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Reforms and Active Dialogue in Entrepreneurship: The President's 6th Open Dialogue as a Catalyst for New Economic Growth
📅 06.08.2026
The current and future development of Uzbekistan's economy is directly determined by the freedom of the private sector, equal and favorable opportunities created for businesses, and robust legal protections. The Open Dialogue between the Head of State and entrepreneurs, which has become a solid tradition in our country, is not merely another routine event. Instead, it serves as the primary mechanism of a direct, pragmatic, and highly effective strategic alliance between business and government. This direct platform enhances the country's investment attractiveness while playing a crucial role in supporting national businesses and unlocking new opportunities.
Practical Results and Benefits
Direct, face-to-face interaction with the President has emerged as the most powerful driver for fundamentally improving the country's business climate. The systemic decisions made and incentives granted within this platform have delivered tangible, practical benefits to business entities rather than remaining on paper. Below are select outcomes demonstrating the impact of these strategic initiatives:
Transformation of the Financial and Credit System
The government optimized the direct financing procedures for large state-owned enterprises, shifting the focus toward directing banking resources to private sector projects. The Business Development Bank, microfinance institutions and banks, factoring services, venture capital funds, and industrial support funds were established. A state guarantee system for entrepreneurs' bank deposits was also introduced.
Land, Property, and Infrastructure Reform
Land parcels and real estate were transformed into full-fledged economic assets. Taxes on land acquired through auctions were adjusted, payment installment periods were extended, and incorporating land into charter capital was permitted. Changing the intended use of land was simplified via a unified classifier. Energy limits were regulated, and private capital was attracted to the development of mineral deposits and subsoil resources.
Foreign Trade, Logistics, and Exports
The economy pivoted toward WTO accession and integration into global supply chains. Monopoly and exclusive rights in foundational sectors such as metallurgy, chemicals, and energy were abolished. Subsidies for pre-export financing, logistics, and international certification were expanded. The "E-logistika" platform was launched to ensure transparent distribution of transport permits, and the VAT refund mechanism for export operations was simplified.
IT, Services, and Innovation
The state implemented joint-equity co-financing models and patent fee reimbursement mechanisms to boost IT sector development, artificial intelligence, and startups. A VAT cashback mechanism and corporate income tax reductions were introduced for the catering, tourism, and hospitality sectors. Certification and consulting services in construction and tourism were transitioned to the private sector.
Liberalization of Tax and Oversight Systems
Tax administration was enhanced: the VAT "tax-gap" coefficient was abolished, and a transparent rating system for compliant businesses was introduced. A moratorium was declared on the application of new penalties. Commercial banks were prohibited from forcing collateral into unauthorized liquidation and unlawfully suspending business activities.
Legal Protection and Local Manufacturing
The authority of state bodies to confiscate property without a court order or cancel land allocation decisions was restricted. The statute of limitations for tax disputes was reduced to three years. To support domestic manufacturers, a "local content" requirement in public procurement and a system of long-term guaranteed orders were established.
Representatives of the business community feel the real impact of the platform in their daily operations.
Shavkat Kholboev, head of the "AslCab" enterprise, states: "Based on proposals submitted during last year's Open Dialogue, an automated electronic VAT refund system for exports was launched. Consequently, our enterprise recovered approximately 10 to 12 billion UZS in working capital within a short period, channeling these funds into purchasing raw materials and expanding our export footprint."
Firat Deniz, a foreign investor and owner of a major textile enterprise, emphasizes: "The Open Dialogue with the President is one of the most effective platforms globally for directly hearing and protecting investor interests. My proposal to create additional opportunities for enterprises exporting over $50 million annually was immediately supported and implemented."
Preparations for the 6th Open Dialogue: Numbers and Analysis
In preparation for the upcoming 6th Open Dialogue, a Republican Headquarters comprising representatives from over 50 ministries and agencies was established on May 15, operating around the clock (24/7). Nearly 6,000 inquiries have been received via call centers and official bots. As part of the processing efforts, over 4,200 inquiries were resolved positively, while approximately 1,800 remain under review.
By topic, the inquiries include: over 940 regarding strengthening legal protections for entrepreneurs, over 910 on banking issues, over 750 on production space allocation, nearly 680 on simplifying business regulations, over 660 on infrastructure provision, nearly 530 on tax system improvements, and over 480 on financial support for business. Regionally, the highest volume of inquiries originated from Kashkadarya region, Tashkent city, Samarkand region, and Fergana region.
Additionally, responsible organizations conducted over 750 meetings attended by more than 8,800 entrepreneurs, raising over 3,500 proposals and issues. Furthermore, over 130 meetings organized by the Business Ombudsman and the Chamber of Commerce and Industry brought together more than 5,700 entrepreneurs who raised nearly 1,500 issues. Expert groups are analyzing 300 systemic problems identified during these sessions, the majority of which cover: simplifying business regulation (nearly 70), improving the tax system (60), and foreign economic activity and investment (over 50). Proposals are being developed in collaboration with relevant ministries and agencies to address these issues fundamentally and improve current legislation.
Abdumannop Buriev, Business Ombudsman under the President of the Republic of Uzbekistan for the Protection of Rights and Lawful Interests of Entrepreneurs, highlighted priority areas in the sector: "We focus primary attention on building a preventive system that averts issues before they arise and protects entrepreneurs' rights early on. Through extensive digitization and the integration of electronic resources into a unified network, potential risks are eliminated in advance. The live dialogues held ahead of the main event create a solid foundation for modern tools that protect business from both legal and digital standpoints."
Davron Vakhabov, Chairman of the Chamber of Commerce and Industry of Uzbekistan, emphasized the positive momentum: "Today, the private sector has become the primary driving force of our national economy. Regular open dialogues and the systemic decisions arising from them offer invaluable opportunities for entrepreneurs to expand their operational scale, increase export capacity, and strengthen competitiveness in international markets."
Preparations for the President's upcoming Open Dialogue are entering their final stage. Every submitted proposal and inquiry serves to further improve the business environment in our country. We invite all entrepreneurs and investors to actively participate in shaping the agenda for the upcoming high-level dialogue. Inquiries and proposals are accepted 24/7 via phone numbers 1100 and 1094, web platforms business.gov.uz and my.chamber.uz/ochiq_muloqot/oz, as well as Telegram communication channels @biznesombudsmanrasmiy_bot and @ochiqmuloqot2026_bot.
CICA amid a Crisis of Trust: Uzbekistan’s Role in Strengthening Cooperation in Asia
📅 14.10.2026
The seventh summit of the Conference on Interaction and Confidence Building Measures in Asia (CICA) will take place in Baku on 15 October. The meeting comes at a time when the ability of states to sustain dialogue and find common ground is particularly important. In an increasingly complex international environment, CICA’s relevance stems primarily from its role as a multilateral platform that brings together countries with diverse political positions and national interests.
