Uzbek–Korean relations are entering a new stage of development. While trade, investment and equipment supplies previously formed the foundation of bilateral ties, the emphasis is now shifting towards deeper industrial and technological cooperation.

The development of joint production and technology chains, the localisation of high-tech manufacturing, the advanced processing of critical mineral resources, and human capital development are emerging as key areas of bilateral cooperation. This trajectory is aligned with the long-term priorities of both countries.

The Republic of Korea seeks to diversify its sources of raw materials and enhance the reliability of supply. Uzbekistan, in turn, is interested in expanding domestic resource processing, adopting advanced technologies, and increasing the value added generated within the country. The complementarity of these objectives provides a basis for moving from predominantly investment-based cooperation towards a comprehensive industrial and technological partnership.

In 2025, bilateral trade amounted to approximately $1.8 billion. In August 2026, the two governments established a joint working group tasked with increasing annual trade turnover to $4 billion in the near term.

Investment cooperation has assumed an even greater scale. The cumulative volume of Korean investment attracted to Uzbekistan’s economy has exceeded $10 billion, including approximately $8 billion in foreign direct investment. The presence of Korean businesses is also expanding. Today, around 1,000 enterprises with Korean capital operate in the country, compared with 359 in 2019.

The investment base accumulated over the years has been translated into a number of major projects. The most significant is the Uz-Kor Gas Chemical joint venture, valued at approximately $4 billion — the largest investment project in the history of bilateral relations. The enterprise produces polyethylene, polypropylene and commercial gas for the domestic market and export.

The automotive industry occupies a prominent place in bilateral cooperation. In partnership with Kia Corporation, the ADM Jizzakh plant manufactures a broad range of vehicles using semi-knock-down assembly. Enterprises within the UzAuto Components network manufacture components for UzAuto Motors vehicles, including air-conditioning systems, seats, stamped parts and plastic components.

Industrial cooperation also extends to the textile sector. Posco International Group enterprises in the Fergana and Bukhara regions process cotton fibre and export high-quality yarn and fabrics to European and Asian markets.

Cooperation is also developing in the pharmaceutical industry. At the Tashkent Pharma Park cluster, Korean companies are participating as investors and technology providers in the manufacture of pharmaceutical products in accordance with international Good Manufacturing Practice standards.

The broadening sectoral scope of cooperation is creating the conditions for a transition from individual investment projects to sustainable production linkages between enterprises in the two countries.

Why Cooperation Is Acquiring a New Quality

Deeper industrial and technological cooperation is being driven by changes in the global economy. Geopolitical uncertainty, trade restrictions and the restructuring of global supply chains have increased the importance of economic security.

This issue is particularly relevant for the Republic of Korea. Its leading industries — electronics, semiconductors, automotive manufacturing and battery production — depend on stable supplies of raw materials, materials and components.

The country ranks third globally in electronics manufacturing and is a leader in the memory-chip segment. It accounts for approximately 13–15 per cent of the global semiconductor market. The Republic of Korea is also among the world’s seven largest automobile manufacturers and the three global leaders in battery technology.

The reliance of its key industries on imports is prompting Seoul to broaden its economic partnerships and diversify its supply base for raw materials, processed materials and components. Against this backdrop, Central Asia is assuming greater importance as a resource-rich region seeking to advance its industrial modernization.

At the same time, Uzbekistan is placing greater emphasis on the quality of incoming investment. At the present stage, not only the volume of investment but also its technological impact is becoming increasingly important. The principal focus is on establishing new production facilities, expanding domestic processing, strengthening export capacity and training qualified personnel.

The convergence between the Republic of Korea’s need for reliable sources of raw materials and Uzbekistan’s aspiration to develop their advanced processing lends particular importance to cooperation in critical minerals.

From Raw-Material Trade to Value Chains

Uzbekistan possesses reserves of copper, tungsten, lithium, molybdenum, zinc and other strategically important resources. For the Republic of Korea, these resources are of interest as an important component of the raw-material base for high-tech industries.

For Tashkent, the priority is not simply to expand raw-material exports, but to progressively deepen their processing within the country. In this regard, a promising model would integrate resource extraction, processing, the manufacture of intermediate products and their subsequent industrial use into a single value chain.

This approach serves the interests of both sides. It would enable the Republic of Korea to diversify its sources of strategic raw materials and enhance supply-chain resilience. Uzbekistan, meanwhile, would be able to expand processing, master new technological processes and increase the share of high-value-added products.

The localisation of individual stages of the technological cycle in Uzbekistan is becoming particularly important. The greater the number of production operations carried out within the country, the more substantial the benefits for industry, employment and the training of national specialists.

Thus, the traditional model of cooperation, based primarily on supplies of raw materials and equipment, is gradually being complemented by a model centred on the joint creation of value added.

Technology, Financing and Human Capital

The development of production chains requires not only investment, but also technology, long-term financing and qualified personnel. The combination of these elements could become one of the principal strengths of the Uzbek–Korean partnership.

The financial and institutional framework required to deepen cooperation is already taking shape. Under the partnership with the Republic of Korea’s Economic Development Cooperation Fund (EDCF), the ceiling for concessional financing available to Uzbekistan has been raised to $2 billion. The funds are being channelled into projects in digitalisation, healthcare, education and infrastructure.

Additional opportunities are provided by the Export-Import Bank of Korea. It helps finance the acquisition of Korean industrial equipment through credit lines extended to Uzbek banks. Export credit insurance mechanisms also facilitate the mobilisation of bank financing for joint initiatives.

These financial instruments are complemented by expanding technological cooperation. In August 2026, the two sides intensified their engagement in artificial intelligence and digital transformation. With the support of the National Information Society Agency of the Republic of Korea (NIA), cooperation is developing in digital government, data standardization and the introduction of AI solutions.

For Uzbekistan, this work is important not only in terms of the digitalization of individual sectors. The standardization of production data, automation and the application of artificial intelligence can increase productivity and lay the groundwork for the development of modern smart manufacturing.

Human capital development remains an equally important component. Branches of four South Korean universities operating in Uzbekistan — Yeoju, Inha, Bucheon and Kimyo International University — train engineers, IT specialists and technologists for emerging sectors of the economy.

This educational dimension is complemented by the organised employment of Uzbek specialists in the Republic of Korea under the Employment Permit System (EPS). Employment at Korean industrial and shipbuilding enterprises enables them to acquire practical skills and become familiar with modern manufacturing practices.

