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
President of Uzbekistan Shavkat Mirziyoyev arrived in the Azerbaijani city of Gabala to participate in the summit of the Organization of Turkic States (OTS).
Due to its geographical position, historical ties, and natural resources, the Organization of Turkic States is becoming an increasingly significant platform for cooperation at this new stage of development. At the same time, OTS serves as a cultural bridge, fostering closer ties between the peoples of its member countries.
The Organization is based on the principles of equality and mutual interest, non-interference in internal affairs, and respect for the sovereignty of states - principles widely recognized by the international community.
The OTS comprises five member states: Azerbaijan, Kazakhstan, Kyrgyzstan, Turkiye, and Uzbekistan. Hungary, Turkmenistan, and the Economic Cooperation Organization hold observer status.
The current name of the Organization was introduced on November 12, 2021, at the initiative of the President of Uzbekistan. Previously, it was known as the Cooperation Council of Turkic Speaking States.
The primary goal of the OTS is to strengthen trust and multifaceted ties among the brotherly nations, to promote cooperation in trade, economy, energy, transport, tourism, cultural and humanitarian spheres, and to coordinate efforts to ensure peace and security in the region.
The conceptual foundation for achieving these objectives is the “Turkic Vision – 2040” program, adopted following the Eighth Summit of Heads of State held in Istanbul in November 2021.
For Uzbekistan, which joined the Organization in 2019, participation has become an important step not only in strengthening economic and political ties but also in preserving and developing the shared cultural identity of the Turkic world.
Uzbekistan chaired the OTS in 2022–2023, beginning with the Samarkand Summit in November 2022 under the motto “A New Era of Turkic Civilization: Towards Common Development and Prosperity”.
During its chairmanship, more than 100 events were held, and new platforms for practical cooperation were created. Uzbekistan pursued an open, inclusive, and diverse model of interaction, embracing various regions and civilizations.
The adoption of the “OTS Strategy for 2022–2026” at the Samarkand Summit became a major milestone. This document marked the first roadmap for the implementation of the “Turkic Vision – 2040” concept.
President Shavkat Mirziyoyev has actively participated in OTS summits since Uzbekistan joined the Organization. In particular, he took part in the meetings of the Council of Heads of State on November 6, 2024, in Bishkek and May 21, 2025, in Budapest.
These meetings focused on the current state and future prospects of multilateral cooperation, as well as key issues of practical partnership.
In his address at the informal summit in Budapest, the President emphasized the complexity of today’s geopolitical and geo-economic situation, the intensification of regional conflicts, and the impact of climate change.
He stressed the importance of resolving international issues based on international law and the UN Charter, and the need for common positions and coordinated approaches among member states.
Speaking about the development of practical cooperation within the OTS, the President noted the enormous untapped potential and put forward several new initiatives.
Particular importance is attached to Uzbekistan’s proposal to sign a Treaty on Strategic Partnership, Eternal Friendship, and Brotherhood among the Turkic States, which would represent a significant step toward deeper unity and the creation of a long-term legal foundation for multilateral cooperation.
“Last year, we proposed developing a treaty on strategic partnership, eternal friendship, and brotherhood among the Turkic states. Today, the significance of this document is growing. Undoubtedly, it will promote further unity among our peoples and solidify the long-term legal framework for multilateral cooperation. I propose signing this document at the summit in Baku”, - the President stated.
Since 2019, President Shavkat Mirziyoyev has put forward 98 practical initiatives at OTS summits aimed at advancing multilateral cooperation. More than 70 have already been implemented, and about 30 are in the process of realization.
For Uzbekistan, the main priority within the OTS is the economy. The country is currently focused on boosting exports, attracting investment, creating jobs, addressing unemployment, and reducing poverty. All these goals are closely tied to global economic integration, where the OTS format can support further coordination and development of production chains.
The total area of the OTS member states is approximately 4.2 million square kilometers, with a combined population of over 170 million - representing vast opportunities and a substantial market.
Under existing agreements, the OTS is viewed as an effective mechanism for regional cooperation with great integrative potential. Trade and economic indicators between member states are growing every year.
Today, OTS countries collectively rank third - after China and Russia - among Uzbekistan’s external trade partners. In 2024, mutual trade volume reached nearly $10 billion, accounting for about 15% of the country's total foreign trade.
Trade relations with Kazakhstan - Uzbekistan’s largest trade partner within the OTS - and Turkiye - the second largest - are showing particularly strong growth. By the end of 2024, trade turnover with Kazakhstan reached $4.28 billion, and with Turkiye, $2.9 billion.
Trade with Azerbaijan also continues to show positive dynamics. Notably, mutual trade volumes with OTS partners are setting new records each year.
