Starting January 1, 2026, Value-Added Tax will be exempted for Farmers and Dehkan producers

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Almost half of the population of the Republic of Uzbekistan lives in rural areas. Millions of hardworking individuals in these communities play a crucial role in ensuring the country’s food security and establishing a solid foundation for the export of agricultural products. The nation’s development cannot be limited solely to urban centers; it is equally important to ensure that life in rural and peripheral regions is comfortable and sustainable.

The care for rural residents and the stimulation of their activities merit special attention from both the state and society. Governmental support measures have become pivotal in strengthening the agricultural sector.

However, the agricultural industry still faces significant challenges, including high tax burdens and limited access to financing, which contribute to the expansion of the informal economy. According to various estimates, up to half of agricultural producers operate outside the legal framework, resulting in reduced profitability and hindering sectoral development. Without genuine incentives to transition towards a formal economy, the agrarian sector’s capacity for investment and modernization will remain constrained.

In this context, the introduction of a zero rate of Value Added Tax (VAT) starting January 1, 2026, for farmers and dehkan producers selling their own products—including vegetables, fruits, meat, milk, eggs, and other food items—is a timely and significant measure. Producers of grain and cotton are excluded from this provision, as these sectors are regulated through state-managed clusters.

The existing practice of VAT refunds on expenses related to the production of seeds, fertilizers, fuel, logistics, electricity, and other operational costs will remain in place. As a result, farmers are expected to save up to 700 billion Uzbek soms annually.

The zero VAT rate will reduce the tax burden, increase farmers’ net income, and enable the allocation of additional funds toward modernization.

According to projections, farm profitability is expected to rise from 5–7 percent to approximately 15 percent. This measure will also facilitate more accurate planning of subsidies and incentives.

Another positive impact will be the growth of domestic processing industries. When products are processed locally, demand for investment in processing facilities and export logistics chains increases, leading to job creation and improved working conditions.

The reorientation of agriculture towards food crops has been one of the strategic priorities pursued in recent years.
Areas allocated to cotton and grain cultivation are being reduced, while orchards, vineyards, and vegetable crops are being developed instead. Approximately 1,500 food production projects have already been implemented, with a total investment of around one billion dollars.

The introduction of a zero VAT rate will further stimulate processing and export activities, strengthening the potential of the agro-food sector and enhancing the competitiveness and attractiveness of its products on the international market.

For farmers and dehkans, this presents an opportunity to retain a significant portion of their income. The savings can be directed towards farm development, improving working and living conditions, and modernizing production processes. Rural areas will benefit from job creation, technology influx, higher product quality, and a favorable environment for sustainable development.

For the state, this translates into a reduction of the shadow economy, increased transparency in reporting, and more accurate planning of support measures, tax incentives, and development programs. For society at large, it means access to higher quality and more affordable food products, enhanced resilience of the rural economy, and the strengthening of domestic agro-industrial value chains.

Nadira RASHIDOVA,

Member of the Legislative Chamber of the Oliy Majlis.

The Central Election Commission held a meeting and a series of events today, July 26th. The primary agenda item was the preparation and high-level accomplishment of the upcoming elections for the Legislative Chamber of the Oliy Majlis and the Councils of People's Deputies in full compliance with the Constitution and laws.

According to Article 128 of the Constitution of the Republic of Uzbekistan, elections for the Legislative Chamber of the Oliy Majlis and the Councils of People's Deputies are scheduled to take place on the first Sunday of the third ten-day period of October in the year their term expires. Considering that the term of the deputies of the Legislative Chamber of the Oliy Majlis and the Councils of People's Deputies ends in 2024, the elections will be held on October 27th of this year, and the election campaign will begin on July 26th, as decided by the Central Election Commission.

These elections mark a significant departure from the past, taking place in a new socio-political environment as stipulated by our Constitution. The meeting underscored the unique features of these elections, which include:

1. For the first time in Uzbekistan's history, the Legislative Chamber of the Oliy Majlis elections will be conducted using a mixed electoral system, combining majoritarian and proportional systems. This significant change will see seventy-five deputies elected directly through the majoritarian system, where voters vote for specific candidates. The remaining seventy-five deputies will be elected based on votes cast for political parties under the proportional system.
2. One of the most significant advancements is the full digitization of election commissions' activities at all levels and their interactions with participants in the election process. This development significantly reduces bureaucracy, time, and document handling in election procedures, ushering in a new era of efficiency in our electoral system.
3. Our election legislation has been fundamentally improved to align with advanced democratic standards. These improvements include introducing a new system for election bodies led by the Central Election Commission and requiring political parties to ensure that at least 40% of their candidates for deputy positions are women. Additionally, a candidate must receive a relative majority of votes to be elected. If a candidate gets more votes than other candidates in their respective electoral district, they will be elected without needing a repeat vote.

4. The elections are taking place in conditions of significantly strengthened parliamentarianism and the powers of representative bodies at the local level, as established by the Updated Constitution. Specifically, the absolute powers of the Legislative Chamber have increased from 5 to 12, and those of the Senate from 12 to 18. The parliament's oversight functions over the activities of executive, judicial, law enforcement agencies, and special services have been expanded. The institution of hokims leading local Councils of People's Deputies is being abolished. To enhance the role of representative bodies in resolving important state issues, 33 powers previously held by hokims have been transferred to local Councils.

The meeting underscored the significance of these elections as a vivid example of democratic state-building in our country and an essential means for citizens to exercise their constitutional rights to vote and be elected to democratic state bodies. The elections will involve the election of 150 deputies to the Legislative Chamber, 65 members to the Senate, 65 deputies to the Jokargy Kenes of the Republic of Karakalpakstan, deputies to 208 district (city) Councils in the regions and Tashkent city, with around 30,000 candidates and nearly 90,000 trusted representatives actively participating. Over 120,000 election commission members and more than 70,000 citizens and international observers are expected to participate in the election process.

Considering the important role of elections in state life and with the aim of widely engaging citizens in this process, the Central Election Commission announced that the elections will be held on October 27th under the slogan “My Choice—My Prosperous Homeland.”

