On 30 April, the official visit of Czech Prime Minister Andrej Babiš to Uzbekistan came to a close. The visit took place at the invitation of President Shavkat Mirziyoyev. Talks were held at the Kuksaroy residence in both restricted and plenary formats. As a result, the two sides signed a Joint Declaration on the Promotion of Expanded Cooperation along with a package of bilateral agreements covering economic, industrial, and scientific-technological cooperation, as well as the training of diplomatic personnel, collaboration in the fields of geology and metrology, and the supply of electric trains.

It is worth noting that this was already the second visit by a Czech prime minister to Uzbekistan. In April 2023, Petr Fiala visited Tashkent, and in October of the same year Prime Minister Abdulla Aripov made a reciprocal visit to Prague, where he met with Czech President Petr Pavel and signed an Interstate Declaration on Enhanced Cooperation. In September 2025, on the sidelines of the 80th anniversary session of the United Nations General Assembly, Presidents Mirziyoyev and Pavel held a bilateral meeting and discussed specific projects in the areas of investment, innovation, transport, and agriculture. Such intensity of contacts at the highest level is a rare phenomenon in international diplomacy. It testifies to the fact that both sides regard their relationship not as a matter of protocol formality, but as a genuine political priority.

The agenda of the current Uzbek-Czech talks was exceptionally substantive, covering several key areas, each of which merits separate consideration.

First — the expansion of trade, economic, and industrial cooperation. Over recent years, bilateral trade turnover has doubled, which is in itself a significant achievement. Nonetheless, both sides acknowledge that the figures attained merely reflect the existing potential without coming close to exhausting it.

Against this backdrop, the parties set a target of raising the volume of mutual trade to one billion US dollars, including through an expansion of the range of goods supplied. Uzbekistan already hosts 37 joint ventures with Czech capital participation, providing a solid productive foundation for the further development of the partnership.

The principal mechanism governing this process and opening up new avenues for interaction is the The Joint Intergovernmental Commission on Economic, Industrial, and Scientific-Technological Cooperation. Over the years of its operation, the Commission has held ten sessions, the most recent of which took place in Prague in March 2025.

To further stimulate trade, the first Uzbek certification branch in the Czech Republic is being established, while work is simultaneously under way on the construction of a Euro 6 vehicle certification laboratory and a quantum measurement standard — infrastructure facilities without which Uzbek products would face significant barriers to full access to European markets.

In parallel, an agreement has been reached with leading Czech companies on the development of a Technology Cooperation Programme encompassing mechanical engineering, green energy, geology and critical raw materials, as well as chemicals and pharmaceuticals. Furthermore, the Czech Export Credit Insurance Corporation (EGAP) and the Czech Export Bank confirmed their intentions to provide financial support for joint projects. To coordinate the entire economic agenda, it was decided to establish a Business Council, and the next session of the Intergovernmental Commission is scheduled to take place in Tashkent in August of the current year.

The Uzbek-Czech business forum, held on the eve of the visit with the participation of the heads of government of both countries, served as a practical platform for giving the bilateral agenda concrete substance. More than 200 participants discussed prospects for deepening economic cooperation. Particular emphasis was placed on the fact that Uzbekistan's GDP exceeded 145 billion US dollars in 2025 — a figure that is fundamentally transforming international investors' perception of the country.

As a result, Czech companies are increasingly viewing Uzbekistan as a strategic springboard for access to Central Asian markets. The unique combination of dynamic growth, a young population, and a favourable geographical location makes the country one of the most attractive hubs on the Eurasian continent.

Following the forum, a package of cooperation agreements was signed covering mechanical engineering, infrastructure modernisation, and education, while mechanisms for engagement with the Czech Export Bank and EGAP were formalised, providing for preferential lending and risk insurance for high-technology projects.

Second — high-technology cooperation in the transport sector, the symbolic centrepiece of which was the signing of a contract for the supply and maintenance of the first ten Škoda Group electric trains. It should be stressed that the prospects of this project extend well beyond a simple equipment transaction. The plans include the establishment of a joint venture for local assembly and lifetime technical maintenance of rolling stock, as well as the creation of a Škoda Academy for the training of Uzbek specialists.

In this context, Škoda Group CEO Petr Novotný regards Uzbekistan as his company's "number one target" outside Europe, believing that the results achieved there will open the door to markets across Central Asia. For Uzbekistan in turn, this is not merely a technical upgrade, but an opportunity to integrate into European production chains and build domestic technological competences.

Third — cooperation in the fields of education, science, and cultural and humanitarian ties. In this domain, Uzbek-Czech partnership has its deepest roots and the most enduring future. The number of Uzbek students enrolled at Czech universities has grown from approximately 350 in 2020 to between 600 and 700 today, predominantly in technical, economic, agricultural, and IT disciplines. The Czech government's annual award of scholarships for citizens of Uzbekistan provides an additional incentive.

Of particular note is the fact that direct contacts have been established at the inter-university level. The National University of Uzbekistan cooperates with Charles University and the Czech University of Life Sciences Prague; the Tashkent Medical Academy maintains ties with the First Faculty of Medicine at Charles University; and a number of other leading institutions collaborate with Mendel University in Brno. The talks confirmed mutual interest in further expanding academic exchanges, including joint degree programmes, which will open fundamentally new career horizons for students of both countries.

Worthy of mention in this context is also the scientific and archaeological dimension of bilateral ties. Since 2003, Termez State University has been conducting a joint expedition with Charles University of Prague in the Surkhandarya region. Over the past two decades, nine previously unknown Bronze Age sites and fourteen Early Iron Age monuments have been discovered, and maps and inventories of heritage sites across several districts have been compiled. This cooperation has continued regardless of changes in government and shifting political circumstances.

An equally significant aspect is the ongoing exploration of the possibility of resuming direct air services between Tashkent and Prague — a matter that at first glance may appear to be purely logistical, but which in practice opens up new opportunities for tourist, business, and academic contacts alike.

Coming to the fore as well are the prospects for systematic cooperation in the field of labour migration, reflecting the profound qualitative shifts taking place in the labour markets of both Uzbekistan and the Czech Republic.

In sum, assessing the outcomes of the visit, one can state with confidence that Uzbek-Czech relations are entering a qualitatively new phase of development. The intensive high-level dialogue, underpinned by concrete economic initiatives, technological agreements, and institutional mechanisms, lays a solid foundation for a long-term strategic partnership.

The implementation of the agreements reached opens broad prospects for the modernisation of the Uzbek economy, the development of high-technology industries, and the strengthening of human capital. For the Czech Republic, meanwhile, Uzbekistan is becoming not merely a trading partner, but a reliable gateway to one of the most dynamically developing regions of Eurasia.

Bakhtiyor Mustafayev

Deputy Director, Institute for Strategic and Regional Studies under the President of the Republic of Uzbekistan

Президент Шавкат Мирзиёев начал свою поездку в Республику Каракалпакстан с ознакомления с промышленным потенциалом региона.

Совместное предприятие “Nukus Eleсtroapparat” было введено в строй в 2017 году, оно производит силовое оборудование для электросетей. В июне текущего года здесь был запущен проект по изготовлению солнечных панелей стоимостью более 10 миллионов долларов. Оборудование было доставлено и установлено из Республики Корея. Производственный процесс полностью автоматизирован. Годовая мощность проекта составляет 273 тысячи единиц.

Это будет способствовать дальнейшему внедрению альтернативной энергетики в нашей стране. На сегодняшний день в различных сооружениях и домах установлены солнечные панели общей мощностью 600 мегаватт. Этот процесс продолжается.

Наряду с локализацией востребованной на внутреннем рынке продукции совместное предприятие получило возможность экспортировать продукцию на 4 миллиона долларов. Обеспечено работой 70 человек.

Глава нашего государства ознакомился с технологическим процессом, побеседовал с работниками. Ответственным лицам даны указания по увеличению количества таких предприятий и производству ими продукции с высоким спросом на рынке.

Здесь же была представлена продукция, производимая предприятиями отрасли.

На самом заводе установлены солнечные панели мощностью 125 киловатт. Полученная электроэнергия используется для внутренних нужд, а излишки реализуются в региональную электросеть.

За последние годы в нашей стране за счет инвестиций в размере 2 миллиардов долларов введены в эксплуатацию 10 солнечных и ветряных станций общей мощностью 2,6 гигаватта. Также ведется работа по 32 "зеленым" проектам мощностью 18,6 гигаватта общей стоимостью 19 миллиардов долларов. В целом к 2030 году намечено довести долю возобновляемых источников энергии в энергетическом балансе до 40 процентов.

The UN General Assembly adopted by consensus, without a vote, the resolution Peaceful Settlement of Border Disputes, introduced by Kyrgyzstan, Tajikistan, and Uzbekistan and co-sponsored by 40 states. Akramjon Nematov, First Deputy Director of the Institute for Strategic and Regional Studies under the President of Uzbekistan, commented to IA Dunyo on the significance of the adopted document in the context of changing perceptions of our region on the international stage.