Uzbekistan’s key exports to OTS markets include textiles, electrical products, automobiles, fruits and vegetables, and non-ferrous metals. Imports from OTS countries consist of rolled metal, aluminum, mechanical tools, construction materials, petroleum products, and a significant portion of grain and other food items.
To maintain and accelerate this positive trend, it is crucial to implement President Shavkat Mirziyoyev’s initiatives, including the creation of the “TURK-TRADE” online platform to facilitate and speed up trade operations, and the adoption of a Program of Practical Measures to Expand Trade aimed at increasing mutual trade volumes.
Industrial cooperation is also a vital area. Uzbekistan is actively supporting the development of this sector and promoting the establishment of new enterprises with capital from OTS countries. This year, the number of such enterprises is expected to reach approximately 4 thousand, representing a 60% increase compared to 2019. Their share in the total number of foreign-capital enterprises in Uzbekistan is projected to reach approximately 20%.
Transport cooperation is receiving special attention. OTS countries are steadily increasing their role in global transit. In 2024, freight traffic through the Middle Corridor reached 4.5 million tons - almost six times more than in 2020. This growth underscores the strategic importance of infrastructure projects like the China–Kyrgyzstan–Uzbekistan railway.
Member countries are also working to ensure secure and reliable transport and energy corridors across the Caucasus and Central Asia. These efforts not only facilitate trade expansion but also contribute to economic independence and regional prosperity.
Uzbekistan is actively involved in cultural and historical heritage preservation and promotion. In education, the country supports student and scholar exchange programs, strengthens cooperation between universities and research centers of Turkic states, and promotes joint academic initiatives and knowledge-sharing platforms. Key areas of Uzbekistan’s proposals also include projects in energy and environmental protection.
In conclusion, President Shavkat Mirziyoyev's participation in the OTS summit in Azerbaijan will be another important step in advancing forward-looking initiatives for the development of the Turkic world and strengthening peace and stability in the region. This visit will also serve as a new impetus for the consolidation of unity and the enhancement of the well-being of the peoples of the Turkic states.
“Dunyo” IA
The head of our state familiarized himself with the presentation on the development of master plans of districts and cities.
This task was set at the video conference call dedicated to priority tasks in the economy, which took place on January 16 this year. The responsible persons presented information on the work done, as well as the expected results from the implementation of master plans.
During this time master plans were developed for 14 districts and cities. They provide for the construction of 759 apartment buildings, 22 shopping centers and more than 800 service facilities.
In addition, 136 more master plans are planned based on driver areas in 112 neighborhoods.
For example, 38 high-growth neighborhoods need to build sufficient housing, public spaces and recreational parks.
In 20 districts with high tourism potential, there is an opportunity to increase the flow of tourists by 2.5 times by increasing the number of hotels and developing ecological, hunting, medical, sports and extreme tourism.
More than 400 motels, campgrounds, canteens, stores and car services can be created in 68 districts, through which main roads pass.
In general, thanks to the projects based on master plans, 40 thousand jobs are expected to be created, as well as annual budget revenues of 350 billion soums.
The head of our state emphasized the need to accelerate the creation of convenient infrastructure, shopping and entertainment places, as well as high-income jobs for the population.
The task has been set to create a vertical system of development and monitoring of master plans.
A presentation of the literary and publicistic collection “Uzbekistan: Third Renaissance – Concept of the Future” was held in Islamabad, written in Urdu by renowned Pakistani journalist and author Muhammad Abbas Khan, explores Uzbekistan’s modern development vision and reform agendat.
The collection offers a comprehensive analysis of the essence, spiritual foundations, and global significance of Uzbekistan’s vision for a New Renaissance — the foundation of the country’s Third Renaissance — under the leadership of President Shavkat Mirziyoyev. The book elaborates on the concept advanced by the Head of State, tracing its historical roots and outlining its relevance for the future of human civilization. The author emphasizes that this vision draws inspiration from the legacy of Uzbekistan’s great ancestors and seeks to unite the principles of modern development, enlightenment, and humanism, serving as a bridge between the nation’s rich intellectual past and its forward-looking aspirations.
The collection also highlights the shared initiatives and common aspirations of the leaders of Uzbekistan and Pakistan to advance major transport and communication projects linking Central and South Asia. According to the author, these efforts represent the revival of the legendary Silk Road. The book not only describes the sweeping reforms and modernization taking place in Uzbekistan, but also emphasizes that the development path of the “New Uzbekistan” may serve as an inspiring model for Pakistan and the wider Eastern world.
The presentation ceremony brought together members of Pakistan’s government and parliament, representatives of the diplomatic corps accredited in Islamabad, prominent scholars, analysts, public figures, and media representatives. Attaullah Tarar, Federal Minister for Information & Broadcasting of Pakistan, attended the event as the guest of honour.
