Annotation. The Ferghana Valley is the historical heart of Central Asia, where a new model of regional cooperation based on trust, good neighbourliness and sustainable development is currently taking shape. The initiative
of the President of Uzbekistan Shavkat Mirziyoyev to hold the Ferghana Peace Forum reflects a common desire among the countries of the region to strengthen mutual understanding and create the area of peace, stability, and shared prosperity.
INTRODUCTION
Historically, the Fergana Valley was a shared space where countries used common resources and people kept close ties. For centuries, the valley was
at the crossroads of key trade routes connecting the West and the East.
The establishment of an atmosphere of good neighbourliness
in the Ferghana Valley reflects positive developments throughout Central Asia. Essentially, this is the result of political will, a concentrated expression
of the joint efforts of the leaders of all five countries to maintain security
and stability in the region.
Holding the Fergana Peace Forum in Fergana on October 15–16, 2025, confirms the statement made by the President of Uzbekistan at the 80th session of the UN General Assembly about the transformation of Central Asia into
an area of peace, friendly relations and partnership.
FROM A ZONE OF TENSION TO A SPACE OF TRUST
In the early years of independence, unresolved border issues and
the existence of numerous ethno-territorial enclaves served as grounds
for viewing the region as a conflict zone.
However, today, thanks to the political will and joint efforts of the leaders
of states, the Fergana Valley, previously perceived as a “powder keg,”
“Achilles' heel,” and “hot spot,” is becoming a symbol of peace, sustainable development, and a space of opportunity.
In recent years, Uzbekistan, Tajikistan and Kyrgyzstan have made significant progress in diplomacy and establishing stable political contacts.
The visits of the countries' leaders and their participation in regional forums and organizations such as the Shanghai Cooperation Organization
and the Consultative Meeting of the Heads of Central Asian States contribute
to the deepening of political and economic ties. The development of bilateral
and multilateral relations in the political sphere has helped to create a solid foundation for regional integration and mutual support.
Moreover, all five Central Asian countries contribute to the sustainable development of the Ferghana Valley. Joint water and energy projects are being implemented. In January 2023, Uzbekistan, Kazakhstan and Kyrgyzstan signed
a “”Road Map” for the implementation of the Kambarata HPS-1 construction project, and in June 2024, an interdepartmental agreement on preparations
for the implementation of the project.
A new phase of regional diplomacy began in 2017 with the election
of Shavkat Mirziyoyev as the President of the Republic of Uzbekistan. Relations
with neighbouring countries reached a qualitatively new level. Dialogue based on the principles of openness, respect, and equality laid the foundation
for long-term friendly coexistence.
Thanks to the political will of the leaders of the three states—Uzbekistan, Kyrgyzstan, and Tajikistan—historic agreements were reached in 2025
with the signing of the Treaty on the Junction Point of the State Borders
of Three States and the Khujand Declaration on Eternal Friendship.
These documents became a symbol of a new era of trust and creative partnership. The treaty legally established the borders of the three states
at a concrete point in the Ferghana Valley.
This breakthrough did not come unexpectedly, without preparatory work. In the preceding months, on March 13, 2025, Kyrgyzstan and Tajikistan signed an important agreement on the demarcation of their common border—the final stage of their long negotiations.
Kyrgyz President Sadyr Zhaparov noted that regional integration continues to develop actively, and the strengthening of cooperation
in all spheres will be the key to sustainable development and prosperity throughout Central Asia.
In turn, Tajikistan President Emomali Rahmon called the development
of relations between the three countries based on the principles of good neighborliness, equality, and mutual respect one of the priorities of Tajikistan's foreign policy.
The international community particularly highlights the indispensable role of Uzbekistan's President Shavkat Mirziyoyev, who initiated a new diplomatic line: "Borders should not divide, but unite our peoples."
This approach creates a model for peaceful transformation, where internal rather than external factors shape the architecture of trust, friendship, and good neighbourliness.
The formation of the area of stability and cooperation in Ferghana Valley was achieved without external involvement, solely through the strong political will of the leaders of the three states, combined with the desire of the peoples
of the region for peaceful coexistence, creating a solid foundation for lasting peace and prosperity.
Ferghana Valley – an “exemplary model” for building inter-state relations in other regions
The Ferghana Valley is one of Central Asia's unique oases – a place where the destinies of the peoples of Uzbekistan, Kyrgyzstan, and Tajikistan have intertwined. More than 17 million people live here, accounting for 20%
of the total population of Central Asia, which is around 83 million.
Today, the valley is gradually becoming a symbol of the new Central Asia – a region where borders are not barriers, but bridges of interaction.
The development of transport, trade, and humanitarian ties between Uzbekistan, Kyrgyzstan and Tajikistan paves the way for the formation of a single space
for interaction in the name of common prosperity.
Joint infrastructure and economic projects, the restoration of roads
and railways, the development of border logistics hubs, and the modernization of checkpoints are creating conditions for the free movement of people, goods, and ideas.
Communications between the Ferghana Valley and the outside world are actively developing. Today, it is being integrated into international multimodal transport corridors and is gradually regaining its status as an interregional transit hub connecting East and West.
In this regard, the China-Kyrgyzstan-Uzbekistan railway project is of great importance. If implemented, it will have a multiplier effect on the economies
of all countries in the region.
The railway will provide access to the ports of the Persian Gulf
and the Pacific Ocean, open up new markets, thereby diversifying the economy and creating new jobs.
Visa regimes are being simplified and the throughput capacity at border crossing points is being improved, which will encourage more mutual travel
by citizens.