- This is truly a historic event of fundamental importance both for Central Asia and for the entire contemporary international practice. The fact that the resolution was adopted unanimously, without a formal vote, testifies to the unconditional support for and high level of trust in our region on the part of the international community. I would especially emphasize that dozens of countries acted as co-authors of the document, but the key initiators, acting in solidarity and on equal terms, were Kyrgyzstan, Tajikistan, and Uzbekistan.

The document is devoted to a topic that today remains one of the most difficult and painful on the global agenda – the peaceful delimitation and formalization of state borders. At a time when geopolitical fractures are deepening across the planet, trust is declining, and there is a dangerous rollback toward forceful methods of resolving disputes, the states of Central Asia have demonstrated high political maturity and responsibility.

In practice, we have proved to the entire world that direct, honest, and respectful dialogue is the only effective way to untangle the most complex knots of contradictions that remained unresolved since the collapse of the USSR. Central Asia is finally moving away from its former stereotypical image as a “zone of latent risks and border conflicts.” Today, our region is acting as a mature and independent subject of international politics, capable of ensuring stability in our common home through its own efforts and of shaping exemplary peaceful practices that are in demand on a global scale.

— Bringing this initiative to the UN level is a serious step. What strategic and legal consequences does it entail for the initiating states?

— Bringing the Central Asian case to the universal UN platform is important because it consolidates the results we have achieved and gives the processes of regional rapprochement a stable and irreversible character.

By registering these steps within the international legal framework, the states of the region publicly confirm their mutual commitments to follow the course of good-neighborliness. This places a high level of responsibility on all parties before the international community. Thus, strong political and legal guarantees of stability are being created, and the risks of any future revision of the agreements are being radically reduced.

This breakthrough became possible thanks to the firm political will and foresight of the leaders of all Central Asian states, who were able to place the long-term interests of stability and prosperity of our peoples above current disagreements. If we analyze the origins of this process, the most important role here was played by the open and pragmatic foreign policy course of Uzbekistan proclaimed by President Shavkat Mirziyoyev in 2017. This strategy was initially aimed at turning Central Asia into a space of trust.

What is fundamental is that this approach was not imposed from above as someone’s doctrine, but found a sincere and active response among our neighbors. The current success is precisely the result of joint work and inclusive regional synergy. The initiatives of Tashkent were supported, substantively supplemented, and jointly implemented together with Bishkek and Dushanbe. The signing by the leaders of the three countries of the agreement on the junction point of state borders and the opening of the “Stele of Friendship” became a logical outcome of this large-scale joint work, where the contribution of each side is equally valuable

- Akramjon Ilkhamovich, the political will of the leaders has given a powerful impulse, but peace must also be durable in practice. What economic prospects are opening up for the region, and how is the very model of ensuring security at the borders changing?

- Today we are witnessing a conceptual shift in approaches to regional security: the previous paradigm of rigid restrictions, fences, and barriers in border areas is being replaced by a modern security model based on joint economic development and the formation of deep interdependence. Security in the region is now measured not by the height of dividing barriers, but by the depth and scale of joint projects.

New round-the-clock border checkpoints are opening one after another, which has greatly simplified the movement of people and caused a colossal tourism boom. An illustrative fact: neighboring states now account for more than 60% of all tourists visiting Uzbekistan, which amounts to about 7 million people annually.

The economic framework of stability lies in the fact that we are moving toward major joint infrastructure projects. Trade and industrial zones and logistics centers are being built in border areas, a vivid example of which is the International Trade and Economic Park “Dostuk”. Moreover, we are jointly building the strategic railway China–Kyrgyzstan–Uzbekistan and launching projects for the construction of major hydroelectric power plants such as Kambarata HPP-1 and Yavan HPP. What until recently seemed like a distant, almost unattainable dream is today being realized through our common efforts.

All this opens colossal prospects. Central Asia is turning into a single, integral, and stable macro-region. Today our population amounts to about 85 million people. Such a demographic scale has never existed in our history before. But the most important thing is the absolute, practically one hundred percent literacy of this population. The presence of such an impressive body of educated, qualified intellectual capital makes the region a powerful asset for attracting high technologies, major investments, and transforming Central Asia into a key transit and industrial hub for the whole of Eurasia.

- For this complex process to develop progressively, agreements at the highest level must be supported by society. What role do institutions of people’s diplomacy and dialogue platforms on the ground play here?

- You are absolutely right: interstate agreements will be viable only when they possess a developed social base and take root at the level of civil society. Look at how actively dialogue through people’s diplomacy is developing today: regular forums of civil society and women leaders of our countries are being held, large-scale meetings of the creative and scientific intelligentsia are taking place, and living human ties are being restored.

The expert community plays an enormous role in this architecture. It is precisely for this purpose that new inclusive dialogue platforms are being created, and one of the key among them is the Fergana Peace Forum, which we are actively developing in close partnership with our neighbors. We are convinced that the Fergana Forum should become a permanent platform for cooperation in the Fergana Valley. This is a space where analysts, representatives of government bodies, entrepreneurs, and local communities of Uzbekistan, Kyrgyzstan, and Tajikistan conduct direct and transparent dialogue. Coordinated approaches to complex cross-border challenges are developed here — issues of joint water use, ecology, climate change, and the development of border territories. This makes it possible to transfer potential points of friction into the sphere of practical interaction.

And, of course, systematic work with youth occupies a special, strategic place, because it is the new generation that will have to preserve and develop the conflict-free space that is being laid today. Continuing the logic of the Fergana Peace Forum, already in June, within the framework of the “Youth Month,” we plan to hold a large-scale International Youth Seminar on Peacebuilding in Fergana under the auspices of the UN and the OSCE.

Active youth from all over Central Asia will take part in this three-day event, but the main emphasis is on young people from the border regions of our three countries. Our task is to strengthen youth ties on the ground, teach them to find a common language, jointly implement projects, and deeply support the continuity of the culture of peaceful dialogue.

In conclusion, it can be said that by adopting this resolution, the world recognized that the joint experience of compromises in Central Asia is highly in demand at the global level as a viable matrix of preventive diplomacy that can and should be studied and scaled up. Through concrete action, our region has proved its ability to independently generate stability and bear joint responsibility for a common prosperous future.

IA Dunyo

The text of the article is in Uzbek language!

In October, the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, will pay a state visit to the Kingdom of Belgium, during which important decisions are expected to be made that will mark a qualitatively new stage in relations between Uzbekistan and the European Union. In particular, the visit will feature the signing of the Agreement on Enhanced Partnership and Cooperation.

In recent years, Uzbekistan has been actively shaping a new framework of engagement with Europe – a key pillar of stability amid current geopolitical tensions and global economic uncertainty. The ties between Uzbekistan and European countries continue to grow, and the areas of cooperation are diversifying, supported by the ongoing reforms in Uzbekistan.

Building a New Chapter in Relations

After gaining independence, Uzbekistan’s relations with the European Union developed dynamically. A Memorandum of Understanding between the Government of Uzbekistan and the European Commission was signed in 1992, followed by the establishment of diplomatic relations in 1994. The foundation of cooperation was laid by the Partnership and Cooperation Agreement (PCA) signed in June 1996 and entering into force in 1999. However, at a certain stage, cooperation faced difficulties due to the insufficient pace of democratic reforms in Uzbekistan.

With the election of Shavkat Mirziyoyev as President, the situation changed dramatically. As early as 2017, during his visit to Tashkent, Stefano Manservisi, Director-General for International Cooperation and Development of the European Commission, stated that “the EU regards Uzbekistan as a strategic partner.” The sweeping democratic and economic reforms launched in Uzbekistan helped resolve within a short period many issues that had long remained unsolved. Forced labor was completely eradicated, and reforms in the cotton sector enabled the country to abandon raw cotton exports altogether.

As reforms advanced, the legal and institutional framework of relations with Europe expanded rapidly. While previously Uzbekistan and the EU granted each other most-favored-nation treatment under the PCA, in April 2021 the EU granted Uzbekistan GSP+ beneficiary status, and in 2022 the Enhanced Partnership and Cooperation Agreement (EPCA) was initialed.

Along with internal transformation, Uzbekistan’s foreign policy architecture also changed. Priority was given to closer cooperation with neighboring Central Asian states, as well as the active expansion of ties with European countries – a vector that has strengthened steadily in recent years.

Just in the past year, Uzbekistan established strategic partnership relations with France, Italy, and Slovakia, while discussions on expanding strategic cooperation with Hungary continued. President Mirziyoyev also visited Slovenia, and Italy’s Prime Minister and Bulgaria’s President visited Uzbekistan.

