In December 2025, the President of Uzbekistan Shavkat Mirziyoyev will pay an official visit to Japan and take part in the high-level Central Asia + Japan Dialogue summit.

Since the establishment of diplomatic relations between the two states on 26 January 1992, the development of Uzbek–Japanese cooperation has been one of the key priorities of Uzbekistan’s foreign policy in the Asia-Pacific region. Based on mutual respect and trust, Tashkent and Tokyo are today building dynamic, multi-tiered cooperation covering politics, security, the economy, investment, innovation, education, culture, tourism, and interaction within regional formats.

Japan has traditionally been a key strategic partner in modernizing industrial and energy infrastructure, advancing digital transformation, promoting sustainable development, and supporting progress in education, science, culture, and humanitarian exchange.

Bilateral cooperation between Uzbekistan and Japan is rich and dynamic. A turning point in the development of the dialogue was President Shavkat Mirziyoyev’s official visit to Japan in December 2019, which gave a powerful impetus to the implementation of major joint economic, investment, and humanitarian projects and defined the long-term trajectory of bilateral engagement.

On the international stage, Uzbekistan and Japan interact effectively within international organizations and support each other’s positions. Over the years, Uzbekistan has supported Japan’s candidacy to UN bodies more than 40 times, while Tokyo has co-sponsored a number of UN General Assembly resolutions initiated by Uzbekistan, including resolutions on the Central Asian Nuclear-Weapon-Free Zone, education and religious tolerance, youth support, and the role of parliaments in achieving the Sustainable Development Goals.

The strategic nature of bilateral relations is also reflected in inter-parliamentary cooperation. Friendship groups operate within both national parliaments, regular meetings of the Uzbekistan–Japan Inter-Parliamentary Forum are held, mutual visits take place, and online consultations and negotiations are conducted.

Cooperation between the foreign ministries is likewise intensive. Since 2002, 19 rounds of political consultations have been held between the foreign ministries of the two countries.

A significant milestone in this regard was the first Strategic Dialogue between the Foreign Ministers of Uzbekistan and Japan, held on 25 August 2025 in Tashkent. This new format underscored the long-term nature of bilateral engagement and the readiness of both sides to expand mutually beneficial cooperation across all areas.

Regular contacts, telephone conversations, meetings on international platforms, and reciprocal visits by foreign ministers help coordinate positions on bilateral and multilateral issues and further intensify cooperation in other areas.

Honorary consuls of Uzbekistan in Japan also play an important role in promoting interstate cooperation, actively contributing to the advancement of economic and cultural initiatives.

Economic cooperation between Uzbekistan and Japan is developing dynamically and encompasses industry, energy, communications, infrastructure, innovation, transport, and the “green economy.” Trade between the two countries is conducted under the most-favored-nation regime, which has contributed to steady growth in bilateral trade turnover.

In 2024, the Uzbek–Japanese Trade House opened in Nagoya, demonstrating Japan’s growing interest in expanding trade ties with Uzbekistan.

Joint meetings of the Uzbekistan–Japan and Japan–Uzbekistan Committees on Economic Cooperation serve as the key coordination mechanism for bilateral economic projects.

Today, 84 joint ventures with Japanese capital operate in Uzbekistan, and 13 major Japanese companies have representative offices in the country, working in the oil and gas, chemical, engineering, logistics, education, and tourism sectors.

Japanese financial institutions play a strategic role in modernizing Uzbekistan’s economy. In January 2025, a loan agreement worth USD 150 million was signed in Tashkent with the Japan International Cooperation Agency (JICA) for the construction and equipping of the Republican Center for Neurology and Stroke — a modern project that will represent an important step in advancing national healthcare.