The 'E-Saylov' information system is a key tool in making the election process more transparent and accessible. It facilitates around 60 interactions between election commissions, political party candidates, observers, and the media entirely electronically. Integrated with other electronic platforms, the system automates many procedures in the election process without human intervention. This system forms an extensive database of nearly 400,000 participants in the election process, including election commission members, candidates, and observers. Around 32,000 participants will professionally use the information system, which includes communication through 40 types of SMS notifications.

For citizens, the "E-Saylov" information system introduces several conveniences in obtaining election-related information. Specifically, it provides statistical data on voters and polling stations, information on candidates for various elections, and interactive maps to learn about candidates and their biographies.

The meeting emphasized that the "E-Saylov" information system represents a new level of technological advancement and transparency in elections.

It was also noted that according to Article 37 of the Election Code, political parties have the right to nominate candidates for deputies to the Legislative Chamber and local Councils.

To participate in the elections, political parties must have been registered by the Ministry of Justice at least four months before the announcement of the election campaign and collect at least 40,000 signatures supporting their participation.

Additionally, the meeting approved a calendar plan to ensure that the activities related to conducting the elections are carried out step-by-step within the timelines specified by election legislation. The Central Election Commission, as an impartial and independent constitutional body, will take all necessary measures to prepare for and conduct the upcoming elections in full compliance with national legislation and international election standards, ensuring the process is open and transparent.

A Press Center has also been established under the Central Election Commission.

Central Election Commission

of the Republic of Uzbekistan

Relocating an operational office to a new jurisdiction is invariably a complex undertaking, involving unfamiliar regulatory environments and concerns regarding continuity of team management and internal processes. Uzbekistan addresses the majority of these challenges — and this article examines the factors underpinning that proposition and the reasons why more than 1,000 technology companies have chosen the country as their base of operations.

Why Companies Choose Uzbekistan

For businesses originating from CIS countries, Uzbekistan offers a familiar business culture, an established professional rhythm, and a legislative framework that is relatively straightforward to navigate. Teams integrate into operational workflows more rapidly, and founders are not forced to spend the initial months resolving administrative or logistical matters.

A further advantage is the elimination of lengthy preparation periods for basic operational setup. IT Park provides not only company registration assistance but also fully equipped, ready-to-use office infrastructure - including furniture, equipment, and communications.

All core administrative processes are handled through a single interface — the One Stop Shop — covering company registration, tax administration, bank account opening, and documentation requirements, without the need to navigate multiple institutions. A dedicated team with experience guiding hundreds of companies through this process is on hand to anticipate and resolve common complications.
For teams relocating with their families, the Softlanding Program offers assistance with housing, documentation, and post-relocation adaptation, enabling employees to settle in efficiently and transition smoothly into professional responsibilities.

Zero Risk Program: Launching Without a Cash Flow Gap

The Zero Risk Program is designed to accelerate the initial operational phase of relocation. Participating companies receive a fully furnished and equipped office, enabling near-immediate commencement of operations. The program additionally covers a portion of recruitment and staff training costs and reimburses up to 15% of payroll expenses, allowing businesses to assemble their teams and reach full operational capacity without undue financial pressure.

Tax Conditions for IT Park Residents

IT Park residents benefit from some of the most advantageous tax conditions available to technology businesses in the region: a 0% rate on corporate income tax, VAT, and social tax. Personal income tax for employees stands at 7.5% - considerably lower than prevailing rates across much of Europe.

These conditions allow companies to direct a greater proportion of resources toward team development and business growth rather than absorbing a high tax burden.

The cost of living and operational expenditure in Uzbekistan further reinforces this advantage, enabling businesses to reduce recruitment and retention costs, as well as day-to-day operating expenses, while maintaining working and living conditions conducive to international business.

IT Visa and Conditions for Teams

A three-year IT Visa is available to founders, investors, and technology specialists, allowing holders to reside and work in Uzbekistan without a separate work permit. The visa extends to family members and grants access to healthcare and education services on equivalent terms to Uzbek citizens, as well as the right to purchase real estate without value restrictions.

Uzbekistan as a Base for International Expansion

For a growing number of companies, relocation to Uzbekistan extends beyond operational transfer. The country is increasingly regarded as a strategic platform for international development. The IT and BPO sectors are expanding rapidly, with regional offices and delivery centers being established to serve clients across Europe, the CIS, Asia, and the United States. Uzbekistan's geographical position between European and Asian markets facilitates access to multiple markets simultaneously.

Uzbekistan is undergoing a large-scale transformation of its social protection system, aimed at improving the well-being of its citizens and enhancing the effectiveness of social services. A key driver of this process is the national development strategy “Uzbekistan – 2030”, which focuses on the comprehensive and high-quality modernization of the country’s social policy.

In recent years, Uzbekistan has introduced innovative approaches to supporting vulnerable groups, including low-income families, the elderly, persons with disabilities, victims of violence, women in difficult situations, and children deprived of parental care.

Reforms are being implemented both at the legislative level and through specific programs and projects. A significant milestone was the establishment in 2023 of the National Agency for Social Protection (NASP) under the President of Uzbekistan – the only consolidated, ministerial-level body of its kind in the region, responsible for coordinating the implementation of a new generation of social policy.

Unlike neighboring countries, where social functions are divided among several institutions, Uzbekistan has integrated all components of social protection into a single digital system managed by NASP. This has improved coordination, efficiency, accountability, and has led to real improvements in the lives of vulnerable population groups.

In 2021, Uzbekistan ratified the UN Convention on the Rights of Persons with Disabilities (CRPD). The country offers a range of benefits to companies and organizations that employ individuals with disabilities. Many institutions, streets, and bus stops across the country are gradually being adapted to accommodate people with disabilities.

A key focus of the reforms is the development of “Inson” Social Services Centers, established in 208 districts and cities across the country. These centers operate on a one-stop-shop model and provide over 100 types of social assistance, including psychological and legal counseling, food assistance, and targeted aid for 12 categories of citizens, such as persons with disabilities, low-income families, and the elderly.

All centers are fully digitized, integrated with state systems, and operate on an individualized support model. Each citizen undergoes a needs assessment and receives a personalized support plan with ongoing guidance through the recovery or reintegration process.

In every makhalla (community unit), social workers are assigned based on a tiered “region–district–makhalla” structure, according to the number of families and individuals in need.