A milestone in strengthening relations between Uzbekistan and Europe, and between Europe and Central Asia as a whole – was the first EU–Central Asia Summit, held in Samarkand in April 2025 under the chairmanship of Shavkat Mirziyoyev. Uzbekistan presented a broad range of initiatives to create a new model of regional cooperation between Central Asia and Europe, including: a multilateral agreement on investment protection and promotion; the launch of a Central Asia–EU Joint Chamber of Commerce; the adoption of a regional support program for SMEs and women’s entrepreneurship; the establishment of an investment platform to promote regional projects in green energy, innovation, transport, infrastructure, and agriculture.

The Samarkand Summit was highly productive. A Joint Declaration was adopted, establishing a strategic partnership between the two regions in trade, transport, energy, digital connectivity, and water management. European Commission President Ursula von der Leyen announced that the EU had prepared a €12 billion investment package for Central Asia under the Global Gateway initiative.

The Trajectory of Economic Cooperation

Uzbekistan’s deep democratic transformations have significantly improved relations with European countries. Economic reforms have enhanced the competitiveness of Uzbekistan’s economy, stimulating investor confidence and growing interest from European businesses.

The results are impressive. Over the past 8 years, Uzbekistan’s GDP has doubled, reaching $115 billion in 2024. Since 2017, investment in fixed capital has totaled $240 billion, of which foreign investment exceeded $130 billion. The country’s foreign exchange reserves surpassed $48 billion for the first time in history. Structurally, the share of industry in the economy increased from 20% to 26%, and services from 44% to 47%. Labor productivity (GDP per employed person) rose by 45%.

As a result, opportunities for mutually beneficial cooperation between Uzbek and European businesses have expanded. Between 2017 and 2024, Uzbekistan’s trade with the EU increased 2.4 times to $6.4 billion; exports grew 3.6 times to $1.7 billion, and imports 2.2 times to $4.7 billion. In 2024, the EU’s share in Uzbekistan’s total trade turnover was 9.7%, in exports 6.3%, and in imports 12%. The EU ranked third among Uzbekistan’s trade partners, after China and Russia.

The EU’s share in Uzbekistan’s total exports increased from 3.8% to 6.3% over the same period. This growth was driven by Uzbekistan’s accession to the GSP+ preferential trade system, granting duty-free access to the EU market across roughly 6,200 tariff lines. The share of Uzbekistan’s exports benefiting from GSP+ reached 59%, with a preference utilization rate of 84%, indicating efficient use of trade benefits.

In 2024, Uzbekistan’s exports to the EU were dominated by chemical products (52.1%), as well as textiles, ferrous and non-ferrous metals, minerals, and food products. Among EU members, France accounted for 47.2% of exports, Lithuania for 10%, and Latvia for 6.9%.

Uzbekistan’s imports from the EU significantly exceeded exports – a reflection of the ongoing technological modernization of the national economy. Around 16% of Uzbekistan’s total imports of machinery, equipment, and transport vehicles come from EU countries.

Investment cooperation is also expanding rapidly. In 2024, foreign investments and loans from EU countries and their financial institutions increased by 77%, reaching $4.1 billion (compared to $2.3 billion in 2023). The most active investors were Germany ($1.37 billion), the Netherlands ($1.05 billion), Cyprus ($858.9 million), the Czech Republic ($137.8 million), Italy ($99.8 million), and Sweden ($97.5 million). Today, around 1,000 enterprises with EU capital operate in Uzbekistan, with a total project portfolio of €30 billion.

A special role in recent years belongs to the EBRD, of which Uzbekistan has become one of the largest beneficiaries. The Bank’s total investments in Uzbekistan’s economy exceeded €5 billion, including around €1 billion in 2024, primarily directed toward the private sector.

Reforms in Uzbekistan have become the key driver for unlocking the significant potential of trade and economic cooperation with the European Union.

Uzbekistan–Belgium

The upcoming visit will also focus on strengthening relations between Uzbekistan and Belgium. Diplomatic relations were established following the opening of the Embassy of Uzbekistan in Brussels in 1993. In 1996, the two countries signed an Agreement on avoidance of double taxation, and in 1998 – an Agreement on mutual protection and promotion of investments, which provide legal guarantees for investors in both states.

Business contacts have intensified in parallel with Uzbekistan’s reform agenda. The visits of 2019 and 2022 set the tone for cooperation in infrastructure, energy, and the digital economy. More important than the current trade volumes has been the recognition and support of Uzbekistan’s reforms by EU partners, laying the foundation for long-term engagement.

In 2024, bilateral trade amounted to $62.3 million, including $7.3 million in Uzbek exports and $55 million in imports. Investment cooperation is gaining momentum: several dozen companies with Belgian capital now operate in Uzbekistan, including wholly owned enterprises. New technologies are being localized, for example, Jaga Climate Designers is participating in a joint venture for heating and ventilation systems, and Picanol Group is localizing the assembly of high-tech textile machinery. Belgian brands Belcolade and Prefamac are exploring opportunities to launch chocolate production with subsequent localization.

Despite modest trade volumes, there is significant potential for expanding cooperation in several areas. Given Belgium’s leading role in pharmaceuticals and biomedical research and Uzbekistan’s growing pharmaceutical market, joint ventures or industrial clusters could be developed in this sector, involving companies such as UCB and Janssen Pharmaceutica.

There is also strong potential for joint fruit and vegetable processing projects in Uzbekistan, targeting exports to the EU via Belgian logistics hubs such as the Port of Antwerp and wholesale markets. Potential partners include Greenyard and Puratos. Direct seasonal exports of fresh fruits (e.g., grapes in autumn and winter), as well as dried vegetables, spices, and organic products, could also be expanded. In light industry, there is room to increase exports of ready-made knitwear and home textiles, provided European quality and safety standards are met. The market potential is evident – Belgium imported about $7.9 billion worth of clothing in 2024.

The main challenges remain logistics and standards. Belgium functions as a major EU maritime hub centered around Antwerp, while direct routes from Uzbekistan are still limited. The near-term priority should be pilot supply chains ensuring quality and traceability, the development of cold logistics, certification under EU technical and sanitary regulations, the use of Benelux consolidation hubs, and trade finance tools for SMEs. With the gradual development of new overland routes along the Middle Corridor, Uzbekistan will gain a stronger foothold in high value-added exports without higher costs or delivery delays.

Conclusion

Uzbekistan is entering a stage of deepened economic cooperation with the European Union. During the ongoing modernization and digital transformation of its economy, European investment, technology, education, and research experience can play a key role. At the same time, Uzbekistan seeks to expand exports of industrial goods as their quality improves.

Uzbekistan is also a rapidly growing market with a young and dynamic population, now reaching 38 million people – an 18% increase since 2017. Every year, around 700,000 economically active individuals enter the labor market, forming a substantial human resource base for the economy, including joint ventures.

As a result of poverty reduction policies, living standards and household incomes have risen significantly. Whereas a third of the population once lived below the poverty line, 7.5 million people have been lifted out of poverty, and the poverty rate declined to 8.9% in 2024, with plans to reduce it further to 6% this year. These policies not only address social challenges but also expand domestic demand, increasing the interest of European businesses in entering Uzbekistan’s market.

The further deepening of Uzbekistan’s economic engagement with the EU and Belgium is an objectively mutually beneficial process – one that will define the success of the upcoming state visit of President Shavkat Mirziyoyev to Belgium.

The agreements expected to be signed will help advance joint projects in sustainable energy and infrastructure, strengthen transport and technological connectivity between Central Asia and Europe, and position Europe as a key partner in Uzbekistan’s long-term growth and modernization trajectory.

 Obid Khakimov,  

Director of the Center for
Economic Research and Reforms

On 23 January, under the chairmanship of the President of the Republic of Uzbekistan, a videoconference meeting was held on the key tasks of poverty reduction and employment provision for 2026. In terms of both substance and the framing of issues, the meeting marked a turning point in the evolution of the country’s social policy.

The relevance of transitioning to a new model

The results of the reforms demonstrate a transition to the next stage of social policy. For the first time, poverty reduction has been placed in direct dependence on outcomes at the level of individual mahallas.

This shift is a consequence of the socio-economic results achieved. By the end of 2025, the national economy grew by 7.7%, significantly above the forecast level of 6.5%. GDP exceeded $147 bn, reaching approximately $3,900 per capita. Growth rates in all sectors surpassed those of 2024. Foreign investment reached $43 bn, while exports amounted to $33.8 bn. Inflation declined from 9.8% to 7.3% in 2025.

Sustained economic growth ensured a significant increase in budget revenues, which were consistently directed toward addressing social issues, reducing poverty, and developing mahallas. As a result, in 2025 income sources were provided for 5.4 mn people, and 330,000 families were lifted out of poverty. Unemployment declined to 4.8%, while the poverty rate fell to 5.8%.

