The text of the article is in Uzbek!
On 19 February of this year, a meeting was held between J. Kuchkarov, Deputy Prime Minister and Minister of Economy and Finance of the Republic of Uzbekistan, and A. Mesarović, Deputy Prime Minister and Minister of Economy of the Republic of Serbia. During the talks, the parties discussed the current state of and prospects for bilateral trade, economic and investment cooperation.
At the beginning of the meeting, the Deputy Prime Minister of Serbia conveyed sincere greetings and best wishes from President of Serbia A. Vučić to President of the Republic of Uzbekistan Sh. Mirziyoyev. She also expressed gratitude for Uzbekistan’s principled position in support of Serbia’s territorial integrity.
The Serbian side noted that, in recent years, Serbia has become one of Europe’s leading countries in attracting investment. It was emphasized that new technologies, robotics, the automotive industry and high-tech manufacturing are developing rapidly.
The Uzbek side, in turn, provided information on Uzbekistan’s stable macroeconomic growth, the high rate of GDP growth, declining inflation and the ongoing reforms aimed at improving the investment climate.
During the meeting, the Serbian side raised the issue of facilitating a reduction in customs duties on Serbian-made Stellantis electric vehicles exported to Uzbekistan.
In response, the Uzbek side noted that electric vehicle manufacturers were already operating in Uzbekistan and had assumed certain obligations. At the same time, the Uzbek side stated that the matter would be considered in accordance with the established procedure.
The Serbian side also stated that, within one month, it would submit an official document outlining priority areas relating to investment, preferential trade and the expansion of cooperation. The Uzbek side expressed its readiness to consider these proposals, within the scope of its authority and in accordance with the established procedure. The Serbian side was also informed that the Ministry of Investment, Industry and Trade is the competent regulatory authority in the fields of investment and trade.
In addition, the Uzbek side expressed interest in Serbia’s defence industry capabilities and proposed implementing joint projects in this area.
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)
President of Uzbekistan Shavkat Mirziyoyev has arrived in Washington on a working visit to participate in the “C5+1” summit of the leaders of Central Asian countries and the United States and to hold meetings with U.S. President Donald Trump, members of the Senate and the House of Representatives, as well as heads of U.S. government departments and agencies.
The C5+1 format, launched in November 2015 in Samarkand, has become an important mechanism for coordination and cooperation in areas such as regional development, economic resilience, environmental protection, energy, and security. Its primary goal is to establish a permanent platform for diplomatic dialogue, exchange views on pressing issues, and strengthen connectivity in the fields of transport, energy, trade, business, and humanitarian engagement. The Joint Declaration on Partnership and Cooperation, adopted at the first meeting, reaffirmed the United States’ commitment to supporting the sovereignty, independence, and territorial integrity of the Central Asian countries.
The first C5+1 leaders’ summit, held in New York in September 2023, gave a strong impetus to advancing the comprehensive agenda of the platform and marked the launch of new initiatives, including the B5+1 Private Sector Business Platform (Almaty, March 2024) and the Critical Minerals Dialogue (February 2024). Since its inception, the format has held 13 ministerial meetings and three high-level gatherings, as well as specialized forums on climate change, development, Afghanistan, and other priority areas.
Uzbekistan has taken an active and constructive role within the C5+1, consistently advocating for the institutionalization of cooperation, enhanced border-security coordination, intensified action on climate and environmental challenges, and the continuation of projects in trade, investment, transport, and energy. Tashkent also supports initiatives related to Afghanistan. Many Uzbek initiatives have been endorsed and implemented in practice, including the establishment of the Virtual C5+1 Secretariat (2021), the TIFA meetings (Samarkand, March 2023), and projects on artificial intelligence and educational cooperation under the C5+1 framework.
The impact of these multilateral initiatives is evident: strengthened regional cooperation has opened new export routes, enhanced investment attractiveness, and created expert-exchange platforms — all contributing to the overall resilience of Central Asia.
Uzbekistan’s active engagement in the C5+1 format is fully aligned with its broader policy of deepening bilateral cooperation with the United States, which continues to expand across all key areas - politics, security, the economy, science, and culture.
Since the establishment of diplomatic relations on February 19, 1992, Uzbekistan and the United States have made substantial progress. A milestone was President Mirziyoyev’s official visit to the United States on May 15–17, 2018, which laid the foundation for a new era of strategic partnership. The President has also met with U.S. leaders on various multilateral platforms — on the sidelines of the Riyadh Summit in May 2017 and during the UN General Assembly sessions in New York in September 2017 and 2025.
The bilateral political dialogue evolved in 2021 into the Uzbekistan–U.S. Strategic Partnership Dialogue, whose sessions are held alternately in the two capitals. The fourth meeting, held in Washington on November 13, 2024, concluded with an agreement to elevate its status to the Expanded Strategic Partnership Dialogue.
The regular visits of senior U.S. officials and special envoys to Uzbekistan further underscore the growing intensity of the partnership.
In 2025, Uzbekistan hosted several high-level American representatives, including Paolo Zampolli, the Special Representative of the U.S. President for Global Partnerships (August 28 – September 1, 2025), and Sergio Góvar, the Special Envoy for South and Central Asian Affairs, accompanied by First Deputy Secretary of State Christopher Landau (October 25–27, 2025).
A clear demonstration of the high level of bilateral relations was the official visit of Foreign Minister Bakhtiyor Saidov to Washington on April 8–10, 2025, during which he met with U.S. Secretary of State Marco Rubio and National Security Advisor Michael Waltz. The sides discussed a wide range of regional and international issues, paying particular attention to strengthening the strategic partnership between Uzbekistan and the United States. Special emphasis was placed on cooperation in security, economic development, regional connectivity, and sustainable growth in Central Asia.
Inter-parliamentary ties are also expanding dynamically. In 2018, the Uzbekistan Caucus was established in the U.S. House of Representatives, with participation from both parties. Regular visits of congressional delegations contribute to the strengthening of parliamentary diplomacy.
Economic and investment cooperation is developing at a robust pace. The bilateral trade turnover and the number of joint projects continue to grow annually. Major American companies such as Air Products, General Electric, General Motors, Boeing, Honeywell, The Coca-Cola Company, and John Deere are successfully operating in Uzbekistan.
During the IV Tashkent International Investment Forum on June 9, 2025, the U.S.–Uzbekistan Business Forum was held with the participation of around 100 U.S. companies. Memorandums of understanding were signed and negotiations held with Boeing, FLS, Visa, NASDAQ, Air Products, Franklin Templeton, Morgan Stanley, and others.
The United States supports Uzbekistan’s accession to the World Trade Organization (WTO). In December 2024, the parties signed a protocol concluding bilateral negotiations on accession — an important milestone in Uzbekistan’s integration into the global trading system.
The cultural and humanitarian sphere constitutes a significant dimension of bilateral cooperation. Sister-city relations have been established between Tashkent–Seattle, Bukhara–Santa Fe, and Zarafshan–Clinton. These municipal partnerships foster cultural and educational exchange, tourism, and business collaboration.
Educational cooperation is also advancing: the Tashkent branch of Webster University (opened in 2019) and the American University of Technology (AUT), established in partnership with Arizona State University, play a key role. On August 30, 2025, an American Corner — a cultural and educational hub promoting academic and scientific collaboration — was inaugurated at AUT.