The significance of this mechanism is gradually extending beyond labour mobility. If the acquired competencies are used effectively, it could become an important channel for transferring industrial expertise and professional knowledge.

The combination of financial instruments, technology and human capital development is creating the foundation required for deeper industrial cooperation.

From Bilateral Partnership to a Regional Dimension

The integration of Uzbek–Korean cooperation into the broader agenda between the Republic of Korea and Central Asia opens up additional opportunities.

The first summit between the Republic of Korea and the five Central Asian states is scheduled to take place in Seoul on 16–17 September 2026. The new format reflects Seoul’s growing interest in the region as a promising area for industrial, technological and resource cooperation.

This creates additional opportunities for Uzbekistan. The country possesses a sizeable domestic market, considerable demographic potential, a substantial resource base and a developing industrial sector. Its accumulated experience of cooperation with Korean businesses and financial institutions constitutes another significant advantage.

Taken together, these factors enable Uzbekistan to position itself as one of the leading platforms for the Republic of Korea’s industrial and technological cooperation with Central Asia.

The consistent development of production chains, localisation of technologies and training of qualified personnel could make Uzbek–Korean cooperation a notable example of the transition from an investment partnership to industrial and technological cooperation in Central Asia.

Chief Research Fellow at the Institute for Strategic and Regional Studies (ISRS) under the President of the Republic of Uzbekistan (ISRS), Doctor of Economics
Dmitry Trostyansky

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Dunyo IA

At the invitation of the of President of the United Arab Emirates Sheikh Mohamed bin Zayed Al Nahyan, on January 13 President of the Republic of Uzbekistan Shavkat Mirziyoyev departed to this country with an official visit. 

In accordance with the program negotiations at the highest level, as well as bilateral meetings with the heads of leading organizations, companies and banks of the UAE will be conducted in the Emirates’ capital of Abu Dhabi. 

President of Uzbekistan will also participate in the activities of the international summit “Abu Dhabi Sustainability Week”. 
In the framework of the visit, the Head of our state will visit Dubai, where he will hold a meeting with Vice President, Prime Minister of the United Arab Emirates, Emir of Dubai Sheikh Mohammed bin Rashid Al Maktoum.

Since ancient times, Central and South Asia have been closely connected through trade, cultural exchange and political processes. Geographical proximity and ancient trade routes contributed to active dialogue between peoples and civilizations, the exchange of goods and culture as well as the formation of a shared historical and cultural identity in the region. Following the acquisition of independence, the Central Asian states began gradually developing their own foreign policy and economic strategies toward South Asia.

Given the significance of Central and South Asia, shaped by their strategic location, abundant natural resources, demographic potential and historical heritage, these regions have become the subject of extensive scientific research. Thus, from the perspective of the regional security complex, scholars consider Central and South Asia as two independent yet equal regions. In this context, it is important to emphasize the transformation of Afghanistan’s role as a key component of the regional security complex, facilitating interconnectedness and the gradual rapprochement between South and Central Asia.

It should be noted that Uzbekistan, located in the heart of Central Asia, plays a key role in ensuring regional security and stability. At the same time, the country, actively promoting constructive foreign policy initiatives aimed at strengthening peace and cooperation in the region, acts as the locomotive of economic interconnectedness between Central and South Asia. Recognizing the growing demand for mutual ties between the regions, in July 2021 in Tashkent a high-level international conference “Central and South Asia: Regional Connectivity. Challenges and Opportunities” was held. There the proposal to develop and submit for consideration to the UN General Assembly a draft special resolution “On Strengthening the Connectivity between Central and South Asia” was put forward. As a result, in July 2022, the UN member states unanimously approved the adoption of this resolution, which became another vivid testament to the recognition of our country’s role and authority in deepening interconnectedness, establishing dialogue with the region and maintaining peace and stability.

It should be emphasized that the resolution calls on states to unite their efforts in combating common challenges and threats to stability and security in Central and South Asia, recommends continuing and deepening interregional cooperation by expanding transport infrastructure and information-communication technologies, as well as by developing new international transport corridors that provide convenient, sustainable, commercially viable, affordable, accessible, inclusive and safe routes to seaports.

In these processes, Termez has the potential to become a unique platform for connecting the two regions, both in terms of ensuring regional security and in terms of developing trade and economic relations. At the same time, the city of Termez, historically considered as one of the centers of dialogue between peoples and civilizations, the development of trade, humanitarian, and other ties, for many centuries occupied a strategically important position in the region. Thus, the era of the Kushan Empire, Termez served as a major cultural center where various civilizations actively interacted. The city was a significant hub for the transmission of Buddhist art and literature, which spread widely across Central and South Asia. Moreover, from a geographical point of view, Termez was a link between Central and South Asia. It was also one of the key points on the Great Silk Road connecting East and West.

At the present stage, Termez serves as a starting point for the implementation of a number of transport and infrastructure projects, such as the “Termez – Naibabad – Maydan Shahr – Logar – Kharlachi” railway, the “Surkhan – Puli-Khumri” power lines, and others. In general, the significance of the Termez platform lies in the following:

Firstly, in the context of ensuring regional security and stability, the city of Termez has consistently held a central position. Following the events of 11/9/2001 the “Termez Strategic Air Transport Point” was established here, which operated from 2002 to 2015 and ensured the logistics of humanitarian cargo for the International Security Assistance Force in Afghanistan. This experience further reinforced the city’s significance as a secure transit and supply hub during times of military instability.

In addition, Termez is actively used within the framework of Uzbekistan’s joint initiatives with international partners in combating terrorism, drug trafficking, and cross-border crime. In this context, the “Friendship Bridge” connecting Uzbekistan and Afghanistan, plays an important role in ensuring control not only over the movement of people and cargo, but also in monitoring the illegal trafficking of drugs (including synthetic drugs) coming from Afghanistan, which is important for maintaining regional security (for example, employees of the “Ayritom” border customs post in Surkhandarya region in March of this year prevented an attempt to illegally import a batch of narcotic drugs with a total weight of 70 kg and in May of this year – 600 kg).

At the same time, Termez is considered a platform for constructive resolution of border issues. Thus, on August 22-28, 2024, a regular meeting of the working groups of the joint Uzbek-Tajik demarcation Commission was held in Termez. During the meeting, joint work continued on coordinating the passage of the design demarcation line of the Uzbek-Tajik state border, following which a corresponding protocol was signed.