In the second quarter of the year 2025, 1.787 million applications were submitted to “Inson” Centers. Of these, 1.204 million were processed, while 496,200 are under review. The most in-demand services include compensation for gas and electricity costs, child benefits, support for low-income families, and access to health resorts for seniors and persons with disabilities.

The “From Poverty to Prosperity” program, enacted by Presidential Decree on September 23, 2024, addresses issues of social orphanhood and care for children deprived of parental care. It focuses on the creation of conditions as close as possible to a family environment and on an individual approach to each child. Accordingly, measures have been developed to place such children in foster care and provide them with social services. In particular, priority is given to preserving the family setting when placing a child in foster care. The main forms of placement are guardianship, custody, or adoption. Placement in a specialized institution is considered only as a measure of last resort.

Children with difficult life situations are temporarily placed in family orphanages within “Inson” Centers before being placed in foster care. Each child is assigned an individualized development plan, with records managed through the “Social Protection” system, which tracks both identified orphans and families willing to foster.

In this way, “Inson” Centers serve as legal representatives for such children, safeguarding their interests, monitoring living conditions, the use of support provided, and ensuring caretakers fulfill their obligations.

During his visit to the “Inson” Social Services Center in Tashkent’s Shaykhantahur district, President Shavkat Mirziyoyev emphasized: “This is a place where every persons concerns are taken care of and where they strive to make people happy. Through such a system, social justice and human dignity are established in our society”.

Special attention in Uzbekistan is given to families raising children with disabilities. As part of a public-private partnership, a specialized center “Imkoniyatlar Olami” (“World of Opportunities”) was created to provide services to children from birth to three years of age. Previously, such infants were exclusively under the care of their parents, and were admitted to specialized institutions only from the age of three. Now, if a risk of disability is identified during pregnancy, expectant mothers can receive help and counseling here, which will strengthen the care of the child. Psychological support is also provided.

Starting March 1, 2025, a day care services for children with disabilities aged 3 to 18 began operating under a public-private partnership model. It offers a wide range of services – social, rehabilitative, educational, and more. The initiative by NASP aims to support children’s social adaptation and enables parents, previously unable to work due to caregiving responsibilities, to return to employment.

A pilot project in Tashkent – the private kindergarten “Wunderkind” in the Yashnabad district successfully operates such a day care service, offering pedagogical, social, and rehabilitative care for children with special needs.

Another example is Family-type home No. 1 in the Mirzo-Ulugbek district. It currently houses nine children – seven with various medical conditions (Down syndrome, dysplasia, anemia, heart defects), and two without. Education and care are customized: three attend specialized kindergartens, three go to general kindergartens, and three are home-schooled.

The home emphasizes individualized care, love, and a nurturing environment that replicates family life. Caregivers follow development plans and integration programs tailored to each child’s needs and capabilities.

“Children choose their meals and even help prepare them, fostering responsibility and independence”, one caregiver noted.

Currently, nine such homes operate across Uzbekistan – five in Tashkent, two in Kashkadarya, and two in Samarkand.

In accordance with the Presidential Decree “On measures to expand the scope of social services provided to individuals in need of care”, the “Step Towards an Active Life” program is being implemented. Under this initiative, adults with disabilities or those requiring constant care receive free social services through vouchers. These include home-based care, supervision, assistance with hygiene, meals, and psychological support.

An example of the program’s implementation is a center located in the Nodirabegim makhalla of Mirzo-Ulugbek district. It has capacity for nine people and currently serves seven. The center is staffed by five experienced professionals.

Iroda Khamidova, a primary school teacher at Wunderkind:

“Our special day care center for children with disabilities, designed for nine children, currently serves seven. Two caregivers and an assistant are assigned to them. The center operates five days a week for nine hours a day and includes a psychological service.

Educators focus on building essential skills such as holding a spoon or expressing creativity with a pencil. The center was established under a Presidential initiative to support children with special needs.

Here, we’ve created all necessary conditions, including a psychologist’s office where not only children but also parents receive consultations and moral support. Seeing their child in a safe and attentive environment reassures them”.

Farhod Kamilov, Chief Specialist of NASP’s Department for the Development of Medical and Social Services for Persons with Disabilities:

“From March 1, 2025, we launched a pilot day care service in seven regions of Uzbekistan, including Tashkent.

By October 1, we plan to expand the service nationwide. Agreements with entrepreneurs in all districts have already been signed as part of public-private partnerships.

Currently, the day care program covers 1,200 children. We believe it is essential to raise public awareness about their specific needs.

Territorial NASP offices operate psychological, medical, and pedagogical commissions. They conduct comprehensive assessments of children with special educational needs and recommend the most suitable path – inclusive, special, or day care service.

It is important to understand that day care is not an educational institution; it focuses solely on caregiving and development. The entrepreneur provides 9-hour daily care, allowing parents to work or do other things.

With mutual agreement, it may be extended up to 12 hours, but the child must always return home to their family.

Our main goal is to reduce, or ideally eliminate, the need for residential care institutions. That is why these day care services were created. Our main goal is to reduce or ideally prevent the placement of children in long-term institutional care. It is with this purpose that such day care services have been established”.

 Dunyo IA

Today, Uzbekistan and Kyrgyzstan are connected not only by a shared border and close historical and cultural ties. A common economic space is gradually emerging, built on mutual trade, industrial cooperation, joint investment, and direct ties between businesses and regions.

Over the past decade, the two countries have moved from resolving accumulated issues to implementing concrete projects. The border is becoming a link rather than a barrier, while the complementary nature of the two economies is creating new opportunities.

Drivers of Trade and Economic Cooperation

The transformation is most clearly reflected in the growth of bilateral trade. Compared with 2016, mutual trade has increased more than sevenfold. Uzbekistan’s exports have grown more than sixfold, while imports from Kyrgyzstan have increased more than ninefold. Thus, the flow of goods is expanding in both directions.

In 2025, Uzbekistan’s foreign trade turnover with Kyrgyzstan reached nearly $1.2 billion, rising by 37% year-on-year. Uzbekistan’s exports to Kyrgyzstan increased by 46.5% to $771 million, while imports reached $428 million, up nearly 23%.

The positive trend continued in 2026. In January–May, trade turnover approached $469 million, increasing by 45.5%. Uzbekistan’s exports rose by 63% to $771 million, while imports from Kyrgyzstan increased by nearly 13% to $428 million.