In October 2023, Tashkent hosted the Education USA Regional Forum with the participation of 65 U.S. universities. The activities of American Councils for International Education (ACIE) have resumed, and work is underway to restore the Peace Corps presence in Uzbekistan.
Transport connectivity has also improved: since July 2017, direct Tashkent–New York–Tashkent flights operated by the national airline have resumed, facilitating business and humanitarian exchanges.
Furthermore, the United States continues to support Uzbekistan’s domestic reforms. Reports by the U.S. Department of State and the Department of Labor highlight progress in combating human trafficking and eradicating the worst forms of child labour. Uzbek cotton has been removed from the lists of goods produced with forced child labour; in December 2020, Uzbekistan was delisted from the “Countries of Particular Concern” regarding religious freedom; and in April 2024, the U.S. Trade Representative (USTR) removed Uzbekistan from the Special 301 Watch List on intellectual property protection.
In summary, President Shavkat Mirziyoyev’s current visit to the United States and participation in the C5+1 Summit will provide a new and powerful impetus for the practical implementation of initiatives on both the multilateral and bilateral agenda. The visit will undoubtedly strengthen political dialogue, accelerate the realization of investment agreements, expand educational and cultural exchanges, and give fresh momentum to joint projects in energy, transport, and digital technologies.
For Uzbekistan, this visit represents another opportunity to reaffirm its status as an active and reliable partner in Central Asia; for the United States, it serves as a platform to deepen engagement in a region of strategic importance for global stability and economic growth.
Dunyo IA
Throughout the year, the business climate remained in positive territory, with an annual average of 57 points, indicating an overall favorable business environment in Uzbekistan.
The Center for Economic Research and Reforms (CERR) presented the results of its 2025 business climate analysis, based on monthly nationwide surveys of entrepreneurs. Using the collected data, a composite Business Climate Indicator was constructed, reflecting assessments of current business conditions as well as expectations for the next three months.
Dynamics of the Composite Business Climate in Uzbekistan
According to the results of 2025, the annual average value of the Composite Business Climate Index in Uzbekistan amounted to 57 points on a scale from −100 to +100, which is 7% higher than in 2024. The growth was primarily driven by improved assessments of current conditions. The annual average value of the Current Business Conditions Index increased by 22% and reached 47 points.
At the same time, the Expectations Index declined slightly from 68 to 66 points, while remaining at a relatively high level. This reflects a certain degree of caution among enterprises regarding future prospects amid an overall improvement in perceptions of current conditions.
Over the year, the dynamics of the Composite Business Climate Index were uneven. The highest value was recorded in June at 63 points, while the lowest level was observed in January at 52 points. Fluctuations during the year reflected both seasonal factors and businesses’ adaptation to rapidly changing economic conditions.
By the end of the year, a high level of optimism among enterprises persisted. In December, the Business Climate Index stood at 58 points, increasing by 2 points compared to the end of 2024.
Sectoral and Regional Dynamics of the Business Climate Index
From a sectoral perspective, improvements in the business climate were recorded across most sectors of the economy in 2025. In the services sector, the index reached 58 points, representing an increase of 14.7%. In construction, the index stood at 57 points, up by 14.2%, while in industry it reached 54 points, increasing by 6.8%.
In agriculture, the index remained virtually unchanged at 56 points, indicating the persistence of previously established assessments of business conditions in this sector.
From a regional perspective, the annual average Business Climate Index increased compared to the previous year in 11 regions of the republic. In seven regions, the annual average value of the index reached 57 points.
The most pronounced improvement in business climate conditions was observed in Kashkadarya region, where the index increased by 27%, followed by Jizzakh region with a 23% increase and Khorezm region with a 17% increase. In the Republic of Karakalpakstan, growth amounted to 19%.
In Samarkand region, despite a slight decline in the index, the annual average business climate remained in positive territory at 51 points. In Tashkent region, the indicator remained unchanged at 44 points.
Business Expectations Regarding Price Dynamics and Demand
In terms of business expectations, inflationary and market assessments remained moderate in 2025. On average, 23% of companies expected price increases in the near term, which is 2 percentage points lower than in 2024.
During the year, the share of entrepreneurs expecting price increases fluctuated within the range of 18–27%, reaching a peak in April and the lowest levels in September and December. The highest price expectations were observed among enterprises in agriculture and construction, reflecting sector-specific cost structures as well as the impact of seasonal and weather-related factors.
At the same time, assessments of market conditions remained relatively strong. On average, 66% of entrepreneurs expected an increase in demand for goods and services, while 57% of companies planned to expand their workforce. Overall, the results indicate the persistence of positive expectations regarding business activity and employment, alongside more restrained assessments of price dynamics.
Assessments of Demand and Employment
The Employment Index in 2025 amounted to 43 points, corresponding to a 12% increase. The most significant growth was recorded in the services sector at 14%, construction at 17%, industry at 7%, and agriculture at 11%. Throughout the year, employment dynamics remained moderate, with sustained demand for labor.
The Demand Index also showed improvement. Its annual average value reached 48 points, representing an increase of 13%. The largest contribution came from the services sector, where the index increased by 19%, while in construction, industry, and agriculture the Demand Index rose by 6% in each sector. During the year, the index remained relatively stable, with stronger positive assessments in the second half of 2025.
Barriers to Entrepreneurial Activity
Over the course of the year, a gradual reduction in barriers to doing business was observed. According to the results, 60% of entrepreneurs reported that they did not face difficulties in conducting business, which is 6% higher than in 2024.
In industry, problems related to electricity supply decreased by 4%, high tax rates by 3%, and access to financing by 3%.
At the same time, in agriculture and construction, financing-related barriers declined significantly, by 7% and 5%, respectively.
Despite the overall reduction in complaints, financing remained the main obstacle cited by entrepreneurs in construction and industry, reported by 11% of respondents in each sector.
Overall, sectoral data indicate an increase in the share of entrepreneurs who do not face significant constraints, as well as a decline in the importance of financial and infrastructure barriers.
The Business Climate Change Indicator is constructed based on the methodology of the Ifo Institute (Germany). As part of the surveys, company managers assess current and expected changes in business activity based on developments in production, demand, prices, and other indicators.
CERR Sector for the Study of Competitiveness of Economic Sectors and Investment Activity
tel.: (78) 150 02 02 (441)
CERR Public Relations and Media Sector
tel.: (78) 150 02 02 (417)
Amid the transformation of global supply chains and rapid geopolitical shifts in the world economy, the formation of sustainable and secure transport corridors connecting Asia and Europe has become particularly crucial. In this context, cooperation between the countries of Central Asia and Azerbaijan in the transport and logistics sector is becoming a key factor in ensuring regional trade stability, diversifying transport routes, and deepening economic integration across the Eurasian space.
Central Asia and Azerbaijan are united by a centuries-old history, culture, religion, and shared values. Today, this unified historical and cultural space is also emerging as a geoeconomic region of growing strategic importance. Due to its geographical location, Azerbaijan serves as a bridge connecting Central Asia via the Caspian Sea to the South Caucasus, Turkey, and European countries. In turn, the countries of Central Asia provide Azerbaijan with access to the dynamically growing markets of China and South Asia. This very complementarity creates a solid foundation for long-term cooperation in transport and logistics.