Uzbekistan maintains a visa-free regime with all Central Asian countries except Turkmenistan. In particular, there are currently 17 border crossing points between Uzbekistan and Tajikistan and 25 between Uzbekistan
and Kyrgyzstan. In 2016, there were only 13 between Uzbekistan
and Kyrgyzstan, and all of them operated with restrictions. For example, currently, up to 20,000 people pass through the Dustlik checkpoint
on the Uzbek-Kyrgyz border every day, which is 100 times more than in 2016.
At the same time, the number of vehicles passing through has increased tenfold, reaching 700 per day.
The Mingtepa and Khanabad border checkpoints were opened in 2023, and the Uchkurgan and Karasu checkpoints in 2024. These points had been closed since 2009-2010.
Today, citizens of Uzbekistan and Kazakhstan can travel to each other's countries for up to 30 days without registration. A visa-free regime
for up to 60 days has been established between Uzbekistan and Kyrgyzstan,
and since September 1, 2023, it has been possible to use ID cards
(instead of foreign passports) for mutual travel between the two countries.
The time required for goods and people to cross the border has been reduced to an unprecedented eight minutes. In turn, citizens of Tajikistan
and Uzbekistan can stay in each other's territory for up to 30 days
without a visa. This, in turn, contributes to the intensification of cooperation
and improved mutual understanding between the peoples of the Fergana Valley.
On the whole, a common space is forming in the Ferghana Valley, as it has throughout history. The restoration of the valley's interconnectedness contributes to the stability and sustainable development of the entire region.
The international community's keen interest in these processes confirms that Central Asia is becoming an important center for the formation of a culture of peace. The initiatives put forward by Uzbekistan have received support
from the UN, OSCE, EU, and other international partners, which strengthens
the legitimacy and sustainability of regional efforts.
The Ferghana Peace Forum has a special place in this process—it's not just a diplomatic meeting, but a platform for developing a new philosophy
of regional cooperation. This forum brings together political leaders, experts, and public figures, offering an open dialogue on strengthening peace, trust,
and sustainable development in Central Asia.
The event will enable the countries of the region to independently shape their own architecture of stability and sustainable development, based
on mutual respect and the desire for a better future for new generations.
CONCLUSION
The Ferghana Valley is gradually transforming into a space of peace
and harmony, where peoples find common ground and jointly strengthen
the region's stability.
The establishment of the atmosphere of friendship and
amicable relations in the Ferghana Valley shows that, even in today's turbulent global environment, ensuring stability in the region is an achievable goal.
This process requires patience, wisdom, and willingness to make reasonable compromises. Uzbekistan, Kyrgyzstan, and Tajikistan have demonstrated these qualities and their ability, despite complex challenges,
to unite for common goals such as strengthening security and sustainable development.
In turn, the Fergana Peace Forum is called to become a permanent platform aimed at strengthening dialogue and trust, ensuring sustainable development of the Ferghana Valley, unlocking economic potential,
and strengthening cultural and humanitarian ties. This meeting reflects the unity of the countries in the region, which are determined to build a common future together.
Authors: Diloram Mukhsinova and Bekhzod Alimjanov,
senior researchers at the Center for Foreign Policy Studies
(Uzbekistan)
Since 2017, President Shavkat Mirziyoyev’s administration has pursued a sweeping reform agenda, liberalizing the economy while strengthening social welfare. These reforms are enshrined in new policies and the 2023 Constitution, which explicitly defines Uzbekistan as a “social state” responsible for ensuring employment and reducing poverty. The government’s national strategy (“Uzbekistan–2030”) even set a target of halving poverty by 2026. In short, Uzbekistan’s policy framework has shifted toward the combined goals of economic growth and inclusive social protection.
By 2023 the new National Agency for Social Protection (NASP) and community “Inson” service centres were delivering aid to roughly 2.3 million needy families – about a four-fold increase from 2017. Pensions and basic benefits were also raised: for instance, pension and disability payments in real terms are now about 1.5 times higher than before the reforms.
Community service is delivered through Inson centers, one-stop offices in each locality that help citizens apply for benefits and services. These “Inson” centres provide personal assistance with applications and information, reflecting a shift to integrated, client-oriented support. Relatedly, a new registry of persons requiring care has been established (by 2023 it contained ~17,800 profiles) to manage support for the disabled and elderly; each case is reviewed quarterly so that aid can be adjusted as needed. Together, these digital tools and organizational changes – one-stop “Inson” centers, a unified registry, targeted lists and case management – represent a modern social protection architecture far beyond Uzbekistan’s previous fragmented system.
International partners have closely supported and evaluated these reforms. The World Bank has played a leading role: it delivered roughly $2.1 billion through policy-based loans (2018–2021) to finance structural reforms in jobs, governance and social policy. In mid-2024 the Bank approved an additional $100 million “INSON” project to improve social care for vulnerable groups. This project will establish more than 50 community-based social service centres and expand services to some 50,000 people (including older persons, disabled, and children).
Within the framework of the “From Poverty to Prosperity” program, launched on 1 November 2024, families receive support across seven key dimensions:
More than 600,000 families have gained access to 1.3 million social services aimed at employment and income growth. Members of these families have also benefited from over 2.2 million guaranteed healthcare services, directly contributing to their sustainable participation in the labor market.
Expanding Social Care Provision
For individuals requiring continuous care, a new model of service provision through private providers has been introduced. These services include household assistance, home- and field-based care, medical and social rehabilitation, and personal assistant support. Currently, 13,800 individuals — representing 76% of all those in need of care — receive such services from the private sector.
According to the Presidential Decree of the Republic of Uzbekistan, by 2030 the number of recipients of social services is expected to reach at least 3 million citizens annually, while the share of services provided by the non-state sector will rise to 30%. This approach fully aligns with the principles of the social and solidarity economy.