The structure of bilateral trade has also changed significantly in recent years. For example, while light industry products accounted for more than 50% of Uzbekistan’s exports in 2021–2022, their share declined to 19%, or $147 million, in 2025. Agricultural and food products accounted for 15%, or $112 million; machinery, equipment, and vehicles for 11%, or $87 million; and chemical products for 11%, or $81 million.

At the product level, exports are primarily composed of finished textile products, electricity, cement, mineral fertilizers, knitted fabrics, automobile bodies and components, ceramic tiles, aluminum profiles, fruit and vegetable products, and confectionery.

The quality of Uzbekistan’s export structure has also improved. The share of raw materials in exports declined from 56% in 2019 to 8.2% in 2025. Processed goods accounted for 40%, with the remainder consisting of finished products, services, and goods supplied by individuals.

Imports from Kyrgyzstan are also gaining strategic importance. In 2025, mineral and raw material products accounted for 44%, or $190 million, of imports from Kyrgyzstan. Fuel and energy products made up 26%, or $111 million, including $85 million worth of coal and lignite. Agricultural and food products accounted for 14%, or $61 million. Other significant imports included glass, natural stone, rolled metal products, tires, and packaging materials.

At the same time, considerable growth potential remains. Kyrgyzstan currently accounts for only about 1.5% of Uzbekistan’s total foreign trade turnover. This indicates that the goal set by the two countries to increase mutual trade to $2 billion by 2030 is fully achievable. However, reaching this target will require systematic efforts to diversify the range of traded goods and strengthen cooperative links that can support durable trade and investment relations.

Investment and Industrial Cooperation

Investment and industrial cooperation constitute the second major driver of economic relations between the two countries.

In 2016, only 49 enterprises with Kyrgyz capital operated in Uzbekistan. By the end of 2025, their number had reached 344, representing a sevenfold increase. As of July 1, 2026, there were already 374 such enterprises.

An important mechanism in this area is the Uzbek–Kyrgyz Development Fund, established in 2021. The fund already uses several support instruments, including investment lending, leasing, and project financing. The next stage of its development could involve expanding its portfolio and actively channeling resources into export-oriented joint ventures.

A number of joint enterprises have also been launched in recent years. These include the Kyrgyz–Uzbek Tulpar Motors automobile plant in the Chuy Region, which generates demand for metalworking, automotive components, logistics, and maintenance services.

Joint projects are also being implemented in the textile industry, household appliance manufacturing, the production of plastic and aluminum profiles, construction materials, and other sectors.

Implementation has begun on major projects such as the China–Kyrgyzstan–Uzbekistan railway and the 1.9 MW Kambarata Hydropower Plant-1.

These projects provide a solid foundation for a new structural breakthrough in bilateral relations.

Promising Areas of Cooperation

The results achieved in trade and economic cooperation, together with the rapid economic growth of Uzbekistan and Kyrgyzstan, create significant opportunities for further expanding bilateral economic relations.

One priority is to increase mutual trade, with a particular emphasis on products resulting from industrial cooperation. Achieving the target of $2 billion in bilateral trade will require more than simply increasing sales of finished goods. The two countries will need to expand trade in inputs intended for further processing as part of deeper cross-border value chains.

According to estimates by the Center for Economic Research and Reforms, Uzbekistan has the potential to increase exports to Kyrgyzstan of passenger vehicles and components, trucks, agricultural machinery, iron and steel products, finished textile products, polymer materials and finished plastic goods, electrical products and equipment, pharmaceuticals, and cement.

Kyrgyzstan, in turn, has the potential to increase supplies of mineral ores, plastic products, glass, natural stone, ceramic products, and environmentally friendly agricultural and food products.

A strategically important area of cooperation could be the transition to large-scale industrial collaboration through the creation of joint full-cycle production facilities and clusters in border regions.

In light industry, border regions produce more than 600 tons of raw cotton and have a cattle population of 4 million and a sheep and goat population of 6.4 million, providing a substantial raw material base. Proximity to China can also reduce the cost of purchasing synthetic raw materials for the industry.

Construction materials represent another promising area because their production is already one of the leading industrial sectors in the border regions. Kyrgyzstan is also experiencing a construction boom, with construction activity increasing 1.7 times in the first half of 2026, thereby generating additional demand for construction materials.

In the food industry, cooperation could focus on processing fruit and vegetables, meat and dairy products, and producing juices, jams, animal feed, and other food products.

In the mining sector, the two countries could develop joint projects for the exploration and development of mineral resources, including critical minerals and iron ore deposits. Such projects should aim to establish full production cycles, from extraction to the manufacture of finished products.

Additional potential for industrial cooperation and investment exists in electrical equipment, household appliances, pharmaceuticals, medical devices, and automotive components, including parts, batteries, tires, and plastic and metal components.

An important consideration in this area is ensuring that products are manufactured in accordance with the standards and market requirements of the Eurasian Economic Union. This would strengthen the export potential of joint projects.

As part of their industrial cooperation agenda, Uzbekistan and Kyrgyzstan should begin developing joint industrial projects along the route of the China–Kyrgyzstan–Uzbekistan railway. Logistics terminals, industrial zones, warehouses, processing centers, and freight service facilities should be established along the route. This would help create a major industrial hub in the region.

Other important areas include deeper interregional and cross-border cooperation and greater support for entrepreneurship. Promising fields include e-commerce, joint entry into third-country markets, marketplaces, startup cooperation, digital payments, tourism, and workforce training for joint enterprises.

In conclusion, Uzbekistan and Kyrgyzstan have already established a solid foundation for economic partnership. The next stage should transform quantitative growth into qualitative production integration. The two countries need to move from trading individual goods toward joint value chains, interconnected industrial cooperation networks, and a common production and logistics space.

Ruslan Abaturov,
Center for Economic Research and Reforms

In the current geopolitical climate, Uzbekistan's participation in the Shanghai Cooperation Organization (SCO) is acquiring particular strategic importance. The SCO serves as a crucial platform that allows member states to combine their efforts, both in times of stability and during periods of crisis and external shocks, as well as to develop coordinated approaches and joint solutions to issues of common regional interest.