The seventh Consultative Meeting of the Heads of State of Central Asia, held on November 15–16, 2025, in Tashkent under the chairmanship of President of the Republic of Uzbekistan Shavkat Mirziyoyev, was of historic significance for the institutional development of regional cooperation. One of the most important outcomes of the summit was the admission of Azerbaijan as a full-fledged member of this format. This accession, unanimously supported by all heads of state, resulted in the formation of a new "Central Asia and Azerbaijan" cooperation framework.
The Trans-Caspian International Transport Route (the Middle Corridor) is central to this cooperation. In recent years, attention to this route has grown steadily: by the end of 2025, the total volume of freight traffic along the Middle Corridor exceeded 4.7 million tons.
This route is particularly significant for Uzbekistan. Over the past five years, the volume of Uzbek freight transported via the Middle Corridor has doubled, reaching 1.3 million tons by the end of 2025. While the share of goods transported along this corridor to and from EU countries was 12% in 2021, this figure rose to 28% by 2025.
To increase the freight volume along the Trans-Caspian Transport Route to 1.5 million tons, the joint Working Group holds regular meetings to discuss measures for expanding capacity and increasing freight traffic across the Caspian Sea, as well as the acquisition of vessels.
At the same time, to enhance the appeal of international transport corridors passing through its territory and to establish alternative transport routes linking Central Asia with the Eurasian transport network, Uzbekistan is implementing a number of strategically important infrastructure projects. The China-Kyrgyzstan-Uzbekistan railway construction project, being carried out with the active participation of Uzbekistan, holds a special place among them.
According to expert calculations, this route will form the shortest corridor from China to Europe and the Middle East, reducing the distance by 900 kilometers and cargo delivery times by 7-8 days. It is expected that after the project's launch, cargo traffic along this route, including through the Middle Corridor, will increase sharply.
Pending the completion of the railway, Uzbekistan is developing this corridor by organizing freight transport along the "China–Kyrgyzstan–Uzbekistan" route using the existing international highway network.
The international multimodal route "Asia-Pacific Region – China – Kyrgyzstan – Uzbekistan – Turkmenistan – Azerbaijan – Georgia – Turkey – Europe" (CASCA+) is being actively developed as an effective mechanism for coordinating cargo flows. In 2025, container shipments along this route reached 6,722 TEU, a 47% increase compared to 2024. The annual provision of tariff preferences of up to 70% by the participating railway administrations contributes to the steady growth in the volume of mutually beneficial transport.
Furthermore, the establishment in 2024 of the "Eurasian Transport Route" association, with the participation of the railway authorities of Uzbekistan, Kyrgyzstan, Turkmenistan, Azerbaijan, Georgia, Turkey, and Tajikistan, has created an institutional platform for the prompt removal of logistical barriers along this corridor.
Another promising transport artery is the "Uzbekistan–Afghanistan–Pakistan" international transport corridor, which shortens the distance from European and CIS countries to Indian Ocean ports by up to 1,000 kilometers compared to existing corridors and creates a new dimension of regional interconnectivity.
The development of this route in harmony with existing transport arteries will lay the groundwork for a new multimodal transport corridor spanning a significant part of the Eurasian region:
"South Asian countries (Pakistan, India) – Afghanistan – Uzbekistan – Kazakhstan – Azerbaijan – Georgia (Black Sea ports) – European Union".
In addition to infrastructure connectivity, digital integration in the transport sector is also consistently advancing between the countries of Central Asia and Azerbaijan. In this respect, the introduction of the e-Permit system, initiated by Uzbekistan, has been of great practical significance. This system allows for the electronic exchange of permits for international road freight. Notably, this system will be launched between Uzbekistan and Azerbaijan in 2025, which will simplify administrative procedures for carriers, accelerate customs clearance, and reduce human error.
It is noteworthy that the world's first implementation of an electronic permit exchange system occurred in 2021 between Uzbekistan and Turkey. In the following years, this initiative was gradually expanded: the system was implemented with Kazakhstan in 2024, will be with Azerbaijan and Kyrgyzstan in 2025, and with Tajikistan, Turkmenistan, and China in 2026. This demonstrates that Uzbekistan is becoming one of the countries pioneering best practices in digitalizing international transport processes, not only regionally but also on a global scale.
In conclusion, the strategic partnership between the countries of Central Asia and Azerbaijan in the transport and logistics sector not only connects the regions but also ensures the stability of freight supply chains across the entire Eurasian space. Azerbaijan's full accession to the Consultative Meetings format, the active implementation of major railway projects, the widespread adoption of digital solutions, and the strengthening of institutional mechanisms are creating a solid foundation for a unified transport space. This, in turn, facilitates the seamless integration of the region's countries into global supply chains and further strengthens the positions of Central Asia and the South Caucasus within the international transit system.
Sh. Akhmedov, Leading Specialist at the Center for the Study of Transport and Logistics Development Issues under the Ministry of Transport of the Republic of Uzbekistan
Belarus and Uzbekistan actively cooperate in the transport and logistics sector within the framework of the Coordinating Transport Conference of the CIS Member States (CIS CTC), the Organization for Cooperation of Railways (OSJD), and the Commonwealth Railway Transport Council (CIS RTC).
An additional basis for the development of bilateral and multilateral cooperation is the participation of both countries in the CIS and SCO, where issues of developing international transport corridors and strengthening transport connectivity between states occupy an important place on the cooperation agenda.
A practical result of cooperation is the steady positive growth in freight traffic between the Republic of Uzbekistan and the Republic of Belarus, which is one of the republic's key trade and transport partners.
In terms of export and import freight volumes, Belarus is among Uzbekistan's top ten trading partners. By the end of 2025, freight traffic between the two countries reached 850,000 tons, an increase of 30% compared to the previous year.
The structure of freight traffic is dominated by imports, primarily timber, timber products, and food products, while export volumes remain insignificant and consist primarily of agricultural products.
The current situation demonstrates significant potential for increasing mutual freight traffic, primarily through the expansion of Uzbek exports and the development of new logistics routes.
In the context of geopolitical conflicts and the diversification of global supply chains, the creation of new international transport corridors in Eurasia using mixed modes of transport in the East-West and North-South directions is acquiring strategic importance.
The following are promising cooperation projects:
A promising area is the development of the international transport route "Belarus – Russia – Kazakhstan – Uzbekistan – Afghanistan – Pakistan – Indian Ocean ports," which utilizes the shortest railway section running through Kazakhstan between the Dina Nurpeisova and Karakalpakstan stations.
On November 1, 2023, in Tashkent, at the SCO Transport Forum, the transport ministers of Uzbekistan, Russia, and Kazakhstan signed a Memorandum of Understanding on the creation and development of this corridor. Belarus and Pakistan joined the Memorandum in 2024, and negotiations are currently underway to add Afghanistan.
The economic logic of the project is very clear. The corridor is approximately half the length of existing alternative routes and reduces delivery times by 2-3 times. It will directly connect the countries of the European Union and the CIS with Southeast and South Asia via a land-based rail and road route, increasing our countries' transit potential by transporting goods to the densely populated countries of South Asia – India and Pakistan – via the Uzbekistan – Afghanistan – Pakistan route.
In the future, joint work is planned to develop uniform standards for the operation of the international transport corridor, including the introduction of a single shipping document and the unification of technological and technical standards.