The programs implemented by the National Agency for Social Protection are characterized as accessible, effective, and oriented toward sustainable economic development.
As part of the “From Poverty to Prosperity” program, a National Registry of Poor Families has been established. The identification of households and decisions regarding their inclusion are made directly at the community (mahalla) level. As of today, 667,000 families, comprising approximately 2.8 million individuals, have been registered. This provides a comprehensive understanding of their living conditions and the opportunities for poverty reduction.
In the first nine months of the current year, the average per capita income among registered families has nearly doubled, rising from 174,000 soums (~USD 14) to 338,000 soums (~USD 27) per month. Furthermore, 73,000 families that previously had no income now earn official wages. During the same period, 150,000 families have successfully escaped poverty, with 105,000 (70%) doing so primarily due to increased formal employment income.
To ensure targeted support, families are categorized into three groups:
This classification enables the application of differentiated measures: “red” families receive priority care and social support; “yellow” families are targeted with employment and training programs; and “green” families benefit from measures aimed at preventing a return to poverty.
Within this framework, the development of a “care economy” has emerged as a key priority. The Agency has introduced daycare services for children with disabilities and the “Step into an Active Life” program for older persons. These initiatives enable family members to participate in the labor market, thereby activating previously unpaid caregivers.
Investing in Human Capital
Particular attention is given to children from low-income families. The state subsidizes up to 90% of the costs associated with their education and development. In 2025, 125,000 children from poor households gained preferential access to preschools, demonstrating how social protection systems can make an indirect yet significant contribution to poverty reduction.
In conclusion, the programs implemented by the National Agency for Social Protection go far beyond material support. They create enabling conditions for income generation, employment, and human capital development, thereby contributing directly to the sustainable economic growth of the country.
Olima Almatova Qorabekovna, a resident of “Ezgulik” makhalla, Buka district, Tashkent region, who received support from the Agency, said:
“My spouse worked at the mining combine for forty years, but after he became ill, he could no longer continue. For his sake, I took on whatever jobs people offered me. When the doctors suggested placing stents in his heart arteries, I refused, saying: ‘Whatever help you can give, give it to my family. I’ve lived my life, I am already sixty-seven. I’ve seen so much — whatever comes, I will accept it. I don’t need stents. I only ask that you give a little help to my family.’
When support arrived under the President’s decision, I cannot express how happy I was. I said: ‘Oh God, there really is someone who came to open my door.’ They came and extended a helping hand. We planted cucumbers and tomatoes, and soon money began to come in. We have already earned income three times. So much support has reached us, and we are deeply grateful to our President. Feeding even one family is difficult, yet he is taking care of millions. For those who are struggling and in need, such help gives strength, brings joy, and inspires them to move forward. One can hardly imagine just how powerful that is.”
In conclusion, the programs implemented by the National Agency for Social Protection go far beyond material support. They create enabling conditions for income generation, employment, and human capital development, thereby contributing directly to the sustainable economic growth of the country.
Modern Central Asia is becoming a space of sustainable growth and mutual trust. The countries of the region demonstrate a strong commitment to building balanced relations with global partners, prioritizing practical initiatives in trade, energy, transport, and innovation. One of the key formats shaping this new architecture is the “C5+1” platform, which unites the Central Asian states and the United States.
Regional Consolidation: Dialogue Based on Equality and Pragmatism
In recent years, the “C5+1” format has evolved from a diplomatic mechanism into an effective platform for coordination and implementation of joint projects. The latest ministerial meeting in Samarkand, attended by the Minister of Investment, Industry and Trade of the Republic of Uzbekistan, Laziz Kudratov, demonstrated a high level of trust and a shared focus on tangible results.
Key topics on the Samarkand agenda included food security, climate resilience, development of green and digital economies, diversification of transport corridors, and deepening industrial cooperation.
Following the meeting, memorandums were signed on decarbonization and digitalization of customs procedures - a step that paves the way for harmonized trade rules, easier exports, and increased investment inflows into the region.
Central Asia: From Fragmentation to an Integrated Economic Space
The figures speak for themselves: the total foreign trade turnover of Central Asian countries has reached $220 billion, almost doubling since 2017, while mutual investments have grown 5.6 times. The region’s combined GDP increased by 40% over the past five years to exceed $406 billion.
These indicators reflect not only growth but also a qualitative shift - from isolated initiatives to a coordinated regional development strategy.
Uzbekistan - Kazakhstan: Industrial and Logistics Core
The Uzbekistan - Kazakhstan partnership exemplifies a new model of integration. Between January and August 2025, mutual trade reached $3.03 billion, up by 15%. Projects exceeding $7 billion are under implementation across engineering, agriculture, construction, and energy sectors. Over 1,100 enterprises with Kazakh capital operate in Uzbekistan, creating jobs and new export niches.
Uzbekistan - Tajikistan: Transport and Energy Bridge
Tajikistan and Uzbekistan are rapidly strengthening railway and energy cooperation. In 2024, cargo traffic between the two countries reached 10 million tons, while regular passenger flights and a joint investment company with a $100 million capital were launched. These are not just numbers - they represent an architecture of trust that enables joint industrial and agricultural clusters.
Uzbekistan - Turkmenistan: Corridors of Growth
Cooperation with Turkmenistan is expanding in energy, logistics, and industry. In 2024, bilateral trade exceeded $1.14 billion, and the Shavat - Dashoguz border zone is evolving into a hub of trade and joint manufacturing. A localization project for repairing Turkmen wagons in Andijan is a vivid example of practical industrial integration.
