In the context of rapidly changing global economies, transport and logistics are becoming more than just infrastructure elements, but crucial instruments of economic and geopolitical influence. Against this backdrop, the Organization of Turkic States (OTS) is gradually emerging as one of the most promising platforms for regional cooperation in Eurasia. The development of transport and transit links, which are now becoming the foundation for the economic integration of the Turkic countries, holds a special place in the Organization's activities.

In this regard, the informal summit of the OTS, which will take place on May 14-15 this year in Turkestan (Republic of Kazakhstan), will be positive step in further strengthening the position of the Organization, deepening cooperation and uniting the efforts of all Turkic states.

Transport as the basis of a new Eurasian architecture

Today, the member states of the OTS interact in more than 40 areas – from economics and energy to digital technologies and artificial intelligence. However, transport sphere is gradually becoming the main driver of integration.

This is due to the unique geographical location of the Turkic countries. The region is located at the intersection of major international routes connecting Europe, Central Asia, China, the Middle East, and South Asia. A new Eurasian logistics system is effectively emerging, in which the OTS’s member states play a key link between East and West.

Amid the transformation of global supply chains and growing competition between international transport routes, the states of the region are striving not only to strengthen their own infrastructure but also to create a unified transit and logistics space.

Formation of a common transport policy

In recent years, a solid legal framework has been created within the OTS, which enshrines the strategic importance of this area in documents such as «Turkic Vision 2040» and «OTS Strategy for 2022–2026».

The 2022 Samarkand Summit was of particular significance, as it saw the signing of «Agreement on International Combined Freight Transport among the Governments of the Member States of the OTS» and «the Transport Connectivity Program». These documents ushered in a new era of cooperation among Turkic countries in the near future and established specific mechanisms for its implementation.

An important step was the introduction of the e-CMR system in 2026, which allows for the electronic transfer of transport documentation. This significantly simplifies transportation, reduces bureaucratic procedures, and expedites the passage of goods across state borders. At the same time, cooperation is developing in the digitalization of customs processes, the implementation of electronic permits, and the unification of transit procedures.

Institutional strengthening of cooperation

In recent years, the OTS has been consistently developing an institutional framework for transport integration, moving cooperation from a political and declarative level to a practical level. Regular meetings of the competent authorities of the Organization’s member states play a key role in this process.

Thus, at the meeting of OTS Transport ministers in April 2026 in Bishkek, the focus was on the development of transport corridors and the removal of border crossing barriers. Essentially, this is about creating a more coordinated regional transport system capable of increasing the competitiveness of OTS routes amid growing freight flows between Asia and Europe.

Meetings of heads of railway administration, held since 2022, serve a similar function. At the October 2025 meeting in Bishkek, issues of digitalization of transportation management and improving the efficiency of rail service were discussed. This demonstrates the desire of the OTS countries to unify transport procedures and reduce logistics costs within the region.

An additional step toward institutionalization was the creation of the Alliance of Logistics Centers and Cargo Carriers within the OTS in Tashkent in 2024. The establishment of this structure demonstrates a shift toward deeper business involvement in transport integration processes.

Transport corridors as a strategic basis for the integration of OTS countries

One of the key areas of the OTS's transport strategy is the creation of a unified space of transport connectivity, centered on the development of international corridors linking East and West, as well as North and South Eurasia.

The «Middle Corridor», connecting China and Europe via Central Asia and the South Caucasus, is particularly important in this system. Against the backdrop of the transformation of global logistics, geopolitical instability, and the desire of states to diversify trade routes, this corridor is becoming one of the most promising transport arteries in Eurasia.

While the volume of traffic along this route remained relatively limited in 2020, by 2025 it exceeded 5 million tons, an increase of almost sixfold. This demonstrates the gradual transformation of the «Middle Corridor» from an alternative route into an important element of the global transport system.

Moreover, the corridor's significance extends far beyond its purely transit function. For the OTS’s member states, its development means strengthening trade and economic ties, expanding access to external markets, attracting investment, and increasing the resilience of national economies to external challenges. In the long term, the «Middle Corridor» is seen as the foundation for the development of a new model of Eurasian connectivity.

A key element of this strategy is the implementation of the «China-Kyrgyzstan-Uzbekistan» railway project, which is already considered one of the most significant infrastructure projects in Central Asia. Construction of the highway, which includes 50 bridges and 29 tunnels with a total length of approximately 120 kilometers, is estimated to cost approximately $4.7 billion.

The project will significantly reduce freight delivery times between China and Europe, strengthen Central Asia’s transit potential, and enhance the integration of the OTS’s transport system. Essentially, this creates a new strategic route capable of transforming the region's logistics configuration.

Equally important is the development of the «Trans-Afghan Corridor», which opens OTS countries to the markets of South Asia, with a population of approximately 1,9 billion and a combined GDP of approximately $3,5 trillion. For Central Asian states, this creates opportunities to diversify foreign trade, expand export routes, and reduce transportation costs. At the same time, the Trans-Afghan route has the potential to become a factor in the economic stabilization of the region by boosting trade, investment, and industrial cooperation.