As overall poverty indicators decline, its geography is changing. Poverty is becoming localized, concentrated, and heterogeneous. Nearly one-third of low-income households and around one-fifth of the unemployed are concentrated in a limited number of mahallas, which necessitates a transition to a new model.

Against this backdrop, the primary indicator becomes the outcome achieved at the level of each mahalla. The persistence of poverty or unemployment indicates that measures require further calibration.

Accordingly, for the first time at the national level, a systematic classification of all territories by poverty level was conducted. Based on 20 criteria, 37 “difficult” districts and 903 “difficult” mahallas were identified, home to around 120,000 poor families and approximately 155,000 unemployed citizens. At the same time, work to shape the image of a “New Uzbekistan” has also begun in an additional 33 districts and 330 “difficult” mahallas.

A distinctive feature of the new approach is that “difficult” territories are viewed as points of structural transformation. For each mahalla and district, comparative advantages are assessed, including economic, agricultural, industrial, logistics, or service-related strengths.

Individual development programmes for mahallas are being formulated. Practice shows that even in the most vulnerable areas, ensuring stable access to water and electricity, basic infrastructure, and integration with markets can multiply household incomes.

In the current year, territorially targeted development becomes the main instrument for achieving the stated goals, as clearly articulated by the President.

Infrastructure as an economic asset

A particular emphasis in the new model is placed on revising regional policy priorities. As noted by the President, residents and entrepreneurs in “difficult” districts and mahallas primarily expect improvements in roads, water supply, and electricity provision, rather than an expansion of tax incentives.

Concentrating resources on a limited number of problem territories allows infrastructure investment to be transformed from general budget spending into an instrument of targeted socio-economic impact. In 2026, $1.6 bn will be allocated for regional infrastructure development, of which $990 mn will be directed to “difficult” districts and mahallas.

At the same time, transfers from the republican budget to local budgets will double.

Additionally, allocations of $4.1 mn to each “difficult” district and $165 ths to each “difficult” mahalla are envisaged.

In total, district hokimiyats (district executive administrations) and local kengashes (local representative councils) will receive an additional approximately $330 mn exclusively to support problem territories.

A key element of this model is ensuring stable energy supply for “difficult” districts and mahallas.

In 2026, each of the 903 “difficult” mahallas is expected to host the construction of a small solar power plant with a capacity of 300 kW, with a total investment of around $110 mn. These plants will be transferred to the mahallas free of charge, creating a local energy asset. Through the generation of “green” electricity, each mahalla will gain a sustainable additional income source of $33-41 ths per year.

The proceeds are intended to be used for energy-efficient renovation of housing stock, reducing utility costs, and improving quality of life. Operation of the solar plants will involve members of low-income households, simultaneously addressing employment and infrastructure sustainability objectives.

A separate emphasis is placed on supporting the most vulnerable households. An instruction has been issued to conduct targeted assessments of 6,700 families with a member having a first-degree disability and no able-bodied household members, followed by identification of needs for energy-efficient housing upgrades and the launch of “green” renovation.

Taken together, these measures form a model of territorial and energy resilience. The effectiveness of local authorities’ performance will be subject to public evaluation, reinforcing the transition to results-oriented governance.

Comparative advantages of mahallas

The President clearly defined key socio-economic targets for 2026, including the provision of permanent employment for around 1 mn people, lifting 181,000 families out of poverty, increasing the number of poverty-free mahallas by 2.5 times to 3,500, and reducing the unemployment rate to 4.5%.

Achievement of these targets is expected to be based on the comparative advantages of specific districts and mahallas in industry, agriculture, and services. This approach allows resources to be concentrated where they generate the greatest multiplier effects for employment and household incomes.

As an example of leveraging comparative advantages based on location and specialization of mahallas, the President cited Furqat District. Its advantages include, first, cooperation with neighboring economically active centers; second, deepening specialization among nearby mahallas and combining competencies; and third, increasing value added through the launch of processing activities.

Further measures were outlined within the framework of a differentiated approach to developing problem territories.

Deepening mahalla specialization

Primary attention will be focused on deepening mahalla specialization, as welfare levels are significantly higher in mahallas with deep specialization. Practice shows that in such mahallas, welfare levels are noticeably higher, while the number of recipients of social assistance is half as large, at around 7 people per 10,000 population.

Currently, the 903 “difficult” mahallas encompass around 90,000 hectares of household and leased land. To transform this resource into a source of sustainable income, a new mechanism of a “social contract” between the state and the mahalla has been proposed. Mahallas that, by leveraging residents’ skills and rational land use, manage to increase household incomes by three to four times will receive additional financing of $165 ths for the development of road, water, and irrigation infrastructure. Implementation of this model is planned to begin with “difficult” mahallas.

To support deeper specialization, banks will allocate a total of $1.4 bn in loans. For production projects, 4% of the loan will be compensated, while for processing projects the compensation will amount to 6%.

Comparative advantages of mahallas

In 2026, $11.5 bn in credit resources are earmarked for the development of small and medium-sized businesses in mahallas, compared to $10.7 bn a year earlier. At the same time, banks have been tasked with strengthening entrepreneurship financing: alongside a planned $6 bn from external sources, the total volume of funds directed to mahalla-level projects should reach $8 bn.

Not only the scale but also the principle of credit allocation is changing. The model under which loans within the “Family Entrepreneurship” programme were issued on uniform terms at a 17.5% rate across all districts and cities is giving way to territorial differentiation. In particular, for the 37 “difficult” districts, the rate is reduced to 12%. This step transforms lending into an instrument for accelerating the development of problem territories.

In parallel, programme limits and target areas are being expanded. In all districts, the maximum size of concessional loans is increased by 1.5 times, from $2.7 ths to $4.1 ths. To support this decision, an additional $165 mn is added to the planned $297 mn.

Overall, the 2026 credit policy is shaped as a targeted development mechanism, a managed conversion of credit into employment, income, and local growth.

Institutional changes in system governance

A number of institutional changes are also envisaged to enhance the effectiveness of all governance levels involved in mahalla development.

Work in mahallas is moving away from an administrative-intermediary model and is being structured around specific projects. In this framework, the hokim’s assistant acts as a territorial development manager responsible for implementing project solutions.

To ensure integrated project governance, multi-level coordination is being introduced. Initiatives proposed by hokims’ assistants are paired with regional bankers; the first deputy hokim of the region provides operational oversight; and the “Reform Headquarters” supervises issues requiring inter-agency solutions. From February, a system of training hokims’ assistants in project management will be launched, starting with “difficult” mahallas. Each district will form a project portfolio followed by a transition to practical implementation.

One hundred “difficult” mahallas that demonstrate the best performance in job creation, income growth, and poverty reduction will receive an additional $82.5 ths each. Hokims’ assistants from these mahallas will be able to upgrade their qualifications in China, Turkiye, South Korea, and Malaysia.

In this context, work on developing mahalla master plans is being intensified. International experts are being engaged, alongside the potential of domestic universities. Final-year students in architecture programmes will be able to participate in the development of “difficult” mahallas, with the best projects being supported by state grants.

Overall, the institutional changes formalize a shift from a universal approach to a differentiated territorial policy.

Resource redistribution is justified by the structure of the economy: 62% of industrial production and 57% of services are concentrated in 50 districts and cities with high entrepreneurial potential. Growth in their budget revenues creates an opportunity to concentrate state efforts on problem territories.

This is evident from revenue dynamics: three years ago, additional local budget revenues in these 50 territories amounted to $72.2 mn, while in the current year they are expected to increase 8.5 times, to $610.5 mn.

As a result, greater attention can be directed to “difficult” districts and mahallas, where poverty and unemployment are territorially concentrated.

Conclusion

The decisions and instruments for 2026 demonstrate that Uzbekistan’s social policy is moving beyond traditional resource redistribution toward a model of managed territorial development. The new model rests on three interlinked pillars.

First, the concentration of infrastructure resources in “difficult” districts and mahallas, with the creation of long-term local assets, reduced household costs, and enhanced energy resilience.

Second, the expansion of employment based on comparative advantages and deeper territorial specialization, supported by financial incentives, access to credit, and solutions along value chains.

Third, institutional recalibration of governance, where a project-based approach and multi-level coordination align resources, responsibility, and measurable outcomes.

The essence of the current phase is that targeting becomes a technology focused on “difficult” territories. Exiting poverty is understood as an individual household trajectory, in which local conditions, skills, and infrastructure are decisive. The “Mahalla Seven” and the institution of hokims’ assistants serve as the connecting link, ensuring coordination and feedback until results are achieved.

Khurshed Asadov,
Deputy Director of Center for Economic Research and Reforms

On 24 October 2025, Uzbekistan and the European Union signed the Enhanced Partnership and Cooperation Agreement (EPCA) — a comprehensive framework that culminates negotiations launched in February 2019 and initialled in July 2022. More than a ceremonial milestone, the EPCA codifies a strategic upgrade in our relationship with the EU. It is broad in scope — nine titles, 356 articles, and 14 annexes — and practical in ambition: to align our cooperation with the realities of a rapidly changing world economy while reinforcing the rule-of-law foundations of sustainable development at home.

