On October 15–16, 2025, the city of Fergana will host the inaugural session of the Fergana Peace Forum under the theme: “The Fergana Valley: Uniting Efforts for Peace and Progress.”

Organized by the Institute for Strategic and Regional Studies (ISRS) under the President of the Republic of Uzbekistan, in partnership with colleagues from Kyrgyzstan and Tajikistan, and supported by national and international organizations, this unique large-scale event will bring together leading experts, researchers, public figures, and representatives of international organizations. Their goal is to discuss the prospects for the development of one of Central Asia’s most densely populated and culturally rich regions — the Fergana Valley.

Experts from prominent think tanks across the CIS, Asia, Europe, and the Americas, alongside academics, business leaders, civil society representatives, and youth leaders from the region, will convene in one place. High-level delegates from international bodies such as the United Nations, the Shanghai Cooperation Organization (SCO), the Commonwealth of Independent States (CIS), the Conference on Interaction and Confidence-Building Measures in Asia (CICA), the European Union, and the Organization for Security and Co-operation in Europe (OSCE) are also expected to participate. Renowned peacebuilding organizations including the Berghof Foundation (Germany), the Martti Ahtisaari Peace Foundation (Finland), PeaceNexus (Switzerland), and the Stockholm International Peace Research Institute (SIPRI) will be among the invited guests.

More than 300 participants will attend the Forum, including around 150 from Central Asia and over 50 from the CIS, Asia, Europe, and the Americas.

Experts believe the Forum will reinforce the vision expressed by Uzbekistan’s President Shavkat Mirziyoyev at the 80th session of the UN General Assembly — the transformation of Central Asia into a space of peace, good neighborliness, and partnership.

         As President Mirziyoyev has noted, the region is entering the era of New Central Asia. The days of closed borders, unresolved disputes, and conflicts are becoming a thing of the past. Thanks to growing cohesion, stability, and an emerging shared identity, Central Asia is increasingly recognized as an independent and influential actor on the global stage.

         The choice of the Fergana Valley as the Forum’s venue is symbolic. This unique region is where the lifelines of Uzbekistan, Kyrgyzstan, and Tajikistan intersect. The established atmosphere of trust, dialogue, and cooperation between these countries exemplifies the good-neighborly policy championed by President Mirziyoyev.

Historical records mention the ancient Fergana state of Davan, especially the cities of Aksikent and Mingtepa, which were famed for their fertile lands, strong defenses, and prized horses. These are documented in Chinese chronicles from the late 2nd century BCE. By medieval times, the valley was one of the leading regions of Mawarannahr (Transoxiana). Archaeological remains from the Bronze Age, Early Iron Age, and medieval periods testify to the valley’s role as a cradle of multiple civilizations.

The Han dynasty historian Sima Qian wrote: “The people live on the land, tilling fields and growing rice and wheat. They live in houses and fortified cities; there are about seventy or more cities of various sizes in this region.” Medieval Arab geographers described Fergana as a land dotted with many cities and villages, surrounded by steppes and mountains, where both urban life and pastoralism thrived.

Cities such as Kokand, Khujand, Osh, and Margilan were centuries-old centers of craftsmanship, trade, and learning. Caravans of the Great Silk Road passed through here; some of the earliest madrasahs were established in the valley. The region became a crossroads for ideas from Persia, China, India, and the Arab world.

         Situated at the intersection of Hellenistic, Bactrian, Parthian, Chinese, and Islamic civilizations, the Fergana Valley is a unique hub of cultural exchange — a legacy evident today in its languages, traditions, cuisine, and architecture.

Experts agree that the peoples of the Fergana Valley form a unified historical and civilizational community — a reality forged over centuries of political, economic, and humanitarian interaction.

The Fergana Valley is living proof that the coexistence of diverse cultures is not only possible but also fruitful. Here, traditions are preserved while new forms of cooperation continuously emerge, from joint celebrations to cross-border initiatives. The region has effectively become a laboratory for cultural convergence, where the ideals of inter-civilizational dialogue are actively realized.

With its rich heritage, dense population, and vast economic potential, the Fergana Valley requires special attention to sustainable development, environmental security, and cross-border cooperation.

Coordinated action and open dialogue are essential here — to foster peace, mutual trust, and progress. The Forum’s agenda addresses a wide range of issues:

• Strengthening regional dialogue and trust;
• Jointly ensuring stability and sustainable development;
• Unlocking the valley’s economic and investment potential;
• Promoting cultural and humanitarian ties;
• Increasing the involvement of civil society, youth, and the private sector in transformation processes.

Special focus will be placed on turning challenges into opportunities and establishing regional cooperation as a firm foundation for peace and prosperity.

The maturity of the Fergana Valley is reflected in its shared historical and cultural foundation, which allows the countries in the region to build dialogue on existing trust rather than starting from zero.

Today, the Fergana Valley is more than a historical symbol — it is a strategic region for sustainable development and economic cooperation. Joint transport and energy projects, cross-border markets, and digital initiatives are driving dynamic growth.

The Fergana Peace Forum is poised to become not just a discussion platform but an ongoing mechanism for generating ideas, uniting efforts, and advancing projects for the benefit of the entire region.

Organizers highlight that the example of the Fergana Valley could serve as a model for post-conflict regions worldwide, where political stabilization must be accompanied by deep cultural and humanitarian work. Real mechanisms of cooperation are being forged here, grounded in a shared historical and cultural legacy that supports peace and development.

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.

Preparatory discussions have already confirmed that the Fergana Valley is a place where the past inspires, the present unites, and the future is built on values of peace and cooperation.

In a world where conflict has become commonplace and the international community searches for new models of sustainable coexistence, the Fergana Peace Forum offers one clear answer: peace begins with trust, and trust begins with open dialogue.

Fergana is not just a point on the map — it is a space where respect becomes the language of communication, friendship forms the foundation of neighborliness, and cultural diversity is a source of unity.

Dr. Alisher Sabirov, Doctor of Historical Sciences,
Professor, Nizami National Pedagogical University, Uzbekistan;
Adjunct Associate Professor, Shaanxi Normal University, People’s Republic of China

Center for Economic Research and Reforms (CERR), jointly with the Chamber of Commerce and Industry (CCI), surveyed more than 5,000 entrepreneurs from all regions of the country.

Study assesses the business environment and the effectiveness of entrepreneurship support measures, while developing proposals to further improve business conditions and promote private sector development.

Private businesses accounted for the majority of respondents (93%). By type of activity, wholesale and retail trade had the largest representation (43%), followed by services (30%), industry (17%), construction (8%), and agriculture, forestry and fisheries (2%).

The sample covers enterprises with varying levels of business experience. Almost one in four has been operating for more than 10 years (24%), more than a quarter for 5–10 years (28%), around a quarter for 3–5 years (26%), and one in five for 1–3 years (20%).

Survey results show that enterprises use a variety of tools to improve efficiency. One in three enterprises has adopted several digital solutions (33%), a comparable share uses artificial intelligence in at least two areas (30.4%), and almost one in four applies energy-saving solutions (23.2%). Enterprises are also introducing new products and technologies and revising their production and business processes to reduce costs.

Combined use of several measures is associated with stronger business performance. Among companies that have implemented at least three efficiency improvement measures, more than half report increased demand for their products and services (54.1%). Such enterprises are 4.1 times more likely to reduce costs, while the share of companies recording wage growth of more than 10% is 2.1 times higher.

Enterprises that have implemented at least three efficiency improvement measures also demonstrate greater investment activity, with more than half planning to increase investment in the following year (57.8%).

However, the comprehensive application of efficiency improvement tools has not yet become widespread. Approximately one in nine enterprises has implemented three or more measures (11.6%), while more than a quarter use none of the measures examined (28.5%).