In the transport sector, this is especially vital for maintaining the stability and continuity of international supply chains, diversifying routes, developing new transport corridors, and strengthening the interconnectedness of member states.

Over the past five years, Uzbekistan's international freight traffic with SCO member countries has increased by approximately 9 million tons, or 40%, reaching 33.5 million tons in 2025 and accounting for 80% of the country's total freight volume. Within this volume, the largest shares belong to Russia (33%), Kazakhstan (32%), China (16%), and Kyrgyzstan (10%).

According to the author's calculations, international freight traffic between Uzbekistan and SCO member states could reach up to 47 million tons by 2030.

Established in 2001 primarily as a mechanism for ensuring regional security, the SCO has significantly expanded its agenda over its 25-year history. Today, its framework addresses issues of trade, investment, energy, transport, logistics, digitalization, ecology, culture, and other areas.

With the expansion of the Shanghai Cooperation Organisation (SCO) to 10 member states, transport cooperation has acquired key importance in the organization's activities. The SCO's geographical area covers a vast territory, stretching from Belarus to India in the south—through Afghanistan, which has observer status—and latitudinally from China to Iran and Türkiye, a dialogue partner. Furthermore, an opportunity is emerging for the first time to connect the land transport systems of the Indian subcontinent and Eurasia, including China. This geographic configuration creates the foundation for linking key trade regions across Eurasia and establishing new international transport routes.

In recent years, the organization's member states have adopted a set of strategic documents that have formed the institutional framework for developing transport connectivity. These include:

The Concept for Cooperation of the SCO Member States on Developing Connectivity and Creating Efficient Transport Corridors – Samarkand, September 16, 2022;

The Concept for Cooperation between SCO Member States on Transport Decarbonization, Promoting Digital Transformation, and Innovative Technologies to Achieve Greater Efficiency and Sustainability – New Delhi, July 4, 2023;

The Concept for Cooperation of SCO Member States in the Development of Ports and Logistics Centers – Astana, July 4, 2024.

Concurrently, the SCO regularly holds meetings of the Joint Commission on Creating Favorable Conditions for International Road Transport, meetings of the heads of railway administrations, and meetings of transport ministers.

One of the key responses to contemporary challenges is the development of alternative land-based communications and the creation of a sustainable, interconnected digital transport ecosystem. This principle is shaping a new paradigm in the SCO's approach to logistics development.

The Tianjin Declaration of the SCO Council of Heads of State, adopted on

September 1, 2025, directly reflects this trend.

The document notes that, "The Member States, sharing the international community's aspiration to strengthen interconnectedness, advocate for the further development of cooperation in the transport sector on a fair and balanced basis in accordance with international law and the goals and principles of the UN Charter and the SCO Charter. They emphasize the importance of creating new and modernizing existing international transport routes, including promoting the activities of the North-South and East-West corridors, and harnessing the transit potential of the SCO Member States. They also note the SCO countries' initiatives on transport infrastructure and on ensuring the stable and uninterrupted functioning of supply chains through the digitalization of logistics procedures, including the organization of electronic data exchange on goods transported between SCO countries and the introduction of technological innovations".

At the same time, to achieve an integrated transport and logistics system for the SCO, it is necessary to eliminate the existing infrastructure gaps between the Organization's individual subregions.  One of the key challenges to transport interconnectivity among the SCO states remains the insufficient level of railway connectivity between the member countries. This hinders the formation of a unified, integrated railway network not only for the SCO but for all of Eurasia.

In this regard, the implementation of new transregional railway projects aimed at bridging existing infrastructure gaps and creating additional routes between Central, South, and East Asia is of particular importance.

In this respect, the projects initiated and supported by Uzbekistan to build new railway lines are of a significance that extends far beyond national infrastructure, acquiring a regional character.

One of the most significant infrastructure projects is the China–Kyrgyzstan–Uzbekistan railway^[1].

The Tianjin Declaration specifically noted the launch of the China–Kyrgyzstan–Uzbekistan railway's construction. In this project, Kyrgyzstan and Uzbekistan can serve as a key link in a new transport logistics network. Furthermore, the development of land routes will allow the region's states not only to compensate for their lack of direct sea access but also to form a regional transport bridge between the largest markets of Eurasia.

On December 27, 2024, an official ceremony marking the start of the railway's construction was held in the Jalal-Abad region of Kyrgyzstan. The total length of the project is approximately 532.5 km. It involves the construction of railway stations, bridges, and tunnels, making it one of the most complex infrastructure projects in the region^[2].

According to preliminary estimates, after commissioning, the freight volume on the new railway could reach 8 million tons by 2030, 10 million tons by 2040, and 13.5 million tons by 2050.

The project's importance lies not only in shortening the distance between China and Central Asia. Its strategic impact is the creation of a new component of the transportation network, which can later be integrated with routes to South Asia and onward to the ports of the Indian Ocean.

To link the countries of East Asia (China) with those of South Asia (India and Pakistan), the swift implementation of another project vital to the region is necessary: the construction of the Uzbekistan–Afghanistan–Pakistan railway line. The implementation of this project will create a new international multimodal transport corridor capable of connecting the European Union, the CIS countries, Afghanistan, Pakistan, and India, with subsequent access to the markets of Southeast Asia.

The project's fundamental importance lies in establishing a new, shorter overland route and providing a direct transport link between the SCO countries via a unified railway network.

As part of the project preparation, field studies have already been conducted, orthophoto maps and a digital terrain model have been prepared, and the technical part of the preliminary feasibility study for the route has been developed by the Boshtransloyiha design institute.

In July 2025, during the first meeting of the foreign ministers of the three countries in Kabul, a framework intergovernmental agreement was signed on the development of a feasibility study.

Preliminary estimates by the consulting firm EY (one of the Big Four) project a significant cargo potential for the project: up to 22 million tons per year by 2030 and up to 34 million tons by 2040^[3]. A significant portion of this cargo base, up to 80%, is expected to come from transit flows.

The economic significance of the corridor extends beyond the transport sector. Its implementation could help bring Afghanistan's natural resources into economic circulation, create new professions and jobs, develop infrastructure, and establish new production and logistics chains.