Uzbekistan–Kyrgyzstan: A “Roadmap” for the Future
The interstate program until 2030 and the Border Regions Council ensure steady progress. From January to August 2025, trade turnover approached $600 million, while Uzbekistan’s exports grew by nearly 80%. New logistics routes are being developed to reduce transport costs and enhance business competitiveness.
“C5+1” as a Catalyst for Development
Participation in the “C5+1” framework gives regional integration new depth - aligning national interests with global sustainability trends.
The United States and regional partners are building long-term cooperation in green energy, resilient supply chains, infrastructure modernization, and human-capital development.
Special attention is given to unified standards for digital trade, environmental management, and logistics technologies, making Central Asia a vital link in Eurasian value chains.
Benefits for the Region and Uzbekistan
For Central Asia, the “C5+1” format provides:
For Uzbekistan, the advantages are clear:
Conclusion: From Geography to the Economy of the Future
Central Asia is steadily transforming from a “crossroads of geography” into a region of synergy. The “C5+1” format has become a framework connecting the efforts of regional and global partners into a unified development strategy - based on trust, mutual benefit, and sustainable growth.
For Uzbekistan, participation in this platform is not merely a foreign-policy choice, but a practical instrument for achieving its long-term national goals - industrialization, export growth, and improved living standards.
The current stage of global economic development is characterized by a large-scale transformation of international supply chains and growing geopolitical uncertainty. In this context, transport connectivity is becoming a key factor in ensuring economic security and sustainable development.
These processes are particularly relevant for the countries of Eurasia. Comprehensive transport and logistics cooperation between the Russian Federation and the Republic of Uzbekistan, which serve as key links in the new transit corridor architecture, is of strategic importance here.
Russian-Uzbek cooperation is demonstrating stable positive dynamics. By the end of 2025, the total volume of freight traffic between the countries reached 18.2 million tons, an increase of 13.6 percent compared to the previous year. Exports accounted for 3.6 million tons, imports for 9.2 million tons, and transit for 5.4 million tons.
Rail transport traditionally forms the bulk of freight turnover. In 2025, volumes reached 12.9 million tonnes, representing a 12.3 percent increase compared to the previous year, while transit traffic increased by almost 15 percent to 4.8 million tonnes.
The development of strategic industrial cooperation has become an important stage of cooperation. Specifically, a large-scale project to transfer the Tashkent Passenger Carriage Construction and Repair Plant to the trust management of Transmashholding JSC is being implemented. The signed agreements provide for the complete modernization of the plant by the end of 2026, with the prospect of its phased privatization.
In terms of passenger rail transportation, service has been fully restored on the Tashkent-Moscow and Tashkent-Kazan routes. The launch of train service from Andijan to Moscow and the establishment of direct rail service between the two countries' tourist centers are currently on the agenda.
The development of road transportation also remains an important area of cooperation. By the end of 2025, the volume of road freight transport exceeded 5.2 million tons, representing a 16.5% increase. At the same time, passenger bus service continues to develop. Regular bus services have been established from Tashkent to Novosibirsk, Kazan, Perm, Krasnodar, Ufa, Moscow, and St. Petersburg.
Routes to Nizhny Novgorod, Tyumen, and Yekaterinburg are planned for 2026–2028. To improve service quality, unified service standards, monitoring systems, and digital services, including electronic ticket booking, are being implemented.
Significant results have also been achieved in aviation services. In 2025, more than 34,000 bilateral flights were operated, representing a 4.8% increase, carrying over 4.2 million passengers. Currently, flights operate at a frequency of 340 per week, involving over 45 Russian airlines and leading Uzbek carriers (Uzbekistan Airways, Qanot Sharq, Panorama Airways, and My Freighter).
A breakthrough was reached in June 2025 in Moscow by aviation authorities. The parties agreed to increase the frequency to 1,000 scheduled flights per week. If these quotas are fully utilized, the annual passenger capacity will exceed 16 million passengers. The most significant area of cooperation is the joint development of new international transport corridors, the key one being the multimodal corridor "Belarus – Russia – Kazakhstan – Uzbekistan – Afghanistan – Pakistan." The project was initiated by the signing of a memorandum on the development of this corridor in 2023 at the first SCO Transport Forum.
In April 2024, the first meeting of the working group was held in Termez, where the parties signed a roadmap providing for the analysis of cargo flows, the implementation of electronic digital documents, and the optimization of customs procedures. After Pakistan joined the memorandum, a number of additional meetings of the working group were held throughout 2025, during which tariff conditions, logistics solutions, and the organization of test container shipments along the route were agreed upon.
This transport corridor has the potential to become one of the most important routes in the Eurasian space, providing direct transport and logistics links between the Union State of Belarus and Russia, the countries of Central Asia, and the markets of South Asia.
Russian-Uzbek cooperation in transport and logistics has become a full-scale strategic partnership. The synchronized development of all modes of transport, deep industrial cooperation, and the joint development of new transit routes form a reliable framework for Eurasian connectivity, capable of ensuring economic growth throughout Greater Eurasia.
Leading specialists of the Center for the Study of Transport and Logistics Development Problems under the Ministry of Transport of the Republic of Uzbekistan, Sh. Akhmedov and M. Tohirov
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)
In the modern history of New Uzbekistan, protecting the rights, freedoms, and legitimate interests of its citizens – wherever in the world they may be – has become not merely a constitutional obligation, but the highest expression of the state's humanity and responsibility. One of the most challenging yet strategically significant tests of this commitment has been the repatriation of compatriots from conflict zones in Syria, Iraq, and Afghanistan.
Uzbekistan was among the first countries in the world to shift from a policy of "estrangement" to one of "return and compassion," developing a distinctive rehabilitation model in the process.