By sector, three or more measures are implemented by 13% of enterprises in both industry and services, followed by trade (11%), construction (9%), and agriculture (8%). Regional differences are more pronounced. The comprehensive set of measures is most widely applied in Tashkent city (18%), while the corresponding figures are considerably lower in the Samarkand (4%), Bukhara (3%), and Syrdarya (2%) regions.

The survey results indicate the widespread use of basic digital solutions among enterprises (94%).

More than half of enterprises use artificial intelligence in one form or another (60%). AI is most commonly applied in marketing and sales (24%), production process optimization (15%), accounting and financial analysis (14%) and chatbots (13%).

At the same time, around one-third of enterprises use AI directly in production, logistics and financial processes (31%), indicating considerable scope for its further practical application.

Almost every second enterprise uses customer relationship management systems (CRM) to organize sales and customer engagement (48%). CRM systems are most widely used in the services sector (54%). Digital business analytics tools are used by only one in seven enterprises (14%). Nearly half of private enterprises do not use such systems, while more than a quarter are unaware of these digital solutions.

Social media has become a standard channel for promotion and customer engagement for more than four out of five enterprises (80.9%). More than half of enterprises have established online sales (58.8%), although the share of enterprises selling more than half of their products online remains relatively small (9%). Digital payment systems are used by one in four enterprises (25%).

The sectoral breakdown reveals differences in how digital tools are used. In services, CRM systems are the most widely used (54%), while this sector also records the highest adoption rates for artificial intelligence (68%), online sales (67%), and social media (87%).

In industry, CRM systems (49%) and artificial intelligence (60%) are widely used, alongside online sales (61%) and social media (81%).

In trade, digital payment systems are relatively more widespread (31%). More than half of enterprises also use artificial intelligence (55%) and online sales (54%), while over three-quarters use social media (77%).

In construction, social media is the most widely used digital tool (80%). More than half of enterprises use artificial intelligence (55%) and online sales (51%), while 43% use CRM systems.

In agriculture, digital payment systems are relatively widespread (30%). At the same time, 43% of enterprises use artificial intelligence, 49% have established online sales, and 66% use social media.

Findings show that further opportunities to improve enterprise efficiency are associated with the broader adoption of modern technologies and management solutions, the modernization and automation of production, development of digital sales channels and improvements in energy efficiency.

The stronger performance of enterprises that use these tools comprehensively demonstrates the importance of their consistent adoption for productivity growth and greater investment activity.

Technological modernization represents a separate area of opportunity for enterprises. The survey results indicate a relationship between the introduction of new products and technologies, increased demand and investment activity.

At the same time, 51% of enterprises still have scope for further technological modernization through upgrades and the introduction of new products, services and innovations.

The further spread of digital solutions also depends on the conditions for their implementation. According to entrepreneurs, digitalization could be supported by improved internet infrastructure (13%), greater availability of qualified specialists (10%) and lower financial costs associated with technology adoption (9%).

The need for skilled personnel is also confirmed by the broader findings of the study, with enterprises reporting shortages of specialists with various qualifications, including IT professionals and engineering and technical personnel.

Overall, the survey results show that further improvements in business efficiency require a transition from the use of individual digital tools to their direct integration into production and management.

CERR’s findings are consistent with the results of World Bank research. Enterprise-level data show that the most significant productivity gains occur when companies move beyond basic access to digital technologies and adopt more advanced solutions, including cloud services, management systems, analytics, and artificial intelligence. Digital payments and online sales alone have a limited impact unless accompanied by changes in internal business processes.

Realizing the considerable untapped potential for technological modernization depends primarily on developing managerial and digital competencies, training qualified personnel, and shifting from supporting access to technologies toward their practical adoption by enterprises.

This approach is also consistent with contemporary research on economic growth, which links long-term productivity gains to the diffusion of new knowledge and its practical application (2025 Nobel Prize in Economic Sciences; Joel Mokyr, Philippe Aghion and Peter Howitt).

Accordingly, further business support measures should focus on expanding the practical adoption of technologies in enterprises’ production and management processes.

Dunyo IA

The main feature of a democratic society is the protection of human rights and the provision of equal opportunities for all in public life and administration. Gender equality is an essential component of this, as it ensures equal protection of rights and freedoms for individuals.

The Constitution of Uzbekistan states that all citizens enjoy equal rights and freedoms, regardless of gender, race, nationality, language, religion, beliefs, social origin or social status. Article 58 states that men and women have equal rights, and the state provides equal opportunities for both genders in managing society and state affairs.

These principles of equality and social justice are reflected in all laws and regulations, ensuring that everyone has equal access to opportunities and rights. This includes gender equality, which is essential for a fair and just society.

It should be noted that, in recent years, more than 40 legislative documents and important conceptual programs have been adopted within the framework of which efforts have been made to create equal rights and opportunities for women and men, strengthen the role of women in government and community leadership, provide necessary conditions for education, vocational training, employment, and create decent working conditions. These efforts also aim to increase women's participation in economic life and protect them against various forms of harassment and violence.

In particular, the law “On guarantees of equal rights and opportunities for women and men” provides for the prevention of gender discrimination and the provision of equal participation for all in public administration. The Law on Protection of Women from Harassment and Violence establishes mechanisms to end various forms of violence against women and to provide protection and assistance to victims.

The “Strategy for achieving gender equality in Uzbekistan until 2030” approved by the decision of the Senate of the Oliy Majlis of the Republic of Uzbekistan on May 28, 2021, envisages a comprehensive approach to the implementation of the principle of equality between women and men in all spheres and levels of decision-making and implementation. Also, the strategy serves to ensure the promotion of gender equality in economic, political, and social life in order to create conditions for the realization of equal rights and opportunities for men and women and to observe fundamental human rights.

Due to this, gender policy in our country has become an important factor in society and state development. Concepts such as “gender equality”, “gender and development”, “gender balance”, and “the role of women in social and political life” are expressed in the development of program documents and all normative legal documents in our country.

In practice, the results are even more significant. In particular, the reason for the gender policy is that in the last seven years, the share of women in public administration in Uzbekistan has increased from 27% to 35%. In his speech at the 78th session of the United Nations General Assembly, the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, summarized the systematic efforts to achieve gender equality in our country and noted that the share of women in public administration reached 35% for the first time.

Moreover, in our country, 32% of the deputies in the Legislative Chamber of the Oliy Majlis and 25% of the members of the Senate are women. The number of women entrepreneurs has doubled, and the number of women who have started their own business has exceeded 205 thousand. Hundreds of thousands of women were trained in trades and entrepreneurship. Among the population employed in health care and education, the share of women is 77 percent, in the economy and industry, it is 46 percent. The number of girls studying in higher education institutions has increased by six times; more than half of the students are women.

Uzbekistan has ratified the main international human rights treaties and conventions related to gender equality. Our country joined the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) in 1995 and undertook to eliminate discrimination and ensure the full development and well-being of women. Uzbekistan has also ratified the Beijing Declaration and the Platform for Action, which set strategic goals for achieving gender equality, and has been effectively fulfilling the relevant obligations.

Therefore, the systematic measures taken in this regard are duly recognized by the international community. In particular, in the World Bank index, Uzbekistan was listed among the 5 fastest developing countries in the world in the field of gender equality.

In addition, Uzbekistan ranked 18th out of 195 countries with a score of
69.7 in the “Open Data Watch” organization's Open Gender Data Index, and was ranked among the “Top-20”.

In the policy of ensuring gender equality in the public service, increasing the weight of women in public administration, in particular, issues of forming a team of potential female leaders are of priority.