It should be noted that the new route through Uzbekistan, Afghanistan, and Pakistan will contribute to the diversification of the geography and structure of foreign trade and will lead to an increase in the region's transit potential.
This potential is already being demonstrated in practice. In the first quarter of 2026 alone, freight transit to the south through Uzbekistan increased by 23% compared to the same period last year, reaching 1.8 million tons, of which 1.3 million tons were transported by rail and 0.5 million tons by road.
A significant element of the long-term partnership is cooperation in the training and advanced training of transport specialists.
Belarus has a recognized track record in transport training. For example, the Belarusian State University of Transport in Gomel is a leading specialized educational and research institution, which includes the Institute for Advanced Training and Retraining of Personnel and the Research Institute of Railway Transport.
Developing cooperation between the Belarusian State University of Transport and specialized organizations in Uzbekistan, particularly the Tashkent State Transport University, would enable the organization of internships and advanced training programs for specialists, the development of academic mobility for undergraduate, graduate, and postgraduate students, and joint research in priority areas of rail transport development, multimodal transportation, and international transport logistics.
III. Digitalization of Permit Exchange for Road Transport.
A separate practical area is the transition to the electronic exchange of permit forms—the E-permit system. Uzbekistan currently fully implements this exchange with Azerbaijan, Kazakhstan, Kyrgyzstan, China, and Turkey, and partially with Tajikistan. Work is underway to launch it with Turkmenistan.
Implementing this system in cooperation with Belarus will ensure transparency in permit distribution, eliminate human error, and strengthen oversight of their use, which is especially relevant given the growing volume of road transport between the countries.
Thus, cooperation between Belarus and Uzbekistan in transport and logistics goes beyond increasing mutual traffic and acquires a strategic dimension.
The implementation of these projects—from a multimodal corridor to Indian Ocean ports to the digitalization of permitting procedures—could transform our countries' geographical location into a real competitive advantage, making the Belarus-Uzbekistan-South Asia route convenient, fast, and predictable.
Joint and consistent work in these areas will strengthen economic ties between the two countries and make a significant contribution to the development of sustainable transport connectivity in the Eurasian space.
Head of Department, Center for the Study of Transport and Logistics Development Problems under the Ministry of Transport of the Republic of Uzbekistan Dildora Ibragimova
For centuries, life in Central Asia has been inseparable from water. Across the Amu Darya and Syr Darya basins, settlements, agriculture and trade developed around rivers, canals and irrigation systems. Water has therefore never been merely a natural resource for the region; it has been one of the foundations of its economic life, social stability and shared history.
Today, the water challenge is more pressing than ever. Climate change, population and economic growth, shrinking glaciers, droughts and increasingly frequent extreme weather events are placing mounting pressure on water resources. One conclusion is clear: no single country can ensure water security in Central Asia on its own. The only sustainable path lies in cooperation, mutual trust, accurate measurement and shared responsibility.
One River Basin, Shared Interests
Central Asia’s major rivers originate in some countries and flow through others. The Syr Darya is of vital importance to Kyrgyzstan, Tajikistan, Uzbekistan and Kazakhstan, while the Amu Darya is equally significant for Tajikistan, Afghanistan, Uzbekistan and Turkmenistan.
This geographical reality makes it essential to avoid framing the interests of upstream and downstream countries as inherently opposed. For one state, water may be a key source of hydropower; for another, it is indispensable for irrigated agriculture. At the same time, preserving river ecosystems, improving the environmental situation in the Aral Sea region and ensuring access to safe drinking water are common priorities for all countries.
Around 90 per cent of water in Central Asia is used in agriculture. Water management therefore cannot be shaped solely around the interests of one sector or one country. What is needed is a regional approach that recognises the close interdependence of water, energy, food security and the environment.
Open Dialogue, Practical Results
In recent years, dialogue among the countries of Central Asia has become more open and constructive. This has had a direct impact on cooperation in the water sector. Whereas discussions once focused primarily on seasonal water allocation, the agenda today is considerably broader, encompassing water-energy cooperation, joint management of shared facilities, digitalisation, improved water accounting, scientific collaboration and professional training.
At the Seventh Consultative Meeting of the Heads of State of Central Asia, held in Tashkent in November 2025, the President of Uzbekistan drew attention to growing water scarcity and proposed declaring 2026–2036 the “Decade of Practical Action for the Rational Use of Water in Central Asia”. The establishment of a Regional Competence Centre for Water Management at the Tashkent Institute of Irrigation and Agricultural Mechanization Engineers National Research University was also proposed.
At the summit of the International Fund for Saving the Aral Sea in April 2026, the President of Uzbekistan outlined priority tasks for the country’s chairmanship of the Fund in 2027–2029. These include improving the Fund’s organisational and legal mechanisms, increasing the effectiveness of programmes in the Aral Sea basin, attracting international financing, promoting a culture of responsible water use and strengthening professional capacity in the sector.
Agreements as the Practical Basis of Cooperation
Regional dialogue produces lasting results only when it is backed by concrete agreements and practical cooperation.
On 15 November 2025, Uzbekistan and Kazakhstan signed an Agreement on the Joint Management and Rational Use of Transboundary Water Bodies. The agreement is designed to establish systematic cooperation between the two countries in the water sector, improve coordination among responsible agencies and ensure more effective use of shared water resources and infrastructure.
With the Kyrgyz Republic, issues related to water use, the operation of hydraulic structures and the distribution of water during the irrigation season are regularly addressed through joint mechanisms. On 15 May 2026, the eighth meeting of the Uzbek-Kyrgyz Joint Commission on Water Management was held in Namangan. In June, Uzbekistan, Kazakhstan and Kyrgyzstan also agreed on water release volumes and electricity supplies for the 2026 irrigation season.
Within the framework of the joint Working Group with Tajikistan, the parties regularly discuss transboundary water-management projects, exchange experience in managing water resources and address other practical matters.
Uzbekistan, Tajikistan and Kazakhstan also cooperate in coordinating the summer operating regime of the Bahri Tojik Reservoir. This issue is agreed annually at working-level meetings involving representatives of the three countries and is formalised through the relevant protocols.
A joint intergovernmental commission on water issues operates between Uzbekistan and Turkmenistan. Cooperation covers water-saving technologies, the reconstruction of collector-drainage networks, scientific exchange and professional training in irrigation. In 2025, for example, the second stage of the reconstruction of the Ozyorny and Daryolik main collectors in Turkmenistan was completed.
These examples demonstrate an important shift: water cooperation in Central Asia is moving beyond general declarations towards concrete mechanisms — commissions, agreements, technical projects and water-energy exchanges.
Accurate Data as a Foundation of Trust
In water relations, trust is built not only through political declarations but also through accurate and transparent data.
How much water is flowing in a river? What volumes are stored in reservoirs? How much water has been released, how much has reached users and how much has been lost along the way? These questions must be answered on the basis of reliable information that all parties can trust.
This is why it is increasingly important to automate transboundary hydrological gauging stations, enable remote data transmission, introduce digital water accounting and harmonise information-exchange systems among countries.
In July 2026, the World Bank approved the Regional Cooperation Project to Improve the Efficiency of Water Resources Use in Central Asian Countries (CAWEC), aimed at strengthening transboundary water cooperation in the region.
