affairs, guided by the principles of mutual benefit and respect.

The Address also addressed the reform of the public procurement system as one of the key elements in enhancing transparency and efficiency in public administration. The President stressed that improving public procurement mechanisms is aimed at creating equal conditions for businesses, fostering competition, and ensuring the efficient use of budgetary resources. These measures are viewed as an important part of Uzbekistan’s preparation for accession to the World Trade Organization. In this context, reforms in the field of public procurement acquire not only domestic but also external economic significance, as they contribute to aligning national procedures with international standards and rules. Thus, the outlined steps reflect a systemic approach to Uzbekistan’s integration into the global trade and economic system.

A separate section of the Address focused on anti-corruption efforts, which were identified as one of the key priorities for further development. The President underscored that the fight against corruption is regarded not as a one-time campaign, but as a long-term state policy aimed at establishing an honest, transparent, and accountable system of governance.

“Allowing corruption is a betrayal of our reforms. We declare 2026 a year of ‘extraordinary measures’ to combat this scourge,” the President stated.

It was noted that the measures already being implemented—such as the digitalization of public services, increased transparency in decision-making, and strengthened public oversight—are producing tangible results, though they require further deepening. The emphasis on the anti-corruption agenda demonstrates a commitment to strengthening trust among citizens and international partners in state institutions.

Considerable attention in the Address was also given to environmental issues and sustainable development. The President noted that the environmental agenda is becoming an integral part of state policy and is directly linked to the quality of life of the population and the country’s long-term security. The importance of rational use of natural resources, the expansion of green technologies, and the implementation of programs to improve environmental conditions—especially in the most vulnerable regions—was underscored. Plans were announced to hold the next Assembly of the Global Environment Facility and the Central Asian International Environmental Exhibition in Samarkand in 2026. These events will create valuable opportunities to identify partners for industries, regions, and businesses, and to jointly launch new environmental projects. It was emphasized that environmental initiatives are viewed not only as a social necessity, but also as a key element of economic modernization and enhanced resilience.

Taken together, these priorities demonstrate the comprehensive nature of the ongoing reforms. They indicate that the course toward socially oriented development is inseparably linked with institutional transformation and international integration. This approach reflects Uzbekistan’s determination to build a balanced development model in which economic growth, social sustainability, and responsible governance mutually reinforce one another.

Summarizing the results of the concluding year, the Head of State stressed that all these achievements became possible due to a well-structured reform system and the active participation of society. At the same time, he underlined that further development requires not only economic resources but also a stronger social environment, trust, and solidarity. It was within this logic that the proposal was made to declare the coming year the Year of Support for the Mahalla, as the institution closest to people and their everyday concerns.

In the Address, the mahalla was characterized as a unique form of social organization that has absorbed centuries-old traditions of mutual assistance, responsibility, and respect. The President emphasized that the stability of the state begins with the stability of the mahalla, with an atmosphere of harmony and engagement at the local level. “If there is order and trust in the mahalla, there will be stability in society as a whole,” this idea became one of the key messages of the Address, logically linking past achievements with future objectives.

Support for the mahalla in the coming year is viewed as a systemic measure aimed at further strengthening social policy. The President pointed out that it is precisely at the mahalla level where family issues, employment challenges, education, social protection, and the prevention of social vulnerability can be identified most effectively. In this sense, the development of mahalla structures becomes a tool for increasing the targeting of state assistance and enhancing social justice. The economic achievements discussed earlier thus find their continuation in the social domain.

A significant part of the Address was devoted to citizen participation and the development of civil society. The President stressed that a modern state is impossible without active and responsible citizens involved in decision-making and oversight of implementation. In this context, the mahalla is seen as a space for fostering civic initiative and dialogue between authorities and the population.

“We must create conditions under which every person feels involved in the destiny of the country,” the Head of State noted, outlining a strategic commitment to expanding public participation.

