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“O'zbek futboli” – A Documentary Chronicle of a Century-Long Journey Toward the Nation’s Greatest Football Dream
“O'zbek futboli” – A Documentary Chronicle of a Century-Long Journey Toward the Nation’s Greatest Football Dream

In the year of a historic achievement for national sport – the first-ever qualification of Uzbekistan’s national football team for the FIFA World Cup – the documentary film “O'zbek futboli” has been unveiled, telling the story of more than a century of the formation and development of football in our country.

The production of the film coincides with an event that has become a source of national pride and a landmark moment in the history of modern Uzbekistan. The national team's qualification for the FIFA World Cup is not only an outstanding sporting accomplishment, but also a historic opportunity to revisit the origins of Uzbek football and pay tribute to the people, teams, and milestones that have shaped its legacy and brought this long-awaited success within reach over the course of more than one hundred years.

The idea for the documentary emerged in September 2023 during a meeting between the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, and representatives of the Uzbek diaspora in New York. During the meeting, an initiative was proposed to create a documentary dedicated to the history of Uzbek football and its development over more than a century. The initiative received the support of the Head of State, after which work on the project commenced with the assistance of the Press Service of the President of the Republic of Uzbekistan and the Center for National Content Development (Content Center), under the leadership of Kobuljon Akhmedov.

“O'zbek futboli” is an effort to preserve for future generations the story of the individuals whose dedication enabled Uzbek football to travel the remarkable path from the first matches of the early twentieth century to the country's participation in the FIFA World Cup. The documentary is built upon archival materials, eyewitness accounts, and interviews with football veterans, coaches, sports experts, journalists, and current members of the national team.

Filming took place in Tashkent, Kokand, and London. These locations were carefully selected to trace the key stages in football's development – from its beginnings in Uzbekistan to the origins of the modern global game. Particular attention was devoted to historical accuracy, recreating the atmosphere of different eras, and presenting an honest and authentic account of the journey Uzbek football has undertaken over the past century.

The film explores not only the national team's road to its historic World Cup qualification but also the broader evolution of football culture in Uzbekistan. It tells the story of the emergence of the country's first football clubs, the growth of youth academies, professional teams, coaching traditions, the role of supporters, and the contributions made by many generations of athletes to the development of national football.

The documentary features legendary footballers of previous generations, current players of the Uzbekistan national team, coaches, referees, sports officials, journalists, and researchers of football history. By bringing together the voices of several generations, the film allows audiences to experience the story of Uzbek football through the eyes of those who lived it and helped shape it.

At its heart, the documentary conveys a simple yet powerful message: great victories are never accidental. Every success is built upon years of hard work, an unwavering belief in a dream, and the efforts of countless people across generations. Through this film, its creators seek to emphasize the importance of respecting history, preserving continuity between generations, loving one's homeland, believing in one's own potential, and uniting society around a common goal.

“O'zbek futboli” is a story about how dreams become reality when an entire nation continues to believe in them for many years.

Uzbek football is not merely the fulfillment of a dream. It is a reward bestowed upon generations of people who refused to stop believing in it.

https://drive.google.com/drive/folders/1ZwkXogix-5oZmlgy5s1uWIzG5AJ7TFck

Proposals on further development and increase of competitiveness of the jewelry industry were considered
Proposals on further development and increase of competitiveness of the jewelry industry were considered

President Shavkat Mirziyoyev was given a presentation on measures to further develop the jewelry industry, support jewelry production and sales, and increase exports of finished products.

Our country has a huge potential for increasing production and export of jewelry.

As the head of state noted, only 6 percent of gold mined in the country is processed, and exports of its products amount to only 78 million dollars, so it is important to create jewelry zones with special conditions for entrepreneurs, to review the provision of raw materials, training of specialists, production chain and sales system.

In this regard, the Ministry of Economy and Finance and the Chamber of Commerce and Industry have developed relevant proposals.

In particular, it is planned to improve the activity of the Uzbekzargarsanoati association, expand its powers and reorganize the management system.

In order to support manufacturers of the industry, it is proposed to apply the benefits provided for members of the Association "Uzbekzargarsanoati" to individual entrepreneurs - manufacturers of jewelry, who are members of the Association "Uzbekzargarsanoati".

The possibility of establishing a zero rate of customs duty and value added tax on equipment, packaging and marking materials that are not produced in Uzbekistan and used in the jewelry industry for the period up to October 1, 2026 is being studied.

The issues of creation of special jewelry centers including production, exhibition and trade areas were considered. Information was provided on the placement of pilot projects in Tashkent and Namangan region.

The issue of increasing the volume of jewelry exports was discussed. It was proposed to establish a zero rate of customs duty for export of jewelry made in our country to the United States of America under the GSP system.

The head of state instructed to finalize the presented measures and work out a program for the development of domestic jewelry production for the period up to 2027.

Central Asia on the Threshold of a New Environmental Phase
Central Asia on the Threshold of a New Environmental Phase

The Regional Environmental Summit, to be held on 22–24 April 2026 in Astana, Kazakhstan, is of significant importance for Central Asia. Above all, it serves as clear evidence that the countries of the region are jointly seeking solutions to complex challenges such as climate change, water scarcity and land degradation. This reflects a transition to a new phase of environmental policy—one grounded in strong and sustained cooperation.

Shared Challenges Require Collective Solutions

Environmental challenges in Central Asia do not recognize national borders. The tragedy of the Aral Sea, inefficient use of transboundary water resources, desertification, and air pollution affect not just individual countries, but the future of the entire region.

In recent decades, unsustainable water management—particularly in the Amu Darya and Syr Darya basins—has increased pressure on both ecosystems and economic resilience. In this context, the regional summit represents a practical step forward—from acknowledging shared challenges to addressing them collectively.

The summit agenda outlines eight priority areas, reflecting a comprehensive approach to environmental policy. These include climate change mitigation; ensuring food security and ecosystem resilience; adaptation to natural risks and strengthening economic resilience; reducing air pollution and improving waste management; developing mechanisms to achieve environmental goals; sustainable management of natural resources; a just and inclusive green transition; and the development of environmental and digital competencies.

Thus, the summit agenda encompasses not only environmental, but also socio-economic dimensions.

Support for this initiative at the United Nations level adds considerable political and international weight to the process. It sends a strong signal that environmental issues are no longer confined to nature conservation alone—they are increasingly matters of security, economic stability and social well-being.

The participation of international financial institutions, such as the World Bank and the Asian Development Bank, is particularly important. It expands the potential to translate environmental initiatives into concrete projects, as addressing these challenges requires not only political commitments, but also substantial financial resources and advanced technologies.

The Green Transition: Opportunity or Challenge?

The concept of a “green transition” occupies a central place in the summit agenda. For Central Asian countries, this process is inherently dual in nature.

On the one hand, the transition to a green economy offers opportunities to attract investment, foster innovation and create new jobs. The development of renewable energy, resource-efficient technologies and sustainable agriculture can serve as key drivers of economic growth.

On the other hand, this transition requires large-scale reforms. Modernizing outdated infrastructure, upgrading industry, and strengthening environmental awareness among the population are complex and demanding tasks. This is precisely why the emphasis on a “just and inclusive green transition” is of fundamental importance.

Uzbekistan: Advancing Reforms and Environmental Initiatives

For Uzbekistan, the summit provides an important platform to present its environmental policy on the international stage. In recent years, the country has been implementing large-scale initiatives and programmes such as “Yashil Makon,” “Toza Havo,” “Bio Meros,” “Territory Without Waste” and “Eco-Culture,” demonstrating its proactive stance on the environmental agenda.

Particular attention is being given to the restoration of the Aral Sea region. Practical measures undertaken in this area position Uzbekistan as a significant partner not only regionally, but also globally, creating favorable conditions for attracting investment and expanding international cooperation.

Key Expected Outcomes of the Summit

The summit is expected to result in the signing of a number of strategically important documents, including a Joint Declaration of the Heads of State of Central Asia; a Regional Cooperation Programme with the United Nations for 2026–2030; memorandums on biodiversity, ecotourism, and ecosystem protection; agreements on the establishment of a regional early warning system for wildfires; and initiatives to create a transboundary “Peace Park.”

These documents will form a solid foundation for long-term cooperation and financing of environmental projects.

Conclusion: A Regional Response to Global Challenges

The Regional Environmental Summit highlights the growing role of Central Asia in the global environmental agenda. The forum represents an important step toward the development of a unified regional strategy aimed at reducing climate risks, conserving natural resources and ensuring sustainable development.

For Uzbekistan, participation in the summit is not only an opportunity to showcase its achievements, but also a key platform for strengthening international partnerships, attracting investment and advancing initiatives in the field of the green economy.