The cultural and humanitarian dimension of Uzbek–Japanese relations is distinguished by depth and emotional resonance. For more than two decades, the Uzbekistan–Japan Friendship Society, as well as the Fukushima–Uzbekistan Association and the Japan–Uzbekistan Association, have been actively operating. The Hiroshima Peace Stone installed in Tashkent and the Japanese Garden in the heart of the capital have become symbols of strong friendship between the peoples of Uzbekistan and Japan.

Uzbekistan regularly hosts Japanese cultural festivals, film screenings, performances, and exhibitions. In turn, Uzbekistan widely showcases its cultural traditions in Japan — from national cuisine and traditional garments to music and dance. Such exchanges form a unique basis for friendship between the two nations, fostering mutual respect and strengthening long-term cooperation.

Modern cultural projects have become the hallmark of humanitarian dialogue. In April 2022, Tokyo hosted the vibrant event “Spirit of the Silk Road — Bridge of Friendship,” and in 2024, the Japanese ensemble “Japanese Pearl” won third place at the traditional Boysun Bahori festival.

Education is one of the most rapidly developing areas of humanitarian cooperation. More than 2,500 students study Japanese language across seven universities in Uzbekistan. The Uzbek–Japanese Center for Human Resource Development operates in the country, the Japan Development Scholarship (JDS) program is being implemented, and joint projects are carried out with the universities of Tokyo, Nagoya, Tsukuba, Keio, and Toyohashi. Over 400 Uzbek students have received JDS scholarships, and about 2,500 specialists have undertaken internships in Japan. Exchange programs and faculty visits are active, and university rector forums are held.

Joint scientific research is being conducted in ancient history, archaeology, oriental studies, agriculture, and climate processes.

Japan provides financial and technical support to the development of healthcare in Uzbekistan. More than USD 60 million has been allocated for equipping medical facilities, training specialists, and supplying vaccines. Over 100 Japanese volunteers have worked in Uzbekistan, and more than 200 Uzbek medical professionals have completed internships in Japan.

Interregional diplomacy occupies an increasingly important place in bilateral relations. Sister-city partnerships have been established between Rishtan and Maizuru, Tashkent and Nagoya, and Samarkand Region and Nara Prefecture. Within this framework, Samarkand Days are regularly held in Japan, alongside cultural events in Nagoya.

Growing interest among Japanese visitors in Uzbekistan’s culture and history is stimulating cooperation in the tourism sector. The number of Japanese visitors to Uzbekistan continues to rise, facilitated by expanded air connectivity, active promotion of cultural tourism, and improved infrastructure.

Particular interest is drawn to Uzbekistan’s Buddhist heritage sites — Kara-Tepe, Fayaz-Tepe, Dalverzin-Tepe, and the temple complexes of Termez and its surroundings. Thanks to the research of Japanese scholars, these monuments have gained international recognition and attract visitors and experts from around the world.

Another vivid example of Japanese public interest in Uzbekistan was the success of the Uzbek pavilion, “Garden of Knowledge: Laboratory of the Future Society,” at EXPO 2025 in Osaka. Uzbekistan’s national pavilion was recognized as one of the most remarkable exhibits and was awarded a Gold Medal. The world premiere of the National Symphony Orchestra of Uzbekistan’s performance “Celestial Dance,” dedicated to bilateral friendship, captivated Japanese audiences.

The Central Asia–Japan Dialogue, whose first leaders’ summit President Mirziyoyev will attend during his visit, is a format that fully aligns with Uzbekistan’s regional priorities and reflects the growing political consolidation of Central Asian states.

The initiative to establish the Dialogue was first proposed by Japan’s Foreign Minister Yoriko Kawaguchi during her visit to Tashkent on 24 August 2004. The priority goals identified at the time included ensuring peace and stability in the region, supporting reforms and social development, strengthening intra-regional ties, enhancing Central Asia’s partnership with neighboring regions and the international community, and cooperating on pressing regional and global issues.

Today, the Dialogue has evolved into a stable platform for trusted interaction and discussions on sustainable development.