The presentation opened with the national anthems of Uzbekistan and Pakistan, followed by a video highlighting the nine years of Shavkat Mirziyoyev’s leadership as a President of Uzbekistan.
The event commenced with welcoming remarks by Alisher Tukhtaev, Ambassador of Uzbekistan to Pakistan. In his address, the Ambassador emphasized that, under the leadership of President Shavkat Mirziyoyev, Uzbekistan has entered an era of openness and creative transformation.
He noted that over the past nine years, the country has implemented comprehensive reforms across the socio-economic, political, educational, and cultural spheres. As a result, Uzbekistan’s Gross Domestic Product has doubled, reaching 115 billion US dollars; exports have risen to 26 billion dollars; and foreign investments have exceeded 130 billion dollars. Thousands of new enterprises have been established, reflecting the dynamic pace of development and modernization.
It was noted that relations between Uzbekistan and Pakistan have been elevated to the level of a strategic partnership, with the establishment of the High-Level Strategic Cooperation Council. Direct air connections now link Tashkent with Islamabad and Lahore, while collaboration in the fields of education and culture continues to expand rapidly.
Particular attention was given to the Trans-Afghan Railway Project — recognized as a strategic initiative aimed at strengthening peace, mutual trust, and economic connectivity across the region, effectively reconnecting Central and South Asia.
Ambassador Alisher Tukhtaev expressed his sincere gratitude to the author of the featured work, Muhammad Abbas Khan, and to the management of “Daily Ittehad” publishing house for their contribution to the creation and publication of the book. He emphasized that this work will make a valuable contribution to fostering friendship and solidarity between the peoples of Uzbekistan and Pakistan.
In turn, Tahir Farooq, head of “Daily Ittehad” publishing house, expressed his satisfaction with the publication of the book “Uzbekistan: Third Renaissance – Concept of the Future”.
“This book is not merely a compilation of facts about Uzbekistan”, - he noted, - but an important work that vividly reflects the ongoing processes of reform and renewal in the country. It is not a collection of speeches or a translation of another author’s work, but the result of five years of observation and analysis by Muhammad Abbas Khan. His insights carry great significance for understanding Uzbekistan’s contemporary path of development. The book also serves as an important historical document of the new era unfolding in Uzbekistan”.
In his address, Attaullah Tarar, Minister for Information and Broadcasting of Pakistan, highlighted the deep historical ties between the peoples of Uzbekistan and Pakistan, noting that the land of Uzbekistan has produced eminent figures of the Timurid dynasty, including the distinguished scholar and statesman Zahiriddin Muhammad Babur. The Minister emphasized that the region connecting Central and South Asia has always been a vital part of the Great Silk Road, and that Uzbekistan’s contemporary policy under the leadership of President Shavkat Mirziyoyev is focused on revitalizing this historic corridor of cooperation.
Concluding his speech, Minister Attaullah Tarar reaffirmed the readiness of Pakistan’s Ministry of Information and Broadcasting to extend full support in promoting the book and the “Third Renaissance” initiatives advanced by President Shavkat Mirziyoyev to the Pakistani public.
In his address, author Muhammad Abbas Khan discussed the process of writing the book, the ideas it conveys, and its principal objectives. According to the author, the work is based on his research, observations, and personal impressions, providing an objective account of Uzbekistan’s ongoing processes of renewal and development.
“I have had the opportunity to directly observe the profound transformations taking place in Uzbekistan, the reforms being implemented under the leadership of President Shavkat Mirziyoyev, and the policies aimed at fostering an open society, enhancing human dignity, and advancing education and enlightenment, along with their tangible results. Today, Uzbekistan is experiencing a period of awakening. The concept of the Third Renaissance, being realized in Uzbekistan, serves as an example of a universal experience grounded in confidence in the future, scientific and spiritual renewal, and policies for the development of human potential”, - said Muhammad Abbas Khan.
The book “Uzbekistan: Third Renaissance – Concept of the Future” is expected to serve as a unique resource for familiarizing the Pakistani public with Uzbekistan’s new historical path of development, while further strengthening the cultural and spiritual bonds between the two nations.
Social policy in our country contains a wide range of issues on poverty alleviation, job creation, and support for socially vulnerable groups of the population. Investments in human capital are both a contribution to the social and economic sectors of the country's development. Moreover, according to a study by the Institute of Macroeconomic and Regional Studies under the Cabinet of Ministers of Uzbekistan, improving the quality of human capital leads to an increase in the inflow of foreign direct investment by 0.51 percent.