Secondly, the trade, economic, and logistical significance of the city of Termez, as a material foundation for long-term peace and security in Central and South Asia, is determined by its strategic location and modern logistical infrastructure.

In particular, in 2022, “The Termez Cargo Center terminal” received the status of an international multifunctional logistics hub serving cargo flows to Afghanistan and South Asian countries. This, in turn, has elevated its status in international humanitarian infrastructure (from 2025 it has been integrated into the UN High Commissioner for Humanitarian Affairs warehouse network) and contributed to the expansion of humanitarian shipments’ geography (in 2022 humanitarian aid was delivered by air from Termez to flood victims in Pakistan, and in 2023, the UNHCR Regional Humanitarian Logistics Center in Termez sent 12 truckloads of over 48,000 blankets to Afghanistan). It is noteworthy that Termez’s infrastructure is being actively utilized by international organizations to deliver food and medicine to South Asia, which contributes to reducing social tension and preventing the escalation of conflicts caused by humanitarian crises.

Furthermore, the opening of the Termez International Trade Center in August 2024, designed to create a favorable business environment and logistics, simplify administrative procedures and create conditions for entrepreneurs, on the one hand, enhances the city’s economic attractiveness and, on the other hand, stimulates the growth of economic cooperation between Central and South Asia. In this context, it should be noted that on the territory of the Center (37 hectares, 500 meters from the border with Afghanistan), where 3 thousand retail outlets are located, a 15-day visa-free regime has been introduced for visitors.

In this regard, Termez is also considered a suitable platform for conducting bilateral economic relations. Thus, in March and April of 2024 year, representatives of the Afghan delegation, headed by the Minister of Trade N. Azizi and business circles of the Balkh province, visited the city of Termez, where they held a meeting with the Uzbek side to develop bilateral trade and economic cooperation and expand cooperation in such sectors as agriculture, textiles, pharmaceuticals, food, and mining.

Thirdly, the cultural and humanitarian potential of Termez is considered to be of considerable importance. Thus, in 2018, at the initiative of the President of the Republic of Uzbekistan, an educational center for Afghan citizens was created. This educational institution is the only one in the world that provides training exclusively for Afghans in 17 areas of higher and 16 areas of secondary specialized, vocational education. During his functioning, about 700 Afghan citizens underwent training, meanwhile 200 of them are girls.

The institution actively maintains international relations and cooperation with donor countries and foreign organizations such as UNDP, EU, GFR, Slovakia, India. Thus, in January 2023, the “EU Knowledge Center” was opened on the basis of this educational institution to train and educate Afghan citizens (this is a coworking space that provides a platform for joint work, self-learning, and establishing professional connections). Overall, the establishment of an educational center for Afghanistan in Termez will expand access to quality education for Afghan citizens, as well as provide an educational environment and technologies for vocational training.

Therefore, Central and South Asia, dynamically developing regions with stable economic growth and new development opportunities, have significant potential due to their rich resources, economic complementarity, demographic potential, common tasks, and geographical proximity. At the same time, Uzbekistan’s efforts are aimed at integrating the two regions within a single space of cooperation, security, and sustainable development.

In these processes, the “Termez platform” not only serves as a constructive mechanism for ensuring security and stability in Central and South Asia, but also has the potential to become an additional tool for developing trade, economic and transport links between the regions. At the same time, a promising area of cooperation for both regions is considered to be, first of all, security issues, including the fight against terrorism, extremism, drug trafficking, as well as the development of interaction in the fields of transport, tourism, and education.

Gulamov Asliddin Gapparovich,

Researcher at the Higher School of Strategic Analysis and Prognosis of the Republic of Uzbekistan

We are the luckiest children of our people. We are fortunate to see the days dreamed of by our Jadid ancestors and to build the future they desired. During the events of the seventh Consultative Meeting of the Heads of State of Central Asia, I was once again convinced of this.

         In recent years, Central Asia has acquired a new image on the world political map. Today, it is recognized that the countries of the region are not competitors, but reliable partners moving together on the path of development and cooperation. Consequently, other regions and powerful states are seeking to engage with us, envisioning a future in harmony with the spirit of Central Asia. This is not without reason. Because in the international arena, various conflicts and the pursuit of solely material interests have intensified. In such a situation, thanks to the political will and wise decisions of our President, a completely new policy, inherent to our people—one of openness and magnanimity—has gained priority in our region. All Central Asians rejoice in this. Why? Because our peoples have lived as neighbors, in-laws, sharing joys and sorrows as one nation.

         In awakening the spirit of Central Asia, our President first took the path of bringing our peoples closer together. We wisely used the power of literature and art to elevate relations to a new stage. In particular, various events and festivals were organized among cultural representatives of our countries. As part of state visits, performances by art and culture representatives and grand concerts have become commonplace.

         Our President has turned the gifting of books to his colleagues into a tradition. At the time, we understood this only within the framework of cultural ties. Time itself shows that the path chosen by our President is the way to reach the hearts of the people!

         After all, the peoples of Central Asia consider Khazrat Navoi their ancestor. Likewise, we also love Jami, Fuzuli, Makhtumkuli, and Abai just as we do Bobur or Alisher Navoi. We value the epic of Manas as if it were our own, and we read the works of Aitmatov more than anyone else. This alone indicates that our peoples have lived for centuries as close as flesh and nail. The leader of our state elevated such important aspects to the level of state policy. This opened a path to the hearts of our peoples. As a result, the seventh Consultative Meeting of the Heads of State of Central Asia was rich in historic events. Importantly, following its conclusion, very important decisions for the future of the region were adopted.

         In particular, a concept for regional security and stability in Central Asia was adopted. In today's global world, security is of paramount importance. In such a situation, one cannot develop in isolation. Where there is peace, there is also stability. That is why the new Central Asia is seen on the international stage as a peaceful and stable zone. Our region has not only natural resources and economic potential but also a sufficient level of human capital. At a time when mutual conflicts and economic blockades are intensifying in various parts of the world, it is also true that Central Asia's ability to maintain stability is seen as a lifeboat for others.

         Maintaining this stability and achieving economic growth by utilizing its opportunities is not easy. Anyone who closely observes the working regime of our President understands this correctly. Because the leader of our state works day and night to strengthen international ties. From the world podium, he is advancing not only national but also universal human interests. He calls for resolving any conflict and dispute through peaceful, diplomatic means.