The framework’s principal strength is its inclusive character. CICA is not a military or political bloc and does not constrain its members’ independence in foreign policy. Its work rests on consensus, voluntary participation, equality and mutual respect, enabling states with differing interests to maintain regular dialogue.
These principles underpin Uzbekistan’s consistent approach to engagement within CICA. Tashkent advocates strengthening the forum’s role as a mechanism for implementing confidence-building measures and expanding practical cooperation among Asian states.
President Shavkat Mirziyoyev’s approach to CICA encompasses several interrelated priorities. Together, they seek to preserve trust between states, translate that trust into practical cooperation and strengthen the capacity of multilateral mechanisms to address shared challenges. His addresses at the Dushanbe summit in 2019 and the Astana summit in 2022 developed this approach along three main lines.
First, a comprehensive approach to security.
Uzbekistan recognises that contemporary threats cannot be overcome through political measures and the use of force alone.
The resilience of states also depends on human capital, opportunities for young people to fulfil their potential, the development of education and culture, and the ability to counter radicalisation.
Cooperation in education, culture and youth affairs therefore features prominently in the President’s summit addresses. Uzbekistan’s substantial contribution to advancing CICA’s youth agenda demonstrates this approach in practice. In particular, Uzbekistan’s Youth Affairs Agency served as co-chair of the CICA Youth Council.
Tashkent also assumed a coordinating role in implementing confidence-building measures, reflecting its commitment to translating political initiatives into action through established cooperation mechanisms.
Second, a focus on practical outcomes in multilateral cooperation.
A distinctive feature of Uzbekistan’s approach has been to translate the broad principles of trust into specific areas of joint action. In 2019, this was reflected in proposals to expand trade, support small and medium-sized enterprises, develop transport links and jointly address environmental challenges, including the consequences of the Aral Sea disaster. In 2022, the agenda became more operational, with a focus on food security, digitalisation, innovation, and resilient production and logistics networks. These initiatives share a common premise: states’ shared interest in economic and social progress provides a tangible foundation for stronger mutual trust.
Third, joint responses to regional challenges.
The third priority reflects Tashkent’s commitment to making multilateral mechanisms more effective in addressing problems that no country can resolve on its own.
Afghanistan provides a clear example. The President proposed considering the establishment of a high-level international negotiating group under United Nations auspices.
On environmental issues, Uzbekistan put forward the “Green Asia” initiative, aimed at expanding cooperation among experts on greening efforts and the protection of vulnerable ecosystems.
Both proposals seek to keep pressing regional challenges on the international agenda despite deepening disagreements among major powers.
Together, these priorities capture the central purpose of Uzbekistan’s policy within CICA: to preserve trust between states, reinforce it through practical cooperation and use multilateral mechanisms to address specific challenges facing Asia.
The forthcoming seventh CICA summit in Baku will mark the next stage in advancing this agenda. CICA faces an important task: to build on its achievements while delivering more tangible benefits from cooperation. Transport and economic connectivity, digitalisation, sustainable development, food security and environmental protection will be particularly important.
In this context, CICA’s effectiveness will depend to a considerable extent on progress in three interrelated areas.
The first is stronger political trust. As geopolitical competition intensifies, it is essential to preserve CICA as an open platform for dialogue among states with differing interests and positions.
Economic connectivity is equally important. Transport, trade, energy, investment and digital infrastructure can create lasting links between states, providing additional incentives to maintain stable relations.
Finally, CICA must continue to strengthen its human dimension. Education, youth exchanges, culture, and cooperation among researchers and experts build a foundation of trust that develops over time and retains its value despite changes in the political environment.
Uzbekistan brings practical experience and specific initiatives to all three areas. It consistently promotes an approach within CICA that connects security with economic development and dialogue between societies.
Amid growing uncertainty, Asia’s task is to find mechanisms that enable states to identify common ground even when their interests diverge, rather than allow new divisions to emerge. CICA can serve this purpose by preserving space for political dialogue and creating opportunities for practical cooperation.
Uzbekistan’s contribution lies in the sustained implementation of initiatives that strengthen trust and help shape a secure and prosperous future for the region.
Bekzod Normatov
Leading Research Fellow at the
Institute for Strategic and Regional Studies under the President of the Republic of Uzbekistan
Partnership in the transport and transit sector has become a cornerstone of cooperation between Turkic countries
📅 10.05.2026
In the context of rapidly changing global economies, transport and logistics are becoming more than just infrastructure elements, but crucial instruments of economic and geopolitical influence. Against this backdrop, the Organization of Turkic States (OTS) is gradually emerging as one of the most promising platforms for regional cooperation in Eurasia. The development of transport and transit links, which are now becoming the foundation for the economic integration of the Turkic countries, holds a special place in the Organization's activities.
In this regard, the informal summit of the OTS, which will take place on May 14-15 this year in Turkestan (Republic of Kazakhstan), will be positive step in further strengthening the position of the Organization, deepening cooperation and uniting the efforts of all Turkic states.
Transport as the basis of a new Eurasian architecture
Today, the member states of the OTS interact in more than 40 areas – from economics and energy to digital technologies and artificial intelligence. However, transport sphere is gradually becoming the main driver of integration.
This is due to the unique geographical location of the Turkic countries. The region is located at the intersection of major international routes connecting Europe, Central Asia, China, the Middle East, and South Asia. A new Eurasian logistics system is effectively emerging, in which the OTS’s member states play a key link between East and West.
Amid the transformation of global supply chains and growing competition between international transport routes, the states of the region are striving not only to strengthen their own infrastructure but also to create a unified transit and logistics space.
Formation of a common transport policy
In recent years, a solid legal framework has been created within the OTS, which enshrines the strategic importance of this area in documents such as «Turkic Vision 2040» and «OTS Strategy for 2022–2026».
The 2022 Samarkand Summit was of particular significance, as it saw the signing of «Agreement on International Combined Freight Transport among the Governments of the Member States of the OTS» and «the Transport Connectivity Program». These documents ushered in a new era of cooperation among Turkic countries in the near future and established specific mechanisms for its implementation.
An important step was the introduction of the e-CMR system in 2026, which allows for the electronic transfer of transport documentation. This significantly simplifies transportation, reduces bureaucratic procedures, and expedites the passage of goods across state borders. At the same time, cooperation is developing in the digitalization of customs processes, the implementation of electronic permits, and the unification of transit procedures.
Institutional strengthening of cooperation
In recent years, the OTS has been consistently developing an institutional framework for transport integration, moving cooperation from a political and declarative level to a practical level. Regular meetings of the competent authorities of the Organization’s member states play a key role in this process.