It should be noted that after the introduction of open competitions by the Public Service Development Agency, practically the same requirements were set for everyone. The human factor between the employer, personnel department representatives, and candidates was limited. Equal opportunities are guaranteed for all.

This, of course, further expanded the opportunities for women to enter the civil service. If we base our opinion on the numbers, earlier women made up
5-8 percent of those who entered the civil service, now women make up about
34 percent of the winners of the competition.

To be more specific, 2.1 million applications have been received in open competitions to date, of which 20% are women. 56,500 of our citizens won these contests, and 19,670 of them (35 percent) were women.

The first direction of ensuring gender equality in the personnel policy is to attract the most potential women to the civil service, to increase the attractiveness of the civil service for them, and the second major direction is to hire highly skilled people in the management of the civil service – “HiPo” (High potential) is to systematically prepare female personnel for leadership positions and to form a corps of “Women leaders”.

According to many sociologists, a professional leader is a person who has certain characteristics for successful management, regardless of gender. For effective management, it is not the role of the leader in gender relations, but the presence of professional competences such as the ability to correctly set priorities in solving the problem, to direct the team, and to fully achieve the goals based on the rational distribution of resources, is considered important.

However, due to the problem of vertical segregation, the low proportion of women in high-ranking positions, and the problem of the “glass ceiling”—invisible barriers to advancement our women have to work in more middle and senior management positions. As a reason for such a situation, we can point out the high responsibility of leadership, and for this reason, the professional qualifications, knowledge, and potential of women are not in accordance with the relevant leadership position.

In order to form specialists into good leaders, it is necessary to develop the necessary soft skills in effective work with personnel and making optimal decisions in management, development of human resources, innovation, critical and systematic thinking, and leadership competencies.

Therefore, our agency, in cooperation with the Family and Women's Committee and the Academy of Public Administration, launched the “Women's School of Leaders” educational program aimed at preparing the most potential women working in state bodies for leadership.

Until now, on the basis of this program, he has a high professional potential, is active in the implementation of reforms, and is active in various fields of public administration. The qualification of 145 women was improved.

At this point, it should be noted that by the Decree of the President of the Republic of Uzbekistan No. PF-81 dated March 1, 2022, the position of women activists was introduced in every neighborhood in all cities, towns, villages, and towns. In turn, through this, the President created a practical school for the formation of women leaders. Currently, there are about 9,400 women activists at the lower level, and 207 women are working as deputy governors, heads of family, and women's departments at the middle level.

Those who have achieved the highest results according to the KPI system by the State Service Development Agency are included in the National Personnel Reserve and are purposefully prepared for senior leadership positions.

As a result of the above-summarized measures implemented on the basis of today's gender equality policy, a unique national model of preparing women for leadership is being formed in our country.

In conclusion, a strong legal basis for gender equality policy has been formed in our country, and as a result of the full and correct implementation of these norms in life, we are making progress recognized by the international community. On this basis, it can be noted that gender policy in Uzbekistan serves as an important criterion for ensuring human rights.

Dilfuza Makhkamova,

Head of the Department of the Agency for the Development of Public Service under the President of the Republic of Uzbekistan

Farangiz Avazbekova,

Chief Inspector of the Agency for the Development of Public Service

under the President of the Republic of Uzbekistan;

Doctor of Philosophy (PhD) in Law

On November 18, the first session of the Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan after the elections was held in Tashkent.

It was attended by President of the Republic of Uzbekistan Shavkat Mirziyoyev.

The session was opened by Chairman of the Central Election Commission Zayniddin Nizamkhodzhaev.

The National Anthem of the Republic of Uzbekistan was played.

Temporary Secretariat of the first session, Counting Commission and temporary group on control over the use of electronic vote counting system were elected. The agenda was approved. The CEC Chairman presented information on the results of the elections to the Legislative Chamber.

On the proposal of the Council of Representatives of Political Parties, deputies elected Nuriddin Ismoilov to the post of Speaker of the Legislative Chamber of Oliy Majlis by secret ballot.

Then the chairmanship of the session passed to the Speaker. Deputy Speakers were elected. The factions of five political parties were registered. Ten committees of the Legislative Chamber were established in accordance with their agreed proposals.

President of Uzbekistan Shavkat Mirziyoyev addressed the session.

At the beginning of his speech, the Head of State congratulated the deputies on their election, emphasizing that this is the embodiment of high trust and respect of our people.

It was emphasized that the current parliamentary elections have entered the history as being the first ones held in accordance with the updated Constitution. This process was conducted for the first time under a mixed electoral system.

As a result of the elections, 150 deputies were elected to the Legislative Chamber. Among them were 57 women and 11 young people under 35 years of age. Overall, the composition of the lower house was renewed by almost 60 percent.

The activities of the Chamber over the past five years were discussed. During this period, the Constitution has been updated and more than 130 new laws have been adopted, which is 1.5 times more than in the previous period.

The President also drew attention to the issues that remained out of parliamentary attention. For example, the share of laws with direct action and clear enforcement mechanisms remains low. Parliamentary and deputy control is still not effective enough. The activity of deputies in constituencies is mostly limited to organizing meetings, answering complaints and questions.

The Head of State outlined his vision of the new tasks ahead of the Legislative Chamber.

In particular, it was proposed to create public councils under each committee with the participation of representatives of civil society to strengthen the dialogue.

It is important to establish not only control and requirements in the work of parliamentary committees, but also close cooperation with ministries. It is also necessary to strengthen party and fractional discipline.

The President emphasized that lawmaking, primarily, should be aimed at solving urgent problems of society, and put forward a number of legislative initiatives. Among them are the construction of modern residential buildings replacing outdated ones, guaranteeing the protection of citizens' funds allocated for housing construction, support for private education and investors in the energy sector, introduction of compulsory health insurance, creation of a legal framework for franchising, capital market and startups, and relations arising in the field of artificial intelligence.

In order to boost the opposition, it was proposed to increase the number of guaranteed rights of the parliamentary opposition from 3 to 6, including giving it the positions of one committee chairman and two deputy committee chairmen, as well as additional rights to submit questions within the framework of the “government hour” and parliamentary inquiries.

Particular attention was paid to the need to transition to a system of broad, high-quality parliamentary control. In particular, in accordance with the updated Constitution, the control over the execution of the State Budget is the exclusive competence of the Legislative Chamber. In this regard, it is necessary to strengthen the work of the Chamber in this direction, including the introduction of the practice of submitting all reports of the Government on the State Budget to the Chamber only together with the audit report provided for by the Budget Code.

- A deputy is a servant of the people, a model for all, a person with a high level of political culture and knowledge, who sincerely loves his homeland. Our people, all of us, above all rely on you to strengthen peace, mutual understanding and harmony in the family, mahalla and society, to educate the youth in the spirit of patriotism, to defend the interests of Uzbekistan in the international arena, - said Shavkat Mirziyoyev.

Heads of political party factions and deputies addressed the session. The President supported their views, urged the deputies to work harder and be closer to the people.

- The voice of a deputy is the voice of the people. If you consider every issue concerning the fate of the country and first of all see our hardworking, generous and noble people in front of you, if you act thinking not only about today, but also about peace and happiness of future generations, then our people will be satisfied with you, - emphasized the Head of State.

The Legislative Chamber of the Oliy Majlis adopted resolutions on the agenda.

The contemporary system of international relations is being shaped by rapid geopolitical changes, growing fragmentation, disruptions in transport and supply chains, climate change, and increasing risks to food and energy security. Under these conditions, trust, dialogue and practical cooperation among states are becoming more important than ever. For Central and South Asia — two historically interconnected regions with significant yet not fully realized potential — connectivity has acquired not only economic, but also strategic, political and civilizational significance.