WATER CONSERVATION MUST BECOME ONE OF OUR CORE VALUES
WATER CONSERVATION MUST BECOME ONE OF OUR CORE VALUES

Today, global demand for water resources is steadily increasing. In this context, the rational use of shared water resources in Central Asia is one of the key factors in ensuring regional security, stability, and sustainable development.

The constructive proposals and practical initiatives put forward by the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, aimed at addressing global environmental challenges—particularly water security—are widely supported by countries across the region. In this regard, the introduction of modern irrigation technologies is considered the most effective solution for improving water-use efficiency in agriculture. These technologies not only help conserve water but also reduce costs related to fertilizers, fuel, and labor, while increasing agricultural productivity.

From the early stages of reforms in New Uzbekistan, enhancing the culture of water use has been elevated to the level of state policy. The “Uzbekistan–2030” Development Strategy identifies the widespread introduction of water-saving technologies across all irrigated lands as a top priority.

In his Address to the Oliy Majlis and the people of Uzbekistan, the President emphasized the importance of this issue, noting that a total of 3.3 trillion UZS will be allocated in 2026 for the implementation of water-saving technologies (approximately $275 million).

Analysis shows that since 2019, the state support mechanism—including subsidies for the adoption of water-saving technologies—has proven effective and has significantly encouraged clusters and farmers.

As a result, between 2019 and 2025:

  • drip irrigation was introduced on 664,000 hectares,
  • sprinkler irrigation on 124,000 hectares,
  • other modern irrigation methods on 73,000 hectares,
  • water-saving irrigation using flexible pipes and film-lined furrows on 124,000 hectares,
  • and 1.6 million hectares were laser-leveled.

As a specialist in this field, I can confidently say that water-saving irrigation methods—particularly drip and sprinkler systems—are becoming increasingly popular among farmers.

On February 3 of this year, a presentation was held before the President focusing on improving water efficiency and expanding the use of water-saving technologies. Additional measures to scale up these efforts were discussed.

In particular, by 2028 it is planned to introduce water-saving technologies on an additional 930,000 hectares, increasing the total coverage to 3.5 million hectares, or approximately 80% of all irrigated land.

The adoption of these technologies will ensure more reliable water supply, especially for regions facing water scarcity. Reforms aimed at strengthening state support in this area are being consistently advanced.

In accordance with the Presidential Resolution dated February 5, 2026, new incentive mechanisms are being introduced for agricultural producers.

Specifically:

  • the target is to expand water-saving technologies to 3.5 million hectares by 2028;
  • drip irrigation will be introduced on 220,000 hectares,
  • sprinkler irrigation on 110,000 hectares,
  • and laser land leveling will be carried out on 600,000 hectares.

In 2026, commercial banks will allocate 2.6 trillion UZS in loans, while 800 billion UZS will be provided as subsidies.

A system for continuous professional development based on the experience of Xinjiang (China) will also be introduced.

Starting from 2027:

  • water-use tax rates and subsidies will be differentiated based on water availability;
  • a 1.25 coefficient will be applied for subsidies in water-scarce regions;
  • and a doubled tax rate will apply where water-saving technologies are not implemented despite stable water supply.

From April 1, 2026, the use of traditional irrigation methods on subsidized lands where water-saving technologies have already been introduced will be considered unauthorized water use and will result in financial penalties.

In Uzbekistan, human capital development remains a priority. Under the “School of Water Specialists” initiative, 10,000 agricultural workers will be trained this year, and 358 specialists will undergo training abroad.

In addition, starting from the 2026/2027 academic year, higher education institutions will enhance training programs in this field, incorporating international best practices.

In conclusion, efforts to ensure the rational use of water resources, expand the adoption of water-saving technologies, and deepen sectoral reforms are reaching a new level.

Today, the time has come to elevate water conservation into a true nationwide value.

 

 

Dauranbek Kdirbaev,
Ministry of Water Resources

Head of the Department for the Implementation

of Water-Saving Technologies

Uzbekistan-Turkey: Development of Cooperation in Environmental Protection
Uzbekistan-Turkey: Development of Cooperation in Environmental Protection

Uzbekistan and Turkey are consistently developing bilateral and multilateral cooperation in the fields of ecology and environmental protection, paying special attention to the exchange of experience, the introduction of modern technologies, and the professional development of specialists.

Representatives of the National Committee for Ecology and Climate Change of the Republic of Uzbekistan regularly participate in seminars, training courses, and other events organized by international structures in the Republic of Turkey. Such cooperation formats serve to strengthen professional ties and adopt advanced approaches in the field of environmental management.

One of the significant stages of cooperation was a meeting with a delegation from "OSTIM Energik," a company specialized in clustering technologies in renewable energy and ecology under Turkey’s Middle East Industry and Trade Center (OSTIM). During the negotiations, the parties discussed prospects for cooperation on air purification systems, the construction of water treatment facilities, the development of renewable energy sources, as well as the processing of domestic and agricultural waste.

Within the framework of developing practical cooperation, a business trip was organized for a delegation from the State Center for Ecological Expertise under the Committee. The goal was to study advanced foreign experience in the field of Environmental Impact Assessment (EIA), including modern methods of ecological expertise and monitoring.

Additionally, a joint event was held in Tashkent with the participation of the Turkish company "Cengiz Group" regarding the reduction of the number of vehicles and the strengthening of environmental control over them. This initiative was aimed at reducing pollutant emissions and increasing environmental responsibility in the transport sector.

A distinct direction of cooperation is related to the development of scientific and educational ties. Partnerships have been established between the Turkish State Meteorological Service and the Hydrometeorology Research Institute of Uzbekistan, in collaboration with the Faculty of Ecology at Ege University in Izmir and the Central Asian University for the Study of Environment and Climate Change. This cooperation is directed towards retraining specialists and enhancing their professional skills in environmental protection and climate research.

The active cooperation between the two countries continues on international platforms as well. Within the framework of the climate forum held in Samarkand on the theme "Global Climate Challenges and Central Asia – Solidarity for Common Prosperity," a youth session was held with the participation of Turkish representatives. This constituted a significant contribution to shaping a new generation of environmental leaders.

The participation of the Ecology Committee delegation, led by Aziz Abduhakimov, Advisor to the President of the Republic of Uzbekistan on Environmental Issues and Chairman of the National Committee for Ecology and Climate Change, in the "Zero Waste" international forum organized by the "Zero Waste Foundation" in Istanbul was also a significant milestone. During the forum, global approaches to waste reduction, the development of a circular economy, and the introduction of sustainable consumption principles were discussed.

Furthermore, a delegation from the Forestry Agency under the Committee visited the Mugla province and the city of Antalya to study Turkey’s best practices in forestry, sustainable forest resource management, and the prevention of ecosystem degradation.

In conclusion, the cooperation between Uzbekistan and Turkey in the field of ecology and environmental protection is of a systemic and multifaceted nature, covering technological, scientific, educational, and institutional directions. The implementation of joint initiatives serves to introduce modern environmental solutions, increase the stability of natural ecosystems, and strengthen international partnership in the interests of sustainable development.

 

Makhmud Khaydarov,

Chief specialist Department of international cooperation and rankings of the Ministry of Ecology, Environmental Protection and Climate Change

In the vision of the President of Uzbekistan, security is not an isolated military task, but a multidimensional foundation for the sustainable development of the state in the digital age
In the vision of the President of Uzbekistan, security is not an isolated military task, but a multidimensional foundation for the sustainable development of the state in the digital age

To mark Defenders of the Homeland Day and the 34th anniversary of the Armed Forces of the Republic of Uzbekistan, a number of significant state events were held. Key events included an expanded meeting of the Security Council chaired by President Shavkat Mirziyoyev, a tour of the defense industry's production facilities, and the head of state's address to military personnel and compatriots.

In this regard, a correspondent of Dunyo IA approached Akramjon Nematov, First Deputy Director of the Institute for Strategic and Regional Studies under the President of Uzbekistan, with a request to comment on the key outcomes of these events and the tasks outlined by the country’s leader:

- It's no exaggeration to say that today, the Supreme Commander-in-Chief of Uzbekistan laid the foundation for a new stage in the modernization of the national army—its high-tech transformation. I would even say that Shavkat Miromonovich's congratulations this year were not simply a tribute to tradition, but a kind of manifesto for the "New Look Army," where intelligence and technology must finally supplant outdated approaches to warfare. In the President's vision, security is not an isolated military task, but a multidimensional foundation for the sustainable development of the state in the digital age.

By analyzing the key messages of the head of state, one can trace a clear and consistent logic for the transformation of all elements of the public administration system.