The first such humanitarian operation was launched exactly seven years ago – on May 30, 2019 – on the personal directive of President Shavkat Mirziyoyev. During that mission, 156 Uzbek nationals – predominantly women and children – were brought home from war-ravaged Syria. It was a defining moment: for the first time, the state openly declared its readiness to embrace citizens who had gone astray.
That operation marked the beginning of a series of missions conducted under the collective name "Mehr" (meaning compassion in Uzbek). The core philosophy behind President Mirziyoyev's initiative is that Uzbek citizens who found themselves in conflict zones through misguided choices retain the right to state protection and the opportunity for a new life.
Each mission was unique in its logistics, risk profile, and the circumstances of those being brought home. The second operation, Mehr-2, carried out in October 2019, was notable for the evacuation of 64 children from Baghdad, Iraq – children whose mothers remained imprisoned abroad and for whom Uzbekistan assumed full guardianship.
In December 2020, despite the sweeping restrictions of the global pandemic, Mehr-3 rescued 98 women and children from the Al-Hol and Roj camps in Syria, where they had been living in dire sanitary conditions. Many of the children bore shrapnel wounds and suffered from serious chronic illnesses. The operation was conducted with technical support from the United States and international organizations.
Mehr-4, carried out in February 2021, focused on Afghanistan, securing the return of 24 citizens caught in the crossfire of that country's protracted war.
The final stage, Mehr-5, was completed in April 2021, bringing home 92 individuals from Syria – 24 women and 68 children, including 7 who were complete orphans. This operation also refined a rapid documentation protocol: birth certificates were issued to children directly at the airport, ensuring they received immediate legal status upon arrival.
In total, the Mehr operations have repatriated more than 530 individuals, approximately 75% of whom are children. The guiding principle throughout has been unequivocal: children cannot be held responsible for the choices of their parents.
Repatriation is far more than a logistical exercise – it is the complex process of transforming yesterday's outcasts into full members of society. The Uzbek model rests on five pillars:
The outcomes of Uzbekistan's repatriation program are recognized by the international community as one of the most successful humanitarian models in the world. The United Nations has officially recommended the "Uzbek model" as a roadmap for other governments. Former UN Under-Secretary-General Vladimir Voronkov has repeatedly highlighted it as an example of how a state can effectively combine justice with compassion.
Rehabilitation and reintegration initiatives have also been advanced at the regional level. At the high-level international conference "Regional Cooperation of Central Asian Countries within the Framework of the Joint Plan of Action for the Implementation of the UN Global Counter-Terrorism Strategy," held in Tashkent on March 3–4, 2022, President Mirziyoyev proposed the establishment, under the auspices of the UN Counter-Terrorism Office, of a Regional Expert Council comprising leading specialists from Central Asian countries.
The Council was launched in May 2024, embodying broad support for the collaborative implementation of comprehensive rehabilitation and reintegration programs for individuals returned from conflict zones. It comprises more than 40 highly qualified experts from across Central Asia, including representatives of law enforcement and judicial bodies, as well as psychologists, theologians, medical professionals, and social workers.
The project has gained further credibility through the participation of prominent international bodies, including the Organization for Security and Co-operation in Europe (OSCE), the Global Community Engagement and Resilience Fund (GCERF), and the International Institute for Justice and the Rule of Law (IIJ).
The Council's work has been presented at key UN platforms: in Geneva and New York on November 11 and December 10, 2024, respectively, and in Vienna on May 21, 2025.
Uzbekistan has demonstrated to the international community that repatriation is not a security risk – it is an instrument for strengthening security. International organizations are investing in Uzbekistan today not to remedy a problem, but to scale its success to other regions of the world.
The work with repatriates in Uzbekistan has now moved from a phase of emergency rescue to one of systemic integration. The country operates a well-functioning mechanism that combines state support with community oversight. The state ensures the full legal "erasure" of repatriates' past so that it does not obstruct their future. Where the early focus was on physical health, the emphasis has now shifted to mental wellbeing and civic identity. A repatriate in Uzbekistan in 2026 is a taxpayer, an active participant in mahalla life, and a parent whose children are building their futures within the country.
In contrast to those who chose to close their borders to their own citizens, Uzbekistan's leadership chose the path of responsibility. The country's experience affirms that when a state extends a hand, society grows stronger – and security becomes unshakeable.
Uzbekistan's motto in this sphere is clear: "Children cannot be terrorists" – and every Uzbek citizen will always remain under the protection of their homeland.
Timur Akhmedov,
Head of Department,
Institute for Strategic and Regional Studies under the President of the Republic of Uzbekistan
Social policy in our country contains a wide range of issues on poverty alleviation, job creation, and support for socially vulnerable groups of the population. Investments in human capital are both a contribution to the social and economic sectors of the country's development. Moreover, according to a study by the Institute of Macroeconomic and Regional Studies under the Cabinet of Ministers of Uzbekistan, improving the quality of human capital leads to an increase in the inflow of foreign direct investment by 0.51 percent.
Article 1 of the Constitution of the Republic of Uzbekistan in the new wording, adopted following the results of the national referendum, once again confirmed the commitment and orientation of the state to care for its citizens from the first days of their birth, regardless of their social status. It should be noted that the state did not come to this principle immediately, as the domestic social policy was formed step by step, i.e. in the process of long negotiations, permanent compromises and economic opportunities.
The enshrinement in the Constitution of the statement that Uzbekistan is a sovereign, democratic, law-based, social and secular State increases its social obligations.
It should be noted that a social state in the general sense guarantees quality education, qualified medical care, comprehensive support for families, children, women, the elderly and persons with disabilities, provides housing and employment for those in need, creates safe working conditions and reduces poverty.