The initiative to strengthen connectivity between Central and South Asia, advanced by President of the Republic of Uzbekistan Shavkat Mirziyoyev, represents a timely response to this historical and geopolitical demand. Its core idea is that security cannot be ensured solely through military or political instruments. It must also be built through economic development, transport corridors, trade links, education, culture and human capital. In this sense, development is not merely a consequence of security; rather, it is one of its fundamental preconditions.

This approach gained institutional form in July 2021, when Tashkent hosted the high-level international conference “Central and South Asia: Regional Connectivity. Challenges and Opportunities” at the initiative of President Shavkat Mirziyoyev. The forum created an important political and expert platform for advancing interregional cooperation. Its international recognition was further demonstrated in 2022, when the United Nations General Assembly adopted the resolution “Strengthening Connectivity between Central and South Asia.” Initiated by the President of Uzbekistan and supported by more than 40 states, the resolution confirmed that Uzbekistan’s vision has significance not only at the national or regional level, but also for the wider international community.

The Termez Dialogue is a practical continuation of this diplomatic and intellectual process. Launched in May 2025, it has emerged as a permanent platform aimed at creating a stable, systematic and practice-oriented environment for cooperation between Central and South Asia. Its first meeting attracted considerable attention from the international expert community due to its broad participation, multilateral format and applied focus. The growing interest in this initiative was also reflected in the organization of a separate session on the Termez Dialogue during the Doha Forum in December 2025.

The second meeting of the Termez Dialogue, scheduled for 4–6 June 2026 in Tashkent, Termez and Samarkand, is expected to mark a new stage in the development of this platform. The main emphasis will shift from general conceptual discussions to the identification of specific priorities and practical mechanisms. In other words, the Dialogue is intended not only to exchange views, but also to generate concrete outcomes in political dialogue, economic connectivity, transport and logistics, climate adaptation, and cultural-humanitarian cooperation.

One of the key features of the Termez Dialogue is that it reflects Uzbekistan’s proactive, pragmatic and open foreign policy. Uzbekistan does not position itself as a state forced to choose between competing blocs, but rather as a reliable platform for dialogue among different regions, markets and civilizations. In this regard, the Termez Dialogue forms part of a broader system of initiatives, including the Fergana Peace Forum, the Samarkand Climate Forum, the Samarkand Solidarity Initiative, and proposals within the Shanghai Cooperation Organization on good-neighbourliness, trust and cross-border partnership.

Transport and logistics remain among the most important dimensions of connectivity between Central and South Asia. The countries of Central Asia are landlocked and therefore face structural limitations in accessing global markets. Diversifying transport routes, reducing logistics costs and facilitating access to external markets are essential for the region’s long-term economic development. According to available estimates, the level of transport connectivity of Central Asian states with external markets is around 60 per cent, while in the European Union and ASEAN countries it exceeds 95 per cent. In some cases, transport costs in Central Asia may reach up to 50 per cent of the final value of goods, which is several times higher than the global average.

In this context, the Trans-Afghan Corridor has strategic importance. It can provide Central Asian states with the shortest access to the ports of the Indian Ocean and link South Asia with the markets of Central Asia, Russia, China and Europe. This project is not limited to railway construction or transport infrastructure. It is also an instrument of regional economic integration, Afghanistan’s involvement in peaceful development processes, and the formation of a new trade architecture in Eurasia. Through this approach, Uzbekistan seeks to transform its geographical constraints into logistical advantages.

Afghanistan occupies a special place in this process. It is a natural land bridge connecting Central and South Asia. Uzbekistan’s policy toward Afghanistan is consistent and practical. Since 2021, Uzbekistan has sent 15 humanitarian convoys to Afghanistan, delivering more than 13,000 tons of humanitarian assistance. At the same time, bilateral trade and economic relations have been developing dynamically. In 2025, trade turnover between Uzbekistan and Afghanistan reached 1.7 billion US dollars, which is 55 per cent higher than the previous year. These figures demonstrate that Uzbekistan views Afghanistan not as a source of problems, but as an important participant in regional development and stability.

The choice of Termez as one of the central locations of this initiative is also highly symbolic. Historically, Termez has been a meeting point of trade, culture, science and religious traditions between Central and South Asia. The city played an important role in the history of Bactria, the Kushan Empire, the Great Silk Road and wider civilizational exchange. Today, Termez is becoming Uzbekistan’s southern gateway and a modern centre of practical cooperation with Afghanistan and South Asia.

There are concrete examples of this transformation. The Termez International Trade Centre, opened on 29 August 2024, covers 36 hectares and is located only 500 metres from the border with Afghanistan. A 15-day visa-free regime has been introduced within the centre. Its infrastructure includes more than 3,000 shops, customs facilities, banking services, public service centres and export-oriented platforms. The annual export potential of products represented in the trade zone is estimated at 1.2 billion US dollars. More than 1,000 local residents and about 140 Afghan citizens are employed there. This shows that connectivity is not an abstract political slogan, but a practical reality linked to jobs, exports, services and human livelihoods.

Another important example is the Termez Cargo Centre, an international transport and logistics hub operating since 2016. Located near the intersection of Afghanistan, Tajikistan and Turkmenistan, the centre has been used since 2021 by the United Nations World Food Programme and the Office of the United Nations High Commissioner for Refugees for delivering humanitarian cargo to Afghanistan. Thus, Termez is becoming not only a trade and logistics hub, but also an important point of humanitarian diplomacy.

The Educational Centre for Afghan Citizens, established in Termez in 2018, also reflects Uzbekistan’s long-term investment in human capital. The centre provides education for Afghan youth in 17 higher education fields and 16 vocational and secondary-specialized areas. Since its establishment, more than 800 Afghan citizens have studied there, including 200 girls and women. These figures demonstrate the importance of education and professional training in stabilizing Afghanistan. Peace is strengthened not only through political agreements, but also through an educated, skilled and socially active generation.

Another important dimension of the Termez Dialogue is climate and environmental sustainability. Central and South Asia are among the regions most affected by the consequences of climate change. Water scarcity, desertification, soil degradation, air pollution, glacier melting and natural disasters are not only national challenges, but also transboundary problems. Therefore, climate adaptation, rational use of water resources, early warning systems and the exchange of digital hydrological data should become integral components of cooperation between the two regions.

Uzbekistan is taking an active role in this field as well. The Samarkand Climate Forum, regional climate summits, the Green Agenda, the regional strategy for climate adaptation and environmental protection programmes are important steps in this direction. These initiatives show that Central Asia is no longer merely a region affected by environmental problems; it is increasingly becoming an active regional actor proposing practical solutions.

Cultural and humanitarian cooperation forms one of the deepest foundations of interregional connectivity. The peoples of Central and South Asia have been linked for centuries through shared history, trade routes, science, culture and spirituality. Today, the demographic potential of the two regions also creates major opportunities: more than 60 per cent of the population is under the age of 30. This opens broad prospects for cooperation in education, science, academic exchange, innovation and human capital development.

From this perspective, the Termez Dialogue is not only a meeting of diplomats and experts. It should also serve as a platform that opens new opportunities for young people, scholars, entrepreneurs, educational institutions, cultural actors and civil society representatives. Economic projects require trust, and trust requires closer ties, mutual understanding and cultural dialogue among peoples.

The planned visit to Samarkand also carries deep symbolic meaning. For centuries, Samarkand served as a centre of science, trade and diplomacy connecting East and West, Central and South Asia, the Middle East and Europe. The “Spirit of Samarkand” reflects openness, tolerance, dialogue and a commitment to shared development. In the diplomacy of President Shavkat Mirziyoyev, Samarkand has become a platform that connects Uzbekistan’s historical legacy with modern international initiatives.