To provide the format with practical substance, regular working meetings of senior officials, sectoral expert consultations, and Tokyo Intellectual Dialogues are held. In recent years, the Economic and Energy Dialogues at the ministerial level, conducted in Tokyo in 2023–2025, have become particularly significant.

Infrastructure assistance has always been one of Japan’s priorities within the Dialogue. Japanese organizations such as JICA and Japan Bank for International Cooperation (JBIC) systematically participate in modernizing transport corridors, logistics hubs, roads, engineering facilities, airports, and rail infrastructure. These projects significantly increase regional connectivity and strengthen Central Asia’s role as a key bridge between East Asia, the Middle East, and Europe.

Japan, a global leader in digitalization and automation, actively shares its expertise with the countries of the region. For Uzbekistan, this cooperation is especially important: the country is rapidly developing its IT sector, creating IT parks and technology parks, launching digital economy programs, and attracting Japanese experts for training national specialists.

Given Japan’s long-standing leadership in environmentally sustainable development and energy-efficient technologies, environmental cooperation is also a central element of the partnership.

As the most populous country in the region and a major transport and logistics hub, Uzbekistan plays a central role in shaping the agenda of the Dialogue. In recent years, Uzbekistan has contributed significantly to strengthening the practical content of cooperation by initiating new projects across various fields.

Over the past two decades, the Dialogue has proven itself as a stable and in-demand mechanism of partnership that allows the countries of the region and Japan to build systematic cooperation across a wide range of areas.

Thus, the upcoming visit of President Shavkat Mirziyoyev to Japan and his participation in the Central Asia + Japan Summit will deepen both bilateral and multilateral political dialogue, expand economic and investment cooperation, and strengthen educational and scientific ties. Undoubtedly, the active efforts of the President to expand mutually beneficial partnerships will once again confirm Uzbekistan’s commitment to regional integration and open, constructive international dialogue.

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

According to the survey results, entrepreneurs are increasingly reporting higher demand, employment growth, and an overall improvement in business conditions.

The Center for Economic Research and Reforms (CERR) presented the results of its business climate analysis based on monthly surveys of entrepreneurs across the country.

Based on the collected data, a composite Business Climate Index has been developed, reflecting both current business conditions and expectations for the next three months.

Business Climate Dynamics in Uzbekistan

As of February 2026, the composite Business Climate Index reached 65 points (on a scale from −100 to +100), which is 11 points higher than in the same period last year.

The improvement in the business climate was primarily driven by rising business expectations, which increased by 13 points to 81. Additional support came from improved assessments of current business conditions, which rose by 10 points to 51.

The survey indicates positive trends across key business activity indicators. The share of entrepreneurs assessing the current business situation as “good” increased to 44%, compared to 38% in February of the previous year.

The proportion of enterprises that increased their workforce rose to 19%, up from 12% a year earlier. Meanwhile, 34% of respondents reported an improvement in business conditions over the past three months, compared to 28% last year.

In addition, 39% of respondents reported increased demand for their products, up from 22% in the same period last year.

Sectoral Dynamics of the Business Climate Index

In a sectoral breakdown, improvements in the business climate were observed across all major sectors of the economy compared to the previous year.

The most significant improvement was recorded in agriculture, where the index increased by 29 points to reach 73. This growth was driven by both improved current conditions and a substantial rise in expectations.

The share of entrepreneurs assessing conditions as “good” rose to 56%, compared to 41% a year earlier. Meanwhile, 52% reported increased demand (35% previously), and 49% noted an improvement in the business environment over the past three months (32% previously).

In the services sector, the business climate index increased by 8 points to 61. While assessments of current conditions remained relatively stable, expectations improved.

Entrepreneurs maintain strong expectations regarding demand in the coming three months, with 72% reporting anticipated growth, close to last year’s level (71%). At the same time, employment has been gradually increasing, with the share of firms expanding their workforce rising to 16%, compared to 12% previously.