The key innovation of the current stage of reforms lies in the recognition of the profound transformation of the very nature of modern warfare, in which technological superiority, rather than personnel numbers, is decisive. This is why the President of Uzbekistan has set the task of a large-scale doctrinal update: the development of a new version of the Defense Doctrine and the National Security Concept has been initiated. This is dictated by the need to adapt strategic documents to the conditions of hybrid threats while simultaneously maintaining Uzbekistan's non-aligned status and reliance on multilateral diplomacy. This sends a clear signal to the country about the predictability and sovereignty of the republic's course.

The central element of the updated strategy is the transition to a “proactive mode of operation,” in which the security system must not only respond to emerging threats, but also be capable of predicting risks in advance and neutralizing them at an early stage.

This intellectualization of security naturally requires a review of the Armed Forces' technical makeup. In this regard, the head of state initiated a thorough re-equipment of the army, prioritizing the implementation of artificial intelligence, robotic systems, and modern cybersecurity systems. It was emphasized that in modern conflicts, victory is achieved not by the number of bayonets, but by technological superiority and the speed of information processing. In this context, the digital transformation of the army becomes an undisputed priority. In other words, in modern warfare, intelligence is more important than mass, and victory is determined by the quality of technology and management.

At the same time, high technology demands a fundamentally new level of competence. Therefore, a true personnel transformation has been initiated: the army is being positioned not as a closed institution, but as a modern educational and technological platform. It is becoming a school of life and professional growth, as well as a driver of economic development. Every year, 5,000 conscripts will undergo training under the "One Million Programmers" and "Five Million AI Leaders" programs. This strategic move allows us to simultaneously address two objectives: increasing the army's cyber resilience and creating a pool of in-demand specialists for the country's economy.

Furthermore, the program provides for training soldiers in civilian professions, with the issuance of state-issued certificates upon completion of their service. For military personnel opening a business after demobilization, the state will reimburse 6% of the loan interest rate. Educational incentives are also being introduced: the opportunity to take university entrance exams directly at military units, interest-free student loans for those entering universities after service, and reimbursement of the costs of obtaining international language certificates. This approach reflects the current trend of developing "smart forces," in which the country's defenders are also qualified specialists in demand in the civilian sector.

In this way, the army is organically integrated into the civil society system, providing young people with real tools for personal and professional success.

For this model to function effectively, a solid social foundation is essential. Therefore, an unprecedented strengthening of social protection for military personnel has become a logical continuation of the reforms. The decisions to double officers' length-of-service bonuses and pay veterans pensions equal to 100% of their pay are, in my view, a strategic investment in the prestige of military service. Additionally, a 10% increase in pay for privates and contract sergeants is envisaged, as well as a 20% increase in the salaries of civilian defense personnel this year and a further 50% increase next year.

The President clearly demonstrates that the state takes full responsibility for the well-being of those who defend the Motherland, thereby raising the prestige of military service and strengthening the principle of unity between the people and the army.

The final element of this comprehensive strategy is achieving profound technological self-sufficiency. The modernization of the national defense-industrial complex, the creation of domestic military technology parks, and the development of unmanned systems production are aimed at minimizing external dependence. A visit to the Chirchik Aircraft Plant and defense technology parks clearly demonstrates that Uzbekistan is focusing on localization, a service economy, and the development of its own industrial base. The creation of a regional hub for Airbus equipment maintenance is not only a matter of prestige but also a practical step toward technological independence and integration into global production chains.

All this strengthens state sovereignty, enabling the effective protection of national interests by relying on its own innovative potential and competencies. At the same time, the military is becoming a driver of innovative development: technologies developed for defense purposes inevitably find application in civilian sectors.

In conclusion, it should be emphasized that the announced initiatives mark a definitive departure from outdated models. Essentially, we are witnessing the emergence of a new model of statehood, one in which high-tech sovereignty, intellectual capital, and social justice are integrated into a single strategy.

A highly mobile, technologically advanced army is being created, capable of effectively countering hybrid threats in the changing nature of warfare. The army serves not only as a shield for the state but also as a driver of education, the economy, and social mobility—a modern, pragmatic, and deeply national approach to development and security in the new global reality.

 

Dunyo IA

CERR Updates Bank Ranking for Q1 2026
CERR Updates Bank Ranking for Q1 2026

Following the results of Q1 2026, the ranking of large banks underwent notable changes. While the leading group remained intact, positions within the segment were reshuffled. In the small-bank category, movements were also significant, pointing to continued realignment and stronger competition across the sector.

The Center for Economic Research and Reforms presented the updated Bank Ranking based on the results of the Banking Activity Index for Q1 2026.

The study covers 34 commercial banks of the republic, including 20 classified as large financial institutions by scale and branch network, while the remaining 14 were categorized as small banks.

The methodology is based on the analysis of 27 indicators benchmarked against national averages and international standards, including the requirements of the Basel Committee. The ranking serves as an important tool for enhancing transparency and strengthening confidence in the financial system. This approach is consistent with international practice and is widely used by leading financial institutions.

Financial Results for Q1 2026

During the reporting period, total assets of the banking sector amounted to 932.3 tn sums ($76.3 bn), while liabilities reached 793.9 tn sums ($64.9 bn). Lending increased by 14%, while deposits grew by 32%. The aggregate capital of the banking system was fully denominated in the national currency. Net profit reached 3.1 tn sums ($254 mn), which is 36.3% higher than a year earlier.

During the period under review, the share of non-performing loans declined to 3.3%, compared with 4.5% a year earlier, indicating improved portfolio quality. At the same time, in several banks the ratio remains above the sector average. Capital adequacy indicators exceed minimum regulatory requirements by more than 1.4 times, confirming the resilience of the banking sector.

Large Banks Activity Ranking for Q1 2026

The results of Q1 2026 show that despite the relative stability at the top of the ranking, both categories of banks recorded notable positional changes.

In the large-bank segment, performance was mixed. Out of 20 banks, 7 improved their positions, 8 declined, and 5 retained their previous places. This reflects a high level of competition and the ongoing redistribution of market positions.

The most notable progress was demonstrated by Tenge Bank, which moved up by 6 positions. Three more banks — Agrobank, Invest Finance Bank, and Xalq Bank — advanced by 2 positions each. Positive momentum was also recorded by Ipak Yuli Bank, Asia Alliance Bank, and Hamkorbank, all of which improved their standing in the overall ranking.

At the same time, several large banks recorded lower activity levels. The most significant decline was observed at Orient Finans Bank and Trast Bank, which fell by 5 and 3 positions respectively.

Changes Across Key Indicators

Financial Intermediation. The leading positions were taken by Invest Finance Bank, Anor Bank and Kapitalbank. In this ranking, Davr Bank and Hamkorbank fell by 4 positions, while Ipoteka Bank declined by 1 position.

Financial Accessibility. The leaders were Agrobank, Anor Bank and BRB. Under this indicator, declines were mainly observed among leading banks: Kapitalbank (-3 positions), Hamkorbank (-7), Asia Alliance Bank (-1), Ipak Yuli Bank (-5), and Trast Bank (-6). The strongest improvement in this ranking was recorded by Tenge Bank (+8), Xalq Bank, Davr Bank (+5), and Agrobank (+4).

Capital Adequacy. The top positions were occupied by Orient Finance Bank, Trast Bank and Halk Bank. At the same time, Agrobank dropped by 4 positions, while Aloqa Bank declined by 2 positions.

Asset Quality. The leaders were Hamkorbank, Asia Alliance Bank and Ipak Yuli Bank. Turonbank fell by 5 positions, while Asakabank, Mikrokreditbank, SQB, Trast Bank and Anor Bank each declined by 2 positions.

Management Efficiency. The highest positions were held by SQB, Orient Finance Bank and NBU. At the same time, Asaka Bank dropped by 5 positions, while BRB declined by 4 positions.

Profitability. The leaders were Hamkorbank, Trast Bank and Asia Alliance Bank. Turon Bank, after falling by 3 positions, ranked last. In this ranking, Kapitalbank, Asia Alliance Bank, Anor Bank and Davr Bank declined by 2 positions, while Ipoteka Bank and Mikrokreditbank fell by 1 position.

Liquidity. The leaders were Asia Alliance Bank, Ipak Yuli Bank and Trast Bank. At the same time, Mikrokreditbank, Ipoteka Bank, Anor Bank and SQB each declined by 1 position.

Small Banks Activity Ranking for Q1 2026

The small-bank group remained relatively stable, with leading institutions retaining their positions. The main changes in this category were concentrated in the middle segment, where several banks improved their standing due to stronger financial intermediation and higher profitability.