All of the above-mentioned state guarantees began to be reflected in the last decade of our country, which entered the world history as New Uzbekistan.
First, the Strategy of Action on Five Priority Areas of Development of the Republic of Uzbekistan in 2017-2021 and the Strategy for the Development of New Uzbekistan for 2022-2026 identify as priority tasks: building a humane state by elevating human honor and dignity and further developing a free civil society; turning the principles of justice and the rule of law into a fundamental and necessary condition for the country's development; accelerating the development of the national economy and ensuring high growth rates; carrying out the development of the country's economy; and ensuring the development of the national economy.
Secondly, the Ministry of Employment and Poverty Reduction has been established, the Ishga Markhamat monocenters have been launched, the “iron” “women's” and “youth” notebook systems have been set up, one hundred percent pensions are paid to working pensioners, the Social Protection Strategy of the Republic of Uzbekistan has been approved, and the problem of poverty in the country has been recognized. Moreover, the post of assistant khokims has been introduced, who are responsible for poverty reduction, developing entrepreneurship, organizing jobs and increasing the incomes of citizens. Most importantly, a new system of caring for the population has been created.
President Shavkat Mirziyoyev chaired a video conference call on May 15, 2023 to discuss measures to reduce poverty and provide employment. Following the recognition of the existence of poverty in the country, a system to reduce it was introduced. At the beginning of last year, all districts in Uzbekistan were divided into five categories and given differentiated benefits based on the pace of socio-economic development. As a result, one million people have been lifted out of poverty.
Thirdly, education and medicine are the most important and comprehensive social spheres. In order to accelerate reforms and improve efficiency in these sectors, relevant project offices have been established.
Undoubtedly, investment in human capital is the best contribution to the future. In this regard, unprecedented reforms have been carried out in the area of continuous improvement of the system of continuous quality education and training of qualified personnel. As a result, preschool education coverage has increased from 27 to 74 percent, 11-year compulsory schooling has been resumed, the workload of school teachers has been optimized, and forced labor has been abolished.
Changes in the higher education system in recent years have also shown significant positive results. As a result, enrollment in higher education has increased from nine to 42 per cent, and the number of higher education institutions has grown from 77 to 212.
Our country pays great attention to the medical sphere, which directly affects the quality of life. Over the past seven years, the financing of the health care system has increased from 5.9 trillion to 33.5 trillion soums, i.e. six times. Hospitals are being equipped with modern equipment and new facilities are being built. In order to bring medicine closer to the people, on-site screening examinations are being conducted.
It should be noted that Uzbekistan is working on targeted support for socially vulnerable segments of the population. This is evidenced by the addition of a new wording to article 57 of the Constitution on State measures aimed at improving the quality of life of socially vulnerable categories, creating conditions for their equal participation in public and State life with other citizens, and expanding their opportunities to independently provide for their basic living needs.
One of the main innovations is article 42 of the Basic Law, which states that the minimum wage shall be determined taking into account the need to ensure a decent standard of living. From December 1, 2023, the minimum wage is equal to 1.05 million soums, while the cost of consumer expenditures is set at 568 thousand soums per person per month.
In addition, according to the Presidential Decision “On measures to further improve the system of social services and assistance to the population” of September 28, 2023, a new system of social assistance by the employees of the social service centers “Inson” of the National Agency for Social Protection has been introduced in 28 districts (cities) on a pilot basis since October 15 last year. The employees are responsible for keeping records and register of lonely, elderly and disabled persons in need of care, which helps to develop a plan of individualized social services by taking into account the degree of need for care. At the same time, assistance to the lonely elderly included in the Unified Register of Social Protection is provided on the basis of a contract.
Following the results of Q1 2026, the ranking of large banks underwent notable changes. While the leading group remained intact, positions within the segment were reshuffled. In the small-bank category, movements were also significant, pointing to continued realignment and stronger competition across the sector.
The Center for Economic Research and Reforms presented the updated Bank Ranking based on the results of the Banking Activity Index for Q1 2026.
The study covers 34 commercial banks of the republic, including 20 classified as large financial institutions by scale and branch network, while the remaining 14 were categorized as small banks.
The methodology is based on the analysis of 27 indicators benchmarked against national averages and international standards, including the requirements of the Basel Committee. The ranking serves as an important tool for enhancing transparency and strengthening confidence in the financial system. This approach is consistent with international practice and is widely used by leading financial institutions.
Financial Results for Q1 2026
During the reporting period, total assets of the banking sector amounted to 932.3 tn sums ($76.3 bn), while liabilities reached 793.9 tn sums ($64.9 bn). Lending increased by 14%, while deposits grew by 32%. The aggregate capital of the banking system was fully denominated in the national currency. Net profit reached 3.1 tn sums ($254 mn), which is 36.3% higher than a year earlier.
During the period under review, the share of non-performing loans declined to 3.3%, compared with 4.5% a year earlier, indicating improved portfolio quality. At the same time, in several banks the ratio remains above the sector average. Capital adequacy indicators exceed minimum regulatory requirements by more than 1.4 times, confirming the resilience of the banking sector.
Large Banks Activity Ranking for Q1 2026
The results of Q1 2026 show that despite the relative stability at the top of the ranking, both categories of banks recorded notable positional changes.
In the large-bank segment, performance was mixed. Out of 20 banks, 7 improved their positions, 8 declined, and 5 retained their previous places. This reflects a high level of competition and the ongoing redistribution of market positions.
The most notable progress was demonstrated by Tenge Bank, which moved up by 6 positions. Three more banks — Agrobank, Invest Finance Bank, and Xalq Bank — advanced by 2 positions each. Positive momentum was also recorded by Ipak Yuli Bank, Asia Alliance Bank, and Hamkorbank, all of which improved their standing in the overall ranking.