Thus, at the meeting of OTS Transport ministers in April 2026 in Bishkek, the focus was on the development of transport corridors and the removal of border crossing barriers. Essentially, this is about creating a more coordinated regional transport system capable of increasing the competitiveness of OTS routes amid growing freight flows between Asia and Europe.
Meetings of heads of railway administration, held since 2022, serve a similar function. At the October 2025 meeting in Bishkek, issues of digitalization of transportation management and improving the efficiency of rail service were discussed. This demonstrates the desire of the OTS countries to unify transport procedures and reduce logistics costs within the region.
An additional step toward institutionalization was the creation of the Alliance of Logistics Centers and Cargo Carriers within the OTS in Tashkent in 2024. The establishment of this structure demonstrates a shift toward deeper business involvement in transport integration processes.
Transport corridors as a strategic basis for the integration of OTS countries
One of the key areas of the OTS's transport strategy is the creation of a unified space of transport connectivity, centered on the development of international corridors linking East and West, as well as North and South Eurasia.
The «Middle Corridor», connecting China and Europe via Central Asia and the South Caucasus, is particularly important in this system. Against the backdrop of the transformation of global logistics, geopolitical instability, and the desire of states to diversify trade routes, this corridor is becoming one of the most promising transport arteries in Eurasia.
While the volume of traffic along this route remained relatively limited in 2020, by 2025 it exceeded 5 million tons, an increase of almost sixfold. This demonstrates the gradual transformation of the «Middle Corridor» from an alternative route into an important element of the global transport system.
Moreover, the corridor's significance extends far beyond its purely transit function. For the OTS’s member states, its development means strengthening trade and economic ties, expanding access to external markets, attracting investment, and increasing the resilience of national economies to external challenges. In the long term, the «Middle Corridor» is seen as the foundation for the development of a new model of Eurasian connectivity.
A key element of this strategy is the implementation of the «China-Kyrgyzstan-Uzbekistan» railway project, which is already considered one of the most significant infrastructure projects in Central Asia. Construction of the highway, which includes 50 bridges and 29 tunnels with a total length of approximately 120 kilometers, is estimated to cost approximately $4.7 billion.
The project will significantly reduce freight delivery times between China and Europe, strengthen Central Asia’s transit potential, and enhance the integration of the OTS’s transport system. Essentially, this creates a new strategic route capable of transforming the region's logistics configuration.
Equally important is the development of the «Trans-Afghan Corridor», which opens OTS countries to the markets of South Asia, with a population of approximately 1,9 billion and a combined GDP of approximately $3,5 trillion. For Central Asian states, this creates opportunities to diversify foreign trade, expand export routes, and reduce transportation costs. At the same time, the Trans-Afghan route has the potential to become a factor in the economic stabilization of the region by boosting trade, investment, and industrial cooperation.
Uzbekistan as a Driver of Transport Integration in the OTS
Since the Republic of Uzbekistan joined the Organization of Turkic States in 2019, transport and logistics cooperation has become a key focus of the country's foreign economic strategy within the Organization. Against the backdrop of the transformation of global supply chains, the growing importance of alternative Eurasian routes, and increased competition among international transport corridors, Tashkent has consistently promoted initiatives aimed at creating a unified transport and transit space for the OTS.
The initiatives of the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, play a key role in advancing this agenda. He views transport connectivity as a key factor in regional integration and economic development. At the OTS summit in Turkey in 2021, the head of state emphasized the need for systemic cooperation in transport and transit, effectively marking a shift to a more comprehensive approach within the Organization. This agenda received significant impetus at the 2022 Samarkand Summit, where Uzbekistan advocated for the development of multimodal routes and the implementation of the e-TIR, e-Permit, and e-CMR electronic systems.
Uzbek logistics centers Universal Logistics Services (Tashkent), Akhtachy (Andijan), and Termez Cargo Center (Surkhandarya) joined the «Sister Ports» initiative, marking a practical step toward integrating Uzbekistan’s transport infrastructure into the regional logistics network.
At the summit in Astana in 2023, Uzbekistan again emphasized the diversification of transport routes and the development of the «Middle Corridor», which, in the current geo-economic environment, is acquiring strategic significance as an perspective route between Asia and Europe. At the same time, Tashkent promoted for the expansion of transport routes connecting OTS countries with the markets of China, South Asia, and Europe.
A logical continuation of this line of action was the initiatives announced at the OTS summit in Bishkek in November 2024. The focus was on optimizing transit tariffs, simplifying border procedures, creating joint logistics mechanisms, and transitioning to electronic document management.
In May 2025, at the informal OTS summit in Hungary, Uzbekistan supported for the accelerated implementation of «single-window» systems and «green corridors» along the Trans-Caspian route. At the summit in Gabala in November 2025, special attention was paid to enhancing the competitiveness of the «Middle Corridor», modernizing infrastructure, and other areas. Particular importance was placed on linking this route with the «China-Kyrgyzstan-Uzbekistan» railway project and the «Trans-Afghan Corridor», which effectively creates a new system of transport connectivity across a vast region.
The International Forum on Multimodal Transportation held in Tashkent on November 12, 2025, was a practical confirmation of Uzbekistan's growing role in the OTS’s transport agenda.
Overall, the Turkic countries are already demonstrating a willingness to move beyond the idea of partnership to the creation of a unified interconnected space. Joint infrastructure projects, the development of interregional corridors, the digitalization of logistics, and Uzbekistan’s active role in promoting these processes form the foundation of a new transport architecture within the OTS.
Sarvar Kamolov,
the Chief Research Fellow of
the Institute for Strategic and Regional Studies
under the President of the Republic of Uzbekistan
Economic Cooperation of Uzbekistan within the SCO at a New Stage of Development
📅 29.08.2026
Ziyoda Rizaeva, Center for Economic Research and Reforms
The global economy is developing amid the restructuring of global supply chains. At the same time, the role of regional formats capable of creating additional opportunities for trade, investment, and industrial cooperation is increasing.
One such format is the Shanghai Cooperation Organization (SCO), which marks its 25th anniversary in 2026. Over the past quarter-century, the organization has significantly expanded its membership, geographical reach, and areas of cooperation, while accumulating considerable experience in multilateral and economic cooperation and developing substantial resource and transport potential.
For Uzbekistan, cooperation within the SCO is important for expanding trade, investment, industrial, and transport ties.
The Growing Importance of the SCO
Over the past quarter-century, the SCO has undergone substantial institutional development. Established in 2001 by six countries, the organization today comprises 10 member states (Kyrgyzstan, China, Russia, Kazakhstan, Tajikistan, Uzbekistan, India, Pakistan, Iran, and Belarus). India and Pakistan joined the SCO in 2017, Iran became a full member in 2023, and Belarus in 2024. The Organization has 17 partner states, including Azerbaijan, Mongolia, and Afghanistan.