         It is these calls, aspirations, and initiatives that have awakened the spirit of Central Asia today. The entire region has unanimously decided to safeguard security and stability together. As our President put it, we have deeply understood that our strength is in unity, and our path to success is in friendship and cooperation.

         In recent years, relations in the "Central Asia Plus" format have expanded. Our region is demonstrating a unified position on the international stage. At the same time, it is actively integrating into the world economy. Investment attractiveness is growing, export opportunities to third markets are expanding, and transit potential is increasing. For example, last year, the mutual trade volume between our countries reached 10.7 billion US dollars. The total volume of investments attracted to our region increased by 17 percent.

         Further enhancing economic relations and correctly assessing the rapidly changing, unpredictable geopolitical processes is an urgent task. In this sense, it is gratifying that at the Consultative Meeting, a catalog of threats to Central Asian security and measures to prevent them for 2026-2028 were outlined.

         The Consultative Meeting of the Heads of State of Central Asia was established on the initiative of our President. The leader of our state chaired its seventh meeting. During this period, our cooperation has been highly effective. To further enhance the potential of cooperation, over 20 major events were held. A forum for inter-regional cooperation at the level of deputy prime ministers was launched. Likewise, meetings of ministers were held for the first time. In particular, ministers of geology, industry, agriculture, ecology, and culture held meetings.

         Due to such aspects, we are right to say that a new era of the Consultative Meeting has begun. Just one example: now, member states will engage in separate, individual cooperation in each sector within the Consultative Meeting. We were convinced of this once again at the ministerial meetings.

         Within the framework of the international congress on "Central Asia: Common Spiritual and Educational Heritage – Common Future" at the Islamic Civilization Center, we held our first meeting with the culture ministers of Central Asia and Azerbaijan. Various issues of multilateral cooperation were discussed. We discussed issues of cooperation in various fields of culture and art. We exchanged views on the current state of regional cultural cooperation and future plans.

         Our peoples have one thing in common. That is, people listen more to elders, to individuals respected by the community. They follow them. Precisely this aspect is considered our unique strength, unlike other regions. Therefore, for the future, vital issues were raised about expanding cultural exchange among cultural figures. As a result, we reached agreements on expanding regional cultural cooperation.

         Mutual respect and magnanimity among peoples do not appear by themselves. It must be admitted that the human psyche has a strong tendency towards negative information. In today's global world, we see enough examples of this. Our President, deeply understanding this very aspect and analyzing it thoroughly, created the opportunity for cultural workers to strengthen such ties. I believe that cultural workers, and intellectuals in general, are responsible for further developing peace and mutual understanding in the region. It is precisely we who must prepare and present to our peoples the positive content that will lead to this. In this sense, we united around a common idea to hold joint events and festivals in the fields of art, literature, cinema, theater, and music. Such events remind us of ourselves once again. They sing the universal ideas, friendship, and magnanimity promoted by Navoi, Jami, Fuzuli and Makhtumkuli, Abai and Aitmatov, which are the cause for awakening the spirit of Central Asia today.

         The gratifying aspect is that we will also expand joint projects for the study, restoration, and digitization of cultural heritage. Furthermore, we will develop exchange programs among young creators. We reached an agreement on organizing seminars, conferences, and summer schools. We also exchanged views on strengthening cooperation in training and advanced training in the field of culture and art. Importantly, positive opinions were expressed on developing a "Central Asian Cultural Brand."

         Observing this process, the meetings and agreements at the level of state leaders, I felt that today Central Asia has truly become a single region, a unified force. Our peoples have gone through many trials to reach this day. We can see this in the example of our Jadid ancestors. Thankfully, the river that flows, flows on. Our ancestors always called the people of the world to enlightenment, friendship, and kindness. Today, we, as a single region, continue this eternal tradition. It is gratifying that the leader of our state is wisely using these values of ours not only for our country but also for the benefit of the whole world. This was clearly evident in the initiatives put forward by our President at the Consultative Meeting of the Heads of State of Central Asia.

         In particular, an initiative was put forward to establish an Council of Elders, comprising respected public figures with life experience and authority, based on the values and traditions of people's diplomacy. At the same time, it was emphasized that further improving cooperation mechanisms and the contractual-legal basis is of fundamental importance. Especially, the initiative to transform the Consultative Meeting into the strategic format of a "Central Asian Community" became the words in all our hearts.

         Because now Central Asia is not just a region, but is strengthening its place on the world political map as a single voice, a united force. That is why our President emphasized in his speech at the seventh Consultative Meeting of the Heads of State of Central Asia: "I am fully confident that today we are on the threshold of a period of historical awakening of our region as the New Central Asia."

         Precisely for this reason, developed countries are eager to cooperate with us. This is a great opportunity for the countries of the region. Using it wisely depends on our ability to protect our unity, friendship, and interests in a coordinated manner. In New Uzbekistan, it is recognized as a people-oriented policy precisely because such important aspects are always the focus of attention. The scale of countries wishing to cooperate with us confirms how sincere these recognitions are. There are two important reasons for the strong aspiration of developed countries towards New Uzbekistan. First, New Uzbekistan has become known as a state promoting the ideas of peace and humanity.

         Here, a vital truth must be stated. No matter how a person may appear in a hostile guise, they still strive to live for peace and friendship. Countries are the same. They may engage in various conflicts for their own interests. But deep down, they desire peace and prosperity. The foreign policy position of New Uzbekistan offers guarantees of this peace and friendship.

         The second important point is that thanks to the people-centered foreign policy, Central Asia has achieved unity. Now it is not seen as a field for labor or natural resources. Rather, it is seen as a new force with broad economic power in the international arena. During the Consultative Meeting, the leaders of the countries were at the Islamic Civilization Center. Our President emphasized that this center is a unique platform for creating scientific knowledge and ideas, conducting research, and popularizing our common cultural-historical heritage. Therefore, it is natural for the center to become a haven for the scientific and spiritual elevation of youth.

         We certainly have grounds for saying this with full confidence. At the Consultative Meeting, our President proposed to regularly organize the first International Congress dedicated to spiritual heritage and enlightenment ideas. According to it, the congress will be held annually in the country chairing the Consultative Meeting.