Uzbekistan as a Driver of Transport Integration in the OTS

Since the Republic of Uzbekistan joined the Organization of Turkic States in 2019, transport and logistics cooperation has become a key focus of the country's foreign economic strategy within the Organization. Against the backdrop of the transformation of global supply chains, the growing importance of alternative Eurasian routes, and increased competition among international transport corridors, Tashkent has consistently promoted initiatives aimed at creating a unified transport and transit space for the OTS.

The initiatives of the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, play a key role in advancing this agenda. He views transport connectivity as a key factor in regional integration and economic development. At the OTS summit in Turkey in 2021, the head of state emphasized the need for systemic cooperation in transport and transit, effectively marking a shift to a more comprehensive approach within the Organization. This agenda received significant impetus at the 2022 Samarkand Summit, where Uzbekistan advocated for the development of multimodal routes and the implementation of the e-TIR, e-Permit, and e-CMR electronic systems.

Uzbek logistics centers Universal Logistics Services (Tashkent), Akhtachy (Andijan), and Termez Cargo Center (Surkhandarya) joined the «Sister Ports» initiative, marking a practical step toward integrating Uzbekistan’s transport infrastructure into the regional logistics network.

At the summit in Astana in 2023, Uzbekistan again emphasized the diversification of transport routes and the development of the «Middle Corridor», which, in the current geo-economic environment, is acquiring strategic significance as an perspective route between Asia and Europe. At the same time, Tashkent promoted for the expansion of transport routes connecting OTS countries with the markets of China, South Asia, and Europe.

A logical continuation of this line of action was the initiatives announced at the OTS summit in Bishkek in November 2024. The focus was on optimizing transit tariffs, simplifying border procedures, creating joint logistics mechanisms, and transitioning to electronic document management.

In May 2025, at the informal OTS summit in Hungary, Uzbekistan supported for the accelerated implementation of «single-window» systems and «green corridors» along the Trans-Caspian route. At the summit in Gabala in November 2025, special attention was paid to enhancing the competitiveness of the «Middle Corridor», modernizing infrastructure, and other areas. Particular importance was placed on linking this route with the «China-Kyrgyzstan-Uzbekistan» railway project and the «Trans-Afghan Corridor», which effectively creates a new system of transport connectivity across a vast region.

The International Forum on Multimodal Transportation held in Tashkent on November 12, 2025, was a practical confirmation of Uzbekistan's growing role in the OTS’s transport agenda.

Overall, the Turkic countries are already demonstrating a willingness to move beyond the idea of ​​partnership to the creation of a unified interconnected space. Joint infrastructure projects, the development of interregional corridors, the digitalization of logistics, and Uzbekistan’s active role in promoting these processes form the foundation of a new transport architecture within the OTS.

Sarvar Kamolov,

the Chief Research Fellow of
the Institute for Strategic and Regional Studies
under the President of the Republic of Uzbekistan

Amir Temur occupies a place in world history not only as a great commander and statesman who built a powerful and prosperous state. The great ruler turned his capital, Samarkand, into one of the cultural, architectural, scientific and spiritual centers of the world.

Therefore, the study of Amir Temur's exemplary life and statecraft, the history of his reign, the study of science and culture in it, as one of the major scientific directions of historiography, has always been and remains the focus of attention of world scientists, heads of state, and politicians. Also, sources on the history of the Timurids have been translated into various languages and scientific research has been carried out worldwide.

The number of publications on the study of the era of Amir Temur is increasing day by day in world historiography. Ultimately, an independent scientific direction of "Temur studies" has been formed in world social science.

Today, no one doubts the immeasurable contribution of Amir Temur and the Temurid dynasty to the development of world civilization, to the sharp rise in the scientific, political-legal, spiritual-ideal, cultural and intellectual level of humanity. It should be noted that the Timurid Renaissance was recognized by the whole world. The fact that the French scientist Vincent Fournier was the first to use the phrase "Temurid Renaissance" is evidence of this.

The world community recognizes the Timurid era as an era that was reflected in the development of science, culture, art and literature, as well as great discoveries and inventions, and our people as a people who have founded the Renaissance twice so far. That is, it is commendable that our people rightfully belong to the small number of "peoples who were able to create a Renaissance" in the full sense of the word.

In this sense, it is considered that there is every reason to believe that the efforts of President Shavkat Mirziyoyev to create a new Renaissance in New Uzbekistan, that is, the foundation of the Third Renaissance, through large-scale democratic changes in our country, including reforms in the fields of science and education, will yield the expected results.

One of the greatest services of the Leader of the Nation to our people is the restoration of the dignity and broken national pride of our people, who have lost hope in their own country, who have lost hope in a prosperous and good life, and who have lost faith in the future, the formation of a consciousness specific to New Uzbekistan, the subsequent elevation of their spirits, and the return of respect for spiritual and educational values ​​and historical figures.