The most significant strategic effect will be achieved not by implementing individual railway construction projects, but through their synchronized development and mutual integration. This will allow for the formation of an interconnected system of transport routes, expand the transit and export potential of the SCO countries, including Uzbekistan, and create the conditions for redistributing freight flows between East, Central, and South Asia.

In the long term, this will lay the groundwork for forming international multimodal transport corridors along the "China–Kyrgyzstan–Uzbekistan–Afghanistan–Pakistan–India," "China–Kyrgyzstan–Uzbekistan–Turkmenistan–Iran–Turkey–EU," and "CIS countries–Uzbekistan–Afghanistan–Pakistan" routes, providing access to Indian Ocean ports.

In this regard, the initiative by Uzbekistan's railway authorities to establish a Council for the Integration of SCO Railway Spaces, proposed in 2024^[4], is of particular importance. The draft Concept for the Council was supported on March 27, 2026, at the sixth meeting of the heads of SCO railway administrations and was approved by the organization's transport ministers in April 2026.

The creation of the Council will make it possible to coordinate joint efforts to eliminate existing barriers, including differences in railway gauge, technical and technological standards, and rolling stock parameters, as well as to improve border procedures and unify transport documents.

Thus, the development of transport connectivity within the SCO creates opportunities not only for the member states as a whole, but also for individual regions, promoting their integration into international transport and logistics chains, expanding their transit potential, and attracting new cargo flows.

1. T. Ibragimova

[1] Железная дорога «Китай – Кыргызстан – Узбекистан»: новая транспортная артерия Евразии// https://t.me/projekt_office_smsc/339

[2]  О ходе строительства ж/д «Китай – Кыргызстан – Узбекистан» – новой транспортной артерии Евразии// https://www.youtube.com/watch?v=r9MTktgScAk

[3] О проекте строительства железной дороги "Узбекистан-Афганистан-Пакистан", 2025// https://www.youtube.com/watch?v=kbx2vVH2xHs

[4] Россия поддержит: перспективы двух крупных транспортных проектов в ЦА// https://uz.sputniknews.ru/20240219/russia-uzbekistan-perspektivy-transportnye-proekti-v-tsa-42568893.html

On 19 February of this year, a meeting was held between J. Kuchkarov, Deputy Prime Minister and Minister of Economy and Finance of the Republic of Uzbekistan, and A. Mesarović, Deputy Prime Minister and Minister of Economy of the Republic of Serbia. During the talks, the parties discussed the current state of and prospects for bilateral trade, economic and investment cooperation.

At the beginning of the meeting, the Deputy Prime Minister of Serbia conveyed sincere greetings and best wishes from President of Serbia A. Vučić to President of the Republic of Uzbekistan Sh. Mirziyoyev. She also expressed gratitude for Uzbekistan’s principled position in support of Serbia’s territorial integrity.

The Serbian side noted that, in recent years, Serbia has become one of Europe’s leading countries in attracting investment. It was emphasized that new technologies, robotics, the automotive industry and high-tech manufacturing are developing rapidly.

The Uzbek side, in turn, provided information on Uzbekistan’s stable macroeconomic growth, the high rate of GDP growth, declining inflation and the ongoing reforms aimed at improving the investment climate.

During the meeting, the Serbian side raised the issue of facilitating a reduction in customs duties on Serbian-made Stellantis electric vehicles exported to Uzbekistan.

In response, the Uzbek side noted that electric vehicle manufacturers were already operating in Uzbekistan and had assumed certain obligations. At the same time, the Uzbek side stated that the matter would be considered in accordance with the established procedure.

The Serbian side also stated that, within one month, it would submit an official document outlining priority areas relating to investment, preferential trade and the expansion of cooperation. The Uzbek side expressed its readiness to consider these proposals, within the scope of its authority and in accordance with the established procedure. The Serbian side was also informed that the Ministry of Investment, Industry and Trade is the competent regulatory authority in the fields of investment and trade.

In addition, the Uzbek side expressed interest in Serbia’s defence industry capabilities and proposed implementing joint projects in this area.

At present, geopolitical tensions, the fragmentation of trade and investment flows, disruptions to global supply chains and the high cost of financial resources are creating new challenges for countries across the global economy. Under these conditions, establishing sustainable financial mechanisms for regional cooperation is becoming an important factor not only in promoting economic growth, but also in ensuring long-term stability.

From this perspective, taking financial cooperation within the Shanghai Cooperation Organization to a new level is of particular importance. The SCO region accounts for more than 40 per cent of the world’s population and over a quarter of global gross domestic product. Such vast economic potential provides a solid foundation for developing a modern financial architecture capable of supporting trade, investment and industrial cooperation within the Organization.

The expanding scope of economic cooperation has also increased the importance of its financial support. In this regard, developments observed within the SCO in recent years indicate that the Organization’s distinctive new financial infrastructure is gradually taking shape.

New Economic Realities — New Financial Needs

The expansion of the SCO’s financial infrastructure is primarily driven by the economic changes taking place within the Organization itself.

The first factor is the expanding scale of economic cooperation. Alongside trade and investment, the development of industrial cooperation, energy, digitalization and technological collaboration across the SCO region has increased demand for long-term financial resources.

The second factor is the growing number and scale of cross-border projects. The implementation of transport corridors, power grids, logistics centres and other infrastructure facilities spanning several countries generally requires large-scale, long-term investment.

The third factor is the expansion of the SCO’s membership and the diversity of its economies. The Organization includes both economies with large capital markets and landlocked countries with significant infrastructure investment needs. This has generated demand for multilateral financial mechanisms capable of accommodating the interests of diverse economies.

The fourth factor is the transformation of the global financial environment. Volatility in the cost of international capital, external shocks and currency risks have increased the importance of diversifying regional sources of financing. In this context, expanding settlements in national currencies has also become a distinct area of the SCO’s financial agenda. In 2022, the Samarkand Summit approved a roadmap for gradually increasing the share of national currencies in mutual settlements.

Thus, the need for new financial institutions has emerged not as a stand-alone initiative, but as an objective process resulting from the growing scale of trade, investment and cross-border economic relations within the SCO region.

A New Stage — New Financial Mechanisms

At the SCO Summit held in Astana in 2024, President of the Republic of Uzbekistan Shavkat Mirziyoyev emphasized the importance of promoting mutual investment, primarily in infrastructure, high technologies and services, introducing mechanisms for the financial support of such projects, and revisiting the issue of establishing the SCO Development Fund and Development Bank.