         All this shows that the countries of Central Asia are uniting not only because of economic or security issues, but because they are familiar with enlightenment. We know well that relationships built solely on material interests are fragile. In our region, however, live peoples with a single history, a common past. This is the reason for a unity that surpasses any material interests. That is why, at the meetings of state leaders, issues of culture and enlightenment always find a place on the agenda. This evokes boundless pride and honor in our hearts. At the same time, it also imposes the responsibility of being a generation worthy of such honorable days. For, at a time when the educational policy of New Uzbekistan is opening new horizons in Central Asia, being worthy of it is the duty and debt of every child of this land

Despite the 6,000-kilometer distance between Tashkent and Tokyo, the official visit of President of Uzbekistan Shavkat Mirziyoyev to Japan on December 18-20 elevated Uzbek-Japanese relations to a qualitatively new level of expanded strategic partnership for future generations.

Uzbekistan’s relations with Japan have deep historical roots. For centuries, Samarkand served as one of the key centers of the Great Silk Road, while Nara, the ancient capital of Japan, was its eastern gateway. Trade and the exchange of knowledge along the Great Silk Road, including between Uzbekistan and Japan, played a significant role in the development of international commerce and cultural interaction, forming lasting cultural bridges between civilizations. Today, Samarkand and Nara are twin cities.

Since Uzbekistan gained independence, reliable and stable relations of mutually beneficial cooperation have developed between Uzbekistan and Japan. Since the establishment of diplomatic relations, Japan has been one of Uzbekistan’s key technological and investment partners.

Economic cooperation dynamics

The most dynamic growth in economic cooperation has taken place in recent years, following the launch of comprehensive economic reforms in Uzbekistan. The Japan External Trade Organization (JETRO), the Japan International Cooperation Agency (JICA), and the Japan Bank for International Cooperation (JBIC) play an important role in advancing Uzbek-Japanese economic cooperation.

Cooperation with JICA has, in recent years, reached the level of strategic partnership. The value of the project portfolio has exceeded $8 billion, and additional initiatives worth more than $3 billion are under consideration in areas such as healthcare, energy, transport, education, industry, and other sectors. During the visit, new agreements were signed with JICA concerning the development of economic zones, agriculture, supply of medical equipment, and support for entrepreneurship, as well as the launch of a special economic zone for Japanese investors, to be developed in line with Japanese models and standards.

Cooperation with JBIC is also developing dynamically. Today, the total project portfolio with the bank exceeds $5 billion in sectors such as petrochemicals, energy, telecommunications, infrastructure, and light industry. During the visit, discussions focused on preparing new projects and improving the effectiveness of existing initiatives worth over $10 billion.

Trade relations are also growing dynamically. Between 2017 and 2024, Uzbekistan’s trade turnover with Japan more than doubled, increasing from $166.2 million to $388.5 million. In 2024, growth accelerated, rising by 64.1% compared with 2023, from $236.8 million to $388.6 million. More than 90% of imports from Japan consist of machinery and equipment, while Uzbekistan’s exports to Japan are dominated by services and chemical fertilizers, as well as fruit and vegetable products, textiles, radioactive elements, and jet fuel.

Investment cooperation is expanding as well. Over the past eight years, the number of Japanese enterprises operating in Uzbekistan has increased tenfold, while the combined project portfolio has exceeded $20 billion. Leading Japanese companies such as Sojitz, Toyota Tsusho, Sumitomo, Itochu, Kyoto Plaza, Balcom, and Shikoku Electric are actively operating in Uzbekistan, implementing major projects in energy, geology, tourism, infrastructure development, IT, and other sectors.

For example, Sojitz Corporation is implementing projects including the construction of a combined-cycle power plant in Syrdarya region, a multidisciplinary hospital, a new international airport in Tashkent, and a wind power plant. During the visit, support was expressed for the company’s plans to modernize medical clinics and educational facilities, create a transboundary “green” energy corridor, upgrade gas compressor stations, and participate in establishing a special economic zone for Japanese investors.

Sumitomo Corporation is constructing two solar power plants and energy storage systems in Samarkand region, with a similar wind-power-based project also planned in the Republic of Karakalpakstan. During the visit, the President of Uzbekistan proposed adopting a Cooperation Program with the corporation through 2030.

Uzbekistan has longstanding cooperation with ITOCHU Corporation in mechanical engineering, geology, and infrastructure. Long-term agreements have been reached on the export of critical minerals to Japan. During the visit, new areas of cooperation were discussed, including water purification, automotive manufacturing, modernization of air traffic control systems, as well as implementation of public-private partnership projects in the social sphere.

JOGMEC, together with ITOCHU Corporation, is developing uranium deposits in Navoi and Kashkadarya regions. During the visit, plans by these companies to develop precious-metal deposits at promising sites in Uzbekistan were also reviewed and approved.

Negotiations and outcomes of the visit

During the negotiations, the sides discussed further deepening of the strategic partnership between Uzbekistan and Japan, covering all areas of interstate cooperation. The importance of strengthening existing cooperation formats, including parliamentary friendship groups, economic cooperation committees, and sectoral mechanisms in priority areas, was emphasized.

During the talks between President Shavkat Mirziyoyev and Prime Minister Sanae Takaichi, a number of priority areas for advancing strategic partnership were identified, including green energy and industrial decarbonization, information technology, critical minerals, cooperation in mechanical engineering, modernization of healthcare, and tourism infrastructure.

To implement more than $12 billion worth of new cooperation projects prepared for the visit, the President of Uzbekistan proposed establishing a joint investment platform. Plans were also announced to create a special economic zone in Samarkand region based on Japanese standards and practices, as well as to scale up the “One Village – One Product” program implemented jointly with Japanese partners. It was proposed to hold the first Uzbekistan-Japan Regional Forum in Samarkand next year.

At the meeting between the President of Uzbekistan and Japan’s Minister of Economy, Trade and Industry Ryosei Akazawa, an agreement was reached to develop an action plan to further strengthen business cooperation with the active involvement of JETRO and the Japan Association for Trade with Russia and NIS (ROTOBO).

A key element of the visit was the President’s meeting with leading representatives of Japanese business. The President emphasized that in recent years cooperation between Uzbekistan and Japan has acquired a qualitatively new character. Whereas Japanese companies previously mainly participated as contractors, today they are actively investing in Uzbekistan’s economy, establishing joint ventures, participating in management, transferring technologies, and contributing to human capital development. “As a result of these qualitative shifts, Japan has become one of Uzbekistan’s key economic and technological partners,” the President stressed.