Guided by its fundamental principles, the SCO serves as a reliable guarantor of stability and security in the region, particularly in Central Asia. Amid a rapidly changing international environment and persistent instability, this role of the Organization is becoming increasingly important.
The SCO is neither bloc-based nor confrontational in nature and remains open to cooperation. This clearly demonstrates that its activities are not directed against the interests of other countries or international organizations.
All decisions within the SCO are made by consensus and require the full agreement of all member states. This principle ensures that the interests of every participant are taken into account, guarantees equality among member states, and enhances the Organization’s appeal as a platform for multilateral cooperation.
Today, the SCO member states cover more than 65% of Eurasia’s territory. Their combined population is around 3.4 billion people, or more than 42% of the world’s population. The combined nominal GDP of the SCO countries exceeds $26 trillion, accounting for around one-quarter of the global economy. In purchasing power parity terms, the organization’s member states account for more than one-third of global GDP.
In 2025, the combined economic growth of the SCO countries was around 5%, compared with global growth of 3.4%. The member states differ in terms of economic size, production structure, resource endowment, competitive advantages, and degree of market openness. This diversity creates broad opportunities for specialization, industrial cooperation, and economic complementarity.
The SCO countries possess substantial energy and mineral resources, a developed industrial base, and growing consumer markets. According to calculations based on international energy statistics, the organization’s member states account for around 69% of global coal production and approximately 30% of natural gas production. Their resource endowment and market capacity create favorable conditions for implementing major industrial, energy, and infrastructure projects.
Between 2015 and 2024, intra-SCO trade (exports) increased almost 2.5-fold, from $271 billion to $674 billion. Over the same period, its share in the countries’ combined foreign trade increased from 8.9% to 14.2%.
The expansion of trade ties is being supported by the development of transport routes, digitalization of trade procedures, and the increasingly widespread use of national currencies in mutual settlements.
An important milestone in the SCO’s institutional development was the 2025 Tianjin Summit, where the SCO Development Strategy through 2035 was adopted. The document defined long-term priorities for multilateral cooperation. Of particular importance was the decision to establish the SCO Development Bank, which is expected to expand financing opportunities for regional infrastructure and investment projects.
Uzbekistan and the SCO in the System of Economic Relations
Uzbekistan’s foreign economic relations with the SCO countries have intensified considerably in recent years. According to estimates by the Center for Economic Research and Reforms, between 2017 and 2025, trade turnover increased 3.1-fold, from $12.9 billion to $40.6 billion. Exports grew nearly 1.8-fold, from $5.8 billion to $10.65 billion, while imports increased 4.2-fold, from $7.1 billion to $29.96 billion.
As a result, in 2025 the SCO countries accounted for around half of Uzbekistan’s total foreign trade turnover, including 31.5% of the country’s exports and 63.3% of its imports.
Geographically, the bulk of trade is concentrated in China, Russia, and Kazakhstan. In 2025, Uzbekistan’s trade turnover with China reached $17.2 billion, with Russia $13 billion, and with Kazakhstan $5 billion. Together, these three countries accounted for around 87% of Uzbekistan’s trade with SCO member states.
Trade with India reached $1.3 billion, followed by Kyrgyzstan at $1.2 billion, Belarus at $965 million, Tajikistan at $912 million, Iran at $579 million, and Pakistan at $446 million.
The SCO countries are major markets for Uzbek fruit and vegetables and other food products, textiles, electrical goods, and automotive products.
A significant share of imports from SCO countries consists of machinery and equipment, industrial goods, raw materials, and food products used by Uzbekistan’s domestic market and manufacturing sector.
The existing trade structure demonstrates Uzbekistan’s high level of economic interconnectedness with SCO countries.
Investment and Industrial Cooperation within the SCO
Further development of trade between Uzbekistan and the SCO member states creates a foundation for deeper investment and industrial cooperation. For Uzbekistan, particular interest lies in moving toward joint ventures, localization of technological processes, and the development of industrial cooperation between enterprises across SCO countries.
In 2025, the volume of foreign investment and loans in fixed capital in Uzbekistan amounted to $33.5 billion. Manufacturing accounted for 33.2% of the total, electricity and gas supply for 17.1%, and mining for 11.9%. The structure of investment indicates significant potential for further development of industrial cooperation, joint production, and localization of technological processes.
SCO member states occupy a significant place in Uzbekistan’s investment cooperation. In 2025, investment from the Organization’s member states amounted to $17.5 billion. The largest volumes came from China ($13 billion) and Russia ($2.6 billion). Other partners included Kazakhstan ($870 million), Iran ($265 million), India ($247 million), Kyrgyzstan ($197 million), Tajikistan ($196 million), Belarus ($76.5 million), and Pakistan ($52.5 million).
Facilitating mutual trade, harmonizing standards, developing production and logistics chains, and promoting mutual investment were identified by President of the Republic of Uzbekistan Shavkat Mirziyoyev at the 2025 Tianjin Summit as priority areas of economic cooperation within the SCO. To promote direct business dialogue, the President proposed holding an annual “SCO Invest” Investment Forum.
The initiative received practical follow-up as early as 2026. During Kyrgyzstan’s SCO chairmanship, the SCO Investment and Business Forum was held in Bishkek on June 24–25 with representatives of the organization’s member states. The forum covered investment and trade and economic cooperation, industrial and technological cooperation, the digital economy, artificial intelligence, e-commerce, and new industrialization.
Another area of industrial cooperation involves utilizing the resource potential of SCO countries. Uzbekistan’s initiative to establish an SCO Regional Center for Critical Materials provides for cooperation in modern technologies for the extraction and deep processing of mineral resources. The proposed SCO Energy Consortium is aimed at developing joint energy projects. Uzbekistan has also proposed establishing a network of venture companies and funds to support innovative projects.
For Uzbekistan, these new cooperation formats within the SCO expand opportunities for attracting investment and technology, localizing production, and increasing the output of high-value-added products.
Transport Connectivity and New Routes
Transport cooperation occupies one of the most important places in Uzbekistan’s trade and economic relations with SCO countries. According to estimates by the Center for Transport and Logistics Development Studies, over the past five years the volume of international freight transportation with the organization’s member states increased by 40%, or 9 million tonnes, reaching 33.5 million tonnes in 2025. SCO countries account for around 80% of Uzbekistan’s international freight transportation, with the largest volumes involving Russia, Kazakhstan, China, and Kyrgyzstan. According to Uzbekistan’s Ministry of Transport, freight transportation with SCO countries could reach 47 million tonnes by 2030.