At a new stage of the development of the Republic of Uzbekistan, along with radical renewal and improvement in every sphere of the state and society, comprehensive measures are being implemented to strengthen national statehood, establish a stable track and develop the political, legal, economic and social life of our country.

In particular, in historiography, a wide path has been opened for studying the history of our ancestors, giving them a correct and objective scientific assessment, and on this basis restoring our national values. Because, as the President of Uzbekistan emphasized: “We have a great history that is worth admiring. We have great ancestors that are worth admiring.”

Amir Temur: "I declare peace and tranquility!"

At the current stage of the development of new Uzbekistan, it is very important that the period of Uzbek diplomacy from ancient times to the present day - the formation and development of independent Uzbek diplomacy - is comprehensively and systematically studied. In particular, the book "History of Uzbek diplomacy", published in 2022, is the VII volume of the "History of Uzbekistan" multi-volume work. The book is a practical response to the proposals made by President Shavkat Mirziyoyev at a meeting with Uzbek diplomats in January 2018.

The publication of a book on the history of Uzbek diplomacy is a major political event. As the head of our state noted, "our national statehood has a history of several thousand years and a rich culture. Therefore, diplomatic relations also go back to the deepest layers of our history. This fact is widely recognized not only by our country, but also by scientists from around the world."

One of the most striking qualities of our great ancestor, Sahibkiran Amir Temur, is that six centuries ago he deeply understood that the development of mutually beneficial cooperation between states, the strengthening of friendship and solidarity between distant and close peoples was an important factor in ensuring the prospects of his empire. Therefore, he carried out great works that served to connect Europe and Asia. On the one hand, he established contacts with China, India, on the other hand, France, Spain, England and other countries and sought to strengthen these relations.

As recognized on a scientific basis by our country's scientists and foreign experts, Amir Temur also left a deep mark in history as the most skillful diplomat of his time. As a great statesman, Sahibkiran skillfully combined the peaceful path of diplomacy and military measures in achieving his goals.

The great empire built by Amir Temur since that time has attracted not only neighboring countries and their kings, but also rulers of distant lands. Historical documents indicate that from the 70s of the 14th century, representatives of European countries came to Transoxiana and were seriously interested in the power and potential of the new, independent state here.

Sahibkiran, in turn, especially after the formation of a powerful empire, established active diplomatic relations with almost all major states of that time and their rulers. He sent his ambassadors to various countries, as well as received foreign ambassadors sent to him.

Amir Temur sent ambassadors to the court of Don Enrique III of Castile and Leon (in some sources - King Henry III of Spain), the ruler of France Charles VI (in some sources - Charles VI), and the king of England Henry IV, who, in turn, received ambassadors from Spain, France, England, China and a number of others - a total of more than 20 foreign states - in his capital Samarkand, which clearly confirms this idea.

According to historical sources, on July 28, 1402, the Ambassadors of King Don Enrique III of Castile and Leon, who were present at the presence of Amir Temur, included Payo de Soto Mayor and Hernan Sanchez de Palazuelos. When the time came for the ambassadors to return, Sahibkiran sent one of the capable beys, Muhammad Keshi, with letters and gifts to Castile as an Ambassador with them, in order to further strengthen relations between the two states. Muhammad Keshi arrived there safely and handed over the letters and gifts to Don Enrique III.

It is known that Amir Temur recruited Nasaf and Kesh scholars, capable individuals knowledgeable in religious and secular sciences, and proficient in foreign languages ​​to his palace. They performed various duties, including the duties of Ambassador. For example, Muhammad Keshi lived in Spain for some time as Sahibqiran's ambassador, while Maulana Abdullah Keshi was sent by Amir Temur as an ambassador to Faraj, the Sultan of Egypt.

Amir Temur usually sent Christian leaders to European countries as ambassadors. Of the Muslim diplomats, only Muhammad Keshi managed to go to Europe. This also indicates his ability, knowledge of several languages, probably one of the European languages.

At that time, the fame of Amir Temur had spread throughout Europe. Therefore, Muhammad Keshi was received with great respect by the King of Castile, Don Enrique III. He attended receptions at the Royal Palace and in the palaces of the great nobles. The King accompanied him to Samarkand with his ambassadors, led by Rui Gonzalez de Clavijo, and respectfully escorted him.

One of the distinctive features of Amir Temur's diplomacy was that in all his addresses, even in letters written in the form of strict demands, he adhered to the etiquette of Eastern diplomacy. It is not difficult to learn from historical letters that have survived from those times that Sahibkiran always responded to the letters of the rulers of some countries, written in a rude manner, sometimes with anger and ignorance, expressing his opinion clearly, with culture and decency. The fact that Amir Temur's letter to the French King Charles VI contains the words "I declare peace and tranquility!" clearly confirms this.

Diplomatic correspondence of Amir Temur

The correspondence that has survived from that time to the present clearly testifies to the skillful diplomatic activity of Amir Temur and the Temurids. Currently, 4 letters are kept in the National Archives of France:

the first is the original copy of Amir Temur's letter to the French King Charles IV in Persian;

the second is a copy of this letter translated into Latin by Archbishop John himself or one of his contemporaries;

the third, a copy of a letter written in Latin by the French King Charles IV to Amir Temur;

the fourth, a Latin translation of a letter sent by Mironshah Mirzo to three European kings. The original copy was kept by John and later shown to the King of England.