Within this group, 8 out of 14 financial institutions improved their rankings. The most notable gains were recorded by AVO Bank and Apex Bank, both rising by 3 positions. TBC became the leader of the ranking.

At the same time, 5 banks moved down, with the sharpest decline recorded by Octobank, which lost 6 positions. Saderat Bank, Garant Bank, and Ziraat Bank each rose by 2 positions. The ranking was rounded out by Open Bank and Uzum Bank, both up by 1 position.

Jafar Khidirov, CERR

CERR Banking and Financial Sector Research Sector
Tel: (78) 150 02 02 (441)

CERR Public Relations and Media Sector
Tel: (78) 150 02 02 (417)

The text of the article is in Uzbek!
The text of the article is in Uzbek!

The text of the article is in Uzbek!

Economic connectivity between Central and South Asia: a foundation for stability and sustainable development of the macroregion
Economic connectivity between Central and South Asia: a foundation for stability and sustainable development of the macroregion

  1. Introduction

Central and South Asia form one of Eurasia’s most significant geographic junctions. Central Asia connects the continent’s east–west and north–south routes, while South Asia contains one of the world’s largest population bases and consumer markets. Taken together, the countries of the two subregions have a population of more than 2 billion people; however, their direct economic interaction remains below its potential level.

The scale of the potential market is confirmed by the figures: in 2024, the population of South Asia was approximately 1.68 billion people, while the region’s combined GDP was about US$4.5 trillion. At the same time, the economy of the five Central Asian countries in 2024 amounted to approximately US$489 billion. However, the level of interregional integration remains low: even within South Asia, intraregional trade is estimated at around 5% of total trade turnover, which is significantly lower than the ASEAN figure[1][2][3].

This is evident in trade statistics: Central Asia’s main trade flows continue to be oriented toward Russia, China, the European Union, Türkiye, and the Middle East, while trade with South Asia occupies a comparatively limited niche.

The underused potential is explained not by a lack of demand, but by structural constraints. Between the two subregions, there are mountain barriers, complex cross-border routes, differing levels of integration into international supply chains, non-uniform customs and technical procedures, as well as the Afghanistan factor, which is simultaneously the shortest connecting link and the most sensitive element of the regional architecture. Therefore, the issue of connectivity has not only commercial but also strategic significance.

The restoration of economic ties between Central and South Asia should not be viewed as a romanticized return to historical routes. In modern conditions, it is a matter of competitiveness, supply-chain security, energy resilience, and diversification of foreign economic directions. For the countries of Central Asia, the southern route opens shorter access to the ports of the Arabian Sea and the Indian Ocean. For the countries of South Asia, it creates an opportunity to gain access to energy resources, food products, industrial goods, and new markets in Eurasia.

Uzbekistan occupies a special place in this logic. It is located in the central part of the region, borders all Central Asian states and Afghanistan, and therefore is capable of forming a link between the internal markets of Central Asia and the southern direction. At the same time, the role of a connector state means more than the transit of goods. It includes the coordination of infrastructure projects, the development of logistics services, the improvement of institutional quality, the creation of an analytical basis for decision-making, and the involvement of the private sector in interregional projects.

 

 

  1. Historical and geographical preconditions for connectivity

The historical connection between Central and South Asia was formed long before the emergence of modern state borders. The cities of Transoxiana, Khorasan, Bactria, and northern India were part of a network of caravan routes and exchanges of artisanal goods, knowledge, religious traditions, and financial practices. Samarkand, Bukhara, Balkh, Merv, Kabul, Peshawar, and Lahore, in different periods, served as trade and cultural hubs linking the Eurasian space.

However, historical connectedness does not automatically translate into economic integration today. Modern supply chains depend on railways, highways, ports, energy networks, digital cargo-tracking systems, insurance, banking settlements, and predictable rules. Where even one of these elements is absent, transit becomes expensive, slow, and risky.

The geography of the region creates both incentives and constraints. On the one hand, the distance from Uzbekistan’s southern borders to northern Afghanistan is relatively short, and the route through Afghanistan is potentially the shortest overland path from Central Asia to Pakistan and onward to the ports of the Indian Ocean. On the other hand, mountain ranges, differences in railway gauge, the limited capacity of border infrastructure, security issues, and insufficient standardization of procedures increase the cost of projects.

Uzbekistan’s geographical role has not only qualitative but also measurable significance: the country is one of only two double-landlocked states in the world and, at the same time, the only state bordering all four other Central Asian countries as well as Afghanistan. In this context, the Mazar-i-Sharif–Kabul–Peshawar railway project, with a length of approximately 573 km, acquires systemic importance, since it could reduce the time and cost of transportation toward Pakistan’s ports by roughly 30%[4].

Therefore, connectivity should be understood more broadly than the physical connection of two points on a map. In the modern economy, it includes four dimensions. The first is infrastructural: roads, railways, terminals, ports, and energy networks. The second is institutional: customs, tariffs, standards, sanitary and phytosanitary rules, permits, and transit guarantees. The third is commercial: demand, purchasing power, contracts, logistics companies, insurance, and banking channels. The fourth is social and humanitarian: education, labor skills, tourism, medical ties, and research cooperation.

This approach helps avoid oversimplification. Even the shortest road will not become a sustainable corridor unless it is supported by a reliable legal environment, competitive tariffs, financial guarantees, and coordination among states.

 

  1. Current state of trade and economic cooperation

Trade and economic ties between Central and South Asia are developing, but their scale still does not correspond to the size of the markets. Trade between Central Asian countries and India, Pakistan, Bangladesh, Sri Lanka, and Afghanistan remains relatively modest compared with their trade with China, Russia, the European Union, Türkiye, and countries of the Middle East.

Central Asia supplies, or could potentially expand supplies to South Asia, in such areas as agricultural products, grain, fruit and vegetable products, textiles, fertilizers, energy goods, certain types of metals, and industrial raw materials. South Asia, primarily India and Pakistan, holds competitive positions in pharmaceuticals, medical goods, IT services, equipment, textile products, processed food products, and consumer goods.

In recent years, Uzbekistan has been strengthening the southern direction of its foreign economic policy. Trade ties with India and Pakistan are developing through pharmaceuticals, textiles, food products, services, logistics, and investment projects. Uzbekistan’s foreign trade in the southern direction is already growing, but it still occupies a limited place in the overall structure of foreign trade. The largest trade flows with South Asian countries are with Afghanistan and India. However, the very fact that certain bilateral flows are growing does not solve the main problem: interregional trade remains fragmented. In order to turn it into a sustainable market, it is necessary to reduce transaction costs, ensure the predictability of transit, make standards comparable, and develop business services.

The issue of trade data is especially important. Mutual trade is often assessed using different sources, while the statistics of exporting countries and importing countries may diverge. To develop effective policy, a regularly updated data panel is needed, broken down by corridors, types of cargo, border-crossing times, transportation costs, return loads, the number of permits, and the actual use of preferential regimes. Without such a database, regional initiatives risk remaining merely declaratory.

 

  1. Transport and logistics infrastructure as the basis of connectivity

Transport infrastructure is the material foundation for the rapprochement of Central and South Asia. At the same time, it is more accurate to speak not of a single route, but of a portfolio of corridors. Relying on only one route increases the vulnerability of the entire system. A diversified network of routes through Afghanistan, Iran, the Caspian Sea, the Caucasus, and existing Eurasian directions creates redundancy, reduces risks, and strengthens the negotiating position of shippers.

The key project in the southern direction remains the trans-Afghan railway corridor Mazar-i-Sharif–Kabul–Peshawar. Its strategic value lies in its potential to connect Uzbekistan and other Central Asian countries with Pakistan’s ports, including Karachi, Qasim, and Gwadar. If implemented, such a corridor could reduce the distance and delivery time for certain types of cargo. However, the project requires the resolution of several complex issues: financing, security, technical parameters, railway gauge compatibility, the operating model, tariffs, and the distribution of risks among participants.

The Termez–Hairatan hub in Uzbekistan has particular significance. It is the closest entry point from Uzbekistan into Afghanistan and is already used as a logistics, humanitarian, and trade channel. The development of terminals, warehouses, customs capacities, multimodal transport services, and digital cargo-control systems could turn this hub into a stable anchor point for interregional trade.

Alongside the trans-Afghan route, the route through Iran is also important. For India, Central Asia, and Afghanistan, the Chabahar port is of particular significance, as are its links with the International North–South Transport Corridor and the Ashgabat Agreement. This option does not replace the trans-Afghan route, but it increases the resilience of the trade system. Events of recent years have shown that the closure or restriction of individual routes quickly increases the importance of alternative pathways through Iran and the countries of Central Asia.