At the same time, several large banks recorded lower activity levels. The most significant decline was observed at Orient Finans Bank and Trast Bank, which fell by 5 and 3 positions respectively.
Changes Across Key Indicators
Financial Intermediation. The leading positions were taken by Invest Finance Bank, Anor Bank and Kapitalbank. In this ranking, Davr Bank and Hamkorbank fell by 4 positions, while Ipoteka Bank declined by 1 position.
Financial Accessibility. The leaders were Agrobank, Anor Bank and BRB. Under this indicator, declines were mainly observed among leading banks: Kapitalbank (-3 positions), Hamkorbank (-7), Asia Alliance Bank (-1), Ipak Yuli Bank (-5), and Trast Bank (-6). The strongest improvement in this ranking was recorded by Tenge Bank (+8), Xalq Bank, Davr Bank (+5), and Agrobank (+4).
Capital Adequacy. The top positions were occupied by Orient Finance Bank, Trast Bank and Halk Bank. At the same time, Agrobank dropped by 4 positions, while Aloqa Bank declined by 2 positions.
Asset Quality. The leaders were Hamkorbank, Asia Alliance Bank and Ipak Yuli Bank. Turonbank fell by 5 positions, while Asakabank, Mikrokreditbank, SQB, Trast Bank and Anor Bank each declined by 2 positions.
Management Efficiency. The highest positions were held by SQB, Orient Finance Bank and NBU. At the same time, Asaka Bank dropped by 5 positions, while BRB declined by 4 positions.
Profitability. The leaders were Hamkorbank, Trast Bank and Asia Alliance Bank. Turon Bank, after falling by 3 positions, ranked last. In this ranking, Kapitalbank, Asia Alliance Bank, Anor Bank and Davr Bank declined by 2 positions, while Ipoteka Bank and Mikrokreditbank fell by 1 position.
Liquidity. The leaders were Asia Alliance Bank, Ipak Yuli Bank and Trast Bank. At the same time, Mikrokreditbank, Ipoteka Bank, Anor Bank and SQB each declined by 1 position.
Small Banks Activity Ranking for Q1 2026
The small-bank group remained relatively stable, with leading institutions retaining their positions. The main changes in this category were concentrated in the middle segment, where several banks improved their standing due to stronger financial intermediation and higher profitability.
Within this group, 8 out of 14 financial institutions improved their rankings. The most notable gains were recorded by AVO Bank and Apex Bank, both rising by 3 positions. TBC became the leader of the ranking.
At the same time, 5 banks moved down, with the sharpest decline recorded by Octobank, which lost 6 positions. Saderat Bank, Garant Bank, and Ziraat Bank each rose by 2 positions. The ranking was rounded out by Open Bank and Uzum Bank, both up by 1 position.
Jafar Khidirov, CERR
CERR Banking and Financial Sector Research Sector
Tel: (78) 150 02 02 (441)
CERR Public Relations and Media Sector
Tel: (78) 150 02 02 (417)
Uzbekistan is a country of youth. According to statistical data, about 60% of Uzbekistan's population is under the age of 30. Thus, over 18 million residents of Uzbekistan are young people, and by 2040 this number could reach 25 million. This creates unique opportunities and specific challenges for the state in terms of providing education, employment, and social integration for the youth. On February 21 of this year, a Presidential Decree approved the State Program for the implementation of the "Uzbekistan - 2030" Strategy in the Year of Support for Youth and Business. It outlines a number of tasks aimed at addressing the problems faced by young people and realizing their potential.
In recent years, Uzbekistan has prioritized creating favorable conditions to ensure the rights and interests of the younger generation. This includes providing them with access to quality education, meaningful employment opportunities, and avenues to realize their talents and abilities. Significant efforts have been made in this direction as part of state policy.
A vivid confirmation of this is the adoption and consistent implementation of over 100 legislative acts concerning this sphere within a short period. The inclusion of specific articles on the rights and interests of the younger generation in the updated Constitution of Uzbekistan undoubtedly opens new opportunities for further strengthening the legal framework and elevating practical work in this area to a new level.
During the past period, a completely new vertical management system for working with youth has been established.
In all neighborhoods (mahallas) of the country, youth leaders are active. Thanks to this system, over 100 different opportunities have been created for youth within the neighborhoods.
A system called the "Youth Notebook" has been established, through which over 1.1 million young people have received assistance across
25 different areas totaling 1.3 trillion UZS. Specifically, tens of thousands of students from low-income families have had their tuition fees covered under fee-based contracts.
The number of higher educational institutions in the country has almost tripled, reaching 199, and enrollment has increased from 9 to
38 percent. This expansion opens up extensive opportunities for youth to acquire modern knowledge and professions.
In the country, 210 youth industrial and entrepreneurial zones have been established, with 2,500 projects implemented amounting to 4 trillion UZS. As a result, the number of young entrepreneurs has doubled, surpassing 200,000.
In recent years, more than 750 young people who make a significant contribution to the prosperity of the Motherland have received state awards.
It is heartening that the youth of the country are effectively utilizing the opportunities provided and inspiring with their achievements in various fields.
For further effective implementation of State youth policy in Uzbekistan, it is necessary to continue effective reforms to create a solid organizational, legal and institutional framework.
First of all, work will continue to develop new constitutional norms on the rights of young people in existing legislation.
At the same time, in the coming period, special attention will be paid to the qualitative execution of tasks defined in the State Program on the implementation of the Strategy "Uzbekistan - 2030" in the Year of Support for Youth and Business.
Thus, every region, ministry and department has begun to introduce a new approach to work with young people. The improvement of scientific and analytical work on the study of youth problems and the training of promising personnel is considered relevant.