Special emphasis was placed on the role of the mahalla in youth education and the strengthening of social values. The President noted that alongside economic indicators, the formation of a moral, educated, and socially responsible individual remains no less important. Support for projects in education, culture, and sports implemented at the mahalla level is regarded as an investment in the country’s future. “The future of Uzbekistan depends on the environment we create for our children today,” this quotation from the Address clearly reflects the long-term orientation of state policy.

Thus, the declaration of 2026 as the “Year of Mahalla Development and Society as a Whole” demonstrates the state’s intention to move from macro-level achievements toward deeper engagement with quality of life, human capital, and social institutions. It signifies a concentration of efforts on strengthening local communities, developing social infrastructure, and fostering an active and cohesive society.

The President’s Address sets a clear development vector for the year ahead: reliance on achieved economic successes, reinforcement of social policy, and the advancement of civil society through support for the mahalla. This approach reflects a strategic understanding that the sustainability of reforms and the country’s long-term prosperity are impossible without strong communities, trust, and citizen participation. In this context, support for the mahalla emerges not only as a social priority, but also as a foundation for Uzbekistan’s long-term development.

On 23 January, under the chairmanship of the President of the Republic of Uzbekistan, a videoconference meeting was held on the key tasks of poverty reduction and employment provision for 2026. In terms of both substance and the framing of issues, the meeting marked a turning point in the evolution of the country’s social policy.

The relevance of transitioning to a new model

The results of the reforms demonstrate a transition to the next stage of social policy. For the first time, poverty reduction has been placed in direct dependence on outcomes at the level of individual mahallas.

This shift is a consequence of the socio-economic results achieved. By the end of 2025, the national economy grew by 7.7%, significantly above the forecast level of 6.5%. GDP exceeded $147 bn, reaching approximately $3,900 per capita. Growth rates in all sectors surpassed those of 2024. Foreign investment reached $43 bn, while exports amounted to $33.8 bn. Inflation declined from 9.8% to 7.3% in 2025.

Sustained economic growth ensured a significant increase in budget revenues, which were consistently directed toward addressing social issues, reducing poverty, and developing mahallas. As a result, in 2025 income sources were provided for 5.4 mn people, and 330,000 families were lifted out of poverty. Unemployment declined to 4.8%, while the poverty rate fell to 5.8%.

As overall poverty indicators decline, its geography is changing. Poverty is becoming localized, concentrated, and heterogeneous. Nearly one-third of low-income households and around one-fifth of the unemployed are concentrated in a limited number of mahallas, which necessitates a transition to a new model.

Against this backdrop, the primary indicator becomes the outcome achieved at the level of each mahalla. The persistence of poverty or unemployment indicates that measures require further calibration.

Accordingly, for the first time at the national level, a systematic classification of all territories by poverty level was conducted. Based on 20 criteria, 37 “difficult” districts and 903 “difficult” mahallas were identified, home to around 120,000 poor families and approximately 155,000 unemployed citizens. At the same time, work to shape the image of a “New Uzbekistan” has also begun in an additional 33 districts and 330 “difficult” mahallas.

A distinctive feature of the new approach is that “difficult” territories are viewed as points of structural transformation. For each mahalla and district, comparative advantages are assessed, including economic, agricultural, industrial, logistics, or service-related strengths.

Individual development programmes for mahallas are being formulated. Practice shows that even in the most vulnerable areas, ensuring stable access to water and electricity, basic infrastructure, and integration with markets can multiply household incomes.

In the current year, territorially targeted development becomes the main instrument for achieving the stated goals, as clearly articulated by the President.

Infrastructure as an economic asset

A particular emphasis in the new model is placed on revising regional policy priorities. As noted by the President, residents and entrepreneurs in “difficult” districts and mahallas primarily expect improvements in roads, water supply, and electricity provision, rather than an expansion of tax incentives.

Concentrating resources on a limited number of problem territories allows infrastructure investment to be transformed from general budget spending into an instrument of targeted socio-economic impact. In 2026, $1.6 bn will be allocated for regional infrastructure development, of which $990 mn will be directed to “difficult” districts and mahallas.