Article 1 of the Constitution of the Republic of Uzbekistan in the new wording, adopted following the results of the national referendum, once again confirmed the commitment and orientation of the state to care for its citizens from the first days of their birth, regardless of their social status. It should be noted that the state did not come to this principle immediately, as the domestic social policy was formed step by step, i.e. in the process of long negotiations, permanent compromises and economic opportunities.
The enshrinement in the Constitution of the statement that Uzbekistan is a sovereign, democratic, law-based, social and secular State increases its social obligations.
It should be noted that a social state in the general sense guarantees quality education, qualified medical care, comprehensive support for families, children, women, the elderly and persons with disabilities, provides housing and employment for those in need, creates safe working conditions and reduces poverty.
All of the above-mentioned state guarantees began to be reflected in the last decade of our country, which entered the world history as New Uzbekistan.
First, the Strategy of Action on Five Priority Areas of Development of the Republic of Uzbekistan in 2017-2021 and the Strategy for the Development of New Uzbekistan for 2022-2026 identify as priority tasks: building a humane state by elevating human honor and dignity and further developing a free civil society; turning the principles of justice and the rule of law into a fundamental and necessary condition for the country's development; accelerating the development of the national economy and ensuring high growth rates; carrying out the development of the country's economy; and ensuring the development of the national economy.
Secondly, the Ministry of Employment and Poverty Reduction has been established, the Ishga Markhamat monocenters have been launched, the “iron” “women's” and “youth” notebook systems have been set up, one hundred percent pensions are paid to working pensioners, the Social Protection Strategy of the Republic of Uzbekistan has been approved, and the problem of poverty in the country has been recognized. Moreover, the post of assistant khokims has been introduced, who are responsible for poverty reduction, developing entrepreneurship, organizing jobs and increasing the incomes of citizens. Most importantly, a new system of caring for the population has been created.
President Shavkat Mirziyoyev chaired a video conference call on May 15, 2023 to discuss measures to reduce poverty and provide employment. Following the recognition of the existence of poverty in the country, a system to reduce it was introduced. At the beginning of last year, all districts in Uzbekistan were divided into five categories and given differentiated benefits based on the pace of socio-economic development. As a result, one million people have been lifted out of poverty.
Thirdly, education and medicine are the most important and comprehensive social spheres. In order to accelerate reforms and improve efficiency in these sectors, relevant project offices have been established.
Undoubtedly, investment in human capital is the best contribution to the future. In this regard, unprecedented reforms have been carried out in the area of continuous improvement of the system of continuous quality education and training of qualified personnel. As a result, preschool education coverage has increased from 27 to 74 percent, 11-year compulsory schooling has been resumed, the workload of school teachers has been optimized, and forced labor has been abolished.
Changes in the higher education system in recent years have also shown significant positive results. As a result, enrollment in higher education has increased from nine to 42 per cent, and the number of higher education institutions has grown from 77 to 212.
Our country pays great attention to the medical sphere, which directly affects the quality of life. Over the past seven years, the financing of the health care system has increased from 5.9 trillion to 33.5 trillion soums, i.e. six times. Hospitals are being equipped with modern equipment and new facilities are being built. In order to bring medicine closer to the people, on-site screening examinations are being conducted.
It should be noted that Uzbekistan is working on targeted support for socially vulnerable segments of the population. This is evidenced by the addition of a new wording to article 57 of the Constitution on State measures aimed at improving the quality of life of socially vulnerable categories, creating conditions for their equal participation in public and State life with other citizens, and expanding their opportunities to independently provide for their basic living needs.
One of the main innovations is article 42 of the Basic Law, which states that the minimum wage shall be determined taking into account the need to ensure a decent standard of living. From December 1, 2023, the minimum wage is equal to 1.05 million soums, while the cost of consumer expenditures is set at 568 thousand soums per person per month.
In addition, according to the Presidential Decision “On measures to further improve the system of social services and assistance to the population” of September 28, 2023, a new system of social assistance by the employees of the social service centers “Inson” of the National Agency for Social Protection has been introduced in 28 districts (cities) on a pilot basis since October 15 last year. The employees are responsible for keeping records and register of lonely, elderly and disabled persons in need of care, which helps to develop a plan of individualized social services by taking into account the degree of need for care. At the same time, assistance to the lonely elderly included in the Unified Register of Social Protection is provided on the basis of a contract.
Uzbekistan's upcoming elections for the Legislative Chamber of the Oliy Majlis (Parliament) and the Councils of People's Deputies, scheduled for October 27th, are not just a routine event. They mark a significant milestone in the nation's democratic journey, introducing groundbreaking changes that promise to transform the electoral landscape. The recent meeting of the Central Election Commission unveiled several key innovations that will ensure greater efficiency, transparency, and inclusivity, making these elections a matter of global interest.