The project envisages a US$20 million grant to the Executive Committee of the International Fund for Saving the Aral Sea. The funds are intended to support the digitalisation of water accounting in the Amu Darya and Syr Darya basins, modernise information systems and strengthen the professional capacity of specialists.
By 2031, the project is also expected to support the preparation of mutually beneficial transboundary investment projects involving at least two Central Asian countries, including preliminary feasibility studies, design and cost documentation, and environmental and social assessments.
It is expected that around 40 million people will benefit directly or indirectly from the project’s results.
Water Conservation in Uzbekistan Also Serves Regional Interests
The rational use of transboundary water resources begins with the responsibility of each country to use water efficiently within its own territory.
In 2017, water-saving technologies were applied on 28,000 hectares in Uzbekistan. By the end of 2025, this figure had reached 2.6 million hectares — nearly 60 per cent of the country’s irrigated land. Since the beginning of 2026, water-saving technologies have been introduced on a further 640,000 hectares.
Around 174,000 kilometres of irrigation networks are used to supply water to 4.3 million hectares of irrigated land in Uzbekistan. Public funding for modernising this extensive system, reducing water losses in canals and improving efficiency has increased steadily. In 2017, 842 billion soums were allocated to irrigation and land-reclamation works; in 2020, the figure rose to 1.7 trillion soums, and in 2025 to 3 trillion soums.
In 2026, 4.1 trillion soums were allocated from the state budget for irrigation and land-reclamation facilities — 4.9 times the 2017 level.
By the end of 2026, Uzbekistan plans to save 11 billion cubic metres of water through the wider use of water-saving technologies, laser land levelling, the repair and concrete lining of irrigation networks, digitalisation, optimisation of crop patterns and improved agricultural practices. Under the state programme for 2025–2028, this figure is expected to rise to 12 billion cubic metres in 2027 and 13 billion cubic metres in 2028.
These figures matter not only for Uzbekistan, but for the region as a whole. Every cubic metre of water saved in one country reduces pressure on the shared river basin. Water conservation is therefore not merely a national objective; it is also a practical expression of good-neighbourly responsibility.
Five Pillars for the Future
Five areas are particularly important if Central Asia is to take water cooperation to a new level.
First, interstate cooperation mechanisms need to be adapted to contemporary realities. Clear legal arrangements are required for water allocation, the use of shared infrastructure and the exchange of information.
Second, water accounting should be further digitalised, with timely exchange of data on water availability and flows. Reliable information is the foundation of reliable cooperation.
Third, the region needs more joint investment projects to modernise ageing canals, hydraulic structures, pumping stations and water-metering facilities. The uninterrupted operation of a single facility in one country may directly serve the interests of several neighbouring states.
Fourth, water and energy issues should be addressed in an integrated manner. Better coordination of reservoir operating regimes, electricity supplies and seasonal water needs can significantly improve the efficiency of resource use.
Fifth, greater attention must be paid to science, human capital and a culture of responsible water use. Modern technologies alone are not enough. They require skilled specialists, farmers who have a clear incentive to conserve water, and a society that understands the true value of this resource.
Water conservation is not the responsibility of water professionals alone. It is also a matter of economic thinking, environmental responsibility and everyday culture.
Water as a Shared Responsibility for a Common Future
The history of Central Asia shows that water has not only sustained communities; it has also connected them. Villages, cities, markets and cultural ties developed along rivers, canals and irrigation channels. Preserving that unifying role of water is just as important today.
In the twenty-first century, effective water management is determined not only by how much water is available. It also depends on the quality of cooperation between countries, the efficiency with which water is used, and the accuracy with which it is measured and accounted for.
The challenges ahead are substantial. Demand for water is rising, the climate is changing and economies are expanding. Yet Central Asia has also developed a stronger culture of cooperation. Regular dialogue among heads of state, bilateral and multilateral agreements, modern technologies and support from international partners are creating practical opportunities to address shared challenges together.
Joint efforts to conserve water contribute to peace and stability. Rational use of this vital resource is an investment in economic development. Above all, it is an investment in a more prosperous, resilient and sustainable future for the entire region.
Shavkat KHAMRAEV,
Minister of Water Resources of the Republic of Uzbekistan,
Honored Irrigator of Uzbekistan
This year, the Shanghai Cooperation Organization (SCO) is celebrating its 25th anniversary. Over the past quarter-century, it has undergone a profound institutional transformation – from a mechanism for building cross-border trust within the “Shanghai Five” format to one of the most influential platforms for multilateral cooperation in Eurasia.
Over these years, the SCO has significantly expanded its membership. While in 2001 it was founded by six states (China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan), today the Organization brings together 10 member states, 15 dialogue partners, and 2 observer states.
At the same time, interest in the Organization’s activities continues to grow steadily. According to SCO Secretary-General Nurlan Yermekbayev, approximately 20 countries have expressed interest in joining the structure in one capacity or another.
Uzbekistan, as one of the founding members of the SCO, makes a significant practical contribution to its activities. The country has held the SCO chairmanship four times and successfully hosted the SCO Heads of State Summits in Tashkent (2004, 2010, and 2016) and Samarkand (2022).
At the present stage, Uzbekistan actively participates in shaping the Organization’s current agenda, focusing on security issues, trade and economic cooperation, industrial and technological partnership, cultural and humanitarian ties, and regional connectivity.
Economy and Transport Connectivity
Economic cooperation is one of the key areas of Uzbekistan’s participation in the SCO. For Tashkent, the Organization is of practical interest primarily as an effective platform for expanding trade, attracting investment, developing industrial cooperation, and establishing reliable transport and logistics links.
Uzbekistan’s trade ties with SCO member states have already reached a significant scale. In 2025, the country’s foreign trade turnover amounted to $81.2 billion, an increase of 20.7% over the previous year. China, Russia, and Kazakhstan remain Uzbekistan’s largest trading partners, accounting for around 43% of the country’s total foreign trade turnover.
The SCO’s economic potential is constrained by differences in customs procedures, technical standards, and market-access rules. To remove these barriers, Uzbekistan is calling for the signing of a Trade Facilitation Agreement, the harmonization of customs and technical standards to launch “green corridors,” the development of cross-border e-commerce, the wider use of national currencies in settlements, and the creation of investment mechanisms to provide independent financing for joint projects.
Uzbekistan’s strategic goal is to transition from simple trade to deep industrial cooperation, the production of high-value-added goods, and the integration of national enterprises into global value chains. Significant opportunities in this regard are opened up by cooperation in the energy sector, digitalization, green technologies, and the processing of critical minerals.
A practical continuation of this approach was the initiatives put forward by Uzbekistan at the SCO Summit in Tianjin. These include the establishment of a Regional Centre for Critical Materials and the SCO Energy Consortium, the development of venture mechanisms to support innovative projects, and the formation of a unified electronic portal for direct business contacts and investment attraction.
The deepening of trade and industrial cooperation is directly linked to the development of transport infrastructure. For Uzbekistan, as a landlocked country, expanding the geography of routes is a key condition for sustainable economic growth. The China–Kyrgyzstan–Uzbekistan railway, currently under construction, is of particular importance. In the future, its alignment with the Trans-Afghan Corridor (Termez–Mazar-i-Sharif–Kabul–Peshawar) could create a new transport route connecting China, Central Asia, and South Asia.