The agreement’s timing is revealing. Uzbekistan’s recent balanced, multi-vector foreign policy and people-centred reforms — strengthening the rule of law, expanding public administration openness, and advancing market reforms — have laid the necessary groundwork. These steps in human rights and governance have increased international confidence, enabling a rules-based partnership with Europe. The EPCA is both a vote of confidence in Uzbekistan’s reform trajectory and a tangible roadmap to deliver measurable outcomes.

Economically, the EPCA offers a clear pathway for integration and growth. It promotes approximation to EU norms on technical regulations, product safety, and sanitary and phytosanitary measures. The agreement is designed to reduce non-tariff barriers, simplify border procedures, and make our exporters more competitive in the EU market. It encourages joint ventures and industrial clustering, extends agro-processing and manufacturing value chains, and supports energy efficiency and industrial modernisation. In short: more trade, more investment, and more quality jobs at home.

Human capital is an equally central pillar. The EPCA expands cooperation across education, science, skills development, and public health. It encourages joint university programmes, faculty and student exchanges, and research grants — mechanisms that accelerate knowledge transfer and help align our skills base with the demands of a digital and green economy. The spillovers are immediate and tangible: better public services, higher productivity, and new career pathways for our young people.

The rule-of-law dimension is another strategic gain. Deeper cooperation on judicial reform, anti-corruption, data protection, and cybersecurity increases predictability for investors and protections for citizens. The agreement’s chapter on foreign and security policy expands dialogue on conflict prevention, crisis management, non-proliferation, and export controls. This cooperation supports regional stability, which is essential for long-term growth.

Connectivity is the backbone that makes these ambitions feasible. Through synergies with the EU’s Global Gateway initiative and the Trans-Caspian Transport Corridor, the EPCA supports logistics hubs, border modernisation, and greener infrastructure. Better connectivity means lower trade costs, faster delivery times, and diversified export routes — practical levers for competitiveness. It also enables cooperation on water management, climate adaptation, and resilient energy systems — strategic priorities for a land-linked Central Asian economy.

Critically, the EPCA opens structured avenues for collaboration on critical raw materials needed for the green and digital transitions. This builds on the EU-Uzbekistan memorandum of understanding signed in 2024. It creates opportunities to upgrade domestic standards, attract responsible investment, and join higher segments of global value chains, while maintaining environmental and social safeguards.

Beyond the text, the joint statement issued at the signing underscores a shared commitment to the UN Charter and to the principles of independence, sovereignty, and territorial integrity — principles that guide our positions in international fora. It also welcomes the outcomes of the EU–Central Asia Summit, including plans for a Central Asia–EU Economic Forum and a Trans-Caspian Connectivity Investors Forum in Tashkent in 2025. In short, the EPCA is embedded in a wider, forward-looking regional agenda.

In practical terms, success requires implementation of three clear priorities: coordinated institution building, enhanced business support, and transparent, data-driven tracking. These will ensure commitments translate to outcomes.

First, institutional coordination. Translating commitments into outcomes requires a whole-of-government mechanism with clear mandates, timelines, and dashboards. A national EPCA coordination council, supported by technical working groups, should steer approximation to EU standards, monitor progress, and troubleshoot bottlenecks.

Second, business enablement. Firms need guidance to navigate new standards and opportunities. An 'EU Helpdesk' for exporters and investors would offer practical advice on certification, rules of origin, and compliance. This would turn legal text into business practice. Expanding the capacity of testing, inspection, and certification bodies will further reduce transaction costs and speed market entry.

Third, open, data-driven delivery. Customs and trade facilitation should be fully digitised through single-window systems and interoperable data exchange. Regular public reporting on milestones — such as education partnerships, financed projects, and adopted standards — will sustain credibility and invite feedback from business and civil society.

The EPCA also aligns with Uzbekistan’s WTO accession path by encouraging market-based reforms and transparent, rules-based trade. As reforms deepen, our economy will see more diversified exports, stronger investor protections, and a more competitive domestic market. These outcomes raise household incomes and expand opportunity.

This agreement is ambitious by design. Ambition alone is empty; execution alone is stagnant. The EPCA combines both — setting a high bar and supplying the means to reach it. By acting decisively, we turn this framework into a catalyst for inclusive growth, institutional maturity, and global credibility.

Ultimately, the EPCA is more than a diplomatic success; it is the engine for Uzbekistan’s reform agenda. By linking citizen welfare, business competitiveness, and international engagement, the EPCA puts us on a path to fundamental transformation. The critical task ahead is to deliver on this promise and make the Uzbekistan-EU partnership impactful and enduring.

By Eldor Tulyakov,

Executive Director, Development Strategy Centre, Uzbekistan

Historically, Central and South Asia constituted a macro-region of intensive cross-cultural and civilisational exchange.

The peoples of the two regions were repeatedly incorporated into common state formations and shared political, economic, cultural and humanitarian spaces. It was through these territories that major routes passed, connecting the Middle East, Europe, India and China. Close contacts facilitated the dissemination of scientific knowledge and philosophical ideas, as well as achievements in medicine, astronomy, mathematics, architecture, diplomacy and systems of public administration.

In contemporary conditions of global turbulence and a deficit of mutual trust, understanding the deep historical and civilisational commonality of Central and South Asia is of particular importance. This is not only a matter of retrospectively analysing trade ties or political contacts of the past. Data from modern population genetics confirm the existence of stable, centuries-long anthropological interconnections among the population of the macro-region.

The results of large-scale palaeogenetic studies, including the sequencing of ancient DNA (aDNA) from representatives of the Indus civilisation, together with archaeological and linguistic evidence, make it possible to reconstruct the directions of migration flows and the transformation of the gene pool over millennia.

Studies of the ancient population of southern Uzbekistan and of the Bactria-Margiana Archaeological Complex (BMAC) demonstrate the genetic continuity of local populations and their close contacts with ancient communities of the Iranian Plateau, north-western India and the Indus basin.

The specific nature of these processes in the Late Bronze Age and the Early Iron Age indicates that the territories of present-day southern Uzbekistan functioned as a space of permanent demographic and cultural exchange. They formed part of a single area of intensive circulation of people, technologies and cultural practices. This factor shaped the closeness of anthropological, linguistic and religious processes in Central and South Asia without erasing their autochthonous identities.

This is not a question of genetic homogeneity, but of a centuries-old system of demographic interactions that shaped the closeness of anthropological, linguistic, cultural and religious processes in Central and South Asia.

In this context, Uzbekistan attaches special importance to the restoration of deep historical and cultural relations in order to create a solid foundation for enhancing connectivity. After 2016, the country’s modern foreign policy is based on the synergy of pragmatic economic and transport partnership and the recognition of the common historical destiny of the macroregion.

At the same time, within the framework of the “Termez Dialogue”, projects are being formed for the joint study of Buddhist and Islamic heritage. The exceptional syncretism of the monuments of southern Uzbekistan (Kara-Tepe, Fayaz-Tepe and Kampyrtepa) reflects the historical synthesis of Indian, Hellenistic, Iranian and Central Asian traditions, marking the routes of the transfer of Buddhism from India to East Asia.

A new stage of civilisational synthesis is associated with the integration of the region into the Islamic space from the eighth century onward. Termez became one of the key intellectual centres of the Muslim world, as evidenced by the influence of Sufi networks and the legacy of the outstanding thinker al-Hakim at-Termizi, whose works retain authority in both Central and South Asia. In the Timurid era, these ties served as a basis for the formation of the unique Indo-Muslim civilisation of the Great Mughals, whose origins directly go back to the cultural matrix of Mawarannahr.

Relying on this historical and civilisational foundation, Tashkent today advocates the creation of a common cultural and humanitarian platform for Central and South Asia, one that demonstrates a high degree of complementarity with the foreign policy strategies of key South Asian states.

India: New Delhi views Uzbekistan’s initiatives through the prism of its own Connect Central Asia concept. Cultural and historical parallels (the Baburid era, Sufism and Buddhist heritage) enable India to expand its humanitarian presence in the region, as reflected, in particular, in the opening of branches of leading Indian universities (Amity and Sharda) in Uzbekistan.

Pakistan: For Islamabad, deep spiritual ties with Samarkand and Bukhara are critically important. The development of programmes of “ziyarat tourism” (pilgrimage tourism) acts as a catalyst for humanitarian contacts and contributes to the growth of mutual trust necessary for implementing large-scale trans-regional transport projects.

Afghanistan: For Kabul, Uzbekistan’s depoliticised initiatives open a legitimate channel of interaction with the outside world, allowing the country to integrate into regional economic processes without being drawn into political confrontation.