In conclusion, the Termez Dialogue is not an ordinary international event aimed only at bringing Central and South Asia closer together. It is a strategic platform that reflects Uzbekistan’s new foreign policy thinking, regional responsibility and global initiative. Its foundation rests on three interconnected principles: trust through dialogue, cooperation through dialogue, and shared development through cooperation.

The international community is increasingly recognizing Uzbekistan’s efforts in this direction. The adoption of the UN General Assembly resolution, the support of more than 40 states, and the growing interest of international organizations, experts and regional partners in the Termez Dialogue clearly demonstrate this trend. Through this platform, Uzbekistan is building a new bridge of trust between Central and South Asia — a bridge strengthened by trade routes, railways, educational programmes, cultural ties and humanitarian initiatives.

Therefore, the Termez Dialogue should be viewed as an emerging architecture of interregional cooperation. It contributes to the formation of Central and South Asia not merely as neighbouring geographic spaces, but as a macro-region united by common interests, shared security and a common future. In this process, Uzbekistan acts as an initiator, organizer and reliable bridge between the two regions.

Sadullaev Qudrat Yusubbaevich
Chief Research Fellow of the Academy of Public Policy and Administration under the President of the Republic of Uzbekistan, Doctor of Law (DSc)

The Fifth Tashkent International Investment Forum will take place on June 16–19, 2026. This year’s theme – “Investment Resilience: New Frontiers, New Partnerships” – frames the agenda around a set of pressing questions: how to protect capital amid global uncertainty, what institutional mechanisms enhance investment resilience in frontier markets, and where the new partnership routes lie.

The forum’s context is set by macroeconomic results. According to the National Statistics Committee, Uzbekistan’s GDP grew by 7.7% in 2025 and exceeded $147 billion – the fastest pace since 2021 and among the highest in the Europe and Central Asia region. Fitch Ratings and S&P Global upgraded the country’s sovereign rating from BB– to BB for the first time, while Moody’s revised its outlook to “positive.” International reserves, per the Central Bank, surpass $77 billion. Exports rose 24% to $33.8 billion. Foreign direct investment increased by 46.9%, with FDI accounting for 40.5% of total capital investment. For an economy that attracted only $4 billion in annual foreign investment in 2017, the surge to $42 billion by 2025 represents a fundamentally different scale of growth. This tenfold increase over eight years underscores a profound transformation in the nation's investment landscape.

The forum is scaling alongside the economy. Last year’s TIIF drew over 8,000 participants, including some 3,000 international delegates from 97 countries. Guests included Bulgarian President Rumen Radev, Slovak Prime Minister Robert Fico, heads of government from all Central Asian states, EBRD President Odile Renaud-Basso, and New Development Bank President Dilma Rousseff. The aggregate value of signed investment contracts and trade agreements reached $30.5 billion. Yet what best speaks to the platform’s maturity is not the number of signings but the conversion rate – the share of agreements that translate into operating assets is increasingly the metric that matters to returning investors.

The centrepiece of this year’s forum will be the Tashkent International Financial Centre (TIFC), established by presidential decree in March 2026. Behind the headline sits a specific institutional architecture: a special legal regime based on common-law principles, a dedicated financial services regulator, an arbitration centre (TIAC), and tax exemptions through 2076. TIFC is part of a global trend toward specialised financial hubs that offer international market participants a familiar legal environment and regulatory predictability. Its defining feature is integration within the country’s legal framework: the centre operates under a special legal regime rather than creating a separate jurisdiction, reducing regulatory fragmentation and simplifying engagement with the domestic economy. A panel session featuring leaders of major global financial centres and international investors operating in Uzbekistan will address the central question: what are the practical conditions under which TIFC can attract international market participants.

The TIIF 2026 programme is structured around four thematic pillars: investment resilience and capital protection mechanisms, financial infrastructure and capital market development, trade connectivity and logistics corridors, and energy transition and climate finance. Key sessions include a discussion of the regulatory framework for alternative investment funds (a legal basis for private equity and venture capital being adopted for the first time), a panel on the Middle Corridor and trans-Caspian logistics, a session on sovereign ratings across Central Asia, and a practitioner-led workshop on blended finance instruments in frontier markets. A dedicated arbitration and dispute resolution track features two panel sessions co-organised with the Tashkent International Arbitration Centre (TIAC), the British-Uzbek Legal Association (BrULA), and the British Embassy. Topics range from the institutional design of Uzbekistan’s arbitration ecosystem – including the innovative Dispute Avoidance Protocol (DAP) – to the country’s positioning within the global investment protection architecture: ISDS frameworks, bilateral investment treaty reform, and New York Convention enforcement.

The energy agenda warrants particular attention. Uzbekistan has set an ambitious target of raising the share of renewables in electricity generation to 54% by 2030. Currently, the country operates solar and wind facilities with a combined installed capacity exceeding 4 GW, with a project pipeline envisaging an additional 19 GW of green capacity. Alongside this, the public-private partnership mechanism continues to develop: as of early 2025, PPP agreements worth approximately $28 billion had been signed in the country. For investors, this represents a large, structured market with standardised PPA contracts and a clear entry mechanism – a subject that will be examined in detail during the forum’s energy panel.

TIIF 2026 retains its bilateral business forum format, reflecting the expanding geography of Uzbekistan’s economic partnerships. Confirmed platforms include business forums with the Republic of Korea, the United States, Croatia, Hungary, Turkey, and Albania, as well as a China–SCO countries investment dialogue; the lineup continues to grow as the event approaches. The plenary session featuring heads of state and government will set the tone for the business programme. Running in parallel is an exhibition of industrial and investment potential spanning approximately 6,000 sq m – in 2025, a comparable facility facilitated over 500 B2B and B2G meetings for 100 participating companies.

At the same time, the forum agenda implicitly flags unresolved challenges. The corporate governance session raises the question of transitioning from concentrated to dispersed ownership – a process without which the stock market will remain illiquid. The discussion of privatisation and state asset IPOs calls for a candid conversation about pacing and institutional quality. The responsible business conduct panel, anchored in OECD standards, recognises that tax incentives alone are insufficient for accessing institutional capital – what is needed is verifiable supply chain transparency and functioning National Contact Point mechanisms.

The business programme is complemented by networking formats: an FIC and EY business breakfast on digitalisation and AI, the annual SQB Investor Day, an ESG Award ceremony, and the European Business Evening. The informal component – an invitational tennis tournament, TIIF Open, and an evening run – is designed for delegates who prefer to build relationships beyond the conference hall. The anniversary evening concludes with a collaboration with the Stihia electronic music festival – a detail that captures the tone in which Uzbekistan presents itself to an international audience.

For Uzbekistan, TIIF has long ceased to be a showcase. It is a working instrument of investment policy, whose effectiveness is measured not by the number of signing ceremonies but by the volume of capital that actually enters the economy between forums. The fifth, anniversary edition takes place at a moment when the country is simultaneously launching an international financial centre, adopting an alternative investment funds law, and receiving a sovereign rating upgrade – a convergence that creates a window of opportunity for investors prepared to operate in frontier markets with a growing institutional base.

Today, as global climate changes are observed, the population is growing, and industrial sectors are rapidly developing, the value of water resources is increasing not only in the Central Asian region but also worldwide.

According to the data, over the past 30 years, the air temperature in our region has increased by one and a half degrees, as a result of which about a third of the centuries-old glaciers in the highlands have melted, and the volume of water in rivers and streams has decreased slightly.

If current climate trends continue, in the next twenty years, the flow of the two large rivers, Amu Darya and Syr Darya, may decrease by 15%. This would result in a 25 percent reduction in per capita water availability and agricultural crop yields.

These are not just numbers, but indicators related to the fate and well-being of the people living in the region.