For the first time in the nation's history, the Legislative Chamber elections will employ a mixed electoral system, combining majoritarian and proportional representation. This change means that voters will elect seventy-five deputies directly, while another seventy-five will be chosen based on party votes. This system aims to create a more balanced and representative legislature, enhancing democratic legitimacy and ensuring a broader spectrum of political voices.
One of the most notable advancements in Uzbekistan's electoral system is the full digitization of election commission activities. The introduction of the 'E-Saylov' information system is a significant leap forward, revolutionizing the election process. This digital platform not only streamlines the process, reducing bureaucracy and document handling, but also ensures a smoother, more efficient, and transparent electoral experience. It automates interactions between election commissions, political parties, candidates, observers, and the media, providing real-time statistical data, candidate information, and interactive maps. This technological leap empowers voters with unprecedented access to essential election-related information, making the electoral process more inclusive and transparent.
Inclusivity is another cornerstone of these elections. New election legislation requires political parties to ensure that at least 40% of their candidates are women, a progressive move towards gender equality in political representation. This requirement not only aligns Uzbekistan with advanced democratic standards but also enriches the political discourse by incorporating diverse perspectives.
The elections are taking place in a context where the updated Constitution has significantly enhanced the powers of parliament and representative bodies. The Legislative Chamber's powers have increased from 5 to 12, and the Senate's from 12 to 18. Parliament's oversight functions over executive, judicial, law enforcement, and special services have also been expanded. Additionally, the leadership of local Councils of People's Deputies by hokims (governors) has been abolished, transferring 33 powers previously held by hokims to local Councils to increase their role in resolving critical state issues.
The slogan "My Choice—My Prosperous Homeland" not only captures the spirit of these elections but also reflects the unwavering commitment of Uzbekistan's leadership to democratic state-building and citizen empowerment. With over 120,000 election commission members, 70,000 citizens, and numerous international observers participating, the elections are set to be a transparent and inclusive process, further demonstrating this commitment.
In conclusion, Uzbekistan is setting a remarkable precedent with its upcoming elections by embracing technological innovation and inclusivity. These initiatives will undoubtedly pave the way for a more prosperous and democratic future, showcasing Uzbekistan’s dedication to advancing democratic principles and practices.
Eldor Tulyakov,
The Executive Director,
Development Strategy Centre (Uzbekistan)
On August 14-15, 2025, the VIII Central Asian Expert Forum (CAEF) will be held in Tashkent under the title “Central Asia – a common space of trust, security and sustainable development”.
Established in 2018, the CAEF is held annually in the country chairing the Consultative Meeting of the Heads of State of Central Asia. The forum serves as an important platform for discussing the current state and prospects of regional cooperation, as well as developing recommendations for the further development of cooperation in Central Asia.
The Forum is organized by the Institute for Strategic and Regional Studies under the President of the Republic of Uzbekistan (ISRS). Event partners include the Regional Center for Preventive Diplomacy for Central Asia, the European Union Delegation to Uzbekistan and the Organization for Security and Cooperation in Europe (OSCE), and the Konrad Adenauer Foundation.
The Forum will traditionally bring together heads and specialists of strategic institutes, research centers, and academic institutions from across the region. For the first time, prominent experts from the EU, ASEAN, the Nordic Council, as well as researchers from the Russian Federation, the USA, Great Britain, Switzerland and Azerbaijan have been invited to participate in its work in order to exchange experience in regional studies.
The Forum’s program will focus on prospects for deepening regional cooperation and explore specific measures to promote multifaceted collaboration.
In addition, the Forum will feature separate events: a scientific-practical conference on shaping regional identity and a roundtable discussing prospects for partnership between Central Asia and Northern Europe.
The upcoming expert dialogue is expected to identify common interests and outline priorities for Central Asia’s future development. The resulting recommendations will enrich the agenda of the forthcoming Consultative Meeting of the Heads of State of Central Asia, scheduled to take place this year in Uzbekistan.
The issues of further expansion of practical interaction and promotion of investment cooperation projects were discussed at the meeting between President of the Republic of Uzbekistan Shavkat Mirziyoyev and the delegation of the United Arab Emirates comprising Minister of Industry and Advanced Technologies Sultan Ahmed Al Jaber and Minister of Energy and Infrastructure Suhail Mohammed Al Mazroui.
At the beginning of the conversation, Sultan Al Jaber conveyed to the Head of our State sincere greetings and best wishes from the President of the Emirates Sheikh Mohamed Al Nahyan, Prime Minister of the country, Emir of Dubai Sheikh Mohammed Al Maktoum and Vice President Sheikh Mansour Al Nahyan.