The strategic potential of the macro-region is closely linked to its demographic characteristics. Central and South Asia are among the youngest regions in the world: the share of the population under 30 exceeds 60 per cent, while the median age is about 28. This demographic resource serves as a key driver of sustainable growth and the activation of intersocietal ties, which makes the development of human capital particularly urgent.

In these conditions, joint work in the field of human capital development becomes increasingly important. This includes the training of qualified personnel, the expansion of scientific and academic cooperation, the exchange of knowledge and technologies, and the intensification of youth and public contacts.

Uzbekistan is consistently scaling up inter-university and scientific and academic cooperation in the macro-region. A practical example of this activity is Termez, where programmes of vocational and language training for Afghan students have been launched with the support of international organisations. As a result, the city is being transformed into a major educational and humanitarian hub at the junction of the two regions.

In this context, Tashkent’s modern initiatives aimed at restoring trans-regional connectivity appear as a natural continuation of a historical model of development determined by the deep interdependence of states.

The contemporary foreign policy course of Uzbekistan is based on the synergy of pragmatic economic and transport partnership and the recognition of the macro-region’s shared historical destiny. In implementing this strategy, Termez, an ancient intellectual and logistical hub linking Mawarannahr, Afghanistan and the Indian subcontinent, acquires special significance.

Its historical role was shaped by a unique geostrategic position. Already in antiquity, Termez was an important centre of the Greco-Bactrian and Kushan worlds. It was the Kushan Empire that created one of the first stable political and economic spaces uniting the territories of present-day Central Asia, Afghanistan, Pakistan and northern India.

Today, Uzbekistan is institutionalising this heritage by creating new multilateral dialogue platforms. The key element of this architecture is the international platform “Termez Dialogue”, which is focused on developing transport and logistical connectivity, humanitarian diplomacy and academic interaction.

The expert community notes the qualitative evolution of this platform. The second session of the “Termez Dialogue”, scheduled for 4–6 June 2026 in Tashkent, Termez and Samarkand, marks a transition from conceptual discussions to the formation of applied mechanisms of cooperation in politics, logistics, climate adaptation and cultural exchange. The forum is acquiring the status of a specialised international platform for developing multilateral approaches to regional security and the Afghan settlement process.

The fundamental distinction of Uzbekistan’s approach lies in its reliance on the concept of “inclusive regionality”, which presupposes the obligatory inclusion of Afghanistan in the system of trans-regional ties. Tashkent proposes an alternative model of diplomacy, viewing humanitarian cooperation as an instrument for reducing interstate contradictions and overcoming regional fragmentation.

Thus, contemporary Uzbekistan is carrying out a conceptual rethinking of the historical experience of interaction between Central and South Asia in relation to the realities of the twenty-first century. By developing the “Termez Dialogue” platform and stimulating trans-regional connectivity, Tashkent is transforming historical memory of a single civilisational space into a viable mechanism of multilateral integration, humanitarian partnership and indivisible regional security.

Alisher Sabirov

Doctor of Historical Sciences

Nizami National Pedagogical University

of Uzbekistan

An expert from the Institute for Strategic and Regional Studies under the President of Uzbekistan, commented to Dunyo IA on the outcomes of President Shavkat Mirziyoyev’s working visit to the United States, which took place from February 17 to 19:

- The visit of the President of Uzbekistan to the United States, which took place as part of his participation in the first meeting of the Board of Peace, was not just another diplomatic event, but a logical continuation of the strategy of pragmatic and mutually beneficial dialogue with Washington built over recent years. It demonstrated a shift from symbolic political interaction to systemic coordination in security, economics, trade, and humanitarian exchanges.

This visit marked the culmination of an intensive partnership over the past six months. Meetings on the sidelines of the UN General Assembly, the C5+1 summit, participation in events in Davos, and the signing of the Charter of the Board of Peace, as well as personal contacts between the two leaders, have fostered a stable dynamic of political dialogue. This fifth summit in six months demonstrates that relations have entered a phase of regular strategic communication, with each meeting reinforced by concrete agreements.

The visit’s busy business program confirmed its practical nature. During his stay in the United States, the head of state held talks with representatives of the American administration, financial institutions, and business circles, including the Export-Import Bank of the United States, the International Development Finance Corporation, the American-Uzbekistan Chamber of Commerce, as well as the heads of major companies such as Traxys, Valmont Industries, Gulf Oil, Aviagen, John Deere, BlackRock Financial Markets Advisory, Oppenheimer, and others. Following the signing of bilateral documents, the parties solidified agreements in priority areas such as the agro-industrial complex, critical minerals, financial market development, improving the investment climate, and the creation of an investment platform.

Discussions with the US Trade Representative and the Secretary of Commerce deserve special attention. During these talks, the need to intensify work within the framework of the Trade and Investment Framework Agreement between the countries of Central Asia and the United States was emphasized. This gave cooperation not only a bilateral but also a regional dimension, strengthening Uzbekistan’s position as a coordinator of economic processes in the region.

Viewed historically, the current stage’s foundation was laid back in 2018 during Shavkat Mirziyoyev’s first official visit to Washington, when agreements worth over $4.8 billion were signed. This package signaled Uzbekistan’s systemic openness to international businesses. In 2021, the Strategic Partnership Dialogue was established, and its subsequent expansion testifies to the institutionalization of bilateral relations. The invitation of the Uzbek leader to the G20 summit in Miami, personally initiated by US President Donald Trump, further confirmed the country’s strengthening international status and recognition of its growing role on the global agenda.

The economic dimension of cooperation is demonstrating steady growth. While trade turnover stood at $408 million in 2018, it consistently exceeded $1 billion by the end of 2024-2025. The current three-year Economic Cooperation Program, worth $35 billion, reflects the long-term nature of the parties' intentions. At the same time, the structure of interaction is undergoing a qualitative change: the emphasis is shifting from trade operations to the implementation of investment and production projects.

Today, flagship American companies such as Air Products, General Electric, General Motors, Boeing, Honeywell, and John Deere are actively operating in Uzbekistan. The $8.7 billion package of agreements signed at the C5+1 summit, including a contract for 22 Boeing aircraft, investments in the critical minerals sector, and projects in the agro-industrial sector, confirms the practical focus of the dialogue.

The transformation of the export structure is particularly revealing: services now account for approximately 86% of Uzbek exports to the US, with the IT sector remaining the key driver. Of the 800 active digital services exporters, 448 target the US market, accounting for 45% of all industry exports. This demonstrates that the partnership is gradually becoming more high-tech, moving beyond traditional commodity-based models.

The humanitarian dimension of cooperation is no less important. Academic exchange is expanding, the number of joint research projects is growing, and the integration of Uzbek specialists into international educational networks is strengthening. Currently, 40 Uzbek universities are implementing partnership programs with more than 25 US universities. Webster University’s Tashkent branch and the American University of Technology, established jointly with Arizona State University, are successfully operating. Thus, a long-term intellectual infrastructure for strategic partnership is being formed.

Overall, the current stage of relations between Uzbekistan and the United States is characterized by a transition from symbolic declarations to systemic coordination on issues of regional security, sustainable development, investment policy, and technological modernization. These achievements confirm that Uzbekistan is steadily establishing itself as a key US partner in Central Asia.

Dunyo IA

The Center for Economic Research and Reforms (CERR) has prepared an infographic presenting key indicators of trade, economic and investment cooperation between Uzbekistan and Tajikistan over a nine-year period.

In recent years, economic cooperation between Uzbekistan and Tajikistan has been steadily expanding, now encompassing not only trade but also industrial cooperation across various sectors, particularly energy and agriculture.

A solid legal framework has been established to support bilateral cooperation across multiple areas. In 2018, the countries signed a Treaty on Strategic Partnership, followed by a Treaty on Allied Relations in 2024.

Tajikistan is among Uzbekistan’s key trade and economic partners, ranking 9th among importers of Uzbek goods and accounting for 2% of Uzbekistan’s total exports.

Bilateral trade between Uzbekistan and Tajikistan is conducted under a free trade regime, with total trade turnover approaching $1 bn.

Bilateral Trade Indicators

Trade turnover between Uzbekistan and Tajikistan increased 3.8 times over 2017–2025, from $237.9 mln to $912.4 mln. Exports grew 3.7 times, from $186.1 mln to $683.1 mln, while imports rose 4.4 times, from $51.8 mln to $229.3 mln. Uzbekistan’s positive trade balance expanded 3.4 times, from $134.3 mln to $453.8 mln.

In 2025, compared to 2024, trade turnover increased by 29.9%, exports by 24.1%, and imports by 13.8%.