Tashkent also supports the concept of establishing a “Single SCO Transport Space” based on the development of new multimodal networks, the digitalization of transport, and the creation of seamless “green corridors.” Expanding access to the markets of China, Russia, the Caspian region countries, Iran, and South Asia creates additional opportunities to diversify foreign trade and strengthen regional connectivity.
Security: From Traditional Threats to a Comprehensive Approach
Alongside economic partnership, cooperation in the field of security remains a top priority for Uzbekistan within the SCO. Over the years of operation within the Organization, an effective system has been established to combat the "three evils" (terrorism, separatism, and extremism), organized crime, and drug trafficking, with the Executive Committee of the SCO Regional Anti-Terrorist Structure (RATS) in Tashkent serving as its key link.
At the same time, the expanding spectrum of challenges and threats brings new tasks to the forefront: ensuring cybersecurity, protecting critical infrastructure, countering the use of information technologies for unlawful purposes, and enhancing preparedness for environmental and technological risks.
In light of these new realities, Uzbekistan actively supports the profound modernization of SCO mechanisms. As part of the institutional reform, the Executive Committee of the RATS is being transformed into the Universal Center for Countering Security Challenges and Threats. The architecture of the updated system will be complemented by the SCO Center for Combating Organized Crime in Bishkek and the SCO Anti-Drug Center in Dushanbe, which will ensure a comprehensive and targeted response to cross-border threats.
Alongside institutional improvement, Uzbekistan promotes substantive initiatives in three main areas.
First, strengthening trust and strategic dialogue. In 2022, the Samarkand Solidarity Initiative for Common Security and Prosperity was put forward; in 2023, a proposal was made to develop the SCO Code of Good-Neighborliness, Trust, and Cross-Border Partnership; and in 2025, Tashkent initiated the adoption of the SCO Declaration on Nuclear Security.
Second, ensuring the security and resilience of the digital space. Uzbekistan advocates for deepening cooperation in cybersecurity and shaping common approaches to new technologies. The implementation of this course is reflected in a consistent chain of initiatives by Tashkent within the SCO framework.
In particular, at the Dushanbe Summit (2021), Uzbekistan put forward an initiative to establish the Expert Forum on Information Security to develop mechanisms for responding to cyber threats and exchanging experience. In 2023, the Uzbek side called for accelerating the adoption of the Agreement on Combating IT Crime and the Program for Countering Internet Extremism, and at the Tianjin Summit (2025), it proposed the creation of the International Expert Council on AI to develop unified standards for ethics, cybersecurity, and protection against deepfakes.
Third, promoting the stability and development of Afghanistan. Tashkent views this country as an integral part of Central Asia and proceeds from the need to combine security issues with the objectives of economic recovery, infrastructure development, and the integration of Kabul into regional ties.
In this regard, Uzbekistan advocates for the resumption of the work of the “SCO–Afghanistan” Contact Group, which could serve as a mechanism for coordinating efforts toward the country’s socio-economic development and its inclusion in major infrastructure projects.
Regional Cooperation: Climate, Food Security, and the Humanitarian Vector
The expanding understanding of security naturally brings to the forefront issues of climate and food resilience. For Central Asia, this agenda is of particular importance: over the past 30 years, the average temperature in the region has risen by 1.5 °C, which is twice the global average rate. According to World Bank estimates, land degradation, melting glaciers, and increasing water scarcity threaten to cause a 30% drop in agricultural yields.
In response to these challenges, Tashkent has built a consistent chain of systemic initiatives within the Organization: from the adoption of the SCO “Green Belt” Program (2019) and the creation of the Climate Council (2022) to the opening of the Center for Innovative Climate Solutions in Tashkent (2024) and the launch of the Regional Platform for Adaptation, Decarbonization, and the Use of Artificial Intelligence for Predicting Environmental Risks (2025).
The climate agenda is directly linked to food security. Here, the common task is the formation of sustainable agri-food systems. In this vein, Tashkent proposes to develop “smart” agriculture, introduce resource- and water-saving technologies, and establish agro-logistics centers and “green corridors” for the cross-border movement of agricultural products. Uzbekistan also proposes to launch the “SCO Food Security Atlas” platform to monitor agricultural potential and promote supply chain resilience.
Practical cooperation within the SCO is not limited to issues of economy, security, and climate; its long-term viability directly depends on the development of direct contacts between the societies of the member states. Uzbekistan consistently advocates for expanding humanitarian dialogue through festivals, forums, and exhibitions that popularize the rich heritage of the SCO “multinational family” and strengthen the foundation of mutual understanding and good-neighborliness.
Tourism serves as one of the practical tools for fostering closer humanitarian ties. In this field, Uzbekistan has proposed a comprehensive set of practical measures, including the launch of the “SCO Tourism and Cultural Capital” program, the creation of “SCO Silk Road” routes, and the establishment of the SCO Medical Tourism Alliance. The implementation of these initiatives helps to form a unified tourist space, attract investment in infrastructure, and stimulate job creation.
Overall, over a quarter-century of participation in the SCO, Uzbekistan has solidified its status as one of the key architects of the regional agenda, helping to transform the Organization from a platform for dialogue into an effective mechanism for practical partnership. The initiatives put forward by Tashkent are practical in nature and invariably align with the core interests of all member states.
Tashkent’s principled position is that the SCO must maintain its openness, avoid political confrontation, and remain guided by the principles of the “Shanghai Spirit.” It is precisely this course that enables the consistent transformation of the Eurasian space into a zone of long-term stability, trust, and sustainable development.
Madina Aripova, Chief Research Fellow at the Institute for Strategic and Regional Studies under the President of the Republic of Uzbekistan
On the eve of the 34th anniversary of our country's independence, the Executive Board of the International Monetary Fund has finalised the 2025 consultations in accordance with Article IV of the IMF Agreement. The main conclusion on the essence of the ongoing reforms is positive prospects for Uzbekistan's economic development against the backdrop of continued progress in the transition to a market economy. According to the published document, economic indicators remain strong, including sustainable growth rates, reduction of the consolidated budget deficit, current account deficit and sufficient level of international reserves.
Successful and effective implementation of structural reforms, according to the Fund's specialists, allows us to conclude that the prospects are favourable. Against the background of a high degree of uncertainty in global trade policy, the IMF baseline scenario predicts that real GDP growth will remain stably high in the coming years. Such trends are the result of economic openness, industrialisation, active investment policy and support for the formation of export potential of promising industries.
The set of reforms and effectively implemented decisions is consistent with available internal resources and reserves for long-term sustainable development of the country and regions. The course towards irreversible market transformations makes it possible to skilfully combine the instruments of targeted state support and opportunities for entrepreneurial initiative on the way to building a New Uzbekistan.
In recent years, as a result of openness and growing confidence in our country, there has been a progressive increase in capital investment. In 2017-2024, the total volume of foreign investment absorbed exceeded $113 billion. Foreign direct investment and loans account for more than 80 per cent of them. Activity in attracting finance is observed in the leading industries and the fuel and energy complex, which has a corresponding impact on the acceleration of industrialisation processes in almost all regions.