Based on these assessments, priority areas for further cooperation with Japanese business were outlined. These include ensuring energy resilience and advancing the green transition, development of renewable energy sources and storage systems, and reducing the carbon intensity of Uzbekistan’s economy. Particular emphasis was placed on deep processing of critical minerals and establishing full value chains.

Promising areas also include the development of mechanical engineering and industrial equipment to build a modern high-tech industrial economy. Special focus was placed on advancing information technologies, including the implementation of artificial intelligence and digitalization programs.

Another important direction is the creation of modern special economic zones designed to become centers for high-tech, export-oriented industries and platforms for industrial cooperation through automation and digital control systems.

Concluding his speech to the business community, President Mirziyoyev emphasized that Uzbekistan regards Japan not only as an investor, but as a strategic partner in building the industry of the future.

The main outcome of the visit was the signing by President Shavkat Mirziyoyev and Prime Minister Sanae Takaichi of the Joint Statement on Expanded Strategic Partnership for Future Generations, which elevates Uzbek-Japanese relations to a fundamentally new level. A wide package of agreements was also adopted in education, healthcare, environmental protection, water management, transport, urban development, tourism, agriculture, and disaster-risk reduction.

Expanding cooperation potential

Against the backdrop of Uzbekistan’s ongoing technological transformation and innovative development, there is substantial potential to further expand economic cooperation with Japan in trade, investment, and scientific-technical exchange. The agreements reached during the visit form a solid foundation for advancing cooperation to a qualitatively new level.

According to the Center for Economic Research and Reforms, Uzbekistan has significant untapped export potential with respect to Japan. Promising export categories include copper and copper products, textile and apparel goods including home textiles, aluminum and aluminum products, fruits and nuts, as well as electrical equipment and devices.

Japan’s experience in developing innovation clusters may serve as a valuable model for Uzbekistan. In this context, promising areas include the creation of joint venture funds and startup accelerators, support for technology transfer, and commercialization of scientific developments.

Japan’s experience in smart agriculture and agricultural education is also highly relevant for Uzbekistan. Cooperation in this area offers opportunities to modernize agriculture, increase water efficiency, boost productivity, and implement sustainable farming practices.

Thus, the President’s visit to Japan has already become an important driver in deepening and expanding economic cooperation between our two countries, contributing to fuller realization of partnership potential, modernization of Uzbekistan’s economy, and strengthening the presence of Japanese business in Uzbekistan. The strengthened strategic partnership will improve quality of life and broaden opportunities for future generations.

Nozimjon Ortikov,

Dear compatriots!

I cordially congratulate you, all our multinational people with the Constitution Day of the Republic of Uzbekistan celebrated on December 8.

Undoubtedly, this year we all feel the significance of this holiday especially deeply. After all, above all, it takes place in the context of historic transformations in the political-legal, socio-economic and spiritual spheres of our life. 

It should be emphasized once again that the elections to the Oliy Majlis and local Kengashes, held in the spirit of open and competitive contest on October 27 this year, became an important step towards the implementation of our updated Fundamental Law. As a result of the elections, which vividly demonstrated the high political culture, unity and cohesion of our hardworking and tolerant people on the path of building the New Uzbekistan, a new system of representative power has been formed in the country. Its constitutional rights and powers have been strengthened and its responsibility has increased manifold.

One more important aspect: we have moved from the practice of the recent past, when khokims were simultaneously in charge of local councils, to a new system in which, for the first time, councils are headed by chairmen elected among deputies. 

The transfer of more than 30 powers of khokims to local councils testifies to an even broader establishment of the principles of democracy in our society.  

In accordance with the constitutional provision that the people are the only source of state power, we will resolutely continue our reforms aimed at expanding the powers of the Parliament and local Kengashes, further increasing their activity, creating the necessary conditions for effective activity, in short, turning them into the true voice of the people. 

Dear friends!

Large-scale measures are taken in the country for consistent implementation of the priority principles of ensuring human rights, interests and dignity enshrined in the Fundamental Law. 

Thanks to the selfless labor of our people, in recent years the national economy has doubled, the per capita income has reached 3 thousand dollars, the poverty rate has decreased from 23 to 11 percent, the coverage of preschool education has exceeded 74 percent, higher education - 39 percent, and this is undoubtedly a historic result. 

In order to dynamically continue the reforms, to apply in practice the norms of the Constitution in the new edition, the issues of entrepreneurship development and, on this basis, increasing the population's income, strengthening the atmosphere of mutual respect and harmony in families and mahallas, and comprehensive support for representatives of the older generation, women and youth will continue to be at the center of our attention. 

The Fundamental Law stipulates that Uzbekistan is a social state, therefore, further improvement of cities and villages, construction of new residential buildings, health care, education, culture, art and sports institutions, modernization of road and communication networks, strengthening of targeted social protection will be of paramount importance for us. In particular, the priority task is to increase twofold the amount of funds allocated to the health sector, transition to a health insurance system and provide the population with fully guaranteed medical services. 

Within the framework of programs in the field of education, we will bring the coverage of higher education to 50 percent in the coming years. In 2025 alone, 4 trillion soums will be allocated from the state budget for the repair of existing kindergartens and construction of new kindergartens and schools.

Another important area is support for those in need of social protection, for which it is planned to allocate a total of 46.5 trillion soums and lift 1 million citizens out of poverty.

We will also raise to a new level the work on creating even more favorable conditions for persons with disabilities, their socialization, and in general on ensuring inclusiveness in society. Necessary measures will also be taken to reform the pension system. 

As you know, the new version of the Fundamental Law for the first time enshrines the rights of citizens in the sphere of ecology, emphasizing the state's obligations to protect the environment and maintain the ecological balance. 

We have declared 2025 the Year of Environmental Protection and Green Economy in the country and have set clear objectives in this field. I am confident that this will serve as an important basis for implementing the relevant constitutional norms and principles. 

I take this opportunity to urge you, dear compatriots, all our people to take an active part in the development and implementation of the State Program of the coming year. 

We have no right to forget that the protection of nature is the protection of the humans, our future. We must protect our priceless wealth - fertile fields, clean springs, rivers and lakes, mountains and plains, create new gardens and parks, green territories, so that our motherland Uzbekistan becomes even more beautiful, and future generations live in a free and prosperous country. 

Dear compatriots!

Our Constitution has always been and remains a reliable guarantor of strengthening national independence, preserving peace and stability in the country, interethnic friendship and harmony, ensuring the irreversibility of the ongoing reforms. 