In the construction sector, the business climate index rose by 8 points to 69. Improvements were observed in both current assessments and expectations. Entrepreneurs are increasingly reporting higher employment and demand, reflecting stable sectoral dynamics.

The share of respondents reporting improved business conditions over the past three months increased to 34%, compared to 26% a year earlier. Meanwhile, 27% reported workforce expansion (15% previously), and 80% expect demand to increase in the next three months, up from 77% last year.

In industry, business climate growth was more moderate, increasing by 2 points to 67. At the same time, business expectations remain high, with continued growth in demand and gradual employment expansion.

Over the past three months, 32% of entrepreneurs reported increased demand, compared to 29% a year earlier. Workforce expansion was noted by 22% (13% previously), while 77% expect further demand growth in the next three months, also exceeding last year’s level.

Barriers to Business Activity

According to the survey, 61% of entrepreneurs reported no constraints in their operations, up from 57% in the previous month, indicating an overall improvement in the business environment.

Compared to the previous month, the share of respondents reporting difficulties related to access to credit, electricity supply, transport, and logistics has declined. At the same time, there has been a moderate increase in concerns related to access to land resources, utility costs, and tax rates.

CERR Sector for Competitiveness and Investment Activity Analysis

Tel: (78) 150 02 02 (441)

CERR Public Relations and Media Sector

Tel: (78) 150 02 02 (417)

On the eve of the 34th anniversary of our country's independence, the Executive Board of the International Monetary Fund has finalised the 2025 consultations in accordance with Article IV of the IMF Agreement. The main conclusion on the essence of the ongoing reforms is positive prospects for Uzbekistan's economic development against the backdrop of continued progress in the transition to a market economy. According to the published document, economic indicators remain strong, including sustainable growth rates, reduction of the consolidated budget deficit, current account deficit and sufficient level of international reserves.

Successful and effective implementation of structural reforms, according to the Fund's specialists, allows us to conclude that the prospects are favourable. Against the background of a high degree of uncertainty in global trade policy, the IMF baseline scenario predicts that real GDP growth will remain stably high in the coming years. Such trends are the result of economic openness, industrialisation, active investment policy and support for the formation of export potential of promising industries.

The set of reforms and effectively implemented decisions is consistent with available internal resources and reserves for long-term sustainable development of the country and regions. The course towards irreversible market transformations makes it possible to skilfully combine the instruments of targeted state support and opportunities for entrepreneurial initiative on the way to building a New Uzbekistan.

In recent years, as a result of openness and growing confidence in our country, there has been a progressive increase in capital investment. In 2017-2024, the total volume of foreign investment absorbed exceeded $113 billion. Foreign direct investment and loans account for more than 80 per cent of them. Activity in attracting finance is observed in the leading industries and the fuel and energy complex, which has a corresponding impact on the acceleration of industrialisation processes in almost all regions.

Increasing investment cooperation with China, Russia, Germany, Turkey, Saudi Arabia, the Netherlands, the USA, the UK and other countries is becoming a source of attraction of advanced technological solutions and expertise, management methods, localisation of production and strengthening the export potential of promising industries and regions of Uzbekistan. Attracted resources are mainly invested in the technological re-equipment and modernisation of existing production facilities and the creation of new production facilities that did not exist before.

Over the past eight years, investment programmes have launched more than 96,000 projects worth about $100 billion, creating 1.8 million jobs. In 2024, compared to 2017, the value of investment projects put into operation increased almost eightfold, and the number of jobs grew 2.6 times.

We emphasise the factor of active involvement of our Head of State in this process. As a result of visits and top-level events, 366 investment agreements worth $75 billion have been reached since the beginning of this year. In particular, this year road maps have been approved for 222 investment projects worth about $45 billion.