The structure of Uzbekistan’s exports to Tajikistan in 2025 totaled $683.1 mln and included: industrial goods (various knitted and felt products, plastic products, rolled metal, etc.) – $222.7 mln (32.6%); machinery and transport equipment (including electrical goods) – $58.7 mln (8.6%); petroleum products (gasoline, gas oil, bitumen) – $53.1 mln (7.8%); chemical products (polymers, sulfates, silicates, fertilizers, paints) – $53 mln (7.8%); food products (animal feed, eggs, confectionery, processed meat products, etc.) – $48.2 mln (7.1%); miscellaneous manufactured goods (construction materials, ready-made garments, silk fabrics) – $21 mln (3.1%); non-food raw materials– $8.1 mln (1.2%); other goods (including goods traded by individuals) – $70.1 mln (10.3%); as well as services (mainly railway transport) – $147.4 mln (21.6%).

The structure of imports from Tajikistan in 2025 totaled $229.3 mln and included: metal ores and concentrates (zinc, copper and precious metals) – $108.9 mln (47.5%); coal – $22.3 mln (9.7%); aluminum – $25.4 mln (11%); electricity – $17.9 mln (7.8%); cotton fiber – $17.6 mln (7.8%); fruits – $7.4 mln (3.2%); ferrous metals – $5.1 mln (2.2%); poultry — $2.4 mln (1.1%); plastic waste – $1.8 mln (0.8%); sulfur, feldspar and others; as well as services (mainly railway transport) – $6.6 mln (2.9%).

Investment Cooperation

As of March 1, 2026, there are 420 enterprises in Uzbekistan with Tajik investment (2.2% of the total number of enterprises with foreign investment), including 110 joint ventures and 310 enterprises with 100% Tajik capital.

In 2025, compared to 2024, the volume of foreign direct investment (FDI) and loans attracted from Tajikistan tripled, increasing from $64 mln to $196 mln. Over 2017–2025, the total volume of attracted FDI and loans from Tajikistan amounted to $373 mln.

The main areas of activity of enterprises with Tajik capital include trade, construction materials production, food industry, transport and other services.

Enterprises with Uzbek investment are also successfully operating in Tajikistan. In particular, major joint projects are being implemented in the energy sector, including the construction of hydropower plants on the Zarafshan River. With the participation of private capital from Uzbekistan, the joint venture “Artel Avesto Electronics” was established in Tajikistan in 2019, producing more than 10 types of household appliances.

Prospects for Trade Expansion

Uzbekistan and Tajikistan share a common border and have well-developed transport infrastructure. Given the short delivery distances, transportation costs can be relatively low, which creates favorable conditions for expanding exports.

In this context, Tajikistan represents a promising market for increasing exports of finished products from Uzbekistan that are not produced domestically in Tajikistan and are imported. These include automobiles, household appliances—especially large-sized goods such as refrigerators, washing machines and air conditioners—as well as certain food products, textiles, chemical and other goods.

On May 15, President of Uzbekistan Shavkat Mirziyoyev paid a working visit to the city of Turkestan, where he took part in the informal summit of the Organization of Turkic States. The visit featured an extensive political, economic, and humanitarian agenda, as well as a series of high-level bilateral meetings. In an interview with the correspondent of Dunyo IA, First Deputy Director of the Institute for Strategic and Regional Studies under the President of Uzbekistan Akramjon Nematov shared his views on the significance of the summit, emerging trends in the development of the OTS, and Uzbekistan’s initiatives.

— President Shavkat Mirziyoyev’s participation in the informal summit of the Organization of Turkic States in Turkestan was highly intensive both in terms of substance and the number of bilateral engagements. In your opinion, what made this visit particularly noteworthy and distinctive?

— First and foremost, I would note that this visit reflected a qualitatively new stage both in the development of the Organization of Turkic States itself and in the role of Central Asia within the emerging architecture of Eurasian cooperation.

Notably, the summit agenda extended far beyond cultural and humanitarian cooperation to encompass issues directly linked to future economic and technological development — digitalization, artificial intelligence, transport connectivity, and innovation. This reflects the OTS’s gradual transformation into a more pragmatic platform oriented toward practical cooperation.

Such an approach is particularly close to Uzbekistan, as our country has consistently advocated open, mutually beneficial, and technology-driven cooperation across Eurasia. Amid ongoing global transformation, connectivity, resilient supply chains, digital infrastructure, and joint industrial development are becoming key determinants of long-term regional competitiveness.

Another distinctive feature of the summit is the increasingly prominent role of Central Asia as an independent center of regional dynamism. It is symbolic that the meeting took place in Turkestan, one of the most important spiritual and historical centers of the Turkic world. This underscores the growing importance of our region not only as a space of shared historical and cultural heritage, but also as a major hub of economic, transport, and humanitarian connectivity.

Particular attention should be paid to the bilateral meetings held by the President of Uzbekistan with President of Kazakhstan Kassym-Jomart Tokayev, President of Kyrgyzstan Sadyr Japarov, and President of Türkiye Recep Tayyip Erdoğan. These meetings demonstrated the high level of trust and intensity of regional dialogue.

In particular, talks with the Kyrgyz side focused on advancing major infrastructure projects, above all the China–Kyrgyzstan–Uzbekistan railway. Today, such projects carry not merely transport significance but strategic importance, as they are shaping a new geoeconomic configuration of Eurasia and strengthening Central Asia’s role as a key transit, manufacturing, and logistics hub.

The meeting with the Turkish leader also confirmed that Uzbek-Turkish relations have reached the level of a stable comprehensive strategic partnership. This is no longer solely about expanding trade or investment, but about building long-term cooperation in industry, technology, logistics, education, and other sectors.

The humanitarian dimension of the visit was equally significant. The visit to the mosque built by the Uzbek side in Turkestan became a vivid symbol of the strengthening fraternal ties between Uzbekistan and Kazakhstan and reflected the shared historical, spiritual, and cultural affinity of the two peoples. Importantly, the humanitarian dimension is increasingly serving as a natural complement to economic and political cooperation in the region.

In a broader context, the visit confirms that Uzbekistan continues to pursue an open and balanced foreign policy aimed at fostering constructive engagement with all partners. It is fundamentally important that the countries of Central Asia view Turkic cooperation not as a closed geopolitical project, but as part of a broader architecture of inclusive and mutually beneficial cooperation across Eurasia.

This is precisely why Central Asia is increasingly asserting itself as an independent actor in international relations with its own agenda based on the principles of good-neighborliness, connectivity, pragmatism, and shared responsibility for the region’s sustainable development.

— What agenda did Uzbekistan bring to the informal OTS summit in Turkestan, and what, in your view, was particularly noteworthy about the initiatives put forward by President Shavkat Mirziyoyev?

— Uzbekistan presented at the summit of the Organization of Turkic States a highly comprehensive yet pragmatic agenda aimed not only at strengthening the cultural and civilizational commonality of the Turkic world, but above all at shaping a new architecture of technological, transport, investment, and humanitarian cooperation.

What distinguished President Shavkat Mirziyoyev’s address was its emphasis on transforming the OTS from a predominantly political and cultural platform into a mechanism for practical integration in the most promising and strategically sensitive areas of the 21st century — artificial intelligence, digital infrastructure, logistics, climate security, and cyber resilience.

Notably, Uzbekistan effectively proposed a conceptual vision for a “Digital Turkic Space.” The discussion has moved beyond cultural affinity or expanding trade toward the creation of a common technological ecosystem. It was in this context that the initiative to establish a strategic cooperation network in the field of artificial intelligence was advanced, along with the concept of a “Digital Turkic Corridor” designed to connect regional data centers and digital platforms through high-speed communication channels.

It is especially important that the President of Uzbekistan linked the digital agenda with the historical and intellectual heritage of Turkic civilization. References to Muhammad al-Khorazmiy, Ahmad al-Farganiy, Abu Rayhan al-Beruniy, and Mirzo Ulugbek gave the speech greater depth and intellectual dimension. In doing so, it was emphasized that modern technological modernization is viewed not as an external borrowing, but as a natural continuation of the region’s own scientific legacy.

Another important feature was Uzbekistan’s promotion of the institutionalization of cooperation. Virtually all of the President’s initiatives were practical in nature and aimed at establishing concrete mechanisms of interaction — a joint venture fund with Kazakhstan, a Technology Forum in Tashkent, a big data platform for consolidating shared cultural heritage, a Turkic Cybersecurity Alliance, and a climate risk monitoring system based on satellite data.

It is also indicative that Uzbekistan consistently promotes the nexus between digitalization, transport connectivity, and security. Particular emphasis in the speech was placed on integrating the Middle Corridor with the China–Kyrgyzstan–Uzbekistan railway, the digitalization of customs procedures, and the launch of a unified logistics space. In essence, this involves the formation of a new Eurasian transport and technological framework in which Central Asia becomes not a periphery, but one of the key hubs.

The environmental dimension of the initiatives also deserves special attention. Uzbekistan proposed viewing the climate agenda as an issue of collective security for the Turkic space. The initiative to declare 2027 the Year of Environmental Protection within the OTS framework, along with proposals for joint monitoring of droughts, soil degradation, and glacier melt, reflects the intention to provide the Organization with a more modern and globally relevant agenda.