We are proud of our Fundamental Law - a vivid symbol and practical embodiment of the legal consciousness and will of the people. I believe that studying every article, every norm of this unique legal document, showing respect for them should become a sacred duty and a life principle for all of us. 

I am convinced that by working in good faith, recognizing our responsibility, we will be able to further increase the effectiveness of the reforms carried out and will definitely achieve the great goals before us.

Once again I sincerely congratulate you, dear compatriots, with Constitution Day, wish you all health, peace and prosperity to your families.

May the authority and glory of our Motherland grow!

May the people of Uzbekistan - the creator of all our achievements - be happy! 

Shavkat Mirziyoyev,

President of the Republic of Uzbekistan

Esteemed Heads of Delegations!

Once again, I would like to express my gratitude to the President of the Republic of Kazakhstan, esteemed Kassym-Jomart Tokayev, for the warm welcome and excellent organization of the Summit in Astana.

We are highly estimate Kazakhstan’s effective chairmanship of the SCO, which has facilitated the expansion of multifaceted cooperation within the Organization.

It is a great honor to have with us the heads of observer-states and dialogue partners, esteemed guests.

Dear Participants of the Meeting!

I believe that a meeting in the broad format of SCO Plus is timely and necessary.

The world needs to restore trust, justice and solidarity more than ever.

The current global political and economic landscape is characterized by fractures, wars, and conflicts that are undermining the foundations and key principles of the system of international relations.

The contradictions and protectionism that have emerged are creating fragmentation of the world economy and supply chain disruptions, which are in turn creating new dividing lines that prevent countries from cooperating effectively in trade, finance and investment, technology transfer and innovation.

The only viable solution to these challenges is to consolidate efforts in the interest of global security, development, and prosperity.

The SCO has always advocated for and has been committed to a just world order based on the universally recognized principles of international law and multilateralism, with the UN playing a central coordinating role.

In this regard, our Organization continues to serve as a focal point for many countries seeking to build broad cooperation without political and ideological biases.

Concurrently, the evolving circumstances necessitate the implementation of new strategic approaches to enhance the efficacy of the Shanghai Cooperation Organization.

Today, as it stands on the threshold of its 25th anniversary, it is imperative to develop a new agenda that aligns with the Organization’s immense potential and growing role in world politics and economy.

Building on the “Shanghai Spirit” and the founding principles of the Charter, unity and cohesion within the Organization should be preserved. I propose to intensify joint efforts with the objective of strengthening the atmosphere of trust and friendship within the SCO and to remove barriers to deeper cooperation.

First of all, it is necessary to undertake a comprehensive reevaluation of the conceptual foundation underpinning the SCO’s security-related activities.

The nature and scope of contemporary challenges have undergone a significant transformation since the establishment of the Organization.

Environmental and natural disasters, water and food shortages, cyberattacks, new methods of undermining sovereignty and economic stability pose an increasing threat.

All of this should also be taken into account when considering the strengthening of the SCO's potential, including the establishment of the Universal Center for Countering Security Threats and Challenges.

In this context, I propose to hold annually SCO Plus Dialogue on Security Issues with the participation of the heads of the competent bodies and experts of all our countries.

Uzbekistan proposes to consistently “reload” trade and economic cooperation in the SCO area, which continues to be fragmented.

So far, we could not manage to create a solid foundation for multilateral trade and inter-sectoral partnership.

For a long time, no consensus has been reached on the establishment of the SCO Development Fund and the SCO Development Bank.

Today at the summit we agreed to take comprehensive measures to simplify trade procedures and develop e-commerce, stimulate technological cooperation, including in the industries of the future.

In order to create an effective platform for business dialogue with the participation of all partners, we propose the annual holding of the SCO EXPO International Industrial Exhibition in our countries.

It is also important to actively promote economic interaction and seek opportunities for linking joint initiatives with the Economic Cooperation Organization, the Gulf Cooperation Council, the Eurasian Economic Union, ASEAN and others.

The new geopolitical realities convince us of the need to build an inclusive and integrated transport and transit system to strengthen interregional connectivity.

The global problems such as climate change and environmental disasters cannot be ignored by the Organization. Our countries are increasingly facing natural disasters, land degradation, reduced agricultural yields, air pollution and water shortages.

I believe that climate cooperation should become a key element of the new SCO agenda.

We advocate for developing an Agreement on cooperation in combating climate change, with concrete measures to achieve common goals and objectives in the area of green development.

We are also proposing the establishment of the SCO Center for Innovative Climate Solutions in Tashkent. It will conduct research on environmental sustainability and “green” growth.

Improving livelihoods and social protection should be given a central place on the Organization’s agenda.

We intend to hold a Global Conference on Sustainable Social Protection in Samarkand next year, under the auspices of the United Nations, as a contribution to achieving the goals Summit of the Future.

Finally, we need to strengthen and promote together a unique model of inter-civilizational dialogue.

The rich cultural, historical and spiritual heritage, traditions, customs and ways of life of our peoples are a powerful and resilient force for building bridges of mutual trust, good-neighborliness and lasting friendship.

This is the message contained in the recent UN General Assembly resolution on the International Day of Dialogue among Civilizations, adopted at our joint initiative.

In this context, the Samarkand Solidarity Initiative for Common Security and Prosperity, which we have put forward, aimed at overcoming the trust deficit through constructive dialogue and multilateral partnership, is more relevant than ever.

The practical implementation of this initiative will contribute to strengthening inter-civilizational dialogue to overcome contradictions on the path to sustainable development.

I am confident that together we can make the Organization even more creative through the implementation of programs in the area of cultural, educational, youth and tourist exchanges.

To this end, we propose to develop a Unified Bank of SCO Humanitarian Initiatives and Programs, which will enable projects in these areas to be systematized and jointly implemented.

I am convinced that the outcomes of this meeting will give a strong impetus to the development of a multifaceted partnership within the Shanghai Cooperation Organization.

Thank you for your attention.

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

С 1

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

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

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

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

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

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

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

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

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

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

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

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

Nadira RASHIDOVA,

Member of the Legislative Chamber of the Oliy Majlis.

On November 29, President Shavkat Mirziyoyev convened a meeting dedicated to identifying additional opportunities, increasing investments and jobs in Bukhara region.