Growing freight flows are increasing the importance of new routes connecting East, Central, and South Asia. The 2025 Tianjin Declaration provides for further cooperation along the North–South and East–West corridors, the establishment and modernization of international transport routes, greater use of the transit potential of SCO member states, and the digitalization of logistics procedures.
One of the most significant projects for Uzbekistan is the China–Kyrgyzstan–Uzbekistan railway, construction of which began in December 2024. The new route is expected to shorten the distance from East Asia toward the Middle East and Southern Europe by around 900 km, while reducing delivery times by 7–8 days. Potential freight volumes are estimated at 12–15 million tonnes per year (Ministry of Transport of Uzbekistan).
Another important route is the Uzbekistan–Afghanistan–Pakistan railway. In July 2025, the parties signed a framework intergovernmental agreement on preparing its feasibility study. Linking the two railway projects would make it possible to create a continuous route from China through Central Asia and Afghanistan to Pakistan and the ports of the Indian Ocean.
Infrastructure projects are complemented by efforts to optimize railway transportation conditions. At Uzbekistan’s initiative, the creation of an SCO Council for the Integration of Railway Networks is being considered, with the aim of reducing physical and administrative barriers and improving the connectivity of member states’ railway systems.
For Uzbekistan, the development of new transport corridors expands access to the markets of Eurasia and South Asia and strengthens the country’s potential as a transit hub between the SCO’s major economic centers.
New Areas of Cooperation
The expansion of economic interaction within the SCO is accompanied by the emergence of new areas for joint work. Scientific and technological cooperation, energy, environmental protection, food security, education, and tourism are already part of the organization’s sectoral cooperation framework, while a number of recent initiatives are aimed at creating practical mechanisms in these areas.
One promising area remains scientific and technological cooperation. At the 2025 Tianjin Summit, Uzbekistan proposed creating an “SCO Network of Innovation and Technology Hubs” to generate new ideas and facilitate technology transfer. Artificial intelligence, big data, robotics, bioengineering, and alternative energy were identified among the priority areas.
Considerable potential is concentrated in energy and the green transition. According to China’s National Energy Administration, by the end of 2024 the total installed renewable energy capacity in SCO countries had reached 2.31 billion kW, increasing 14.5-fold compared with 2001 and accounting for around half of the global total. In 2025, SCO countries adopted a Statement on Cooperation in the Field of Green Industry. Uzbekistan also proposed establishing an SCO Energy Consortium and a Regional Platform on climate adaptation, decarbonization, and the use of artificial intelligence to forecast environmental risks.
Environmental cooperation is particularly important for Central Asia. Since 2013, the Central Asian Research Center for Ecology and Environment has been operating in Tashkent as part of cooperation between China and the countries of the region. More than 80 monitoring stations have been deployed in the Aral Sea region, while joint research covers ecosystem and water-resource conditions, salt and dust storms, and the restoration of saline lands.
Food security is another important area. The SCO has established a mechanism for meetings of agriculture ministers, while cooperation covers agricultural technologies, scientific research, breeding and seed production, resource-efficient technologies, and agricultural trade. For Uzbekistan, expanding this cooperation is important for improving agricultural productivity and gaining access to the large food markets of SCO member states.
Humanitarian cooperation encompasses education, science, and culture. Uzbekistan has proposed creating an online campus within the “SCO University” partner network, holding annual competitions and Olympiads for students and young professionals in innovative fields, and establishing a Great Silk Road Cultural Dialogue.
At the Tianjin Summit, Uzbekistan also proposed exploring the launch of a “Tourism Corridor.” In 2026, the initiative received practical follow-up. At a meeting of the heads of tourism authorities of SCO member states in Bishkek, the parties discussed the development of tourism corridors and joint routes, including attracting visitors from third countries. In April, at a meeting of SCO health ministries, particular attention was also given to Uzbekistan’s proposed concept for a Medical Tourism Alliance and mechanisms for its implementation.
Conclusion
As the SCO marks its 25th anniversary, the organization is entering a new stage of institutional development of economic cooperation. The SCO Development Strategy through 2035 has been adopted, along with the decision to establish the SCO Development Bank; discussions on its financial and governance model are ongoing, and a new strategy for the SCO Interbank Consortium for 2027–2031 is being prepared. At the same time, transport projects are advancing and sectoral cooperation is expanding in energy, industry, technology, agriculture, and tourism.
The next stage will largely depend on the ability of existing and emerging mechanisms to ensure the implementation of multilateral projects. Establishing the SCO’s own project-financing instrument is becoming particularly important. Further progress is also required in the digitalization of trade and customs procedures, settlements in national currencies, integration of transport routes, and convergence of conditions for doing business.
For Uzbekistan, further deepening economic cooperation within the SCO is primarily associated with expanding technological and investment cooperation, industrial partnerships, deeper processing of raw materials, and access to new markets. The wide range of partners within the organization enables the country to diversify its sources of investment, production linkages, and export destinations.
It is the practical implementation of multilateral mechanisms that will determine the next stage of economic cooperation within the SCO. In this context, the anniversary Bishkek Summit, to be held under the motto “25 Years of the SCO: Together Towards Sustainable Peace, Development and Prosperity,” will become an important milestone in the further institutional development of cooperation. The organization approaches the summit with a number of decisions already adopted and initiatives that moved into the practical development stage in 2026. Their implementation will demonstrate how consistently the SCO can transform agreements into joint economic projects and sustainable mechanisms of cooperation.
“Uzbekistan – 2030” Strategy: Updates and refinement of target indicators
📅 28.01.2026
“Uzbekistan - 2030” strategy, adopted on 11 September 2023, identifies sustainable economic growth, the establishment of modern education, healthcare and social protection systems, creation of favorable environmental conditions, building a just and modern state and guaranteed national sovereignty and security as its priority areas. At the core of all reforms is the aim to increase citizens’ welfare, strengthen public trust in the state and ensure confidence in the future. The strategy represents a shift from goal-setting to results-based management, with clear accountability, measurable outcomes and linked financing.
Since its adoption, Uzbekistan has achieved significant progress. Between 2023 and 2025, nominal GDP rose from USD 107.5 billion to USD 140 billion, while exports, foreign investment and innovative activity also grew. Social indicators reflect the reforms’ impact: unemployment fell from 6.8% to 4.9% and poverty decreased from 11% to 6.8%.
What are the reasons for updating the “Uzbekistan - 2030” Strategy?
The need to accelerate the country’s further development has prompted the update of the strategy and its target indicators. The “Uzbekistan - 2030” Strategy has been revised in light of both external and internal factors.
External factors include the global geopolitical environment, international economic trends, technological innovations, environmental and natural changes and the growing demand for energy and water resources. Internal factors encompass demographic growth, urbanization and migration, which require strengthening institutional quality and improving governance efficiency.
In response to these challenges, a draft of the “Uzbekistan - 2030” Strategy for 2026-2030 has been developed and published for nationwide public discussion.