Equally important is that amid growing international turbulence, President Shavkat Mirziyoyev placed special emphasis on trust, coordination, and collective resilience. The proposal to establish a Turkic Cybersecurity Alliance reflects the understanding that emerging threats are increasingly taking shape not only in the traditional military-political sphere, but also in the digital domain.

Overall, Uzbekistan’s address demonstrated that Tashkent views the OTS as a long-term platform for strategic cooperation capable of becoming one of the independent centers of technological, economic, and humanitarian development across Eurasia. At the same time, the distinguishing feature of Uzbekistan’s approach lies in its combination of pragmatism, institutional thinking, and the concept of open regional connectivity.

— How would you assess the overall outcomes of the OTS summit, and what is its practical significance today?

— Viewed in a broader strategic context, the recently concluded summit of the Organization of Turkic States demonstrated that the OTS is gradually moving beyond a predominantly symbolic and humanitarian model of interaction toward becoming a fully-fledged platform for practical cooperation in a rapidly changing world.

And this is perhaps the principal outcome of the meeting in Turkestan.

Today, the international system is undergoing a period of profound transformation. Geopolitical fragmentation is intensifying, competition for transport routes, technologies, resources, and markets is growing, and established logistics chains are being disrupted. The importance of infrastructure resilience, energy security, digital sovereignty, and food stability is steadily increasing. Against this backdrop, states are increasingly seeking regional formats of cooperation capable of ensuring resilience to external shocks.

It is precisely in this context that the outcomes of the OTS summit should be viewed.

The practical significance of the meeting lies primarily in the fact that the countries of the Turkic world have begun discussing not abstract integration ideas, but concrete mechanisms for joint development — transport corridors, digital infrastructure, technological cooperation, climate resilience, logistics, and cybersecurity.

It is highly indicative that virtually all speeches delivered by the leaders focused, in one way or another, on connectivity and resilience. President of Kazakhstan Kassym-Jomart Tokayev emphasized the need to strengthen the transport and transit potential of the Turkic space and further develop the Middle Corridor. President of Türkiye Recep Tayyip Erdoğan stressed the importance of logistics integration and expanding economic cooperation among OTS member states. President of Azerbaijan Ilham Aliyev paid particular attention to transport connectivity and the region’s role in shaping new Eurasian routes. All of this reflects a shared understanding that transport, logistics, and infrastructure connectivity are becoming the foundation of the new regional economy.

In this regard, Central Asia is gradually transforming into one of the key hubs of Eurasia. The region is no longer perceived solely as a transit space. Today, the focus is on the emergence of a new manufacturing, logistics, and investment hub linking East and West, North and South.

That is why such importance is attached to the China–Kyrgyzstan–Uzbekistan railway, the integration of the Middle Corridor, the digitalization of customs procedures, and the development of data centers and logistics platforms. In effect, a new infrastructural geography of Eurasia is taking shape.

It is particularly important that the summit clearly highlighted the interconnection between transport connectivity, digitalization, and security. Today, the resilience of states is determined not only by military capabilities, but also by their ability to ensure the uninterrupted functioning of transport corridors, energy networks, digital infrastructure, and supply chains.

In this sense, Uzbekistan’s initiatives appear highly timely and strategically sound. The proposals to establish a “Digital Turkic Corridor,” a Turkic Cybersecurity Alliance, a climate risk monitoring system, and joint artificial intelligence platforms reflect an understanding that competition in the 21st century will increasingly unfold in the technological and infrastructural domains.

The climate agenda also deserves special attention. Just a few years ago, such issues were perceived as secondary, whereas today they are directly linked to economic resilience and security. Water scarcity, soil degradation, and extreme weather events have a direct impact on energy, agriculture, transport, and migration processes. Therefore, Uzbekistan’s proposal to establish climate risk monitoring mechanisms and declare 2027 the Year of Environmental Protection appears especially timely and relevant.

It is also noteworthy that the summit demonstrated a high level of political trust among the Central Asian states. Just a few years ago, it would have been difficult to imagine such an intensive level of regional interaction. Today, however, Central Asia is acting no longer as an object of major powers’ foreign policies, but as an independent actor in international relations capable of shaping its own agenda and advancing major regional initiatives.

Overall, it can be said that the practical value of the summit lies in strengthening the region’s long-term resilience. The focus is on creating mechanisms that will enable the countries of the Turkic space to jointly adapt to global transformations — technological, economic, climatic, and geopolitical.

For this reason, the current summit should be viewed not merely as a diplomatic event, but as an important stage in shaping a new model of regional cooperation across Eurasia based on pragmatism, connectivity, technological development, and collective resilience.

Given the recent geopolitical instability observed around the world, one of the top priorities for every sovereign state is to ensure the security and continuity of its foreign trade routes.

For Uzbekistan, located at the geopolitical center of Central Asia, it is strategically important to maintain the continuous and stable operation of transport and logistics corridors with European countries, which account for a significant share of its foreign trade. It should be noted that in 2025, the volume of Uzbekistan’s international freight traffic with European countries amounted to 1.5 million tons, which is 29% more than in 2024.

Today, the Middle Corridor serves as a safe and reliable transport corridor for export shipments to Europe or import shipments from Europe via land transport. Azerbaijan is one of the most important hubs of the Middle Corridor. In January–March 2026, the volume of international freight traffic between Uzbekistan and Azerbaijan amounted to 28,300 tons, which is 2.9 times more than during the same period in 2025.

Overall, over the past five years, the volume of Uzbek cargo transported via the Middle Corridor has doubled, reaching 1.2 million tons by the end of 2025. While in 2021 the share of cargo transported via this corridor with EU countries was 12%, by the end of 2025 this figure had reached 28%.

Due to its geographical location, Azerbaijan serves as a natural bridge connecting Central Asia to the Caucasus region and Turkey via the Caspian Sea. It will enable the reception of export cargo from the East (China, Central Asia, including Uzbekistan) and its direct shipment to European markets via the ports of Poti and Batumi in Georgia and Mersin and Ambarli in Turkey.

Today, bilateral and multilateral cooperation in the transport and logistics sector has been established between Uzbekistan and Azerbaijan. This cooperation makes a significant contribution not only to the development of bilateral relations but also to the development of the Middle Corridor, connecting the Central Asian region with Europe.

Recent reports by prestigious international financial institutions, such as the World Bank and the European Bank for Reconstruction and Development, dedicated to studying the potential of the “Middle Corridor,” have analyzed a number of obstacles that reduce the corridor’s effectiveness. In particular, international experts note that one of the main challenges to the corridor’s development is the disparity in digitalization levels among transit countries, the lack of a unified platform for information exchange, and the persistence of paper-based bureaucratic processes at border and customs checkpoints.

It is precisely to address these systemic challenges in practice and increase the capacity of the “Middle Corridor” between Uzbekistan and Azerbaijan that active and exemplary digital integration processes have been established. In particular, the “E-TIR” system has been successfully implemented, streamlining customs procedures between the two countries and reducing the human factor. Additionally, in the field of international road transport, efforts are actively underway to fully transition to the paperless “E-PERMIT” system.

Furthermore, Uzbekistan and Azerbaijan are implementing the necessary measures to develop freight transport within the “Asia-Pacific Region – China – Kyrgyzstan – Uzbekistan – Turkmenistan – Azerbaijan – Turkey – Europe” (CASCA+) framework for multimodal transport along the Middle Corridor. In 2025, 6,722 TEU container shipments were carried out on this international route, which is 47% more than in 2024. Preferential rates have also been established for this route for 2026, and a further increase in transport volumes is expected.

It should be noted that the railway administrations of Uzbekistan and Azerbaijan are the initiators and active participants in the implementation of a set of measures aimed at developing the “Middle Corridor” transport and logistics network. In particular, to further expand the potential of this corridor, a multilateral meeting was held in 2024 between the railway authorities of Kyrgyzstan, Uzbekistan, Turkmenistan, Azerbaijan, Georgia, Turkey, and Tajikistan. Following these negotiations, an institutional platform—the “Eurasian Transport Route” Association—was established to accelerate freight transportation processes and create a mechanism for the prompt removal of logistical barriers arising within the system.

In conclusion, it should be noted that the strategic partnership between Uzbekistan and Azerbaijan in the transport and logistics sector contributes not only to the stabilization of the two countries’ foreign trade turnover but also to the integration of the entire Central Asian region into the international supply chain. The implementation of digital solutions that eliminate bureaucratic barriers, the diversification of multimodal routes, and the strengthening of institutional mechanisms will further enhance the international transit appeal of the “Middle Corridor.” This, in turn, will increase the resilience of Uzbekistan’s economy to external shocks amid global geopolitical changes and serve as a solid guarantee for the safe and uninterrupted conduct of international transport operations.