According to scientists, by 2040 in some areas of Central Asia, the need for water resources will triple. Over time, economic damage could reach 11% of the region's gross domestic product. The United Nations (UN) warns that countries in the region are currently losing up to US$2 billion a year due to water scarcity and inefficient use. Therefore, if appropriate measures are not taken now, it is inevitable that the countries in our region will face dire consequences of water shortages.

Under the leadership of the President of Uzbekistan, Shavkat Mirziyoyev, special attention is being paid to the comprehensive development of the water management sector in our republic, the rational use of existing water resources, including the widespread introduction of digital and water-saving irrigation technologies, and remarkable results are being achieved in this regard.

In his speech at the 78th session of the UN General Assembly on September 19, 2023, the leader of Uzbekistan emphasized the issue of water resource shortages in Central Asia, supported the establishment of the position of the UN Secretary General's Special Representative on Water Resources, and proposed creating a platform for water-saving technologies in Central Asia. In the process of using the "United Nations-Water Resources" mechanism, he emphasized his support for attracting and implementing the most advanced technologies.

This means that Uzbekistan will take the initiative in creating a platform for water-saving technologies in Central Asia, while also seeking to involve the international community in the process.

For more than 30 years since its establishment, the International Fund for Saving the Aral has become the most important platform for regional cooperation in the fields of water management and ecology. In the face of new risks and threats arising because of global climate change, the role and importance of the fund are increasing.

On September 15, 2023, President Shavkat Mirziyoyev put forward the initiative to develop and implement new, agreed-upon decisions for the long-term perspective within the framework of this structure at the meeting of the Council of Heads of the Founding States of the International Fund for Saving the Aral held in Dushanbe. Reflecting the spirit of today, he emphasized the need to further improve the fund's legal framework and modernize its institutional mechanisms.

It should be noted that in the country’s domestic policy over the past seven years, at the initiative of the President, large-scale reforms in the water sector have been implemented. To manage state policy in the field of water management, a separate Ministry of Water Resources was created and the Concept for the development of the industry for the period until 2030 was approved.

As a logical continuation of these reforms and to solve systemic problems at the middle and upper levels of the water management system, on May 7, 2024, the President of Uzbekistan signed the decree "On Setting Priorities for the Introduction and Development of a Modern Management System in Water Resources." According to this document, the activity of the Ministry of Water Resources was divided into three parts, setting up a vertical management system. At the upper level is the management of the state water policy, the regulator; the middle level is engaged in the operation and construction of water management facilities and the introduction of business processes into the sector; and the lower-level handles supplying water directly to consumers.

In the middle stage, an agency for the exploitation of water resource facilities is being set up that operates as an independent legal entity. The agency includes the Ministry of Water Resources of the Republic of Karakalpakhstan and regional irrigation systems basin departments, main canals, water reservoirs, and pumping station utilization departments, as well as land-improvement expeditions.

The department for the implementation of water management projects participates as a customer in projects funded by the budget and foreign investments. The decree envisages a 22% increase in the salary of middle- and high-level employees working in the ministry system, starting on July 1, 2024, and a 60% increase starting in 2025. It should be mentioned that starting in January 2024, the salary of lower-level employees has been doubled, and several incentive mechanisms are being used.

As a result of the accurate calculation of available water resources, special attention is paid to the introduction of water-saving technologies, resulting in abundant and high-quality harvests from agricultural crops. Nevertheless, the prevention of water scarcity remains one of the most important directions for Uzbekistan.

Uzbekistan is a country with a large water infrastructure in the Central Asian region; the total irrigated cropland exceeds 4.3 million hectares.

As one of the five priority directions of the "Uzbekistan-2030" strategy, which defines the goals of sustainable development of the country, the task of saving water resources and environmental protection is emphasized, placing great responsibility on water management employees.

To reduce water losses in irrigation networks, the year 2024 was announced as a "breakthrough year for concreting canals" in the water industry at the initiative of the President. For this purpose, 5,000 kilometers of irrigation networks, of which 1,500 kilometers are main and inter-farm and 3,500 kilometers are internal, have been concreted this year. To date, 525 kilometers of canals have been reconstructed, of which 355 kilometers have been concreted. The length of canals concreted by clusters and farms has exceeded 13,500 kilometers.

In recent years, the areas covered by water-saving technologies in the country have reached 1.3 million hectares. Of this, drip irrigation accounts for 478,000 hectares, sprinkler irrigation for 55,000 hectares, and discrete method irrigation for 29,000 hectares. Over 700,000 hectares have been leveled using laser leveling equipment.

Work on the introduction of water-saving technologies, which started in previous years, is being continued consistently. This year alone, it is planned to introduce cost-effective technologies on 500,000 hectares of land and to fully cover all irrigated farming areas in the country with such technologies by 2030.

All possibilities and resources are being used for this. Today, the number of local enterprises producing equipment and components for water-saving technologies in Uzbekistan has reached 55, with plans to increase this number in the future.

In recent years, 11,446 "Smart Water" devices, online water level monitoring meters in 1,704 pumping units, and online monitoring of seepage water levels have been installed in 6,746 reclamation monitoring wells. To manage water resources from one point without human intervention, the management processes of 65 large water management facilities were automated.

It is planned to save 8 billion cubic meters of water in 2024 through the concreting of channels, the introduction of water-saving technologies, the digitization of the industry, the implementation of "smart" devices, and effective water management.

It should be noted that 60 percent of the irrigated cropland in the country is supplied with water through pumps. There are more than 1,600 pumping stations in the Ministry's system, and due to their modernization, installation of modern energy-saving devices, and the introduction of public-private partnerships, electricity consumption has been reduced by 1.5 billion kWh in the last seven years.

In the coming years, the total cost of the water industry will be $6.0 trillion. Agreements for 463 public-private partnership projects worth significant amounts in soums were signed. In 2023, all water management facilities in five districts and 300 pumping stations across the republic will be transferred to the private sector.

This transfer increases work efficiency, saves up to 30% on electricity at pumping stations, and reduces salary deductions by 13%.

The "Irrigators' School" was launched in cooperation with the Ministry of Water Resources, the "Tashkent Institute of Irrigation and Agricultural Mechanization Engineers," the National Research University, and "Agrobank." Highly qualified specialists from abroad are organizing one-week-long free training courses for designers, contractors, managers of farms, and cluster enterprises from all districts of the republic.

In short, life itself proves that the only solution to mitigate the water shortage in our region is to save water and use it wisely.

Press service of the Ministry of Water Resources
of the Republic of Uzbekistan

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

The text of the article is in Uzbek!

Due to the Aral Sea tragedy, the negative consequences of climate change are more acute in Central Asia. The increase in air temperature in our region is twice the world average. The number of extremely hot days is expected to double and the area of glaciers will shrink by a third. In the last 30 years, the rate of warming in Central Asia is higher than the global average, and the average annual temperature has increased by 0.5 degrees. According to forecasts, the temperature is expected to increase by 2.0-5.7 degrees by 2085.

Uzbekistan is making active efforts to improve the quality of the environment and prevent the negative consequences of environmental problems. In particular:

Within the framework of international cooperation

Currently, the need for international cooperation in the field of environmental protection is determined by the growing ecological interdependence of all countries. Ozon layer depletion, pollution of the atmosphere and oceans, and the rise in temperature on our planet affect the entire world community, not just the countries engaged in environmentally dangerous activities. Therefore, today, a number of countries have established cooperation with the United Nations Organization on issues of environmental safety.

Such cooperation is based on a number of principles generally recognized by the international community. They are partly reflected in interstate agreements and acts, normative documents of international organizations, and summarized in the decisions of the most important international conferences dedicated to environmental protection and the regulation of cooperation between states and peoples in this field.