At the same time, transfers from the republican budget to local budgets will double.

Additionally, allocations of $4.1 mn to each “difficult” district and $165 ths to each “difficult” mahalla are envisaged.

In total, district hokimiyats (district executive administrations) and local kengashes (local representative councils) will receive an additional approximately $330 mn exclusively to support problem territories.

A key element of this model is ensuring stable energy supply for “difficult” districts and mahallas.

In 2026, each of the 903 “difficult” mahallas is expected to host the construction of a small solar power plant with a capacity of 300 kW, with a total investment of around $110 mn. These plants will be transferred to the mahallas free of charge, creating a local energy asset. Through the generation of “green” electricity, each mahalla will gain a sustainable additional income source of $33-41 ths per year.

The proceeds are intended to be used for energy-efficient renovation of housing stock, reducing utility costs, and improving quality of life. Operation of the solar plants will involve members of low-income households, simultaneously addressing employment and infrastructure sustainability objectives.

A separate emphasis is placed on supporting the most vulnerable households. An instruction has been issued to conduct targeted assessments of 6,700 families with a member having a first-degree disability and no able-bodied household members, followed by identification of needs for energy-efficient housing upgrades and the launch of “green” renovation.

Taken together, these measures form a model of territorial and energy resilience. The effectiveness of local authorities’ performance will be subject to public evaluation, reinforcing the transition to results-oriented governance.

Comparative advantages of mahallas

The President clearly defined key socio-economic targets for 2026, including the provision of permanent employment for around 1 mn people, lifting 181,000 families out of poverty, increasing the number of poverty-free mahallas by 2.5 times to 3,500, and reducing the unemployment rate to 4.5%.

Achievement of these targets is expected to be based on the comparative advantages of specific districts and mahallas in industry, agriculture, and services. This approach allows resources to be concentrated where they generate the greatest multiplier effects for employment and household incomes.

As an example of leveraging comparative advantages based on location and specialization of mahallas, the President cited Furqat District. Its advantages include, first, cooperation with neighboring economically active centers; second, deepening specialization among nearby mahallas and combining competencies; and third, increasing value added through the launch of processing activities.

Further measures were outlined within the framework of a differentiated approach to developing problem territories.

Deepening mahalla specialization

Primary attention will be focused on deepening mahalla specialization, as welfare levels are significantly higher in mahallas with deep specialization. Practice shows that in such mahallas, welfare levels are noticeably higher, while the number of recipients of social assistance is half as large, at around 7 people per 10,000 population.

Currently, the 903 “difficult” mahallas encompass around 90,000 hectares of household and leased land. To transform this resource into a source of sustainable income, a new mechanism of a “social contract” between the state and the mahalla has been proposed. Mahallas that, by leveraging residents’ skills and rational land use, manage to increase household incomes by three to four times will receive additional financing of $165 ths for the development of road, water, and irrigation infrastructure. Implementation of this model is planned to begin with “difficult” mahallas.

To support deeper specialization, banks will allocate a total of $1.4 bn in loans. For production projects, 4% of the loan will be compensated, while for processing projects the compensation will amount to 6%.

Comparative advantages of mahallas

In 2026, $11.5 bn in credit resources are earmarked for the development of small and medium-sized businesses in mahallas, compared to $10.7 bn a year earlier. At the same time, banks have been tasked with strengthening entrepreneurship financing: alongside a planned $6 bn from external sources, the total volume of funds directed to mahalla-level projects should reach $8 bn.

Not only the scale but also the principle of credit allocation is changing. The model under which loans within the “Family Entrepreneurship” programme were issued on uniform terms at a 17.5% rate across all districts and cities is giving way to territorial differentiation. In particular, for the 37 “difficult” districts, the rate is reduced to 12%. This step transforms lending into an instrument for accelerating the development of problem territories.