In the course of the meeting, the current highest level of Uzbek-Emirati multifaceted relations was noted with special satisfaction. The volumes of mutual trade turnover, the number of joint ventures and the frequency of flights are growing. The portfolio of ongoing and promising projects with the participation of leading Emirati companies in Uzbekistan reaches $20 billion.
Green energy is the driving force behind bilateral cooperation. Today, a 500 megawatt wind farm was commissioned in Navoi region, a project implemented by Masdar.
In general, in recent years with the participation of this company power generation facilities with total capacity of 1.5 gigawatts have been commissioned in our country.
Particular attention was paid to the early preparation and implementation of major investment projects in the energy, oil and gas and chemical industries, mining, water supply, household waste processing and other fields.
The importance of continuing productive contacts at all levels and careful preparation for the upcoming high-level events was noted.
In October, the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, will pay a visit to the Kingdom of Belgium, during which important decisions are expected to be made that will mark a qualitatively new stage in relations between Uzbekistan and the European Union. In particular, the visit will feature the signing of the Agreement on Enhanced Partnership and Cooperation.
In recent years, Uzbekistan has been actively shaping a new framework of engagement with Europe – a key pillar of stability amid current geopolitical tensions and global economic uncertainty. The ties between Uzbekistan and European countries continue to grow, and the areas of cooperation are diversifying, supported by the ongoing reforms in Uzbekistan.
Building a New Chapter in Relations
After gaining independence, Uzbekistan’s relations with the European Union developed dynamically. A Memorandum of Understanding between the Government of Uzbekistan and the European Commission was signed in 1992, followed by the establishment of diplomatic relations in 1994. The foundation of cooperation was laid by the Partnership and Cooperation Agreement (PCA) signed in June 1996 and entering into force in 1999. However, at a certain stage, cooperation faced difficulties due to the insufficient pace of democratic reforms in Uzbekistan.
With the election of Shavkat Mirziyoyev as President, the situation changed dramatically. As early as 2017, during his visit to Tashkent, Stefano Manservisi, Director-General for International Cooperation and Development of the European Commission, stated that “the EU regards Uzbekistan as a strategic partner.” The sweeping democratic and economic reforms launched in Uzbekistan helped resolve within a short period many issues that had long remained unsolved. Forced labor was completely eradicated, and reforms in the cotton sector enabled the country to abandon raw cotton exports altogether.
As reforms advanced, the legal and institutional framework of relations with Europe expanded rapidly. While previously Uzbekistan and the EU granted each other most-favored-nation treatment under the PCA, in April 2021 the EU granted Uzbekistan GSP+ beneficiary status, and in 2022 the Enhanced Partnership and Cooperation Agreement (EPCA) was initialed.
Along with internal transformation, Uzbekistan’s foreign policy architecture also changed. Priority was given to closer cooperation with neighboring Central Asian states, as well as the active expansion of ties with European countries – a vector that has strengthened steadily in recent years.
Just in the past year, Uzbekistan established strategic partnership relations with France, Italy, and Slovakia, while discussions on expanding strategic cooperation with Hungary continued. President Mirziyoyev also visited Slovenia, and Italy’s Prime Minister and Bulgaria’s President visited Uzbekistan.
A milestone in strengthening relations between Uzbekistan and Europe, and between Europe and Central Asia as a whole – was the first EU–Central Asia Summit, held in Samarkand in April 2025 under the chairmanship of Shavkat Mirziyoyev. Uzbekistan presented a broad range of initiatives to create a new model of regional cooperation between Central Asia and Europe, including: a multilateral agreement on investment protection and promotion; the launch of a Central Asia–EU Joint Chamber of Commerce; the adoption of a regional support program for SMEs and women’s entrepreneurship; the establishment of an investment platform to promote regional projects in green energy, innovation, transport, infrastructure, and agriculture.
The Samarkand Summit was highly productive. A Joint Declaration was adopted, establishing a strategic partnership between the two regions in trade, transport, energy, digital connectivity, and water management. European Commission President Ursula von der Leyen announced that the EU had prepared a €12 billion investment package for Central Asia under the Global Gateway initiative.
The Trajectory of Economic Cooperation
Uzbekistan’s deep democratic transformations have significantly improved relations with European countries. Economic reforms have enhanced the competitiveness of Uzbekistan’s economy, stimulating investor confidence and growing interest from European businesses.
The results are impressive. Over the past 8 years, Uzbekistan’s GDP has doubled, reaching $115 billion in 2024. Since 2017, investment in fixed capital has totaled $240 billion, of which foreign investment exceeded $130 billion. The country’s foreign exchange reserves surpassed $48 billion for the first time in history. Structurally, the share of industry in the economy increased from 20% to 26%, and services from 44% to 47%. Labor productivity (GDP per employed person) rose by 45%.