Within the framework of the IV Tashkent International Investment Forum (June this year), agreements were reached on investments worth more than $30 billion (for the implementation of 144 joint projects). In April 2025, on the margins of the 5th International Industrial Exhibition "INNOPROM. Central Asia", held in Tashkent, within the framework of the 43 investment agreements reached, it is planned to attract an additional billion dollars to the industrial sector of the country.

In recent years, there has been an active practice of holding events to inform the international community about opportunities for the implementation of joint projects. Thus, this year, forums were held in 13 foreign countries as part of the Investors' Day of Uzbekistan, attended by representatives of 700 well-known foreign companies. More than 200 investment projects worth six billion dollars were presented to potential partners.

Among the important elements of Uzbekistan's modern industrial policy is localisation of production of high quality and competitive products, reduction of imports of finished goods and components. In accordance with the Localisation Programme, which included about 10 thousand projects, almost 300 trillion soums worth of products have been produced over the period 2020-2024. This led to import substitution in the amount of about $25 billion. The Localisation Programme allowed the creation of new production facilities for previously imported goods, contributed to changing the sectoral structure of industry and reducing dependence on external supplies by expanding the range of products and services.

THE NUMBER OF EXPORTERS IS GROWING

The formation of an export orientation has become one of the main conditions for success in implementing the plans outlined for Uzbekistan's industrialisation. Over 2017-2024, the total volume of exports exceeded $132 billion. It is noteworthy that the average annual growth rate of the country's exports over the period was 12-23 per cent. As a result of systematic and targeted support for exporters, the geography of exports of domestic products expanded by 55 states in 2024 and reached 186 countries over the past eight years. Last year, the number of exporting enterprises increased by 3,143 and their total number totalled 7,343.

Only due to the increase in the share of exports of higher value-added products in 2024, shipments to foreign markets increased by a billion dollars. Entering new promising markets, in turn, requires a significant improvement in the quality of manufactured products and their compliance with international standards. As part of the GSP+ programme, we implemented a set of organisational and technical measures to obtain Global G.A.P., Organic, OEKO-Tex, BSCI, CE marking certificates for our products and transition to ISO standards at more than five thousand enterprises. This made it possible last year alone to provide additional exports of 617 types of products worth $1.4 billion to the European Union.

Transition to more demanding standards and technological processes makes it possible to achieve the goals of producing and selling products of a completely different quality in new markets. Export supplies of goods to developed countries confirm the correctness of the chosen strategy, demonstrating its undeniable results. For example, due to the expansion of export geography and correct response to the conjuncture, the selling prices of Uzbekistan's fruit and vegetable products last year increased by an average of 14 per cent.

The industrial trend of economic development, having ensured a technological leap in a number of sectors, has had a significant impact on the evolution of the commodity nomenclature of exports. Quite recently, Uzbekistan was associated as a country with a monoculture of cotton, and its products were practically the sole leader of exports with absolute dominance of raw materials. In this regard, according to IMF experts, there is a decline in the share of cotton fibre exports from 0.2 per cent of GDP to zero from 2021 in the long term. Today Uzbekistan exports more and more high-tech products, and by 2024 its nomenclature has reached four thousand items.

For example, compared to 2017, exports of primary goods fell by 22 per cent last year, while the share of exports of finished goods increased 3.3 times, semi-finished goods - 4.4 times, and exports of services increased 2.9 times. At the same time, the transition to advanced processing of cotton contributed to the doubling of exports of garment and knitwear products to one billion dollars. This allowed our country to become the second supplier of textile products in the Russian market.

Domestic products are becoming a recognisable national brand, enjoying trust and popularity among foreign consumers. Last year, the goods of about 300 Uzbek enterprises received registration on the well-known electronic commercial platforms Alibaba, Wildberries and Ozon. As a result, sales of our companies reached $680 million.

At the end of the first half of 2025, the volume of exports grew by 33 per cent year-on-year and approached $17 billion. Since the beginning of the year, 1,557 domestic companies have been added to the exporters, accounting for $650 million in shipments.