Today, rapid measures are being taken to increase the number of young people learning foreign languages under the "Ibrat Farzandlari" project
to 1 million, and the number of young readers under the "Mutolaa" program up to 1.5 million. Additional infrastructure is being built in the regions for this purpose. At the same time, special attention should be paid to the creation of broader conditions for the meaningful organization of leisure activities and the realization of young people's talents and abilities.
Thus, the systemic reforms carried out in Uzbekistan have led to significant achievements in the field of education and the spiritual, intellectual, physical and moral development of young people. The increase in the number of educational institutions, the improvement in the quality of education, the active participation of young people in scientific and cultural events, and the implementation of social projects - all this is evidence of positive changes and the strengthening of the foundations for the harmonious development of the younger generation.
Bekzod Jurabayev,
Chief scientific researcher of the Institute of Legislation and Legal Policy under the President of the Republic of Uzbekistan, Chairman of the Council of Young Scientists of the Institute
In recent years, the Republic of Uzbekistan has embarked on a structured and institutionally grounded transition toward a green economy, positioning sustainability as a core driver of long-term economic resilience, competitiveness, and global integration.
This transformation reflects a comprehensive approach that combines policy reform, market-based instruments, and active international cooperation, enabling the country to move from strategic commitments to measurable outcomes.
The foundation of Uzbekistan’s green transition was laid through the adoption of a comprehensive policy framework in 2022, which established strategic priorities for green growth through 2030. This framework includes sectoral energy efficiency concepts, a national green growth program, and a detailed action plan.
Importantly, the government has set clear quantitative targets, including reducing the energy intensity of GDP by 20 percent by 2026 compared to 2022 levels. Institutional capacity has also been strengthened through the establishment of interagency coordination mechanisms and donor engagement platforms, ensuring coherent implementation across sectors.
A major milestone in the reform process has been the introduction of a green energy certificate system, which enables verification that electricity is generated from renewable sources. This system has facilitated the development of a transparent renewable energy market and strengthened the ability of domestic producers to access environmentally regulated export markets.
To date, more than 446,000 green energy certificates have been issued and traded, reflecting growing demand for clean energy solutions and increasing private sector engagement.
Uzbekistan has taken a pioneering role in Central Asia in developing carbon market mechanisms. In cooperation with the World Bank, the country is implementing innovative approaches to carbon trading in line with Article 6 of the Paris Agreement.
Through initiatives such as the iCRAFT project, supported by the Transformative Carbon Asset Facility (TCAF), Uzbekistan is mobilizing up to $46.2 million in climate finance between 2024 and 2028. Initial results include the reduction of approximately 10 million tons of CO₂-equivalent emissions and the attraction of around $15 million in funding.
At the same time, regulatory frameworks for international carbon trading and emissions accounting are being developed, positioning Uzbekistan for full participation in global carbon markets.
A key achievement has been the adoption of the Law on Limiting Greenhouse Gas Emissions in 2025, which establishes the legal foundation for emissions regulation, national registries, and climate policy instruments.
Complementing this, Uzbekistan has introduced a national transparency system to monitor progress toward its Nationally Determined Contributions (NDCs). This system enhances data reliability, strengthens accountability, and builds trust among international investors and development partners.
Uzbekistan is actively developing a national green finance ecosystem aimed at mobilizing public, private, and international capital. Policy efforts include the development of green financing frameworks, institutional mechanisms, and project pipelines.
International partners play a critical role in this process. Cooperation with institutions such as the European Bank for Reconstruction and Development has enabled the implementation of green financing programs, including the Green Economy Financing Facility (GEFF), channeling substantial resources into energy efficiency and sustainable technologies.
Furthermore, Uzbekistan’s participation in the Climate Investment Funds Industrial Decarbonization Program provides access to up to $250 million in concessional financing, significantly expanding the scale of green investments.
The transition to a green economy is closely linked to industrial modernization.
Uzbekistan is implementing targeted programs to support enterprises in adopting low-carbon technologies, improving resource efficiency, and enhancing competitiveness.
Partnerships with international organizations, including German development institutions, are facilitating policy development, capacity building, and practical support for small and medium-sized enterprises in reducing emissions and transitioning to sustainable production models.
Uzbekistan continues to strengthen its role in global climate governance through active international engagement. The country has joined the Global Methane Pledge, committing to reduce methane emissions by at least 30 percent by 2030.
Bilateral cooperation is expanding through mechanisms such as the Joint Crediting Mechanism (JCM) with Japan, as well as climate partnerships with the Republic of Korea, Germany, and Hungary under the Paris Agreement framework.
In addition, the Ministry of Economy and Finance has joined the Coalition of Finance Ministers for Climate Action, reflecting the integration of climate considerations into macroeconomic and fiscal policy.
Digital transformation plays an increasingly important role in supporting green reforms. Uzbekistan has launched a national online platform that consolidates data on green projects, regulatory frameworks, and international practices.
This digital infrastructure enhances transparency, supports evidence-based policymaking, and improves coordination across institutions.
Uzbekistan’s transition to a green economy represents a comprehensive and forward-looking reform agenda that integrates institutional development, market mechanisms, and international cooperation.
The progress achieved to date demonstrates a clear shift from policy design to effective implementation. By strengthening governance frameworks, mobilizing green finance, and fostering global partnerships, Uzbekistan is building a resilient and sustainable economic model.
In the long term, the green transition is expected to serve not only as an environmental imperative but also as a key driver of economic growth, investment attractiveness, and deeper integration into the global economy.
Ministry of Economy and Finance
of the Republic of Uzbekistan
The text of the article is in Uzbek!