When it comes to the study of relations between Amir Temur and Europe during the former Soviet era, it is worth noting that I. Umnyakov's article "International relations of Central Asia at the beginning of the 15th century. Amir Temur's relations with Byzantium and France" and other works are quite informative.

Amir Temur also conducted diplomatic correspondence with distant states of Western Europe, in particular, with the representative of the Valois dynasty - King Charles VI of France (1380-1422) and King Henry IV of England (1399-1413). The first brief information about the correspondence between Amir Temur and Charles VI in 1402-1403 was provided by the French historian Flossant, who lived at the beginning of the 19th century, in his research published in 1811.

Amir Temur's letter to Charles VI was written in Persian, in an unusual style, not similar to the style of the rulers of the East. The letter mentions that "the preacher Francis" brought letters to Amir Temur from the French king.

As far as we know, there was no official exchange of ambassadors between Amir Temur and Charles VI, as there was between King Henry III of Castile. At the same time, the text of the letter suggests that Amir Temur had previously received letters from France. However, these letters have not reached us.

There is no doubt that this letter is an original. This is clearly confirmed by the fact that Amir Temur's miraculous seal is stamped on two places on the letter. The fact that the seal on the letter actually belongs to Sahibkiran has been proven by most historians, including Ambassador Clavijo and historian Ibn Arabshah.

An important point is that Clavijo is one of the few, that is, one of four people who saw Amir Temur and wrote memoirs based on direct conversations with him. This fact further increases the authenticity of the diaries of the Spanish Ambassador, as well as the memoirs created by Ibn Arabshah, Ibn Khaldun, and Archbishop John. Therefore, honesty is the path to truth and justice.

The National Library in Paris preserves the second letter of Amir Temur to Charles VI. The Latin translation of this letter has come down to us, first published by Sylvester de Sacy.

At the same time, there is also a Latin translation of the letter sent by Charles VI to Amir Temur. This is a unique document of particular value as the only letter from the French king to Sahibkiran that has survived to this day. While both letters of Amir Temur are dated August 1, 1402, the letter of Charles VI is dated June 15, 1403.

The foreign policy and diplomatic correspondence of His Majesty Amir Temur have been and are being studied in detail by scholars around the world, including specialists from our country. Some time ago, when I met with Jean-Louis Bacquet-Grammon, a well-known French orientalist and orientalist, in Paris, he presented me with a rare copy of the book "Amir Temur's Campaign in Anatolia (1402)" written by the Romanian historian and Turkologist Maria-Matilda Alexandrescu-Dersca, published in 1942.

Despite the fact that Amir Temur's letters were written almost seven centuries ago, some of their aspects resonate as an extremely important call for our day: it is understood that the prosperity of the world with merchants, the glory of the empire is determined primarily by recognizing the glory of other empires, respecting the dignity of citizens, regardless of official and unofficial differences, and firmly adhering to human rights and freedoms.

In addition, as material evidence of the diplomatic correspondence of the Timurids, one can cite the letters between Amir Timur and his third son, the ruler of Western Iran, Iraq and Azerbaijan, Miranshah Mirza, and the kings of France, England, Castile and other countries. Some of these letters are kept in the French National Archives, the British Museum and the Spanish archives.

The diplomatic correspondence of Amir Timur and the Timurids clearly shows, firstly, that Europe has always reached out to the East, which awakened long before it, and secondly, that the East also sought to establish contacts with these countries, cooperate, establish trade and commerce, and, despite religious differences, honor merchants and protect their rights.

Akmal SAIDOV,

academician

The Business Activity Index (BAI), estimated by the Center for Economic Research and Reforms, reached 1124 points in February 2026, increasing by 12.4% compared with the previous month (and by 24.2% compared with the same period last year, Chart No.1).

In February of the current year, the following changes were observed across the BAI components:

• the component reflecting the number of transactions on business entities’ bank accounts increased by 22%;
• the intensity of raw material purchases on the commodity exchange rose by 10.6%;
• the component reflecting active business entities increased by 0.9%;
• the trademark component grew by 9.4%.

In February 2026, the BAI also increased in 13 regions compared with the previous month (Chart No.2).

In particular, notable growth was observed in Andijan region (44.8%), Syrdarya region (41.7%), Tashkent region (33.3%), and Kashkadarya region (28.2%).

At the same time, in the Republic of Karakalpakstan the indicator slightly declined by 0.5%, remaining at a moderate level.

Banking operations

During the reporting period, the number of interbank payment transactions reached 6,760.3 thousand, increasing by 1,220.5 thousand transactions (22%) compared with January 2026.

An increase in interbank payment operations was recorded in 12 regions. In particular, a significant rise in banking operations between legal entities compared with the previous month was observed in Tashkent city (24.1%), Surkhandarya region (23.3%), Samarkand region (21.4%), and Navoi region (17.7%).