Road corridors remain a necessary complement to railways. They are especially important for perishable products, small consignments, e-commerce, pharmaceuticals, and high-value-added goods. In this area, the key factors are not only roads, but also border procedures, the permit system for carriers, weight control, insurance, the safety of parking areas, and access to backhaul cargo.

The development of air connectivity plays a separate role. Direct flights between Tashkent, Samarkand, Almaty, Astana, Delhi, Mumbai, Lahore, and other cities do not create mass freight logistics, but they reduce barriers to business travel, tourism, education, medical services, and managerial oversight of investment projects. For modern business, such mobility is not a secondary factor, but a systemic one.

 

  1. Energy partnership: from project-based logic to a regional market

Energy is one of the most obvious areas of complementarity between Central and South Asia. The Central Asian countries possess significant resources in natural gas, hydropower, solar power, and wind generation. South Asia, primarily Pakistan, India, Bangladesh, and Afghanistan, faces high energy demand, seasonal consumption peaks, and the need for a more reliable supply structure.

The most advanced interregional project in the electricity sector is CASA-1000. According to World Bank materials, the project is intended to ensure the transmission of up to 1,300 MW of surplus summer electricity from Kyrgyzstan and Tajikistan to Afghanistan and Pakistan. The project also provides for high-voltage transmission infrastructure, including power transmission lines and converter stations. Its significance goes beyond the energy sector: it demonstrates the possibility of contract-based electricity trade between the subregions with the participation of international financial institutions.

In the gas sector, the best-known project is TAPI: Turkmenistan–Afghanistan–Pakistan–India. Its planned logic is straightforward: Turkmen gas is expected to flow through Afghanistan to the energy-deficient markets of South Asia. Published descriptions of the project usually indicate a length of approximately 1,800 km and a designed capacity of up to 33 billion cubic meters of gas per year. However, TAPI remains a complex project with a high dependence on security, financing, long-term contracts, payment guarantees, and political coordination among the participants.

CASA-1000 has not only political but also measurable infrastructural significance: the project cost is estimated at approximately US$1.2 billion, while the designed transmission capacity is 1,300 MW. The Kyrgyz component provides for around 456 km of 500 kV power transmission lines. This makes it possible to view CASA-1000 as the first major example of contract-based interregional electricity trade between Central and South Asia[5][6].

The new energy agenda includes not only the export of fuel and electricity, but also the development of low-carbon solutions. Uzbekistan, Kazakhstan, Kyrgyzstan, and Tajikistan are expanding projects in solar, wind, and hydropower, while also modernizing their grids. In the long term, South Asia could become a market for seasonal electricity and energy services from Central Asia. However, this requires rules for cross-border trade, compatible dispatch mechanisms, commercial guarantees, transparent tariffs, and investment in grid resilience.

Energy cooperation must take into account climate and water-related factors. In Central Asia, hydropower is closely linked to irrigation and water resource management. In South Asia, electricity demand depends on temperature peaks, urbanization, and industrial growth. Therefore, energy projects should be accompanied by mechanisms for climate adaptation, forecasting water availability, improving energy efficiency, and developing energy storage systems.

 

  1. Investment cooperation and business ties

Investment cooperation between Central and South Asia is still developing on a case-by-case basis, but it has significant potential. Unlike trade in raw materials, investment requires a higher level of trust, legal certainty, protection of property rights, clear tax regimes, access to foreign-exchange settlements, and high-quality business information.

The most promising areas include pharmaceuticals, medical services, agro-processing, textiles, logistics, warehouse infrastructure, IT services, education, tourism, financial technologies, renewable energy, and the production of components for infrastructure projects. South Asian companies have strong competencies in IT, pharmaceuticals, and services, while Central Asia offers access to raw materials, industrial sites, growing domestic markets, and transit opportunities.

An important task is to move from one-off business contacts to a systematic investment pipeline. This requires project catalogues, clear requirements for investors, standardized public-private partnership models, dispute-resolution mechanisms, insurance against political and commercial risks, and joint workforce training programs.

Small and medium-sized enterprises are of particular importance. Large infrastructure projects create the foundation, but it is small and medium-sized businesses that fill corridors with real goods and services. For them, access to information, affordable logistics services, digital marketplaces, simplified payments, standardized documents, and support in entering a new market are critical.

Development institutions and international financial organizations can play a catalytic role. Their participation reduces risks, improves the quality of project preparation, and disciplines the participants. However, external financing does not replace national reforms. Without clear rules, transparent statistics, and effective courts, even concessional loans will not create a sustainable flow of investment.

  1. The strategic role of Uzbekistan as a connector state

Uzbekistan possesses a unique set of preconditions for playing the role of a connector state. It is located at the center of Central Asia, borders all the countries of the region as well as Afghanistan, and is also a major demographic and industrial market. For a country without access to the sea, the development of external corridors is not an optional task, but a condition for long-term competitiveness.

Uzbekistan’s role is not limited to transit. A transit country earns revenue from the movement of goods, but a connector state shapes rules, services, trust, and the institutional environment. This means developing multimodal hubs, creating logistics centers, digitalizing customs procedures, expanding railway and road links, training personnel, attracting banks and insurance organizations, and providing analytical support for projects.

The southern direction strengthens Uzbekistan’s foreign economic diversification. It complements the country’s already existing links in the northern, eastern, and western directions. At the same time, the diversification of routes reduces dependence on individual markets and transit pathways, which is especially important amid instability in global trade, changes in tariff policy, and geopolitical restrictions.

Termez occupies a special place in this strategy. It can serve as a border logistics center, a platform for trade with Afghanistan, a hub of humanitarian and commercial infrastructure, and a symbolic space for discussing connectivity between Central and South Asia. To turn this role into a sustainable result, investment is needed in terminals, railway approaches, warehouse capacity, services for carriers, and a system for analyzing cargo flows.

Uzbekistan’s strength also lies in its ability to put forward multilateral initiatives. Interregional connectivity cannot be implemented through bilateral agreements alone. It requires the alignment of interests among the countries of Central Asia, the countries of South Asia, Afghanistan, international financial institutions, business, and the expert community. In this sphere, Uzbekistan can act as a coordinator of the agenda and a provider of analytical solutions.

 

  1. Key barriers and ways to overcome them

The first barrier is incomplete infrastructure. Many corridors exist in the form of project concepts or partially functioning routes. To transform them into commercially sustainable directions, technical and economic feasibility studies, agreed tariffs, clear sources of financing, unified operational models, and transparent risk allocation are required.

The second barrier is security and the predictability of transit. For business, what matters is not only the length of the route, but also the likelihood of delays, losses, border closures, changes in rules, and additional payments. Therefore, transport policy should include insurance mechanisms, security standards, corridor monitoring, crisis protocols, and regular information exchange among government agencies.

The third barrier is administrative fragmentation. Different documents, uncoordinated customs procedures, weak advance declaration, the absence of mutual recognition of certain certificates, and limited digital interoperability increase the cost of trade. The solution lies in the transition to electronic transport documents, the expansion of the single-window principle, the introduction of risk-based control, and the coordination of technical standards.

The scale of the financial challenge can be assessed through the example of CAREC: in 2021–2024, transport investment under the program amounted to US$8.61 billion, with a significant share of financing provided by international partners. This shows that infrastructure corridors require not only a political decision, but also a sustainable financial architecture[7][8].

Administrative barriers have a measurable expression. According to CAREC monitoring, in 2022, the average border-crossing time on road corridors was 9.9 hours, while on railway corridors it was 40.6 hours. This confirms that the digitalization of documents, advance declaration, and risk-based control can produce an effect even without the immediate construction of new arterial routes.

The fourth barrier is financial constraints. Infrastructure projects require large capital investments and have long payback periods. A combination of budget funds, loans from international financial organizations, public-private partnerships, guarantees, project financing, and blended-finance mechanisms is needed. At the same time, each project must undergo an assessment of commercial viability, not only political attractiveness.

The fifth barrier is the lack of market information. Companies often do not know potential partners, market requirements, logistics tariffs, certification rules, or available financial instruments. This barrier can be reduced through digital trade platforms, business missions, sectoral catalogues, regular exhibitions, analytical reviews, and consulting centers under chambers of commerce and industry.

The sixth barrier is climate and resource-related risks. Mountainous areas, droughts, floods, changes in glacial runoff, and extreme weather events affect roads, energy, and agriculture. New corridors should be designed with climate resilience in mind, while energy projects should take into account the water balance and the seasonality of demand.