The steady trend away from raw material exports towards finished high-tech products and services (tourism, transport, construction, IT and others) continues.

INVESTMENT DIALOGUE

It should be noted that our country is building and effectively operating an institutional environment to address strategically important issues of industrial development with a clear export orientation by attracting foreign capital. For this purpose, the relevant ministry and state agencies responsible for this complex of issues, as well as organisations promoting interaction between the state and the private sector have been established.

The Council of Foreign Investors under the President of the Republic of Uzbekistan is an institutional platform for direct dialogue between the government and investors (including international financial institutions). The Council's work as an advisory and consultative body effectively promotes the attraction of foreign direct investment in priority sectors of the economy and the organization of quality business dialogue, taking into account international best practices.

The Council operates under the patronage of the President of Uzbekistan, who personally attends meetings of this body. In order to organise systematic work on attracting investments, the relevant decree of the leader of the country was adopted to implement the agreements reached at the last meeting of the Council. The document also implies ensuring the systematic implementation of initiatives and proposals put forward by the participants of the meeting, as well as measures to improve the activities of the Secretariat of the Council of Foreign Investors.

In parallel with the formation of an effective institutional environment, consistent work is being done to improve the legislative framework to ensure advanced industrial development, intensify investment processes and expand the export potential of industries and regions of the country. This process is under the close attention and direct involvement of Uzbek parliamentarians. As a result, in recent years more than 500 functions of the State in regulating business have been abolished, and about 70 functions have been transferred to public-private partnerships and outsourced to the private sector. Seventy-two types of licensed activities and 40 permits have been legally abolished to improve the business climate and simplify the business environment.

POSITIVE ASSESSMENT

These transformations are positively assessed by foreign rating agencies and organisations. Thus, according to the Index of Regulatory Restrictions on Foreign Direct Investment (Organisation for Economic Development and Cooperation), our country has the best rating among the Central Asian region. This year, the country's performance on the Heritage Foundation's Index of Economic Freedom, the indicators ‘Freedom of Trade’ and ‘Freedom of Investment’ has improved considerably.

Let us return to the assessment of the prospects of dynamics and effectiveness of reforms based on the results of the recent IMF consultations with Uzbekistan in accordance with Article IV of the IMF Agreement. According to the Fund's outcome document, the opportunities arising from accelerated structural reforms, increased income and capital inflows, and favourable commodity price dynamics are positive for Uzbekistan's sustainable development.

Analysis of industrialisation indicators, investment activity and expansion of export indicators testifies to the real effectiveness of the ‘Uzbekistan - 2030’ Strategy and a set of accompanying measures to strengthen the country's economic potential and international standing. This, in turn, becomes a demonstration of the irreversibility of reforms aimed at building an independent New Uzbekistan.

Deputy of the Legislative Chamber

of the Oliy Majlis of the Republic of Uzbekistan,

Doctor of Economic Sciences, Professor Durbek Akhmedov

The text of the article is in Uzbek.

The text of the article is in Uzbek!

On February 21, under the chairmanship of the President of the Republic of Uzbekistan, Supreme Commander-in-Chief of the Armed Forces Shavkat Mirziyoyev a meeting was held on strengthening military security and defense capacity of the state.

The meeting was attended by members of the Security Council, heads of ministries and departments within the Armed Forces of Uzbekistan, commanders of military districts, as well as the chairmen of the Jokargy Kenges and the Council of Ministers of the Republic of Karakalpakstan, regional and Tashkent city khokims, as well as responsible persons of local authorities in the videoconference format.

At the beginning of the meeting, the adopted measures on strengthening the country's defense capacity and their results were reviewed, certain shortcomings in this work were pointed out.

It was noted that the national army is being equipped with modern weapons and equipment, the level of combat and moral-psychological training of servicemen has significantly increased. 

In view of international experience and the analyses carried out, new combat units have been formed to prevent and eliminate internal and external threats, and the organizational structure of the troops has been optimized.