One year later, on 1 September 2025, at the 25th meeting of the SCO Council of Heads of State in Tianjin, the interested Member States reached a political consensus on establishing the SCO Development Bank.

The establishment of the Development Bank is expected to provide impetus for the SCO’s financial infrastructure to enter a new stage of development.

At the same time, the expansion of settlements in national currencies and the development of interbank cooperation, co-financing instruments and collaboration in the digitalization of public finance demonstrate that the SCO’s financial infrastructure is not limited to a single institution.

The SCO’s new financial architecture should not be confined solely to establishing one bank. Rather, it should integrate mutually complementary financial institutions and instruments into a unified system.

In this regard, it is important to establish effective cooperation mechanisms among the SCO Development Bank, the SCO Interbank Consortium, the national development institutions of Member States, commercial banks and investment funds. Opportunities for co-financing may also be pursued in cooperation with existing multilateral institutions such as the Asian Infrastructure Investment Bank, the New Development Bank, the Asian Development Bank, the Islamic Development Bank and the Eurasian Development Bank.

New Opportunities for Uzbekistan

The development of the SCO’s financial infrastructure offers a number of objective economic benefits for Uzbekistan.

First and foremost, Uzbekistan’s geographical location gives this process particular significance. Situated at the heart of Central Asia, the country serves as an important link in transport routes connecting the SCO region’s major economies with the markets of South and Central Asia. The construction of the China–Kyrgyzstan–Uzbekistan railway is one of the most prominent examples.

Therefore, expanding opportunities to finance cross-border projects within the SCO would also enable Uzbekistan to attract additional long-term resources for its transport, energy and logistics infrastructure.

Second, the new financial mechanisms would broaden the financial base for industrial cooperation. Uzbekistan’s efforts to modernize industry, manufacture high-value-added products and develop joint production chains are becoming increasingly connected with the SCO’s major markets. From this perspective, expanding the range of instruments available for financing regional projects would help diversify the sources of finance for joint investment projects.

Third, the development of the SCO’s financial infrastructure would provide greater opportunities to diversify sources of financing. For Uzbekistan, this means complementing its existing cooperation with international financial institutions and bilateral creditors with new regional financial mechanisms.

A New Stage of Financial Cooperation

The SCO is entering a new stage of its development. While security and political dialogue occupied a central place during the Organization’s initial period, today there is a growing need to support economic cooperation through concrete projects and effective financial instruments.

Therefore, the principal criterion for developing a new financial architecture within the SCO should not be the number of new institutions, but their practical effectiveness. Every new mechanism should contribute to increasing trade and investment, strengthening infrastructure connectivity, promoting industrial cooperation and mobilizing private capital.

Most importantly, effective financial mechanisms must be created that are capable of transforming the SCO’s vast economic potential into tangible investment projects. This would elevate cooperation within the Organization from coordination and dialogue to a level of practical partnership that delivers real investment, new production capacities, modern infrastructure and shared economic development.

Over the past few years, Uzbekistan and Azerbaijan have moved from strategic partnership to a fully fledged alliance. Two distinct dimensions now stand out in the way they engage with one another. On the one hand, the institutional foundation of their cooperation is firmly in place; on the other, its economic momentum is only beginning to build. In our view, the balance between the development of political and diplomatic machinery and the practical substance of economic cooperation is what will define the next chapter in Uzbek–Azerbaijani relations.

The institutional architecture

The framework of bilateral ties built by Tashkent and Baku rests largely on top-down coordination: the agenda is set at the level of the heads of state, while intergovernmental, ministerial and business mechanisms deliver it. It is President Shavkat Mirziyoyev of Uzbekistan and President Ilham Aliyev of Azerbaijan who set the principal vectors of cooperation and its tempo, and who appreciably shorten the time needed to sign off on individual decisions.

This has gradually produced an extensive system of engagement mechanisms. The Supreme Interstate Council was established in 2023 and held its first session in 2024; the same year saw the signing of the Treaty on Allied Relations. In July 2026, Tashkent hosted the fifteenth meeting of the Intergovernmental Commission. The Uzbek–Azerbaijani Business Council has been operating since 2020, three Forums of Regions have been convened, and eleven cities have entered into sister-city arrangements. In the past three years alone there have been more than twenty high-level inter-parliamentary contacts, and in 2025 Khiva hosted the first inter-parliamentary forum.

Contact of this density is normally found between neighboring countries, or between states whose mutual trade runs at far higher levels. For Uzbekistan and Azerbaijan – separated by the Caspian and still trading comparatively little – the degree of institutionalization achieved looks all the more striking.

The practical effect is to lower political and administrative barriers, shorten approval timelines and make it easier for companies to enter the partner’s market. Yet an institutional framework does not in itself generate trade flows or investment demand. It creates favorable conditions for business activity, but it is no substitute for the economic incentives on which the further momentum of cooperation depends.

The next stage, therefore, is likely to be defined less by adding to the number of existing formats than by their capacity to convert the political relationship already achieved into concrete economic results.

The economic dimension: a question of scale

Political dialogue between the two countries is still running well ahead of the underlying economic indicators, as the statistics make plain. Bilateral trade came to $307 million in 2025, an increase of roughly 15 percent. Uzbek exports grew by 8 percent to $227 million, while imports from Azerbaijan rose by 39 percent to $80 million. The Uzbek export basket widened by 116 product lines.

These figures take on a rather different meaning, however, when set against Uzbekistan’s total foreign trade turnover, which exceeded $81 billion in 2025^[1]. Azerbaijan accounted for less than 0.4 percent of it. That number should not be read as a verdict on the quality of the bilateral relationship. What it shows, rather, is how hard it is to translate political alignment into economic ties of real scale – a difficulty rooted in several objective structural constraints.

These include the absence of a shared border and the resulting need for multimodal shipping across the Caspian; a partial overlap in export baskets (textiles, fruit and vegetables, selected chemical products); and similar approaches to diversifying economic ties, which leave the two sides competing on third markets more often than complementing one another.

From this follows a thoroughly practical conclusion. Simply scaling up conventional trade is unlikely to bring the two countries to the $1 billion mark set by their presidents^[2]. Growth will have to be sought through investment and industrial cooperation, where trade flows arise from shared production chains.