At the same time, this indicator declined in Syrdarya region (8.1%) and the Republic of Karakalpakstan (1.6%).

Exchange component

In February of the current year, the exchange component of the BAI reached 1.1058 points, increasing by 10.6% compared with the previous month.

This reflected a 36.2% increase in the number of transactions concluded, while the average volume of goods purchased per transaction declined by 15.1%.

The total turnover of goods traded on the UzEx amounted to 6,296 billion soums in February 2026, which is 6.5% higher than in the previous month.

Component of active business entities

During the reporting period, this component amounted to 1.0088 points, increasing by 0.9% compared with the previous month.

At the same time, the total number of operating business entities increased by 4,079 units, reaching 508.5 thousand.

The number of large enterprises increased by 51 units, reaching 4,161.
The number of small enterprises rose by 3.9 thousand, reaching 415.1 thousand.
The number of farms increased by 36, reaching 89.2 thousand.

Trademark component

In February 2026, the trademark component reached 1.0641 points, increasing by 9.4% compared with the previous month.

During this period, 430 trademarks and product names were registered by legal entities.

Islombek Saparmatov, CERR

“Uzbekistan - 2030” strategy, adopted on 11 September 2023, identifies sustainable economic growth, the establishment of modern education, healthcare and social protection systems, creation of favorable environmental conditions, building a just and modern state and guaranteed national sovereignty and security as its priority areas. At the core of all reforms is the aim to increase citizens’ welfare, strengthen public trust in the state and ensure confidence in the future. The strategy represents a shift from goal-setting to results-based management, with clear accountability, measurable outcomes and linked financing.

Since its adoption, Uzbekistan has achieved significant progress. Between 2023 and 2025, nominal GDP rose from USD 107.5 billion to USD 140 billion, while exports, foreign investment and innovative activity also grew. Social indicators reflect the reforms’ impact: unemployment fell from 6.8% to 4.9% and poverty decreased from 11% to 6.8%.

What are the reasons for updating the “Uzbekistan - 2030” Strategy?

The need to accelerate the country’s further development has prompted the update of the strategy and its target indicators. The “Uzbekistan - 2030” Strategy has been revised in light of both external and internal factors.

External factors include the global geopolitical environment, international economic trends, technological innovations, environmental and natural changes and the growing demand for energy and water resources. Internal factors encompass demographic growth, urbanization and migration, which require strengthening institutional quality and improving governance efficiency.

In response to these challenges, a draft of the “Uzbekistan - 2030” Strategy for 2026-2030 has been developed and published for nationwide public discussion.

Within the updated Strategy, while retaining the same five priorities and 100 goals, certain tasks and performance indicators have been revised. Many of the previously established targets have already been achieved and new objectives have been added, resulting in an expanded and updated set of performance indicators. Moreover, the document specifies the responsible ministries and agencies as well as the concrete funding sources required to achieve each goal.

In which areas do the reforms provide “mechanisms for change”?

Economy. The largest number of tasks and performance indicators fall under “II. Ensuring the well-being of the population through sustainable economic growth.” The Strategy sets a target GDP of USD 240 billion by 2030 through measures such as maintaining annual inflation at 5–6%, ensuring fiscal stability, enhancing the country’s investment attractiveness, efficiently utilizing domestic raw materials and developing high-tech-based industry and services. The plan also emphasizes deepening Uzbekistan’s integration into global transport and logistics networks and strengthening the export potential of the national economy.

Transitioning to a green economy, transforming the country into a regional “IT HUB” through digital technology development, increasing competition in the banking sector, creating the most favorable conditions for entrepreneurial activity and implementing comprehensive regional development will generate new jobs, ensure employment and increase citizens’ incomes. These measures are expected to reduce poverty, enhance overall well-being and stimulate the growth of key economic sectors, particularly construction, tourism and the service industry.

Education. The Strategy also aims to create favorable conditions for realizing the potential of the youth as well as developing the education and healthcare sectors. Under “I. Creating dignified conditions for the realization of each person’s potential,” performance indicators have been established to achieve goals by 2030, such as ensuring that 50% of graduates from general education schools and academic lyceums receive higher education and secure employment in sectors offering fair wages. Additionally, the inclusion of 10 higher education institutions in the global top-1000 rankings (QS, THE, ARWU) will enhance the competitiveness of Uzbek youth not only in domestic labor markets but also internationally.

The implementation of a cluster system “enterprise – university – research organization” will contribute to the expansion of innovative products in the economy’s “driver” sectors. The Strategy envisions the creation of spin-off type production clusters at higher education institutions to accelerate the process of integrating scientists’ research ideas into economic practice in areas such as transport and logistics, agricultural production, energy, biotechnology, geology and metalworking, mechanical engineering and electronics. Developing science, especially among youth, will improve Uzbekistan’s position in the Global Innovation Index and enable the country to enter the list of the top 60 most innovative nations worldwide.