As a result, opportunities for mutually beneficial cooperation between Uzbek and European businesses have expanded. Between 2017 and 2024, Uzbekistan’s trade with the EU increased 2.4 times to $6.4 billion; exports grew 3.6 times to $1.7 billion, and imports 2.2 times to $4.7 billion. In 2024, the EU’s share in Uzbekistan’s total trade turnover was 9.7%, in exports 6.3%, and in imports 12%. The EU ranked third among Uzbekistan’s trade partners, after China and Russia.
The EU’s share in Uzbekistan’s total exports increased from 3.8% to 6.3% over the same period. This growth was driven by Uzbekistan’s accession to the GSP+ preferential trade system, granting duty-free access to the EU market across roughly 6,200 tariff lines. The share of Uzbekistan’s exports benefiting from GSP+ reached 59%, with a preference utilization rate of 84%, indicating efficient use of trade benefits.
In 2024, Uzbekistan’s exports to the EU were dominated by chemical products (52.1%), as well as textiles, ferrous and non-ferrous metals, minerals, and food products. Among EU members, France accounted for 47.2% of exports, Lithuania for 10%, and Latvia for 6.9%.
Uzbekistan’s imports from the EU significantly exceeded exports – a reflection of the ongoing technological modernization of the national economy. Around 16% of Uzbekistan’s total imports of machinery, equipment, and transport vehicles come from EU countries.
Investment cooperation is also expanding rapidly. In 2024, foreign investments and loans from EU countries and their financial institutions increased by 77%, reaching $4.1 billion (compared to $2.3 billion in 2023). The most active investors were Germany ($1.37 billion), the Netherlands ($1.05 billion), Cyprus ($858.9 million), the Czech Republic ($137.8 million), Italy ($99.8 million), and Sweden ($97.5 million). Today, around 1,000 enterprises with EU capital operate in Uzbekistan, with a total project portfolio of €30 billion.
A special role in recent years belongs to the EBRD, of which Uzbekistan has become one of the largest beneficiaries. The Bank’s total investments in Uzbekistan’s economy exceeded €5 billion, including around €1 billion in 2024, primarily directed toward the private sector.
Reforms in Uzbekistan have become the key driver for unlocking the significant potential of trade and economic cooperation with the European Union.
Uzbekistan–Belgium
The upcoming visit will also focus on strengthening relations between Uzbekistan and Belgium. Diplomatic relations were established following the opening of the Embassy of Uzbekistan in Brussels in 1993. In 1996, the two countries signed an Agreement on avoidance of double taxation, and in 1998 – an Agreement on mutual protection and promotion of investments, which provide legal guarantees for investors in both states.
Business contacts have intensified in parallel with Uzbekistan’s reform agenda. The visits of 2019 and 2022 set the tone for cooperation in infrastructure, energy, and the digital economy. More important than the current trade volumes has been the recognition and support of Uzbekistan’s reforms by EU partners, laying the foundation for long-term engagement.
In 2024, bilateral trade amounted to $62.3 million, including $7.3 million in Uzbek exports and $55 million in imports. Investment cooperation is gaining momentum: several dozen companies with Belgian capital now operate in Uzbekistan, including wholly owned enterprises. New technologies are being localized, for example, Jaga Climate Designers is participating in a joint venture for heating and ventilation systems, and Picanol Group is localizing the assembly of high-tech textile machinery. Belgian brands Belcolade and Prefamac are exploring opportunities to launch chocolate production with subsequent localization.
Despite modest trade volumes, there is significant potential for expanding cooperation in several areas. Given Belgium’s leading role in pharmaceuticals and biomedical research and Uzbekistan’s growing pharmaceutical market, joint ventures or industrial clusters could be developed in this sector, involving companies such as UCB and Janssen Pharmaceutica.
There is also strong potential for joint fruit and vegetable processing projects in Uzbekistan, targeting exports to the EU via Belgian logistics hubs such as the Port of Antwerp and wholesale markets. Potential partners include Greenyard and Puratos. Direct seasonal exports of fresh fruits (e.g., grapes in autumn and winter), as well as dried vegetables, spices, and organic products, could also be expanded. In light industry, there is room to increase exports of ready-made knitwear and home textiles, provided European quality and safety standards are met. The market potential is evident – Belgium imported about $7.9 billion worth of clothing in 2024.