Both countries appreciate how important it is to put such systematic work in place, and in recent years the center of gravity of the agenda has shifted noticeably from trade toward investment. The Azerbaijan–Uzbekistan Investment Company (AUIC), created in 2023 with charter capital of $500 million, is already involved in fifteen projects worth some $360 million, according to Uzbekistan’s Ministry of Investment, Industry and Trade^[3]. The wider pipeline is considerably larger, taking in more than twenty projects worth around $6 billion, with a further twenty-five worth almost $1.5 billion in preparation^[4].

How far investment cooperation reaches beyond declared intentions is best judged from what is happening at specific production sites. The most visible example is the joint vehicle assembly operation run by Uzavtosanoat and Azermash at the Hajigabul industrial park, which has already turned out more than 11,000 Chevrolet cars and Isuzu buses^[5]. The project is now moving into its next phase: a full-cycle plant with investment of more than $84 million. Textile and sericulture clusters are developing in parallel, alongside agro-industrial and logistics projects.

The significance of such ventures is not measured by output alone. Their principal value lies in forging durable production links between the two countries.

Joint manufacturing generates steady demand for mutual deliveries of components, raw materials and equipment, which in effect embeds bilateral trade within a single production chain.

Ties of this kind tend to be less sensitive to swings in the market, since they rest not on one-off deals but on the long-term needs of production. Another consideration matters just as much. Localizing production in Azerbaijan, provided the relevant rules of origin are met, potentially opens the door to third-country markets with which Baku holds preferential trade arrangements.

In that sense, joint ventures can be seen not merely as a means of serving the two national markets, but as a possible platform for promoting products together beyond Uzbekistan and Azerbaijan. That effect does not materialize automatically, however: it calls for dedicated work on the trade, customs and legal mechanisms involved.

What will shape further growth?

The institutional architecture now in place, together with the results already achieved in economic cooperation, creates considerable scope for taking the relationship further. Realizing that potential, though, will depend on the two sides’ ability to overcome a number of structural constraints.

Foremost among them are the competition between similar products on third markets noted above and the volatility of Caspian logistics, which reflects the condition of the ferry fleet and the seasonality of shipping. A further brake comes from the difficulty of making direct payments between the two countries’ banks and of insuring cargo, both of which add to the cost and duration of foreign trade transactions.

Against this backdrop, a natural question arises: what could accelerate the pace of cooperation?

One of the most practical steps would be mutual recognition of certificates and laboratory test results, above all for agricultural produce, which would cut both the time and the cost of bringing goods to the partner’s market.

In the financial sphere, there is a strong case for broadening correspondent banking relations and settlement in national currencies, by way of direct payments between banks and convenient currency conversion arrangements. This would reduce reliance on intermediaries and make settlement of trade and investment operations more predictable.

Transport deserves attention in its own right. Expanding the capacity of the Caspian routes, harmonizing tariffs and shipping schedules, and developing digital cargo tracking would all help lower costs for business.

Uzbek–Azerbaijani relations have thus reached the point at which the political capital accumulated over recent years is gradually acquiring economic and practical substance. In this sense it can be said with confidence that the two countries have laid a solid foundation for moving into new areas and deeper forms of allied partnership.

Miraziz Mirumarov, Leading Research Fellow,

Institute for Strategic and Interregional Studies under the President of the Republic of Uzbekistan

Iroda Imamova, Leading Research Fellow,

Institute for Strategic and Interregional Studies under the President of the Republic of Uzbekistan

[1]https://stat.uz/ru/press-tsentr/novosti-goskomstata/66431-2025-jilda-zbekistonning-tash-i-savdo-ajlanmasi-81-mlrd-dollardan-oshdi-3

[2]https://president.uz/ru/lists/view/8287

[3]https://surl.li/rgudkn

[4]https://surl.li/wbqoju

[5]https://economiczones.gov.az/post/hsp-de-avtomobil-istehsali-artir-az

The capital of Uzbekistan will host the 17^th Central Asian International Textile Machinery Exhibition – CAITME 2026. It will inaugurate the traditional Global Textile Days week.

CAITME is a major event for Central Asia's textile and garment industries and, according to an independent audit, the largest specialist exhibition of its kind in the CIS. The exhibition plays an important role in equipping and uprading the region's textile and garment sector, helping manufacturers increase productivity, adopt advanced technologies and strengthen their competitiveness in the international markets.

This year, the exhibition will bring together 250 companies and brands from 17 countries. Germany will be represented by its National Pavilion, while companies from Austria, India, Italy, China, Turkiye, the USA, Switzerland and other leading textile-producing countries will also take part. Registration of participants is in full swing.

As in previous years, the exhibition will feature recognised global leaders in textile machinery manufacturing and suppliers of advanced technologies from Europe and Asia, including Rieter, Uster, Novibra, SSM, Spindelfabrik Sussen, Toyota, Muratec, Truetzschler, Saurer, Picanol, Santoni, Terrot, Habasit, MHMS, Vandewiele NV, Karl Mayer, Staubli, IRO, Biancalani, Ferraro, Epson, Zimmer Austria, Mario Crosta, Itema, Lafer, Motex Di Modiano Guido, Salvade`, Simet, Dettin, Sclavos, Effe, Mahlo, Lonati, Shima Seiki, Andritz Küsters, Brückner, Carl Schmale, Sossna, Texpa, Thies, Groz-Beckert KG, Kaeser Kompressoren, Schott & Meissner, Textima, Tetas, Temsan, Lakshmi Machine Works, Lakshmi Card Clothing, Precitex, Kansai, Brazzoli, Eliar, Guven Celik, West Global, CTMTC, Hengyi, Leadsfon, Rifa, Yingyang, Baoyu, Dyestar, NF Kimya, Eksoy, Deniz Kimya and many more.

Uzbekistan is represented by leading industry players.                    

A highlight of the exhibition will be the innovative TextileExpo Uzbekistan Sourcing Hub Project, which will take place on September 9^th. For the first time in Uzbekistan, textile manufacturers and buyers from retail chains, factories and specialist companies will be able to hold direct business-to-business negotiations in a digital format using Artificial Intelligence.

                                                                                      Dunyo IA

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.