It was underlined that the creation of a new system of modernization and modern equipment of the army continues - the defense industry is developing and additional enterprises have been set up. The Armed Forces of Uzbekistan have established bilateral military cooperation with more than 20 countries and successfully participated in more than 400 joint exercises.

The infrastructure of higher military schools within the Armed Forces has been completely modernized, their curricula and methodology brought in line with modern requirements. 

The social and legal protection of servicemen and their families has been strengthened. In particular, about 30,000 families have been provided with housing, and more than 2,000 children of servicemen have received benefits when enrolling in higher educational institutions. 

Military administrative sectors, government and public organizations are involved in creating favourable conditions for homeland defenders. Attention to the issues of educating young people in the spirit of patriotism and initial pre-conscription military training in schools is being intensified.

The meeting identified priority tasks for 2025 and subsequent years. 

The need to consider contemporary armed conflicts, existing threats to national security and the peculiarities of the theater of military operations when planning for the further development of the army was emphasized. 

It has been indicated that artificial intelligence, robotic systems, missiles, drones and means of countering them are widely used in today's regional conflicts. In this connection, it has been instructed to create new units in the armed forces to combat drones, use robotic equipment, air defense, and cyber structures utilizing artificial intelligence technologies.

The Supreme Commander-in-Chief emphasized the need to further improve the combat readiness of the army, raise the level of combat training, create a unified automated troop management system using artificial intelligence technologies, as well as introduce dual training in military education and training of military personnel. 

Priority tasks have been set to improve the activities of the “Corps of Master Sergeants”, which is the backbone of the army, further develop the defense industry, provide social support to servicemen and their families, educate young people in the spirit of patriotism and involve them in military sports.

Reports and proposals by the Minister of Defense, commanders of military districts and other responsible persons were heard at the meeting.

An expert from the Institute for Strategic and Regional Studies under the President of Uzbekistan, commented to Dunyo IA on the outcomes of President Shavkat Mirziyoyev’s working visit to the United States, which took place from February 17 to 19:

- The visit of the President of Uzbekistan to the United States, which took place as part of his participation in the first meeting of the Board of Peace, was not just another diplomatic event, but a logical continuation of the strategy of pragmatic and mutually beneficial dialogue with Washington built over recent years. It demonstrated a shift from symbolic political interaction to systemic coordination in security, economics, trade, and humanitarian exchanges.

This visit marked the culmination of an intensive partnership over the past six months. Meetings on the sidelines of the UN General Assembly, the C5+1 summit, participation in events in Davos, and the signing of the Charter of the Board of Peace, as well as personal contacts between the two leaders, have fostered a stable dynamic of political dialogue. This fifth summit in six months demonstrates that relations have entered a phase of regular strategic communication, with each meeting reinforced by concrete agreements.

The visit’s busy business program confirmed its practical nature. During his stay in the United States, the head of state held talks with representatives of the American administration, financial institutions, and business circles, including the Export-Import Bank of the United States, the International Development Finance Corporation, the American-Uzbekistan Chamber of Commerce, as well as the heads of major companies such as Traxys, Valmont Industries, Gulf Oil, Aviagen, John Deere, BlackRock Financial Markets Advisory, Oppenheimer, and others. Following the signing of bilateral documents, the parties solidified agreements in priority areas such as the agro-industrial complex, critical minerals, financial market development, improving the investment climate, and the creation of an investment platform.

Discussions with the US Trade Representative and the Secretary of Commerce deserve special attention. During these talks, the need to intensify work within the framework of the Trade and Investment Framework Agreement between the countries of Central Asia and the United States was emphasized. This gave cooperation not only a bilateral but also a regional dimension, strengthening Uzbekistan’s position as a coordinator of economic processes in the region.