Based on this, Uzbekistan is actively promoting important climate initiatives aimed at uniting the region to combat climate change. These ideas of the President of Uzbekistan Shavkat Mirziyoyev are constantly supported by the countries of the region.

As a logical continuation of the formation of a unified climate agenda for Central Asia, the initiative to develop a regional strategy for adaptation to climate change was announced by Uzbekistan at the 5th meeting of state leaders. In addition, the Head of Uzbekistan proposed to establish a multilateral platform at the level of the ministers of ecology - "Central Asian climate dialogue", which can be an integrating link in the path of "green" development in Central Asian countries.

In addition, President Shavkat Mirziyoev put forward a number of proposals at the United Nations Climate Change Conference (COP28). In particular, our country's President advocated for an expeditious agreement on the Global Framework for Climate Adaptation within the framework of the Paris Agreement. At the same time, he noted the need for a fair, transparent and inclusive transition to a low-carbon economy on a global scale, in which the interests of developing countries must be taken into account. He proposed to consider this urgent problem on a permanent basis, including within the framework of the "G7" and "G20" summits.

Within the framework of environmental reforms in our country

A strategy for the transition to a «green» economy

Uzbekistan adopted the strategy of transitioning to a "green" economy for 2019-2030. The main goals of this strategy are:

Preservation of natural resources: Modernization of irrigation systems, introduction of water-saving technologies.

Use of alternative energy sources: Expanding the use of solar, wind and biomass energy.

Introduction of cost-effective means in economic sectors: Improving energy efficiency in manufacturing and service sectors.

Improvement of environmental legislation

Legislation is also being improved to ensure environmental stability in Uzbekistan. These laws are aimed at providing legal groundwork to the reforms implemented in the fields of environmental protection and ecological stability.

Project "Restoration of sustainable forest landscapes in Uzbekistan"

The project "Restoration of sustainable forest landscapes in Uzbekistan" is being implemented in collaboration with the International Development Association. The cost of the project is more than 205 million dollars and it will be implemented within 6 years. It is important that the goals of the project include such tasks as expanding the territory of forests, strengthening the material and technical base of forestry, introducing sustainable management and developing the infrastructure of ecotourism.

"Uzbekistan - 2030" strategy

In the "Uzbekistan-2030" strategy adopted by the Decree of the President of Uzbekistan on September 11, 2023, reforms in the framework of water resources conservation and environmental protection are set as one of the priority goals. A number of measures are envisaged within the framework of the strategy, and they are being effectively implemented. In particular,

National project “Yashil Makon” ("Green Zone").

The Decree of the Cabinet of Ministers No.144-F of March 7, 2024 was adopted in order to implement the activities of the nationwide project "Green Space" in 2024. This project included a number of important initiatives aimed at improving the environmental situation in Uzbekistan and expanding green areas.

138.1 million tree saplings were planted in the spring planting season of 2024 within the "Green Zone" national project. This indicator made 110.5 percent compared to the planned one. This part of the project is aimed not only at environmental improvement but also at improving the aesthetic appearance of our cities.

"Green Parks" and "Green Belts"

In particular, 257 "Green Parks" were established, their total number reached 517. Also, "Green Belts" were established by planting 5.3 million tree saplings in and around industrial enterprises. These efforts were made to reduce the impact of industrial enterprises and protect the environment.

Initiatives of organizations and agencies

Ministries and agencies are also contributing to the aforementioned work. In particular, the Ministry of Defense created a park of 100 hectares, the Ministry of Digital Technologies and the Ministry of Mining and Geology — 65 hectares. These efforts are critical to ensuring the comprehensiveness and sustainability of the project.

Tree planting and waste recycling

In our country, trees have been planted near highways and railways, on river and canal banks, at industrial enterprises and gas stations. These are especially aimed at reducing the negative impact of transport and industry on the environment.

On average, 6.8 million tonnes of household waste are produced in our country per year. In recent years, the number of neighbourhoods covered by sanitation services has increased by more than 90 percent. The level of waste processing was 38.1 percent as of July 1, 2024, and the number of such enterprises was 313 as of February. 

Waste treatment and landfills

A new system for the regulation of landfills and waste processing is being launched. In each region, 3-4 landfills with a convenient location are being turned into special eco-industrial zones, and recycling projects are being implemented. In the remaining landfills, a new practice is being used to start temporary waste collection and reloading stations. The landfills that exhausted their resources are closed, poplar, mulberry, elm and maple trees are planted around them, and "green belts" are being established.

Avazbek Kholbekov,

Head of Department – Development Strategy Centеr

The first meeting of the Termez Dialogue on Connectivity between Central and South Asia, dedicated to the theme "Building a Common Space for Peace, Friendship, and Prosperity," will be held in Termez on May 19-21, 2025. This meeting is expected to be attended by representatives of the foreign policy agencies of Central and South Asian countries, which are becoming the focus of world politics, as well as representatives of specialized UN organizations, international and regional organizations such as the CIS, the SCO, the CICA, and leading specialists and experts in relevant fields.

Central and South Asia have long been connected by reliable trade routes and have served as a bridge between the countries of the Middle East, Europe, and China. The peoples of this region share historical and civilizational commonalities, having repeatedly existed within common state associations in the past, as well as within a single political, economic, and humanitarian space. Over many centuries, relations between the two regions have been strengthened by numerous migration flows, intensive trade exchanges, rapid dissemination of scientific ideas, and cultural cross-pollination.

As a result of the spread of Zoroastrianism, Hinduism, Buddhism, and Islam in these regions, unique ethnocultural associations formed, which left a deep mark on human history.

The incorporation of the peoples of this region into such states as the Bactrian and Kushan kingdoms, the Turkic Khaganate, Khorasan and Transoxiana, the Ghaznavid, Timurid, and Mughal empires had a great influence on their historical, cultural, and political development. Common customs, traditions, lifestyles, and holidays were formed; spiritual values were created in Persian, Turkish, and Arabic. Medieval cities such as Bukhara, Samarkand, Termez, Balkh, Herat, Ghazni, Agra, and Delhi were shared centers of science.

The mutual competition of colonial powers negatively affected the traditional ties, trade, and cultural exchange of the peoples of Central and South Asia. Trade and economic relations in South Asia changed, and local supply systems, main industries, and economies became dependent on supplies from outside the region. This development weakened the traditional cultural ties between South Asia and Central Asia.

Today, jointly addressing existing problems that threaten peace and stability in the region is one of the important factors in the social, cultural, and economic development of these countries. Therefore, the renewal of their close historical ties is becoming increasingly relevant. Taking the above into account, the Termez Dialogue on the Connectivity between Central and South Asia is being organized.

The location chosen for the dialogue is connected to the geostrategic position of this city, situated at the crossroads of Central and South Asia, or at the intersection of interregional connectivity routes. Termez has long been a center of trade, economy, and crafts, serving as a link between the vast regions of Central and South Asia. Therefore, from a geopolitical perspective, the city can be considered a "natural bridge" connecting Central and South Asia, the most suitable place for bringing the peoples of the region closer together through its historical location and cultural heritage.

Currently, the countries of Central and South Asia represent a territory of global significance, with a population of more than 2 billion people and great educational potential. The region is experiencing high demographic growth, with the majority of the population consisting of young people, and there are enormous opportunities for realizing intellectual potential. While the population of South Asian countries is about 2 billion people, the number of people living in Central Asia is about 82 million, and the population of Central Asian states is growing year by year. The countries exhibit a "disparity in literacy levels." For example, among the leading countries of Central Asia, the average adult literacy rate is 99 percent, while in South Asia it is 74 percent.