Increasing investment cooperation with China, Russia, Germany, Turkey, Saudi Arabia, the Netherlands, the USA, the UK and other countries is becoming a source of attraction of advanced technological solutions and expertise, management methods, localisation of production and strengthening the export potential of promising industries and regions of Uzbekistan. Attracted resources are mainly invested in the technological re-equipment and modernisation of existing production facilities and the creation of new production facilities that did not exist before.
Over the past eight years, investment programmes have launched more than 96,000 projects worth about $100 billion, creating 1.8 million jobs. In 2024, compared to 2017, the value of investment projects put into operation increased almost eightfold, and the number of jobs grew 2.6 times.
We emphasise the factor of active involvement of our Head of State in this process. As a result of visits and top-level events, 366 investment agreements worth $75 billion have been reached since the beginning of this year. In particular, this year road maps have been approved for 222 investment projects worth about $45 billion.
Within the framework of the IV Tashkent International Investment Forum (June this year), agreements were reached on investments worth more than $30 billion (for the implementation of 144 joint projects). In April 2025, on the margins of the 5th International Industrial Exhibition "INNOPROM. Central Asia", held in Tashkent, within the framework of the 43 investment agreements reached, it is planned to attract an additional billion dollars to the industrial sector of the country.
In recent years, there has been an active practice of holding events to inform the international community about opportunities for the implementation of joint projects. Thus, this year, forums were held in 13 foreign countries as part of the Investors' Day of Uzbekistan, attended by representatives of 700 well-known foreign companies. More than 200 investment projects worth six billion dollars were presented to potential partners.
Among the important elements of Uzbekistan's modern industrial policy is localisation of production of high quality and competitive products, reduction of imports of finished goods and components. In accordance with the Localisation Programme, which included about 10 thousand projects, almost 300 trillion soums worth of products have been produced over the period 2020-2024. This led to import substitution in the amount of about $25 billion. The Localisation Programme allowed the creation of new production facilities for previously imported goods, contributed to changing the sectoral structure of industry and reducing dependence on external supplies by expanding the range of products and services.
THE NUMBER OF EXPORTERS IS GROWING
The formation of an export orientation has become one of the main conditions for success in implementing the plans outlined for Uzbekistan's industrialisation. Over 2017-2024, the total volume of exports exceeded $132 billion. It is noteworthy that the average annual growth rate of the country's exports over the period was 12-23 per cent. As a result of systematic and targeted support for exporters, the geography of exports of domestic products expanded by 55 states in 2024 and reached 186 countries over the past eight years. Last year, the number of exporting enterprises increased by 3,143 and their total number totalled 7,343.
Only due to the increase in the share of exports of higher value-added products in 2024, shipments to foreign markets increased by a billion dollars. Entering new promising markets, in turn, requires a significant improvement in the quality of manufactured products and their compliance with international standards. As part of the GSP+ programme, we implemented a set of organisational and technical measures to obtain Global G.A.P., Organic, OEKO-Tex, BSCI, CE marking certificates for our products and transition to ISO standards at more than five thousand enterprises. This made it possible last year alone to provide additional exports of 617 types of products worth $1.4 billion to the European Union.
Transition to more demanding standards and technological processes makes it possible to achieve the goals of producing and selling products of a completely different quality in new markets. Export supplies of goods to developed countries confirm the correctness of the chosen strategy, demonstrating its undeniable results. For example, due to the expansion of export geography and correct response to the conjuncture, the selling prices of Uzbekistan's fruit and vegetable products last year increased by an average of 14 per cent.
The industrial trend of economic development, having ensured a technological leap in a number of sectors, has had a significant impact on the evolution of the commodity nomenclature of exports. Quite recently, Uzbekistan was associated as a country with a monoculture of cotton, and its products were practically the sole leader of exports with absolute dominance of raw materials. In this regard, according to IMF experts, there is a decline in the share of cotton fibre exports from 0.2 per cent of GDP to zero from 2021 in the long term. Today Uzbekistan exports more and more high-tech products, and by 2024 its nomenclature has reached four thousand items.
For example, compared to 2017, exports of primary goods fell by 22 per cent last year, while the share of exports of finished goods increased 3.3 times, semi-finished goods - 4.4 times, and exports of services increased 2.9 times. At the same time, the transition to advanced processing of cotton contributed to the doubling of exports of garment and knitwear products to one billion dollars. This allowed our country to become the second supplier of textile products in the Russian market.
Domestic products are becoming a recognisable national brand, enjoying trust and popularity among foreign consumers. Last year, the goods of about 300 Uzbek enterprises received registration on the well-known electronic commercial platforms Alibaba, Wildberries and Ozon. As a result, sales of our companies reached $680 million.
At the end of the first half of 2025, the volume of exports grew by 33 per cent year-on-year and approached $17 billion. Since the beginning of the year, 1,557 domestic companies have been added to the exporters, accounting for $650 million in shipments.
The steady trend away from raw material exports towards finished high-tech products and services (tourism, transport, construction, IT and others) continues.
INVESTMENT DIALOGUE
It should be noted that our country is building and effectively operating an institutional environment to address strategically important issues of industrial development with a clear export orientation by attracting foreign capital. For this purpose, the relevant ministry and state agencies responsible for this complex of issues, as well as organisations promoting interaction between the state and the private sector have been established.
The Council of Foreign Investors under the President of the Republic of Uzbekistan is an institutional platform for direct dialogue between the government and investors (including international financial institutions). The Council's work as an advisory and consultative body effectively promotes the attraction of foreign direct investment in priority sectors of the economy and the organization of quality business dialogue, taking into account international best practices.
The Council operates under the patronage of the President of Uzbekistan, who personally attends meetings of this body. In order to organise systematic work on attracting investments, the relevant decree of the leader of the country was adopted to implement the agreements reached at the last meeting of the Council. The document also implies ensuring the systematic implementation of initiatives and proposals put forward by the participants of the meeting, as well as measures to improve the activities of the Secretariat of the Council of Foreign Investors.
In parallel with the formation of an effective institutional environment, consistent work is being done to improve the legislative framework to ensure advanced industrial development, intensify investment processes and expand the export potential of industries and regions of the country. This process is under the close attention and direct involvement of Uzbek parliamentarians. As a result, in recent years more than 500 functions of the State in regulating business have been abolished, and about 70 functions have been transferred to public-private partnerships and outsourced to the private sector. Seventy-two types of licensed activities and 40 permits have been legally abolished to improve the business climate and simplify the business environment.
POSITIVE ASSESSMENT
These transformations are positively assessed by foreign rating agencies and organisations. Thus, according to the Index of Regulatory Restrictions on Foreign Direct Investment (Organisation for Economic Development and Cooperation), our country has the best rating among the Central Asian region. This year, the country's performance on the Heritage Foundation's Index of Economic Freedom, the indicators ‘Freedom of Trade’ and ‘Freedom of Investment’ has improved considerably.
Let us return to the assessment of the prospects of dynamics and effectiveness of reforms based on the results of the recent IMF consultations with Uzbekistan in accordance with Article IV of the IMF Agreement. According to the Fund's outcome document, the opportunities arising from accelerated structural reforms, increased income and capital inflows, and favourable commodity price dynamics are positive for Uzbekistan's sustainable development.