Within the updated Strategy, while retaining the same five priorities and 100 goals, certain tasks and performance indicators have been revised. Many of the previously established targets have already been achieved and new objectives have been added, resulting in an expanded and updated set of performance indicators. Moreover, the document specifies the responsible ministries and agencies as well as the concrete funding sources required to achieve each goal.
In which areas do the reforms provide “mechanisms for change”?
Economy. The largest number of tasks and performance indicators fall under “II. Ensuring the well-being of the population through sustainable economic growth.” The Strategy sets a target GDP of USD 240 billion by 2030 through measures such as maintaining annual inflation at 5–6%, ensuring fiscal stability, enhancing the country’s investment attractiveness, efficiently utilizing domestic raw materials and developing high-tech-based industry and services. The plan also emphasizes deepening Uzbekistan’s integration into global transport and logistics networks and strengthening the export potential of the national economy.
Transitioning to a green economy, transforming the country into a regional “IT HUB” through digital technology development, increasing competition in the banking sector, creating the most favorable conditions for entrepreneurial activity and implementing comprehensive regional development will generate new jobs, ensure employment and increase citizens’ incomes. These measures are expected to reduce poverty, enhance overall well-being and stimulate the growth of key economic sectors, particularly construction, tourism and the service industry.
Education. The Strategy also aims to create favorable conditions for realizing the potential of the youth as well as developing the education and healthcare sectors. Under “I. Creating dignified conditions for the realization of each person’s potential,” performance indicators have been established to achieve goals by 2030, such as ensuring that 50% of graduates from general education schools and academic lyceums receive higher education and secure employment in sectors offering fair wages. Additionally, the inclusion of 10 higher education institutions in the global top-1000 rankings (QS, THE, ARWU) will enhance the competitiveness of Uzbek youth not only in domestic labor markets but also internationally.
The implementation of a cluster system “enterprise – university – research organization” will contribute to the expansion of innovative products in the economy’s “driver” sectors. The Strategy envisions the creation of spin-off type production clusters at higher education institutions to accelerate the process of integrating scientists’ research ideas into economic practice in areas such as transport and logistics, agricultural production, energy, biotechnology, geology and metalworking, mechanical engineering and electronics. Developing science, especially among youth, will improve Uzbekistan’s position in the Global Innovation Index and enable the country to enter the list of the top 60 most innovative nations worldwide.
Health. It is often said that a person’s education reduces health risks and increases life expectancy, while health - physical, mental and social - is the foundation for a full life and self-realization. The Strategy sets goals for the next five years to increase the average life expectancy of the population, reduce premature mortality from cardiovascular diseases (ages 30–69), cancer and respiratory diseases and decrease the incidence of life-threatening congenital defects in newborns. In maternal and child healthcare, nine performance indicators have been established. The Strategy also prioritizes promoting healthy nutrition and lifestyles among the population and reducing adult obesity rates.
Social Protection. For vulnerable segments of the population, the state will continue its policy of fundamentally improving the system of professional social services, establishing a new support system for persons with disabilities and creating a comfortable and favorable environment for them. For children left without parental care, 100% implementation of alternative, non-institutional forms of care will be ensured and for children with special educational needs, coverage by inclusive education will be increased.
The state pays special attention to the expansion of women’s rights and opportunities. Different cultures have diverse perceptions of the roles of men and women, shaped by history, religion and traditions. At the same time, globalization and potential prospects for the country’s development require the implementation of policies ensuring gender equality and increasing the social and political activity of women. The draft Strategy includes tasks such as expanding the number of women trained in professional and entrepreneurial skills, increasing the number of women actively using information and communication technologies, raising the share of women in leadership positions to over 30 percent, and regulating family relations in households experiencing conflict or on the verge of divorce.
Ecology, Law and Security. The priorities of “Conservation of water resources and environmental protection”, “Ensuring the rule of law and organizing public administration oriented toward serving the people” and “Consistent continuation of a policy based on the principle of a safe and peaceful state” are also included in the Strategy, with specific tasks and performance indicators outlined.
Mechanisms for Achieving Goals for Each Priority
The mechanisms for achieving goals under each priority are reflected in strategic documents. For example, to implement the objectives of the priority “Conservation of water resources and environmental protection”, the National Climate Strategy for Climate Change Mitigation and Adaptation and the Strategy for Industrial Waste Management have been developed.
To develop the driver sectors of the economy and achieve GDP growth to 240 billion dollars by 2030, sectoral strategies have been formulated: Strategy for the Development of Industry of Uzbekistan, Strategy for the Development of the Automotive Industry, Strategy for the Development of Light Industry, Strategy for the Development of the Building Materials Industry, Strategy for the Development of the Jewelry Industry, Strategy for the Development of Tourism in Uzbekistan, Strategy for the Modernization, Accelerated and Innovative Development of the Construction Sector and others.
The development and implementation of strategic documents at the regional level will allow achieving goals and objectives in a comprehensive and targeted manner. For instance, Strategies for Comprehensive Development of All Spheres by 2030 in each region of the country consider socio-economic development through the lens of the local economy and the well-being of the population. The development of such documents involves not only local authorities but also leading ministries and agencies, including the Ministry of Economy and Finance, Ministry of Investments, Industry and Trade, Ministry of Agriculture, Ministry of Digital Technologies, Ministry of Employment and Poverty Reduction, Ministry of Energy, National Committee on Ecology and Climate Change and others.
The development of sections of the Strategy involved national think tanks, such as the Institute of Macroeconomic and Regional Research, Center for Economic Research and Reforms, etc. This demonstrates that Uzbekistan implements a scientifically grounded policy (evidence-based policy), where decision-making in various spheres - economy, social policy, ecology, law and security - is based on scientific data, forecasts and expert assessments to achieve medium- and long-term goals.
Key expected outcomes until 2030 (macro outcomes)
The main outcomes of the updated “Uzbekistan – 2030” Strategy are expressed through economic, social, environmental, and other indicators. In the economic sphere, it is expected to achieve macroeconomic stability and sustainable GDP growth up to USD 240 billion, transform the country into a regional “IT HUB” and enter the top 60 most innovative countries in the world, deepen the republic’s integration into global transport and logistics networks and strengthen the export potential of the national economy. Creating a favorable business climate and sustainable jobs as well as ensuring employment for the population, will help reduce income inequality and poverty, with the elimination of absolute poverty based on minimum consumer expenditure and reducing its level to zero percent.
In the social sphere, Strategy provides for creating decent conditions to realize the potential of young people and improving education and healthcare, reflected in target indicators such as increasing life expectancy to 78 years, achieving 80% coverage of children in kindergartens, and 50% coverage in higher education. It also aims to enhance the quality of university education, include 10 higher education institutions in the TOP-1000 rankings of the world’s most prestigious universities (QS, THE, ARWU) and implement a cluster system connecting enterprises, universities and research organizations.