The main challenges remain logistics and standards. Belgium functions as a major EU maritime hub centered around Antwerp, while direct routes from Uzbekistan are still limited. The near-term priority should be pilot supply chains ensuring quality and traceability, the development of cold logistics, certification under EU technical and sanitary regulations, the use of Benelux consolidation hubs, and trade finance tools for SMEs. With the gradual development of new overland routes along the Middle Corridor, Uzbekistan will gain a stronger foothold in high value-added exports without higher costs or delivery delays.
Conclusion
Uzbekistan is entering a stage of deepened economic cooperation with the European Union. During the ongoing modernization and digital transformation of its economy, European investment, technology, education, and research experience can play a key role. At the same time, Uzbekistan seeks to expand exports of industrial goods as their quality improves.
Uzbekistan is also a rapidly growing market with a young and dynamic population, now reaching 38 million people – an 18% increase since 2017. Every year, around 700,000 economically active individuals enter the labor market, forming a substantial human resource base for the economy, including joint ventures.
As a result of poverty reduction policies, living standards and household incomes have risen significantly. Whereas a third of the population once lived below the poverty line, 7.5 million people have been lifted out of poverty, and the poverty rate declined to 8.9% in 2024, with plans to reduce it further to 6% this year. These policies not only address social challenges but also expand domestic demand, increasing the interest of European businesses in entering Uzbekistan’s market.
The further deepening of Uzbekistan’s economic engagement with the EU and Belgium is an objectively mutually beneficial process – one that will define the success of the upcoming state visit of President Shavkat Mirziyoyev to Belgium.
The agreements expected to be signed will help advance joint projects in sustainable energy and infrastructure, strengthen transport and technological connectivity between Central Asia and Europe, and position Europe as a key partner in Uzbekistan’s long-term growth and modernization trajectory.
Оbid Khakimov,
Director of the Center for
Economic Research and Reforms
President Shavkat Mirziyoyev visited the mausoleum of Imam Bukhari on June 15, on the eve of the holy Eid al-Adha holiday.
Surahs from the Koran and dua were recited.
In conversation with religious figures, they talked about the conditions created for the development of science and enlightenment, education of youth in the spirit of patriotism and respect for national values.
Renovation of the complex is underway. The head of state familiarized himself with the progress of construction and finishing works.
The President concluded his visit to Samarkand and left for Tashkent.
President Shavkat Mirziyoyev familiarized himself with the proposals on improving the quality of pre-school and school education and the system of professional development of teachers.
Students' interest in subjects and their academic performance largely depend on the knowledge and skill of teachers. Therefore, necessary conditions are being created for teachers' professional development and the system of knowledge assessment is being improved.
The responsible persons reported on the developed proposals in this sphere.
It was noted that a new certification system based on advanced technologies has been introduced. More than 190 thousand teachers took part in it, 51 thousand teachers were promoted to the new category based on the results.
It was emphasized that it is necessary to constantly stimulate the increase in the number of professional and self-educated teachers in schools.
It was proposed to increase the salaries of teachers with the highest and first qualification category from September 2025.
It was instructed to develop and implement a separate professional development program for teachers who have not been certified and do not have sufficient experience.
In this process, it is necessary to make full use of the possibilities of professional development centers and teacher training colleges. To this end, based on the experience of the Presidential Schools, a system of professional development for the heads and teachers of kindergartens and schools will be organized at the Abdullah Avloni National Research Institute with a frequency of every 5 years.
A task has been set to transfer 11 pedagogical colleges in the regions under the authority of the Centers of Professional Development and attract trainers from abroad.
It was informed that kindergartens and schools, technical schools and "Barkamol Avlod" school will be established on the basis of teacher training colleges with low workload.
In order to disseminate best practices, the evaluation system of Presidential Schools was introduced in 500 schools last year. As a result, student achievement in these schools increased from 53 percent to 59 percent. A bonus of up to 40 percent has been set for school leaders and teachers of high-performing schools.
In this regard, starting from the new school year, this evaluation system will be applied in another 1,000 schools. They will be assigned to 182 specialized schools and 500 schools that have tested the system.
Also 270 schools will be equipped with interactive whiteboards, 365 schools will be provided with computer classes.
The presentation also considered a proposal to establish the National Institute of Pedagogy of Education on the basis of the Research Institute of Pedagogical Sciences of Uzbekistan named after Kary-Niyazi. The new institute will be entrusted with the tasks of strengthening makhalla-parents-school cooperation, creating educational literature for parents and children, and scientific research of didactic views of the Jadids. Activity of the Academic Council on 5 specialties will be organized, as well as training of personnel in master's and doctoral studies.
In addition, the issues of introducing international methods in the schools of sportsmanship of Bakhodir Jalolov and Oksana Chusovitina, improving the quality of education and training were touched upon.
The head of state gave instructions on improving the quality of teachers' training, organizing a fair system of evaluation and incentives.