In parallel, programme limits and target areas are being expanded. In all districts, the maximum size of concessional loans is increased by 1.5 times, from $2.7 ths to $4.1 ths. To support this decision, an additional $165 mn is added to the planned $297 mn.

Overall, the 2026 credit policy is shaped as a targeted development mechanism, a managed conversion of credit into employment, income, and local growth.

Institutional changes in system governance

A number of institutional changes are also envisaged to enhance the effectiveness of all governance levels involved in mahalla development.

Work in mahallas is moving away from an administrative-intermediary model and is being structured around specific projects. In this framework, the hokim’s assistant acts as a territorial development manager responsible for implementing project solutions.

To ensure integrated project governance, multi-level coordination is being introduced. Initiatives proposed by hokims’ assistants are paired with regional bankers; the first deputy hokim of the region provides operational oversight; and the “Reform Headquarters” supervises issues requiring inter-agency solutions. From February, a system of training hokims’ assistants in project management will be launched, starting with “difficult” mahallas. Each district will form a project portfolio followed by a transition to practical implementation.

One hundred “difficult” mahallas that demonstrate the best performance in job creation, income growth, and poverty reduction will receive an additional $82.5 ths each. Hokims’ assistants from these mahallas will be able to upgrade their qualifications in China, Turkiye, South Korea, and Malaysia.

In this context, work on developing mahalla master plans is being intensified. International experts are being engaged, alongside the potential of domestic universities. Final-year students in architecture programmes will be able to participate in the development of “difficult” mahallas, with the best projects being supported by state grants.

Overall, the institutional changes formalize a shift from a universal approach to a differentiated territorial policy.

Resource redistribution is justified by the structure of the economy: 62% of industrial production and 57% of services are concentrated in 50 districts and cities with high entrepreneurial potential. Growth in their budget revenues creates an opportunity to concentrate state efforts on problem territories.

This is evident from revenue dynamics: three years ago, additional local budget revenues in these 50 territories amounted to $72.2 mn, while in the current year they are expected to increase 8.5 times, to $610.5 mn.

As a result, greater attention can be directed to “difficult” districts and mahallas, where poverty and unemployment are territorially concentrated.

Conclusion

The decisions and instruments for 2026 demonstrate that Uzbekistan’s social policy is moving beyond traditional resource redistribution toward a model of managed territorial development. The new model rests on three interlinked pillars.

First, the concentration of infrastructure resources in “difficult” districts and mahallas, with the creation of long-term local assets, reduced household costs, and enhanced energy resilience.

Second, the expansion of employment based on comparative advantages and deeper territorial specialization, supported by financial incentives, access to credit, and solutions along value chains.

Third, institutional recalibration of governance, where a project-based approach and multi-level coordination align resources, responsibility, and measurable outcomes.

The essence of the current phase is that targeting becomes a technology focused on “difficult” territories. Exiting poverty is understood as an individual household trajectory, in which local conditions, skills, and infrastructure are decisive. The “Mahalla Seven” and the institution of hokims’ assistants serve as the connecting link, ensuring coordination and feedback until results are achieved.

Khurshed Asadov,
Deputy Director of Center for Economic Research and Reforms

The text of the article is in Uzbek!

On June 20, President Shavkat Mirziyoyev chaired a video conference call on training engineering personnel and improving the performance of higher educational institutions.

In today's competitive world, our country, relying on domestic resources, is moving towards industrial development. Every year 3 thousand industrial enterprises are put into operation, about 150 thousand jobs are created.

This year, projects worth 21 trillion soums will be implemented within the framework of state investment programs. Also, projects with foreign and regional investments worth 37.5 billion dollars are planned for this year.

Accordingly, the state pays great attention to science, education and innovation. For example, over the past four years, 2.2 trillion soums have been allocated to 1,727 practical, innovative, fundamental and startup projects. Spending on research and development has doubled.

However, the results in this area and the number of highly qualified engineers are still insufficient. There is a gap between higher education institutions and industry.