In the environmental sphere, the Strategy envisions continuing the transition to a green economy, introducing green energy technologies, constructing buildings that meet “green” standards, promoting a culture of rational water use, developing water-saving technologies, preventing air pollution and mitigating the negative impacts of climate change.
Doctor of Economic Sciences, Professor D.M. Karimova
Institute of Macroeconomic and Regional Studies
Republic of Uzbekistan
Do you know Uzbekistan?
📅 11.07.2024The text of the article is in Uzbek language!
Uzbekistan and Korea: Advancing Green Energy and New Technologies
📅 15.09.2026
In recent years, energy cooperation between Uzbekistan and the Republic of Korea has been acquiring a new strategic dimension. The two countries are brought closer by their shared interests in pursuing sustainable and green development amid global energy security challenges and climate change. The synergy between Korea’s advanced technological capabilities and Uzbekistan’s ongoing fundamental reforms is already producing tangible results across a number of strategic areas, including renewable energy, hydrogen energy, digital energy management systems, and the training of highly qualified engineering professionals.
The Legal Foundation for Cooperation
Institutional cooperation between the two countries in the energy sector was strengthened by the signing in 2021 of the Memorandum of Understanding on Cooperation in Energy Efficiency and Renewable Energy. This document provided an important legal framework for joint forums, training programmes, and technology-exchange initiatives that have been organized in recent years.
“Energy Value Networks Forum”: A New Stage in Energy Diplomacy
On May 28, 2025, the first Uzbekistan–Korea international energy forum, the Energy Value Networks Forum, was held in Tashkent with the participation of the Ministry of Energy of the Republic of Uzbekistan, the Ministry of Trade, Industry and Energy of the Republic of Korea, and the Korea Energy Agency.
The event was organized by Ajou University in Tashkent, the Korea Climate Change Institute, and the Energy Professionals Training Center. More than 200 participants attended the forum, including Won Do-yeon, Ambassador of the Republic of Korea to Uzbekistan, and Yeon Won-shin, head of the Korea Energy Agency. Experts from both countries exchanged views on reforms in the energy sector, advanced technologies, and promising areas for joint projects.
Building on this initiative, the second stage of the forum was held in Tashkent on June 30–July 1, 2026, organized by Korea Western Power and KOICA with the support of the Ministry of Energy.
The second forum was significantly broader in scope. Representatives of government agencies, international organizations, academic institutions, and the private sector delivered 12 presentations and discussed such modern areas as artificial intelligence-based energy management, battery energy storage systems (BESS), biomass-based cogeneration, monitoring, reporting and verification (MRV) of carbon emissions, electric vehicle battery recycling, and smart grid technologies.
The forum is helping to establish a strong foundation for long-term partnership between the two countries in the energy sector.
Green Hydrogen: First Steps Toward the Energy of the Future
One of the most promising areas of energy cooperation between Uzbekistan and Korea is the development of clean hydrogen energy. In this area, the Clean Hydrogen for Uzbekistan project is being implemented in cooperation with the Global Green Growth Institute (GGGI). The project is financed by the Korea Green New Deal Trust Fund (KGNDTF), established under the Ministry of Economy and Finance of the Republic of Korea.
On April 2, 2026, an event dedicated to the official launch of the project was held in Tashkent. The participants discussed the development of the institutional and technological foundations necessary for advancing clean hydrogen in Uzbekistan, strengthening national capacity, and developing the hydrogen market.
As part of the cooperation, from April 28 to May 1, specialists from the Ministry of Energy of Uzbekistan visited the Republic of Korea to study international experience, regulatory frameworks, and advanced technological solutions in the field of hydrogen energy. Particular attention was paid to hydrogen production and storage, its application within energy systems, as well as opportunities for implementing joint initiatives in this sector.
These efforts continued with a two-day seminar held in Tashkent on August 20–21 under the theme “Capacity Building for the Development of Clean Hydrogen Energy in Uzbekistan.” The event provided an opportunity to discuss international experience and technological approaches, with particular emphasis on expanding cooperation between Uzbekistan and Korea in the development of hydrogen energy.
Capacity Building and Technological Exchange
With the aim of bringing the knowledge and skills of sector specialists in line with international standards, specialized training seminars are being organized for employees of all regional departments of the Uzbekenergoinspektsiya, with the participation of experts from China’s Sinoma Energy, the Korea Climate Change Institute, the Korea Energy Agency, and the National Association of Energy Professionals of Uzbekistan.
These training programmes provide an in-depth examination of international experience in such areas as generating electricity from waste heat at large energy-consuming facilities, utilizing greenhouse gas emissions from industrial enterprises, conducting energy audits, and effectively commissioning solar photovoltaic power plants.
Upon completion of the courses, participants receive internationally recognized certificates of professional qualification.
Human Capital Development: The Foundation of Long-Term Partnership
One of the most sustainable areas of Uzbekistan–Korea energy cooperation is the training of young specialists. In this regard, cooperation with Korea’s leading energy corporation, KEPCO (Korea Electric Power Corporation), holds particular importance.
Under a cooperation programme between the Uzatom Agency under the Cabinet of Ministers of the Republic of Uzbekistan and KEPCO, young Uzbek citizens are pursuing master’s degrees at the prestigious KEPCO International Nuclear Graduate School (KINGS) in the Republic of Korea.
Students are admitted to the programme on a competitive, scholarship-based basis and receive advanced theoretical and practical training in nuclear energy and related engineering disciplines. The initiative is being implemented as part of Uzbekistan’s strategy to develop national human capital in the nuclear energy sector and is expected to contribute to expanding the pool of highly qualified specialists with international experience in the country’s future energy system.
Cooperation in Practice: The Example of Navoi Thermal Power Plant
Technological cooperation between the two countries is reflected not only in forums and training programmes but also in major practical projects.
One such example is the construction of a 650 MW combined-cycle gas turbine unit at the Navoi Thermal Power Plant. Once commissioned, the project is expected to generate 4.8 billion kWh of electricity and 200 Gcal of thermal energy annually, while saving approximately 870 million cubic meters of natural gas each year.
More than 2,400 specialists are working at the site, including foreign engineers operating high-tech equipment manufactured in Japan, China, India, and Korea. The project therefore represents a clear example of regional technological cooperation and the integration of advanced international engineering expertise.
Conclusion
The forums, educational programmes, research initiatives in clean hydrogen, and major infrastructure projects all demonstrate the multifaceted and promising nature of energy cooperation between Uzbekistan and Korea.