Previously, the economy of this region was mainly linked to agriculture. However, over the past seven years, the region has attracted more than $4 billion investments, enabling development of such industries as energy, electrical engineering, chemicals, pharmaceuticals, textiles and leather. In the past period of the current year, 1.5 million foreign tourists visited Bukhara.

The visit of the Head of State to the region on May 31-June 1 gave a new impetus to its development. All the tasks outlined during the visit will be fully accomplished by the end of the year.

At the same time, it is important to ensure further growth of economic indicators in 2025, increase employment and well-being of the population. To this end, the working group studied additional opportunities of the region and factors hindering entrepreneurship development.

The critical meeting emphasized that the region's economic performance does not correspond to its potential. Work on investment absorption, poverty and unemployment reduction was recognized as unsatisfactory.

In this regard, the hokims, their deputies and sector heads will be put on emergency duty for a period of six months. The entire focus will be on improving these three areas. Special attention will be paid to implementing 70 driver projects based on the experience of Saikhunobad, Uychi, Zarbdar and Gijduvan. They will provide income to 150 thousand people and lift 40 thousand people out of poverty.

As it was mentioned, each district of the region can be specialized for a certain industry. For example, Peshku and Shafirkan - for production of construction materials and textiles, Kagan city, Alat and Jondor districts - for food industry, Gijduvan and Romitan - for chemical industry. This will make it possible to implement projects of entrepreneurs worth $150 million, create 411 small enterprises and provide 12 thousand jobs.

Four textile factories are planned to be built in Vabkent, Karakul, Jondor and Alat at a total cost of $320 million. This will double the volume of finished knitwear and textile products and create 5,000 jobs.

Next year, the number of foreign tourists is expected to reach 2.2 million and tourism exports are expected to reach $600 million. This will be supported by opening 69 new hotels and 2 thousand handicraft stores.

It is planned to develop additional 20 thousand hectares of land, which will allow to grow additional 100 thousand tons of agricultural products and provide employment for 2 thousand people. Trees and food crops will be planted on vacant homestead land, along canals and field edges.

Another opportunity is pastures. In Bukhara region their area exceeds 2 million hectares. As part of the decisions made at a recent meeting on horticultural development, it is planned to grow pistachios on unused pastures.

Hokim of Bukhara region presented plans to utilize these opportunities. In general, next year 106 projects will be implemented, 105 thousand permanent jobs will be created, exports will be increased by $350 million due to foreign investments worth $2 billion.

The Head of State pointed out the insufficiency of these plans and instructed to intensify efforts and improve results. He tasked to revise the proposals again and draft a relevant resolution.
 

In January, growth in the business climate was mainly driven by an outpacing increase in the expectations component. The agricultural sector and services became the key drivers of business confidence.

The Center for Economic Research and Reforms (CERR) presented the results of its business climate analysis based on monthly surveys of entrepreneurs across the republic. Based on the collected data, a composite Business Climate Indicator was formed, reflecting both current assessments of business conditions and expectations for the next 3 months.

Dynamics of Uzbekistan’s Composite Business Climate

In January of the current year, Uzbekistan’s composite Business Climate Index stood at 64 points (on a scale from −100 to +100), which is 23% higher than the level of 2025.

The improvement in the business climate was primarily driven by stronger assessments of the current business situation, which increased by 28%.

An additional contribution came from improved optimism regarding short-term business prospects. In particular, business expectations rose by 20%.

According to the survey, 22% of enterprises increased their number of employees. At the same time, 71% of respondents expect demand for their products to grow over the next three months, compared to about 60% in the same period last year.

The share of enterprises forecasting an increase in employment in the coming quarter rose to 65%, up from 58% a year earlier.

Sectoral Dynamics of the Business Climate Index

In sectoral terms, an improvement in the business climate compared to last year was observed in construction, agriculture, and services.

In agriculture, the Business Climate Index increased by 62% year-on-year and reached 77 points, compared to 48 points in January 2025.

Growth was mainly supported by a significant improvement in assessments of current conditions and more favorable expectations. The current situation indicator in the sector increased 2.7 times from 27 to 72 points, while expectations grew by 17% to reach 82 points.

44% of entrepreneurs assessed the condition of their business in the sector as “good,” compared to 39% a year earlier. Growth in demand for products over the past three months was reported by 46% of enterprises versus 39% in January last year. Expectations for further demand growth in the near term remain high at 71%, compared to 68% a year earlier.

In the services sector, the business climate increased by 25% compared to January last year, reaching 65 points versus 52 points a year earlier.

Growth was driven by a gradual improvement in current business conditions. Current assessments in services rose by 18% to 52 points. At the same time, a more pronounced increase was observed in the expectations component, which grew by 32% to 79 points, indicating a substantial strengthening of companies’ confidence in short-term prospects.

70% of entrepreneurs expect demand for their services to grow over the next three months, compared to 58% in January 2025. The share of enterprises expecting to increase employment in the coming quarter amounted to 61%, up from 54% a year earlier.

In the construction sector, the business climate increased by 13% to 61 points, compared to 54 points a year earlier. The current situation indicator improved by 43% to 57 points. Expectations were formed at the level of 66 points, showing a decline of 4%.

38% of respondents reported that business conditions in construction had improved over the past three months, compared to 35% a year earlier. The share of enterprises reporting workforce growth rose to 38% from 22% a year earlier. Expectations of demand growth over the next three months were expressed by 77% of entrepreneurs, compared to 61% in January last year.

In industry, the business climate slightly declined by 5% compared to last year, while remaining at a sufficiently high level of 54 points.

At the same time, optimism among industrial enterprises remains steadily high. In January, expectations increased by 10%, reaching 78 points, indicating a continued positive outlook regarding development prospects.

According to the survey, the share of respondents reporting an improvement in business conditions over the past three months reached 32%, compared to 30% a year earlier. Demand growth over the same period was noted by 38% of industrial enterprises versus 36% in January last year. Meanwhile, employment expansion plans strengthened — 69% of entrepreneurs expect to increase their workforce in the next three months, compared to 62% a year earlier.

Barriers to Entrepreneurial Activity

According to the survey, more than half (57%) of entrepreneurs see no barriers in their activities. Among the problems cited, the most frequent are taxation (11%), utilities (9%), and access to credit (8%).

CERR Sector for the Study of Sectoral Competitiveness and Investment Activity

Tel: (78) 150 02 02 (441)

CERR Public Relations and Media Sector

Tel: (78) 150 02 02 (417)