Practical priorities through 2030

Area

Short-Term Focus

Medium-Term Result

Transport

Modernization of border terminals, digital cargo tracking and recordkeeping, corridor statistics

Reduction in delivery time and cost, increased reliability of routes

Trade

Electronic documents, advance declaration, work on harmonizing standards

A more predictable regime for exporters and carriers

Energy

Contractual models, grid investments, consideration of seasonality

Regional electricity trade and diversification of supplies

Investment

Project catalogues, guarantee instruments, support for SMEs

Expansion of private-sector participation and industrial cooperation

Institutions

Project registry of the Termez Dialogue and annual monitoring

Transition from declarations to measurable results

 

  1. The Termez Dialogue as an institutional foundation for cooperation

The Termez Dialogue on Connectivity between Central and South Asia can become an important institutional platform for coordinating the interregional agenda. In 2025, the first dialogue was held in Termez, dedicated to the formation of a shared space of peace, friendship, and prosperity. The very choice of Termez emphasizes the city’s practical role as Uzbekistan’s southern hub and as a symbolic point of connection with Afghanistan and South Asia.

The effectiveness of such a format will depend on whether it can move from general statements to the management of a project-based agenda. For this purpose, it would be advisable to structure the dialogue around four permanent tracks: transport and logistics, trade and standards, energy and climate, and investment and human capital. Each track should have a project map, progress indicators, responsible participants, and a mechanism for annual updates.

The participation of business is of particular importance. States can sign framework documents, but real demand for corridors is generated by exporters, importers, carriers, banks, insurance companies, terminal operators, and manufacturing enterprises. Therefore, within the framework of the Termez Dialogue, business sessions, B2B platforms, sectoral presentations, and discussions of specific barriers faced by companies are necessary.

The expert track should serve as an evidence base. It can prepare an annual report on the state of connectivity between Central and South Asia, a corridor-readiness index, monitoring of transportation time and costs, a review of regulatory barriers, analysis of investment projects, and recommendations for governments. In this area, Uzbekistan’s analytical institutions can play a leading role.

The Termez Dialogue is also important as an instrument for involving Afghanistan in economic processes on a pragmatic basis. This is not a matter of political legitimization, but of reducing economic isolation, developing transit procedures, supporting sustainable livelihoods, and creating incentives for stability. This logic corresponds to the interests of all participants, since Afghanistan’s economic predictability directly affects the cost and security of interregional routes.

 

  1. Connectivity and the Sustainable Development Goals

Economic connectivity between Central and South Asia is directly linked to the UN Sustainable Development Goals. The development of energy networks supports SDG 7, the expansion of trade and employment corresponds to SDG 8, the construction of resilient infrastructure is linked to SDG 9, the reduction of spatial isolation contributes to SDG 10, climate resilience relates to SDG 13, and regional coordination and partnerships correspond to SDG 16 and SDG 17.

However, the link with the SDGs does not arise automatically. Infrastructure can promote development, but it can also deepen inequality if benefits accrue only to major actors while local communities bear the costs. Therefore, projects should include environmental assessment, social safeguards, consultations with the population, management of land-related issues, occupational safety measures, and transparent compensation mechanisms.

Special attention should be paid to women, youth, and small enterprises. New corridors create demand for services in logistics, trade, catering, repair, digital support, education, and tourism. If access to these opportunities is opened to local entrepreneurs, infrastructure will become a source of inclusive growth, not merely transit rent.

Climate risk is already becoming an economic factor. According to World Bank estimates, by 2030, nearly 90% of South Asia’s population may be exposed to intense heat, while more than one fifth of the population may face the risk of severe flooding. For Central Asia, the key constraint is water: in Uzbekistan, the volume of water withdrawal significantly exceeds internal renewable resources, and the current water deficit may increase to 7 billion m³ by 2030 and to 15 billion m³ by 2050[9][10][11].

The climate dimension of connectivity is becoming increasingly important. South Asia and Central Asia are exposed to the risks of extreme weather events, glacier melt, droughts, floods, and tensions around water. Therefore, new roads, railways, power transmission lines, and logistics centers should be designed with long-term climate scenarios in mind. For the energy sector, this means combining electricity trade, energy efficiency, renewable sources, and grid resilience.

From the standpoint of sustainable development, the most promising model is not one of raw-material transit, but one of value-added creation. This implies agro-processing, industrial cooperation, service chains, digital trade, the localization of selected industries, and workforce training. In this case, connectivity is transformed from the movement of goods into a mechanism of structural modernization.

 

  1. Conclusion

Economic connectivity between Central and South Asia is one of the key conditions for the sustainable development of the macroregion. It is capable of expanding sales markets, reducing transport isolation, strengthening energy security, supporting employment, and creating new incentives for regional stability. At the same time, the expected effect depends not on a single project, but on a coordinated package of measures.

The main practical conclusion is the need for a portfolio approach. The trans-Afghan railway, the route through Iran, road corridors, air connectivity, the CASA-1000 and TAPI energy projects, trade digitalization, logistics hubs, and investment platforms should be viewed as mutually complementary elements. Each of them has different implementation timelines, risks, and economic logic; therefore, the regional strategy should ensure redundancy and flexibility.

Uzbekistan has objective advantages for the role of a connector state. Its geography, demographic potential, industrial base, southern hub in Termez, and active foreign economic agenda make it possible to bring together the interests of Central and South Asia.

The Termez Dialogue can become a platform where political will is translated into project-level discipline. For this to happen, it should generate not only declarations, but also a list of projects, indicators, road maps, evaluation mechanisms, and permanent channels of interaction among business, experts, and government agencies.

In the long term, connectivity between Central and South Asia should be oriented not only toward increasing trade volumes, but also toward improving the quality of development. A sustainable macroregion will take shape where infrastructure is connected with institutions, energy with climate responsibility, trade with industrial cooperation, and diplomatic initiatives with evidence-based analysis and practical results.

 

Muhammad Babadjanov,

Head of Department

at The Institute for Macroeconomic and Regional Studies

under the Cabinet of Ministers of the Republic of Uzbekistan

 

[1] https://www.worldbank.org/en/programs/south-asia-regional-integration/trade

[2] https://data.worldbank.org/?locations=TJ-UZ-KZ-TM-KG

[3] https://data.worldbank.org/country/south-asia

[4] https://uzembassy.kz/en/article/the-mazar-i-sharif-kabul-peshawar-railway-will-open-up-broad-prospects-for-international-trade

[5] https://www.worldbank.org/en/country/afghanistan/brief/updated-q-a-on-casa-1000-resumption-in-afghanistan

[6] https://www.worldbank.org/en/news/press-release/2023/11/01/additional-financing-for-casa-1000-project-for-the-kyrgyz-republic

[7] https://www.carecprogram.org/uploads/03-CAREC-Transport-Strategy-2030-Midterm-Review-Draft-Report.pdf

[8] https://cpmm.carecprogram.org/2022-report/key-results/

[9] https://www.worldbank.org/en/news/press-release/2025/06/03/climate-resilience-in-south-asia-will-be-private-sector-led

[10] https://data.worldbank.org/country/uzbekistan

[11] https://www.adb.org/news/features/numbers-climate-change-central-asia

The Year Began with Sustained Growth in Business Activity Across Uzbekistan’s Regions – CERR
The Year Began with Sustained Growth in Business Activity Across Uzbekistan’s Regions – CERR

Comprehensive monitoring of key business activity indicators across the regions of Uzbekistan shows growth across all major metrics.

According to оперативные данные from the Tax and Customs Committees, the Central Bank, and the Uzbek Republican Commodity Exchange, the Center for Economic Research and Reforms conducts ongoing monitoring of regional business activity in the Republic of Uzbekistan.

As of January this year, tax revenues demonstrated stable positive dynamics, increasing by 39.2% compared to the same period last year.

The most notable increase in revenues was recorded in the Syrdarya, Navoi, Khorezm, and Kashkadarya regions, where growth rates averaged approximately 49%.

Personal income tax revenues increased by 15.1%, property tax revenues by 19.6%, and land tax revenues by 20.3%.

Customs payments grew by 19.8% year-on-year. The highest growth rates were observed in the Navoi, Jizzakh, and Namangan regions, averaging approximately 67%.

Stable positive dynamics were also recorded in the Samarkand region and the Republic of Karakalpakstan, where revenues increased on average by 31%.

According to the analysis of foreign economic indicators, exports of goods increased by 19.5%. The most significant growth in export deliveries was observed in the Tashkent and Navoi regions, increasing on average by 47%.

At the same time, a notable expansion in lending activity was recorded. During the reporting period, the volume of loans issued by commercial banks increased by 2.7%. The highest growth was observed in the Samarkand, Bukhara, and Khorezm regions, averaging approximately 58%.

The active development of the private sector is confirmed by a significant increase in the number of newly registered business entities. In January 2026, a total of 7,116 new enterprises were registered. The largest number of new business entities was recorded in the city of Tashkent (1,712). Among the regions, the leaders were Tashkent region (735), Samarkand region (610), and Khorezm region (550).