Health. It is often said that a person’s education reduces health risks and increases life expectancy, while health - physical, mental and social - is the foundation for a full life and self-realization. The Strategy sets goals for the next five years to increase the average life expectancy of the population, reduce premature mortality from cardiovascular diseases (ages 30–69), cancer and respiratory diseases and decrease the incidence of life-threatening congenital defects in newborns. In maternal and child healthcare, nine performance indicators have been established. The Strategy also prioritizes promoting healthy nutrition and lifestyles among the population and reducing adult obesity rates.

Social Protection. For vulnerable segments of the population, the state will continue its policy of fundamentally improving the system of professional social services, establishing a new support system for persons with disabilities and creating a comfortable and favorable environment for them. For children left without parental care, 100% implementation of alternative, non-institutional forms of care will be ensured and for children with special educational needs, coverage by inclusive education will be increased.

The state pays special attention to the expansion of women’s rights and opportunities. Different cultures have diverse perceptions of the roles of men and women, shaped by history, religion and traditions. At the same time, globalization and potential prospects for the country’s development require the implementation of policies ensuring gender equality and increasing the social and political activity of women. The draft Strategy includes tasks such as expanding the number of women trained in professional and entrepreneurial skills, increasing the number of women actively using information and communication technologies, raising the share of women in leadership positions to over 30 percent, and regulating family relations in households experiencing conflict or on the verge of divorce.

Ecology, Law and Security. The priorities of “Conservation of water resources and environmental protection”, “Ensuring the rule of law and organizing public administration oriented toward serving the people” and “Consistent continuation of a policy based on the principle of a safe and peaceful state” are also included in the Strategy, with specific tasks and performance indicators outlined.

Mechanisms for Achieving Goals for Each Priority

The mechanisms for achieving goals under each priority are reflected in strategic documents. For example, to implement the objectives of the priority “Conservation of water resources and environmental protection”, the National Climate Strategy for Climate Change Mitigation and Adaptation and the Strategy for Industrial Waste Management have been developed.

To develop the driver sectors of the economy and achieve GDP growth to 240 billion dollars by 2030, sectoral strategies have been formulated: Strategy for the Development of Industry of Uzbekistan, Strategy for the Development of the Automotive Industry, Strategy for the Development of Light Industry, Strategy for the Development of the Building Materials Industry, Strategy for the Development of the Jewelry Industry, Strategy for the Development of Tourism in Uzbekistan, Strategy for the Modernization, Accelerated and Innovative Development of the Construction Sector and others.

The development and implementation of strategic documents at the regional level will allow achieving goals and objectives in a comprehensive and targeted manner. For instance, Strategies for Comprehensive Development of All Spheres by 2030 in each region of the country consider socio-economic development through the lens of the local economy and the well-being of the population. The development of such documents involves not only local authorities but also leading ministries and agencies, including the Ministry of Economy and Finance, Ministry of Investments, Industry and Trade, Ministry of Agriculture, Ministry of Digital Technologies, Ministry of Employment and Poverty Reduction, Ministry of Energy, National Committee on Ecology and Climate Change and others.

The development of sections of the Strategy involved national think tanks, such as the Institute of Macroeconomic and Regional Research, Center for Economic Research and Reforms, etc. This demonstrates that Uzbekistan implements a scientifically grounded policy (evidence-based policy), where decision-making in various spheres - economy, social policy, ecology, law and security - is based on scientific data, forecasts and expert assessments to achieve medium- and long-term goals.

Key expected outcomes until 2030 (macro outcomes)

The main outcomes of the updated “Uzbekistan – 2030” Strategy are expressed through economic, social, environmental, and other indicators. In the economic sphere, it is expected to achieve macroeconomic stability and sustainable GDP growth up to USD 240 billion, transform the country into a regional “IT HUB” and enter the top 60 most innovative countries in the world, deepen the republic’s integration into global transport and logistics networks and strengthen the export potential of the national economy. Creating a favorable business climate and sustainable jobs as well as ensuring employment for the population, will help reduce income inequality and poverty, with the elimination of absolute poverty based on minimum consumer expenditure and reducing its level to zero percent.

In the social sphere, Strategy provides for creating decent conditions to realize the potential of young people and improving education and healthcare, reflected in target indicators such as increasing life expectancy to 78 years, achieving 80% coverage of children in kindergartens, and 50% coverage in higher education. It also aims to enhance the quality of university education, include 10 higher education institutions in the TOP-1000 rankings of the world’s most prestigious universities (QS, THE, ARWU) and implement a cluster system connecting enterprises, universities and research organizations.

In the environmental sphere, the Strategy envisions continuing the transition to a green economy, introducing green energy technologies, constructing buildings that meet “green” standards, promoting a culture of rational water use, developing water-saving technologies, preventing air pollution and mitigating the negative impacts of climate change.

Doctor of Economic Sciences, Professor D.M. Karimova

Institute of Macroeconomic and Regional Studies

Republic of Uzbekistan

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

Uzbekistan — is a country of irreversible, rapid reforms. One of the priorities of the development strategy of the New Uzbekistan is the policy of achieving gender equality in the country.