Viewed historically, the current stage’s foundation was laid back in 2018 during Shavkat Mirziyoyev’s first official visit to Washington, when agreements worth over $4.8 billion were signed. This package signaled Uzbekistan’s systemic openness to international businesses. In 2021, the Strategic Partnership Dialogue was established, and its subsequent expansion testifies to the institutionalization of bilateral relations. The invitation of the Uzbek leader to the G20 summit in Miami, personally initiated by US President Donald Trump, further confirmed the country’s strengthening international status and recognition of its growing role on the global agenda.

The economic dimension of cooperation is demonstrating steady growth. While trade turnover stood at $408 million in 2018, it consistently exceeded $1 billion by the end of 2024-2025. The current three-year Economic Cooperation Program, worth $35 billion, reflects the long-term nature of the parties' intentions. At the same time, the structure of interaction is undergoing a qualitative change: the emphasis is shifting from trade operations to the implementation of investment and production projects.

Today, flagship American companies such as Air Products, General Electric, General Motors, Boeing, Honeywell, and John Deere are actively operating in Uzbekistan. The $8.7 billion package of agreements signed at the C5+1 summit, including a contract for 22 Boeing aircraft, investments in the critical minerals sector, and projects in the agro-industrial sector, confirms the practical focus of the dialogue.

The transformation of the export structure is particularly revealing: services now account for approximately 86% of Uzbek exports to the US, with the IT sector remaining the key driver. Of the 800 active digital services exporters, 448 target the US market, accounting for 45% of all industry exports. This demonstrates that the partnership is gradually becoming more high-tech, moving beyond traditional commodity-based models.

The humanitarian dimension of cooperation is no less important. Academic exchange is expanding, the number of joint research projects is growing, and the integration of Uzbek specialists into international educational networks is strengthening. Currently, 40 Uzbek universities are implementing partnership programs with more than 25 US universities. Webster University’s Tashkent branch and the American University of Technology, established jointly with Arizona State University, are successfully operating. Thus, a long-term intellectual infrastructure for strategic partnership is being formed.

Overall, the current stage of relations between Uzbekistan and the United States is characterized by a transition from symbolic declarations to systemic coordination on issues of regional security, sustainable development, investment policy, and technological modernization. These achievements confirm that Uzbekistan is steadily establishing itself as a key US partner in Central Asia.

Dunyo IA

A meeting of the Organizing Committee for the Second Asian Women’s Forum was held at the Senate of the Oliy Majlis.

The meeting was chaired by the Chairperson of the Senate, Tanzila Narbaeva.

The meeting was attended by members of the Organizing Committee, senators, heads of relevant ministries and agencies, as well as representatives of non-governmental non-profit organizations.

It should be noted that the Head of state, during the 80th session of the United Nations General Assembly held on September 23–29, 2025, proposed transforming the Asian Women’s Forum into a permanent platform.

To this end, it was decided to hold the forum jointly with UN Women and the United Nations Population Fund on May 13–15 this year in the city of Bukhara.

The forum will address issues related to empowering women in the region in areas such as politics, economy, healthcare, education, social protection, climate, environment, and governance. It is expected to enhance both global and regional cooperation, with active exchange of experience.

The event will also serve as a platform to present to international participants the reforms implemented in Uzbekistan under the leadership of the Head of State, including measures to support women, socio-economic opportunities, and conditions created in employment, entrepreneurship, education, and social protection, as well as achievements in community development and tourism potential.

Particular attention will be given to the implementation of key international frameworks, including the Convention on the Elimination of All Forms of Discrimination against Women, UN Security Council Resolution 1325, the Beijing Declaration and Platform for Action, and the Sustainable Development Goals.

During the meeting, participants discussed organizational aspects related to the forum, including its agenda, content, and arrangements for bilateral meetings with foreign delegations.

Following the meeting, relevant ministries and agencies were assigned specific tasks to ensure the forum is held at a high level.

Dunyo IA,

Tashkent

The text of the article is in Uzbek!