That is why rectors of technical universities were also invited to the meeting.

The head of state first of all dwelt on the problems in this sphere.

The 36 state technical higher educational institutions annually graduate 67 thousand specialists. However, the programs and specialties in these universities do not meet the requirements of manufacturers. As a result, 60 percent of engineers do not work in their specialty.

Higher educational institutions are limited to fundamental research, and practical developments for the economy are very rare. Hundreds of startups and innovative projects in engineering fields remain on paper.

In foreign universities there are such specialties as "value engineering", "comparative engineering", "reverse engineering". In our technical universities, these areas are not developed. As a result, industries have to spend a lot of money on training their employees abroad or attract specialists from abroad.

Although the coverage of higher education has increased 5 times in the last seven years, the interest of young people in engineering and technical specialties is very low. Some equipment of universities and scientific laboratories is outdated. Many professors and teachers are disconnected from practice. Rectors do not visit enterprises, do not familiarize themselves with new technologies, do not study equipment and machines.

Over the last four years, the number of research contracts of universities has tripled. Revenues from them have increased 6 times. However, the implementation of the results of scientific developments into production is slow. Not everyone is equally successful in patenting their inventions.

The President presented new initiatives to develop this area.

Now training and research processes in technical areas will be completely changed based on the best practices. 36 universities and their branches will be gradually consolidated, leaving a total of 20 technical universities. They will completely switch to the dual system of education.

Specialties that are not in demand in the labor market will be reduced. Some departments will be merged. The functions of dean offices to serve students will be digitalized. Based on foreign experience, a "Registrar's Office" will be created.

Each university will establish cooperation with prestigious technical universities of developed partner countries such as Germany, Japan, China, Russia, Italy, Turkey, South Korea, Singapore.

Based on the chain "industry-enterprise-university", each university will be assigned an industrial partner.

All engineering universities will open departments at their partner enterprises and introduce dual education. At the same time, the enterprises will allocate funds to equip the departments, stimulate teachers and students. Student internships and graduate training will be fully organized at partner enterprises.

Thirty-two sectoral councils will be established in the system of ministries and enterprises. They will determine priority directions of scientific research in technical fields together with institutes and will be customers of these researches.

Also at the first stage, higher engineering schools will be opened in 10 universities. Two-year applied master's degree programs will be implemented in them, and candidates will be selected by order of manufacturers. Enterprises will financially support the establishment and equipping of laboratories in higher engineering schools. The state will also provide highly qualified engineers-technologists. If every minister, industry leader, rector, professor and teacher feels deep sense of responsibility and works hard, we will definitely achieve this," Shavkat Mirziyoyev said.

The status of pilot production enterprises of universities will be legislated. They will be granted privileges applicable to IT park residents. At least 60 percent of the employees of the subsidiaries will be doctoral candidates and students.

From next year, state grants for projects in technical areas will be increased fourfold. Partner organizations of universities will also be allowed to act as founders of enterprises.

Hokims of regions and heads of industries will be able to directly provide universities with orders for scientific and production projects up to 10 billion soums.

A system of allocating at least half a percent of the cost of investment projects for scientific activities will be introduced.

It has been determined to organize national contests "Best Idea", "Best Project" and "Best Invention" in engineering fields. Teachers, students and practicing engineers will be able to participate in them. The prize for the first place is an electric car.

Also 10 best participants, authors of ideas, projects and inventions will be sent for internship to such countries as Germany, Japan, China, Russia, Italy, Turkey, South Korea, Singapore.

The meeting continued in the format of an open dialog. Industry leaders, scientists, rectors and engineers expressed their opinions on the development of science and education in engineering.

It was assigned to draft a relevant decree based on the proposals.

- We need highly qualified engineers-technologists like air for the accelerated development of the economy. If every minister, industry leader, rector, professor and teacher feels deep sense of responsibility and works hard, we will definitely achieve this," Shavkat Mirziyoyev said.