Under the "Uzbekistan-2030" development strategy, large-scale measures are being implemented to increase women's political, social and economic activity, protect mothers and children, promote gender equality and safeguard women's rights and interests.

Thanks to the political will of the leadership of Uzbekistan, the Gender Strategy of Uzbekistan until 2030 was developed, the laws “On guarantees of equal rights and opportunities for women and men”, “On protection from oppression and violence” were adopted, as well as legislative norms on mandatory gender expertise of all regulations and introduction of gender audit. Thus, a mechanism has been introduced to study the state of the gender approach in all government organizations and to develop measures to ensure equal rights and opportunities for women and men by the Federation of Trade Unions as public control. Liability for domestic violence has been strengthened. Over the past 5 years, more than 40 Presidential decrees and Resolutions have been adopted aimed at ensuring gender equality. Meanwhile, legislation for women is being improved and opportunities are expanding. In 2023, the Electoral Code of Uzbekistan established provisions that the number of women when nominated from political parties to representative bodies of power should be at least 40% of the total number of nominated candidates for deputies and in the proportional election system, nominate at least two women out of each five candidates for parliament. Since 2019, a Gender Commission on increasing the role of women in society, gender equality and family has been created in the Senate. The Committee for Women and Family Affairs was newly created, more than 9 thousand positions were established, up to mahallas, specifically dealing with issues of women and family throughout the country and at all levels, rehabilitation centers began to operate to provide assistance to women victims of violence.

Systemic measures taken at the initiative of the head of state, President of Uzbekistan Shavkat Mirziyoyev, in order to reduce poverty, establish “women’s notebooks”, reduce unemployment among women and support women’s entrepreneurship, preferential loans for women have yielded tangible results throughout the country. A number of restrictions on women’s occupation and choice of professions were lifted. Advisory councils on gender issues were created in all ministries and departments. As a result, the number of women in parliament reached 33%, in business their number doubled and reached 25%, in political parties 44%, in higher education 40%. In 2023 alone, more than 13,3 billion soums of loans were allocated for the implementation of over 279 thousand women’s business projects, and about 300 billion soums of subsidies were provided to almost 57 thousand women. Based on the “Women's Notebooks” system, the problems of 994 thousand women were solved, the state allocated 1 trillion 234 million soums for these purposes.

As a result of studying the situation of women in mahallas, targeted assistance was provided to more than 690 thousand families in need of social protection.

In 2024, it is planned to provide 8 thousand women and girls included in the “Youth Notebook” with subsidies to start their own business and purchase equipment, and 10 thousand with preferential loans. It is planned to launch a “Business Marathon” project for 50 thousand young women with the participation of qualified specialists to provide practical assistance in setting up a business.

In the field of education, great attention is also paid to gender equality. The country has taken a number of effective measures to protect women and girls; a gender approach is being introduced into curricula and teaching methods, as well as in STEM education, especially in rural areas. Currently, more than half of the 1 million 300 thousand students, i.e. 653 thousand, are girls. In the master's program, the share of girls is 60% of master's students. The state encourages and fully pays for the contracts of women and girls studying for a master's degree from the state budget. In 2023-24 1,914 girls from needy families were accepted to study at universities using additional government grants. 181,500 girls received preferential educational loans. At the expense of local budgets, the contract amount of more than 2 thousand students from families in need of social protection, orphans or students deprived of parental care was covered for 14 billion soums.

Improving the opportunities and conditions for the education of women and girls in the country gave impetus to an increase in interest in mastering modern knowledge and professions, for example, within the framework of the educational project “One Million Programmers”, 47% were girls. Creating favorable conditions for women in education gives real results in unlocking their potential. Over the past seven years, more than 5 thousand women have been awarded the academic titles of Doctors of Philosophy and Doctors of Science. More than 14 thousand women are conducting their research at universities in Uzbekistan.

Achieving gender equality — is a global task on the agenda of universal international organizations such as the UN and other regional structures. Uzbekistan is actively developing international cooperation in this area. As a party to the 1979 Convention on the Elimination of All Forms of Discrimination against Women and the 1995 Beijing Declaration of the Platform for Action, the country regularly submits national reports to the Committee and develops national action plans.

In recent years, great importance has been attached to cooperation in the field of gender equality with the countries of Central Asia. The Forums of Women Leaders of Central Asia and the Asian Women's Forum in 2024 were successfully held, where representatives of more than 40 countries and international organizations participated.

Lola Saidova, Doctor of Law, Professor,

Chief Researcher of the ISRS under the

President of the Republic of Uzbekistan

At the invitation of President of the French Republic Emmanuel Macron, President of the Republic of Uzbekistan Shavkat Mirziyoyev will pay a state visit to this country on March 11-13.

The agenda of the visit to Paris envisages talks and events at the highest level, as well as a number of meetings with official and business circles of France.

The agenda of the upcoming contacts includes issues of further development and strengthening of Uzbek-French multifaceted relations.

Priority attention will be given to expanding mutually beneficial cooperation in trade-economic and investment-financial spheres, promoting cooperation projects with leading companies and enterprises of France.