Analysis of industrialisation indicators, investment activity and expansion of export indicators testifies to the real effectiveness of the ‘Uzbekistan - 2030’ Strategy and a set of accompanying measures to strengthen the country's economic potential and international standing. This, in turn, becomes a demonstration of the irreversibility of reforms aimed at building an independent New Uzbekistan.
Deputy of the Legislative Chamber
of the Oliy Majlis of the Republic of Uzbekistan,
Doctor of Economic Sciences, Professor Durbek Akhmedov
The second day of the visit of the Head of our state to Navoi region began with a joyful event. A ceremony dedicated to new projects was held with the participation of representatives of the public.
In recent years, entrepreneurship in Navoi region has been actively developing, and the interest of investors in the region continues to grow. In 2023 alone, the region produced more than 101 trillion soums worth of industrial products and exported $648 million. Foreign investments worth about $478 million were also absorbed, and the foreign trade turnover of the region amounted to about $1.3 billion. More than 300 foreign enterprises operate in the region, and their number will continue to increase.
Fifteen new projects were announced at the ceremony.
In particular, the projects on extraction and processing of oil shale in Kanimekh district, construction of a 300 megawatt solar photovoltaic station and a 75 megawatt electricity storage system in Karmana district, production of technical gases in Navoi city, processing of marble in Gazgan and granite in Zarafshan, extraction and enrichment of kaolin in Uchkuduk district, and production of fish feed in Khatyrchi district were launched.
Enterprises were launched to produce potassium sulfate and sulfuric acid in Karmana district, cotton pulp in Navoi city, and granite processing in Nurata district.
The total cost of the 15 projects is $3.6 billion. More than 7 thousand jobs will be created.
President Shavkat Mirziyoyev pressed a symbolic button and gave start to the construction and operation of the new projects.
Culture is one of the most powerful forces that brings nations closer together and strengthens mutual trust between countries. It is the face of a nation, the reflection of its spiritual identity, its history and future, and the cradle of centuries-old values. Today, relations between countries are shaped not only by economic interests but also by cultural and humanitarian cooperation, which gives international partnerships new meaning and significance.
In recent years, Uzbekistan's international cultural ties have expanded considerably as a result of the country's open and pragmatic foreign policy. The recognition of cultural diplomacy by the President of the Republic of Uzbekistan as one of the key instruments of foreign policy has significantly strengthened the country's presence in the global cultural arena. In this context, cultural cooperation with the United States occupies a special place.
Over the past several years, bilateral relations have steadily developed on the basis of this very principle. Cooperation in culture, education, academic exchange, and the preservation of cultural heritage has become an integral part of the partnership between the two countries. This demonstrates that Uzbekistan–U.S. relations are entering a new stage of strategic cooperation.
Turning to specific examples, cultural exchanges between the two countries have intensified since 2017. Concerts and master classes held in Tashkent with the participation of American conductors, musicians, and professors opened a new chapter in professional exchange between the musical communities of Uzbekistan and the United States. These visits contributed to the development of national artistic traditions and contemporary performance practices while creating new opportunities for future generations of musicians.
That same year, the American ensemble Gina Chavez Band performed at the 11th International Music Festival "Sharq Taronalari" ("Melodies of the East") held in Samarkand, the spiritual capital of Uzbekistan.
The festival provided American artists with a unique opportunity to become acquainted with the rich musical heritage of Central Asia. The band's subsequent participation in the International Jazz Festival in Uzbekistan demonstrated that cultural dialogue between the two countries has evolved into sustained and long-term cooperation rather than remaining a one-time initiative.
Education has become another important pillar of cultural cooperation. In 2017, professors from the Michigan State University College of Music conducted master classes at the State Conservatory of Uzbekistan. Later, in 2022, cooperation was established between the R. Glière Specialized Music School and Bemidji State University in Minnesota. These initiatives created new opportunities for young musicians while laying the foundation for long-term academic partnerships between educational institutions in both countries.
It is worth emphasizing that Uzbekistan's open foreign policy has significantly expanded the country's participation in the international cultural landscape. Prestigious international festivals held in Samarkand, Khiva, Bukhara, Kokand, Nukus, Namangan, and Andijan have not only showcased Uzbekistan's rich cultural heritage but have also strengthened humanitarian dialogue with countries around the world.
A remarkable example of cultural diplomacy in practice was the U.S. government's grant of USD 150,000 in 2019 for the restoration of the Tosh Hovli Palace in Khiva. The subsequent visit of representatives of the Smithsonian Institution further confirmed the continuity of cooperation in the field of cultural heritage preservation. During their visit, the delegation explored the historic city of Khiva and highly praised the cultural and historical significance of Uzbekistan's ancient cities.
Since 2020, cultural relations have become even more diverse. A special project launched in the United States to study traditional Uzbek dance, together with the regular participation of American specialists in the International Lazgi Festival in Khiva, the International Charity Arts Festivals in Nukus and Gulistan, the International Handicrafts Festival in Kokand, and the "Echoes of the World" Forum in Andijan, demonstrates the expanding scope and growing depth of cultural dialogue between the two nations.
This evolution reveals an important trend. While cooperation initially focused primarily on concerts and festivals, it has gradually expanded to include education, restoration, cultural heritage preservation, traditional crafts, dance, maqom music, and many other fields. This reflects the systematic development of bilateral cooperation and the emergence of a more comprehensive partnership.
Culture is not only a spiritual value but also a key component of the creative economy. Through cinema, music, tourism, handicrafts, and international festivals, countries strengthen their economic potential while promoting innovation and cultural exchange. From this perspective, cultural cooperation between Uzbekistan and the United States creates new opportunities for the development of creative industries in both countries.
Furthermore, the participation of American representatives in the International Bakhshi Art Festival in Khiva and the Third International Maqom Art Forum held in Namangan under the auspices of UNESCO and ICESCO has contributed to the international promotion of Uzbekistan's intangible cultural heritage. Such participation enhances the global recognition of Uzbek culture while fostering greater interest among the American public in Uzbekistan's rich artistic traditions.
This year, one of the most significant events was the meeting of the Ministers of Culture of the Central Asian countries and the United States, held in Tashkent. During the meeting, participants discussed prospects for expanding cultural and humanitarian cooperation, including the development of creative industries, digital cultural initiatives, professional exchanges, and collaboration in cinema, theatre, literature, and music.
At the conclusion of the meeting, the participants signed the Joint Statement of the Council of Ministers of Culture on the Preservation of Cultural Heritage, adopted within the framework of the C5+1 Summit held in Washington, D.C. In addition, Uzbekistan's Minister of Culture, Ozodbek Nazarbekov, met with Kazakhstan's Deputy Prime Minister and Minister of Culture and Information, Aida Balayeva, to discuss further strengthening bilateral cooperation in literature and theatre.
In conclusion, culture has become one of the most enduring pillars of international relations. Political circumstances may change, and economic priorities may evolve, but cultural ties remain deeply rooted in the hearts, minds, and shared memory of peoples.
Culture is a spiritual bridge connecting a nation's past with its present and its present with its future. Every investment in culture is, in essence, an investment in people, in the future of nations, and in lasting peace. The cultural partnership between Uzbekistan and the United States serves precisely these noble purposes. The seeds of trust being planted today will grow into a strong tree of friendship between our peoples tomorrow. Under its branches, future generations, creative professionals, and representatives of diverse fields will come together, contributing through culture and the arts to the prosperity of both nations.