The volume of transactions on the Uzbek Republican Commodity Exchange increased 1.8 times. Growth in exchange activity was recorded in most regions of the country, particularly in the Syrdarya region, where activity increased 11.1 times. In addition, growth was observed in the Khorezm, Surkhandarya, Bukhara, Jizzakh, and Kashkadarya regions, averaging 6.5 times.

Sultonmurod Ozodov,

Center for Economic Research and Reforms

Transforming the Aral Sea region into a global hub for climate technologies: green energy, water-saving innovations, and opportunities for international partnership
Transforming the Aral Sea region into a global hub for climate technologies: green energy, water-saving innovations, and opportunities for international partnership

Introduction: The Significance of President Shavkat Mirziyoyev’s participation in the 80th session of the United Nations General Assembly

The participation of the President of the Republic of Uzbekistan in the 80th session of the United Nations General Assembly (UNGA) this September held profound political and historic significance not only for our country but for the entire region. Speaking from this prestigious platform, which gathers heads of state from across the globe, Uzbekistan raised critical issues including sustainable development, combating climate change, ensuring food security, and the efficient management of water resources.

Through his address at the United Nations, a premier global institution, our President further solidified Uzbekistan’s international standing and reputation as a proactive and responsible state. Notably, by showcasing the ecological and innovative initiatives being implemented in the Aral Sea region, Uzbekistan demonstrated its openness to global cooperation in addressing pressing environmental challenges.

Another significant aspect of this participation is the integration of Uzbekistan’s international environmental initiatives into the global political agenda, highlighting the Aral Sea region as an open platform for advancing climate technologies.

During the visit, the initiatives concerning the Aral Sea region received significant attention from the international community.

During his address at the 80th session of the United Nations General Assembly, our President paid special attention to the environmental disaster in the Aral Sea region and the ongoing initiatives aimed at mitigating its consequences. This issue has garnered significant focus from the international community, reaffirming that the Aral Sea crisis is recognized not only as a regional challenge but also as a global environmental concern.

Uzbekistan’s initiative to transform the Aral Sea region into a hub of sustainable development and innovation has received strong support from international partners. In particular, significant opportunities were highlighted for implementing joint projects in areas such as green energy, water-saving technologies, ecotourism, and the restoration of biodiversity.

Thus, the raising of the Aral Sea issue on the prestigious platform of the United Nations during the visit served as a significant political and practical foundation for strengthening global cooperation and attracting increased attention from international donors and organizations.

Transforming the Aral Sea region into a hub for global climate technologies.

The challenges arising from the desiccation of the Aral Sea serve as a profound lesson for the entire world. In response, Uzbekistan aims to transform the Aral Sea region into a “global laboratory” by implementing advanced practices in green energy, water-saving technologies, biodiversity restoration, and climate change adaptation.

Such an approach not only addresses regional challenges but also offers an effective model for the international community. The projects being implemented in the Aral Sea region can subsequently serve as a replicable framework for other areas facing the impacts of climate change.

On May 18, 2021, during the 75th Session of the United Nations General Assembly, our President put forward the initiative to designate the Aral Sea region as a hub for ecological innovations and technologies. This proposal received enthusiastic support from the United Nations and the international community, and was unanimously adopted by all member states during the General Assembly plenary session. This resolution underscores Uzbekistan’s consistent and steadfast commitment to addressing the Aral Sea crisis and mitigating associated risks through a principled and effective approach.

The Aral disaster and its lessons for humanity.

The Aral Sea disaster is recognized worldwide as one of the greatest environmental catastrophes in human history. Once the fourth-largest lake in the world by surface area, the Aral Sea has almost completely dried up over the past half-century. This tragic development has dealt a severe blow to the regional climate, biodiversity, public health, and economy.

The drying up of the Aral Sea stands as a vivid example of human intervention that was not in harmony with nature. Excessive and inefficient use of water in irrigation, coupled with ineffective irrigation systems and planning errors, led to this major environmental disaster.

This tragedy underscored the necessity for humanity to use natural resources efficiently and wisely, highlighting the importance of developing water supply and agriculture solely based on sustainable technologies. At the same time, it clearly demonstrated that ensuring environmental security requires global solidarity and close international cooperation.

The imperative of sustainable development in the region.

The Aral Sea region today represents one of the most critical challenges for environmental, social, and economic sustainability in Uzbekistan and the broader Central Asian region. The limitations of natural resources, issues related to water supply, ongoing desertification processes, and declining living standards underscore the urgent need to implement a comprehensive sustainable development strategy in this area.

The necessity for sustainable development in the Aral Sea region is grounded in several key factors. Primarily, environmental security remains a pressing concern: frequent dust storms, soil degradation, and the loss of biodiversity pose direct threats to public health and the quality of life. Additionally, economic considerations are paramount, as the modernization of agriculture — the main source of income for the local population — requires the adoption of water-saving and innovative technologies.

Ensuring social sustainability requires a comprehensive set of measures aimed at creating new employment opportunities, increasing household incomes, and mitigating the risks of environmental migration. Furthermore, given that the challenges in the Aral Sea region transcend regional boundaries and hold global significance, addressing them necessitates reliance on international cooperation and partnership.

Opportunities of the Aral Sea region as an international innovation hub and platform for cooperation.

It is widely recognized that Uzbekistan has undertaken extensive and positive national efforts to combat the adverse environmental and public health impacts caused by the drying up of the Aral Sea. Since the early years of independence, the population of the White Aral Sea region has consistently felt the substantial support of the Uzbek government. The Government of Uzbekistan remains committed to paying continuous attention to the social welfare of the communities residing in the Aral Sea area.

Today, the Aral Sea region serves as an international innovation hub, playing a crucial role in promoting sustainable development in an area severely affected by ecological crisis. Through scientific, innovative, and practical projects, the center actively advances comprehensive work in key sectors including environmental protection, water resource management, agricultural technologies, energy, climate adaptation, and international cooperation.

In order to enhance the activities of the Center and further develop ecological and innovative technologies in the Aral Sea region, the Aral Sea International Innovation Center was transferred under the jurisdiction of the Ministry of Ecology, Environmental Protection, and Climate Change of the Republic of Uzbekistan, in accordance with Presidential Decree No. PQ-171 dated May 31, 2023.

In accordance with Presidential Decree No. PQ-5202 dated July 29, 2021, a modern laboratory, business accelerator training center, and technopark building, valued at 12.4 billion Uzbek soms, were completed and commissioned in 2024 within the Center’s premises. The laboratory is equipped with a plant seed gene bank and serves as a crucial scientific and innovative platform for preserving biodiversity in the region, protecting both native and introduced species, and achieving high efficiency in agricultural practices.

Currently, efforts are underway to commence full-scale operations at the facility, enrich the gene bank with an extensive seed collection, organize scientific research, and enhance the expertise of local specialists. This initiative not only supports sustainable agricultural development in Uzbekistan but also plays a crucial role in ensuring food security amid climate change and advancing international scientific cooperation across the entire Central Asian region.

Over the past period, the Center has established effective cooperation with a range of international and local organizations, as well as research institutes, in conducting scientific research and implementing projects. In particular, agreements and memoranda of understanding have been signed with over 70 foreign and domestic entities. Currently, 20 scientific-practical and innovative projects with a total value of 23.9 billion Uzbek soms are being carried out. These projects encompass alternative green energy, aquaculture, intensive horticulture, medicinal plant cultivation, resource-saving technologies, and social programs.

The Center’s activities are primarily focused on improving the living standards of the population, introducing and developing salt- and drought-tolerant crops, and implementing resource-efficient technologies. At the same time, it carries out scientific-practical and innovative initiatives aimed at restoring ecosystems, preserving biodiversity, and enhancing the quality of life in collaboration with leading international organizations. Among these partners are the United Nations Development Programme (UNDP), the International Center for Biosaline Agriculture (ICBA, UAE), the Xinjiang Institute of Ecology and Geography (China), the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the Global Green Growth Institute (GGGI), the Korea International Cooperation Agency (KOICA), the Japan International Cooperation Agency (JICA), and other prestigious institutions.

The “Samanbay” (24.3 hectares) scientific-production site in Nukus district and the “Moynoq” (106 hectares) site in Moynoq district serve as the primary experimental and testing bases of the Center. At these sites, experimental research and monitoring activities are being conducted in cooperation with foreign and local organizations. Additionally, the Center hosts joint laboratories established in partnership with international collaborators, as well as its own in vitro, soil, water, and plant biotechnology laboratories. These infrastructures support the deepening of scientific research carried out in the experimental fields and enhance the effectiveness of ongoing studies.