It is planned to adopt a package of intergovernmental and interdepartmental agreements as a result of the summit.

In addition, the Head of our state will meet with UNESCO Director-General Audrey Azoulay to discuss practical aspects of preparing and holding the 43rd session of the Organization's General Conference in Samarkand this autumn.

It is worth noting the intense program of events on the eve of the forthcoming visit.

The first session of the Fergana Peace Forum, titled “Fergana Valley: Uniting Efforts for Peace and Progress” is scheduled for October 15–16, 2025, in the city of Fergana.

Next week, the city of Fergana will transform into a focal point for international dialogue and cooperation, hosting key stakeholders from across the region and beyond. This gathering underscores the city’s growing importance as a center for promoting peace, mutual understanding, and collaborative development in Central Asia.

The Forum will be organized by the Institute for Strategic and Interregional Studies under the President of the Republic of Uzbekistan (ISRI), jointly with the Center for Progressive Reforms, the Organization for Security and Co-operation in Europe (OSCE), the International Water Management Institute (IWMI), and the Peacebuilding Hub — a platform that brings together reputable international organizations specializing in peacebuilding and social cohesion.

Entitled “Fergana Valley: Uniting Efforts for Peace and Progress” the Forum is organized in partnership with the National Institute for Strategic Initiatives under the President of the Kyrgyz Republic, the Center for Strategic Studies under the President of the Republic of Tajikistan, and Institute of studying of the problems of Asian and European countries of the National Academy of Sciences of Tajikistan.

The two-day forum will bring together over 300 participants from Central Asian countries, the Commonwealth of Independent States (CIS), as well as from Asia, Europe, and the Americas.

Among the high-level guests are Head of the UNRCCA Kaha Imnadze, European Union Special Representative for Central Asia Eduards Stiprais, Director of the OSCE Conflict Prevention Centre Kate Fearon, Secretary-General of CICA Kairat Sarybay and Deputy Secretary-General of the SCO Sohail Khan.

A key feature of the upcoming session will be its inclusive nature, with participation from representatives of civil society, youth organizations, women’s associations, as well as expert and academic communities.

Leading international peacebuilding institutions such as Berghof Foundation (Germany), the Martti Ahtisaari Peace Foundation (Finland), the PeaceNexus Foundation (Switzerland), and the Stockholm International Peace Research Institute (SIPRI) will also be at the Forum. Reflecting a commitment to be inclusive, the Forum will also draw participation from youth, women groups and the academia circle. 

The Forum aims to create a standing platform for promoting dialogue, mutual trust, good-neighborly relations, and for developing a shared strategy for the development of the Fergana Valley.

The forum’s agenda includes discussions on ensuring stability and sustainable development in the Fergana Valley, unlocking its economic potential, strengthening cultural and humanitarian ties, and expanding the roles of the private sector, youth, and civil society.

The Forum will see the first observation of the “Yntymak Day” (“Day of Unity”) which celebrates the unity in diversity spirit of communities in Fergana Valley. 

Among the anticipated outcomes of the forum is the adoption of a Communiqué calling for the establishment of a unified space of friendship, good-neighborliness, and sustainable development in the Fergana Valley.

At the 80th session of the United Nations General Assembly, the President of Uzbekistan, Shavkat Mirziyoyev, underlined that “the era of closed borders, unresolved disputes and conflicts in Central Asia has receded into the past. In recent years, the volume of mutual trade, investment and transport flows in our region has increased fivefold. Joint investment funds, cross-border trade and industrial cooperation zones are being established, while major infrastructure projects are under implementation”.

The President of Uzbekistan emphasized that “today marks the beginning of the formation of a New Central Asia. Thanks to its unity, stability, and growing regional identity, it is securing an increasingly strong position as an independent actor in the system of international relations”.

“Peace in Fergana Valley has been made possible by strong commitments in Uzbekistan, Kyrgyzstan and Tajikistan and by the diverse communities who have transformed differences into strength. The First Peace Forum on Fergana Valley will showcase how this political resolve and communities’ bond could usher peace,” said Eldor Aripov, Director of ISRS.   

According to him, “The Ferghana Forum is intended to create a new image of the Ferghana Valley as a space of peace, harmony, and opportunity,” demonstrating that the political will of the countries’ leaders and the unity of their peoples can ensure stability and prosperity in the region”.

Dunyo IA

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

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

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

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

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

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

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

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

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

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

THE NUMBER OF EXPORTERS IS GROWING

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

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

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

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

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

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

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

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

INVESTMENT DIALOGUE

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

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

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

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

POSITIVE ASSESSMENT

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

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

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

Deputy of the Legislative Chamber

of the Oliy Majlis of the Republic of Uzbekistan,

Doctor of Economic Sciences, Professor Durbek Akhmedov

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

С 1

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

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

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

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

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

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

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

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

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

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

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

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

Nadira RASHIDOVA,

Member of the Legislative Chamber of the Oliy Majlis.

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

The text of the article is in Uzbek language!