One of the pressing problems is the uneven quality of education, insufficient coverage of preschool and higher education, especially among girls and residents of remote areas. In South Asia, youth unemployment remains high, and in some countries, this figure exceeds 40 percent. At the same time, the employment rate of women is one of the lowest in the world. In addition, the infrastructure of educational systems is not sufficiently developed, and the shortage of specialists and teacher qualifications also creates a number of problems.

In this context, cooperation in the field of science and education is becoming increasingly relevant. Scientific cooperation in the context of digitalization and geopolitical instability will allow for maintaining dialogue between academic circles. At the same time, limited academic mobility and weak coordination between scientific communities significantly hinder the development of states' potential in science, innovation, and technology.

In this regard, it is necessary to encourage joint research and innovation work, the organization of scientific and educational internships, experience exchange programs, the development of startups, and the holding of competitions.

The adoption of a joint program of academic and research exchanges under the auspices of UNESCO is becoming relevant. It is also necessary to launch an online platform between universities and research structures of the countries of Central and South Asia.

This will contribute to the creation of a sustainable regional network of scientific diplomacy, the formation of a common agenda in the field of education and technology, and the emergence of a unified scientific space.

The above-mentioned steps will serve as a powerful tool for the development of scientific diplomacy, which will facilitate interaction between the countries of the two regions.

From this point of view, the integration of intellectual resources in Central and South Asia, strengthening cooperation in the field of education, and developing cooperation platforms to improve the quality of education are important for the future of the region. The transformation of demographic potential into human capital is the main condition for sustainable development, economic growth, and a worthy place in global competition for both regions. In this regard, the development of education as one of the priority areas of regional cooperation, the development of partnerships for the exchange of experience and training of personnel in various countries is most relevant.

The countries of the region, in particular India and other South Asian countries, have in recent decades been occupying an increasingly prominent place in the world community in the field of science, technology, and innovation. Information technology, aeronautics, pharmaceutical production, and artificial intelligence are rapidly developing in India. For example, in 2014, the Indian Space Research Organisation (ISRO) made history as the first Asian country to launch an artificial satellite into Mars orbit. In 2023, as part of the "Chandrayaan-3" project, a successful landing on the Moon's surface was achieved. These results demonstrate the country's independent and innovative capabilities in the scientific field.

In the field of information technology, India has become one of the world's largest IT outsourcing centers. Cities such as Bangalore, Hyderabad, Pune, and Chennai have become major hubs for Google, Microsoft, Amazon, IBM, Oracle, and many other multinational corporations. Every year, millions of specialists in technical and technological fields are trained in the country. Among India's higher education institutions are prestigious scientific centers like the Indian Institutes of Technology (IITs) and Indian Institutes of Science (IISc), which also rank highly in global ratings. It's worth noting that scientific research in artificial intelligence, bioengineering, quantum computing, and cybersecurity is widespread in the country.

Pakistan is also making progress in science, especially in nuclear energy and military technologies. Centers such as COMSATS University and the Pakistan Institute of Engineering and Applied Sciences (PIEAS) play a crucial role in the country's scientific development. In particular, government programs are being implemented to strengthen international cooperation in IT and cybersecurity.

In Bangladesh, alongside the textile and light industry, information technology is developing rapidly. Based on the "Digital Bangladesh" strategy, the country has widely implemented e-government, digital, and distance learning services. In 2021, over 120 IT parks were established in Bangladesh, demonstrating the country's commitment to digitalizing its economy.

Afghanistan's scientific and technological potential remains limited, and issues related to political stability are hindering its development. Nevertheless, some universities and educational institutions in the country, particularly Kabul University, participate in scientific projects with the support of various international educational organizations.

In this context, developing a joint strategy for digital connectivity between Central and South Asia is crucial. Adopting such a document will create significant opportunities for stimulating trade and investment, improving access to education and healthcare, strengthening regional cooperation, and increasing competitiveness on the global stage.

Coordinating efforts of Central and South Asian countries to widely implement the digital economy will contribute to improving digitalization processes in all spheres of life. Moreover, this will advance the implementation of the SDG initiative to ensure safe Internet access for the population and will open up great opportunities for education and medical services.

Overall, deepening digital connectivity between Central and South Asia will bring significant economic and social benefits to both regions, create a solid foundation for expanding trade, economic, energy, and transport links, and enhance the competitiveness of the region's states on the global arena.

In general, the Termez Dialogue is an important initiative that contributes to elevating the interaction between Central and South Asian states to a new level in the process of today's geopolitical and civilizational transformations. This dialogue, particularly in the fields of education, science, and new technologies, will stimulate, consolidate, and expand the intellectual potential of the two regions. This is because in both regions, the majority of the population consists of young people who show high interest in education, are capable of scientific research, and quickly adapt to digital technologies.

Today, countries such as India, Pakistan, and Bangladesh have achieved world-class successes in information technology, biotechnology, nuclear physics, medicine, and artificial intelligence, while Uzbekistan, Kazakhstan, and other Central Asian countries are also taking active measures to update scientific infrastructure, expand international cooperation, and implement modern educational projects. The Termez Dialogue is a unique opportunity to combine this experience and achievements, establish student and scholar exchanges, create joint research centers, and develop startups and innovative platforms in IT and STEM.

This dialogue has great historical significance in ensuring regional stability, creating a foundation for peace, progress, and intellectual development through science and education. The states of Central and South Asia have the potential to become the leading intellectual center in the entire Eurasian space based on the principle of mutual trust and shared future, integration in the spheres of education and science.

President Shavkat Mirziyoyev has been informed of the work being done in the spiritual and educational sphere.

The main priority of transformations in multi-ethnic Uzbekistan is the comprehensive protection of the rights and freedoms of all its citizens. And one of the inalienable rights is freedom of religion. Therefore, all conditions are being created in our country so that believers can perform rituals and observe religious traditions.

It is worth emphasizing that the policy of New Uzbekistan in this area is receiving great recognition not only among our people, but also among the international community.

Thus, if in the early years of Uzbekistan's independence the number of compatriots honored with the holy pilgrimage to Mecca and Medina could be counted on fingers, these days more than 15 thousand Uzbeks are performing the sacred rites.

President of Uzbekistan Shavkat Mirziyoyev's greeting to our people on the occasion of Kurban Hayit, his conversation with Chairman of the Muslim Mufti Sheikh Nuriddin Khaliknazar on the pilgrimage of our compatriots have become one of the brightest pages of this year's Hajj season.

In a short period of time, Uzbekistan has created a comprehensive system of training qualified personnel in the religious and educational sphere. In order to study and popularize the rich scientific heritage of our scholars, research centers have been launched. Examples of this are the International Islamic Academy of Uzbekistan, the Mir Arab Higher Madrasa, the School of Hadith Studies, and the international research centers of Imam Bukhari, Imam Termizi, and Imam Moturidi. Large-scale renovation and improvement of Imam Bukhari memorial complex is underway.

During today's meeting it was emphasized the necessity of wider study and propaganda of works of these great thinkers among the population, especially among the youth. Since it is in them that the true meaning of Islam, enlightening ideas of the Muslim religion are laid down. And it is especially actual now, in our troubled time, when all over the world various forces try to distort the essence of religion and to lead young people off the true path.

It was noted a great role in this work and those who now make pilgrimage in sacred Mecca. The pilgrims have recently made an appeal, where they expressed their readiness to contribute to the spiritual education of the younger generation in their districts, in their mahallas.

Also at the meeting, the head of state stressed that an important role in these processes should be played by the Center of Islamic Civilization, the activities of which will serve to widely acquaint our people and foreign guests with the invaluable heritage of ancestors, to promote the ideas of enlightened Islam. At present, scientists-historians and theologians are working on filling the activities of the center with new content.

Information about further plans of the center's activity was heard.