Each of the ongoing projects is aimed at creating long-term solutions for the Aral Sea region. Thanks to its innovative approach and international cooperation, the Aral Sea International Innovation Center is gradually becoming the primary platform in Central Asia for scientific research, technological development, and sustainable development.

In its future plans, the Aral Sea International Innovation Center aims to ensure environmental sustainability by implementing innovative eco-technologies, including desertification control measures and smart agriculture solutions.

Simultaneously, to strengthen scientific research activities, plans have been made to establish modern laboratories, a business accelerator, a training center, a technopark, experimental sites, and data analysis centers.

The Center aims to implement large-scale joint projects by further expanding cooperation with international organizations. Additionally, one of the Center’s priority directions is developing programs focused on fostering innovative ideas, creating startups, and enhancing professional skills for farmers, entrepreneurs, local communities, youth, and women.

Conclusion

The Strategic significance of the initiative to transform the Aral Sea region into a global hub for climate technologies.

The initiative to transform the Aral Sea region into a global hub for climate technologies holds strategic significance not only on a regional scale but also worldwide. Its core essence lies in ensuring environmental sustainability, conserving water resources, mitigating desertification processes, and restoring biodiversity.

At the same time, the introduction of solar and wind energy, modern irrigation systems, and innovative technologies will open broad avenues for the development of a green economy in the region. This initiative will strengthen cooperation with international organizations such as the United Nations and the Green Climate Fund, creating new employment opportunities for the local population and enhancing overall prosperity.

Most importantly, the Aral Sea region’s experience will serve as an effective model in addressing climate change and water resource challenges on a global scale in the future.

 

Director of the Aral Sea International Innovation Centre under the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan

B.S.Khabibullaev

Uzbekistan has set a goal to increase the level of youth enrollment in higher education to 50%
Uzbekistan has set a goal to increase the level of youth enrollment in higher education to 50%

Numerous scholars and studies have confirmed the connection between the quality of education and the well-being of society. The Nobel Prize winning Gary Becker was one of the first to inquire into the impact of education on economic growth and social development. His research has shown that investing in education can improve productivity and thus economic growth.

According to experts from the Organization for Economic Cooperation and Development, the high level of education, GDP and economic development serve to augment the average life expectancy and improve public health. One should note that stepping up the duration of education by 1 year can increase GDP by 3-6 percent.

Education is considered a crucial issue for Uzbekistan, 60% of the population of whose is young people under the age of 30, with a population increase of 700 thousand a year.

Up until recently, obtaining higher education was the dream of millions of Uzbek youth. In 2016, enrollment in higher education was only 9 percent of all the school graduates, and the number of higher education institutions was 69 (with 9 private). Due to a lack of student loans to finance higher education and support systems for vulnerable segments of the population, many were unable to study failing to pay tuition fees.

There were also problems for youth in getting onboard the higher education. Those willing to obtain one were able to apply only to one institution a year. And if they did not score enough in the admission exams, they had to wait until the next year to reapply to that or another university.

In addition, such factors as taking faculty and students to forced seasonal agricultural work used to have a grave negative impact on the quality of education. So did the insufficient material incentives for the teaching staff due to the extremely low wages.

After the election of Shavkat Mirziyoyev as President of the country in 2016, the system of admission to higher education institutions started to be revised, with overall systemic transformation underway, especially when it came to the quality of education.

First, the organizational and legal framework of the industry has been revised. In particular, the 2030 Concept for Higher Education Development in the Republic of Uzbekistan was approved in 2019 by the corresponding presidential decree.

In 2020, the Oliy Majlis (Supreme Assembly, the national parliament) passed the Education law in a new edition. In accordance with it, the system opened up to market mechanisms, priority was afforded to raising the scale and quality of education to a new level, to studying advanced foreign practices and establishing broad international connections.

Apart from that, adopted in 2023, the new edition of the Constitution introduced a number of new norms on the protection of the honor and dignity of teachers, government concern for their social and material well-being. The upgraded Basic Law also granted the higher education institutions the right to academic self-government, freedom in scientific research and teaching methodologies and approaches.

Second, to be sure, education advancement requires allocation of large sums from the state budget to this area. According to research, a 1% increase in education spending will increase GDP by 0.35%. It is for this reason that the amount of funds allocated from the public budget for the maintenance and development of educational institutions in Uzbekistan has been steadily growing.

In 2023, spending on education accounted for 44 percent of total social expenditures, reaching 61.2 trillion soums.

The rapid growth in the number of public and private universities, as well as branches of foreign ones, and the introduction of market mechanisms in this area have created the basis for expanding the market in educational services. Today there are 210 universities in the country, almost half of them are private (67) and foreign universities (29).

Crucially, the youth are now free to choose. A healthy competitive environment has begun to emerge among the institutions offering higher education. Branches of prestigious foreign universities like Westminster (UK), Webster (US), Management Development Institute of Singapore, Polytechnic University of Turin (Italy) have an important role to play in the implementation of advanced standards in higher education by inviting state-of-the-art certified faculty, making a good use of the latest teaching technologies, innovations and international best practices.

As a result of the enhancement of the higher education market in Uzbekistan, it became possible to boost the coverage in the system from 9 percent of school graduates enrolled in 2016 to 42 percent in 2023. And the launch of correspondence and evening studies at universities has contributed to a sharp increase in the proportion of students over 24 years of age. The total number of university students now exceeds 1.3 million.

Starting from 2019, applicants have been given the opportunity to simultaneously submit documents to several universities and choose an educational institution based on the results of entrance exams and their preferences. This year, building on a relevant presidential decree, exams for admission to universities will take place under the principle “test first, then choose”.

Uzbekistan has created a unique system that provides opportunities to obtain higher education for people in need of social protection and people with disabilities. In particular, the distribution of admission quotas was approved on the basis of an additional two percent state scholarship for persons with disabilities and one percent for graduates of Mehribonlik (Mercy homes, orphanages), children’s villages and family homes in the context of higher educational institutions and forms of education.

It will not be an exaggeration to say that changing society by attracting girls to higher education is a unique path for Uzbekistan. Here one can recall a popular wisdom that if you educate a girl, you educate the whole nation. In order to ensure gender equality, as well as the consistent implementation of the UN Sustainable Development Goals, starting from the 2022-2023 academic year, new educational loans are allocated on preferential terms (interest-free) for training girls and women. As a result, in 2023, interest-free educational loans in the amount of 1,548.6 billion soums were allocated to about 137.4 thousand students.

A procedure has also been established for reimbursement of tuition fees for girls studying for graduate degree at universities. During this time, 20,260 women took a good advantage of this opportunity.

Special emphasis is placed on the issues of training youth from Uzbekistan in prestigious foreign universities. In particular, the amount of funds allocated from the state budget to the El-Yurt Umidi (Hope of the Nation) Foundation for the training of talented youth abroad has been growing. If 200 billion soums were allocated to this fund in 2022, in 2024 the amount reached 500 billion soums. Thanks to the foundation, more than 1,000 young people have received education in respected higher education institutions abroad and today work in various fields. According to the UNESCO Institute for Statistics, students from Uzbekistan ranked fifth in the world in the number of students studying abroad in 2021. The number exceeded 110 thousand. This is also clear evidence of how young people in this country are thirsty for knowledge.

The Uzbekistan-2030 Strategy urges to bringing the level of youth enrollment in higher education to no less than 50 percent, including in at least 10 higher educational institutions in the top 1,000 ranking of the most prestigious universities, and making the way for the country into the top 50 nations by 2030 in the Global Innovation Index.

As a result of reforms over the past period, two universities of Uzbekistan for the first time entered the top 1,000 higher education institutions in the world, compiled by the British company Quacquarelli Symonds (QS). The National Research University “Tashkent Institute of Irrigation and Agricultural Mechanization Engineers” (TIIAME) was named 547th in the rating, while the Mirzo Ulugbek National University of Uzbekistan secured the 781-790th positions.

The National Research University TIIAME was among the 300 best higher education institutions in the world and among the top three universities in Central Asia in terms of “Academic reputation”, and the National University of Uzbekistan was in the top 200 in terms of “Share of foreign teachers” and took second place among universities in the region.

In addition, 53 higher educational institutions of Uzbekistan were noted in the “THE Impact Rankings” published by the Times Higher Education agency for 2024. Seven of them ended up in the top 1,000. In the ranking, the Tashkent State University of Uzbek Language and Literature came 10th in the world in terms of gender equality.

In short, well aware of the truism that investing into education means investing into your future.

 

Nodir Tilavoldiev,
Member of the Legislative Chamber of the Oliy Majlis
Republic of Uzbekistan