This partnership is being strengthened not only through the exchange of technologies and investment, but also through investment in human capital — in particular, the training of the engineers and scientists who will shape the energy systems of the future.
In the long term, this approach will contribute to ensuring that strategic cooperation between the two countries continues to develop on a stable, mutually beneficial, and sustainable basis.
Obidjon Dilmurodov
Chief Specialist
Ministry of Energy of the Republic of Uzbekistan
Uzbekistan's open and constructive foreign policy is based primarily on national interests
📅 02.08.2024The text of the article is in Uzbek!
Economic connectivity between Central and South Asia: a foundation for stability and sustainable development of the macroregion
📅 27.05.2026
- Introduction
Central and South Asia form one of Eurasia’s most significant geographic junctions. Central Asia connects the continent’s east–west and north–south routes, while South Asia contains one of the world’s largest population bases and consumer markets. Taken together, the countries of the two subregions have a population of more than 2 billion people; however, their direct economic interaction remains below its potential level.
The scale of the potential market is confirmed by the figures: in 2024, the population of South Asia was approximately 1.68 billion people, while the region’s combined GDP was about US$4.5 trillion. At the same time, the economy of the five Central Asian countries in 2024 amounted to approximately US$489 billion. However, the level of interregional integration remains low: even within South Asia, intraregional trade is estimated at around 5% of total trade turnover, which is significantly lower than the ASEAN figure[1][2][3].
This is evident in trade statistics: Central Asia’s main trade flows continue to be oriented toward Russia, China, the European Union, Türkiye, and the Middle East, while trade with South Asia occupies a comparatively limited niche.
The underused potential is explained not by a lack of demand, but by structural constraints. Between the two subregions, there are mountain barriers, complex cross-border routes, differing levels of integration into international supply chains, non-uniform customs and technical procedures, as well as the Afghanistan factor, which is simultaneously the shortest connecting link and the most sensitive element of the regional architecture. Therefore, the issue of connectivity has not only commercial but also strategic significance.
The restoration of economic ties between Central and South Asia should not be viewed as a romanticized return to historical routes. In modern conditions, it is a matter of competitiveness, supply-chain security, energy resilience, and diversification of foreign economic directions. For the countries of Central Asia, the southern route opens shorter access to the ports of the Arabian Sea and the Indian Ocean. For the countries of South Asia, it creates an opportunity to gain access to energy resources, food products, industrial goods, and new markets in Eurasia.
Uzbekistan occupies a special place in this logic. It is located in the central part of the region, borders all Central Asian states and Afghanistan, and therefore is capable of forming a link between the internal markets of Central Asia and the southern direction. At the same time, the role of a connector state means more than the transit of goods. It includes the coordination of infrastructure projects, the development of logistics services, the improvement of institutional quality, the creation of an analytical basis for decision-making, and the involvement of the private sector in interregional projects.
- Historical and geographical preconditions for connectivity
The historical connection between Central and South Asia was formed long before the emergence of modern state borders. The cities of Transoxiana, Khorasan, Bactria, and northern India were part of a network of caravan routes and exchanges of artisanal goods, knowledge, religious traditions, and financial practices. Samarkand, Bukhara, Balkh, Merv, Kabul, Peshawar, and Lahore, in different periods, served as trade and cultural hubs linking the Eurasian space.
However, historical connectedness does not automatically translate into economic integration today. Modern supply chains depend on railways, highways, ports, energy networks, digital cargo-tracking systems, insurance, banking settlements, and predictable rules. Where even one of these elements is absent, transit becomes expensive, slow, and risky.
The geography of the region creates both incentives and constraints. On the one hand, the distance from Uzbekistan’s southern borders to northern Afghanistan is relatively short, and the route through Afghanistan is potentially the shortest overland path from Central Asia to Pakistan and onward to the ports of the Indian Ocean. On the other hand, mountain ranges, differences in railway gauge, the limited capacity of border infrastructure, security issues, and insufficient standardization of procedures increase the cost of projects.
Uzbekistan’s geographical role has not only qualitative but also measurable significance: the country is one of only two double-landlocked states in the world and, at the same time, the only state bordering all four other Central Asian countries as well as Afghanistan. In this context, the Mazar-i-Sharif–Kabul–Peshawar railway project, with a length of approximately 573 km, acquires systemic importance, since it could reduce the time and cost of transportation toward Pakistan’s ports by roughly 30%[4].
Therefore, connectivity should be understood more broadly than the physical connection of two points on a map. In the modern economy, it includes four dimensions. The first is infrastructural: roads, railways, terminals, ports, and energy networks. The second is institutional: customs, tariffs, standards, sanitary and phytosanitary rules, permits, and transit guarantees. The third is commercial: demand, purchasing power, contracts, logistics companies, insurance, and banking channels. The fourth is social and humanitarian: education, labor skills, tourism, medical ties, and research cooperation.
This approach helps avoid oversimplification. Even the shortest road will not become a sustainable corridor unless it is supported by a reliable legal environment, competitive tariffs, financial guarantees, and coordination among states.
- Current state of trade and economic cooperation
Trade and economic ties between Central and South Asia are developing, but their scale still does not correspond to the size of the markets. Trade between Central Asian countries and India, Pakistan, Bangladesh, Sri Lanka, and Afghanistan remains relatively modest compared with their trade with China, Russia, the European Union, Türkiye, and countries of the Middle East.
Central Asia supplies, or could potentially expand supplies to South Asia, in such areas as agricultural products, grain, fruit and vegetable products, textiles, fertilizers, energy goods, certain types of metals, and industrial raw materials. South Asia, primarily India and Pakistan, holds competitive positions in pharmaceuticals, medical goods, IT services, equipment, textile products, processed food products, and consumer goods.
In recent years, Uzbekistan has been strengthening the southern direction of its foreign economic policy. Trade ties with India and Pakistan are developing through pharmaceuticals, textiles, food products, services, logistics, and investment projects. Uzbekistan’s foreign trade in the southern direction is already growing, but it still occupies a limited place in the overall structure of foreign trade. The largest trade flows with South Asian countries are with Afghanistan and India. However, the very fact that certain bilateral flows are growing does not solve the main problem: interregional trade remains fragmented. In order to turn it into a sustainable market, it is necessary to reduce transaction costs, ensure the predictability of transit, make standards comparable, and develop business services.
The issue of trade data is especially important. Mutual trade is often assessed using different sources, while the statistics of exporting countries and importing countries may diverge. To develop effective policy, a regularly updated data panel is needed, broken down by corridors, types of cargo, border-crossing times, transportation costs, return loads, the number of permits, and the actual use of preferential regimes. Without such a database, regional initiatives risk remaining merely declaratory.
- Transport and logistics infrastructure as the basis of connectivity
Transport infrastructure is the material foundation for the rapprochement of Central and South Asia. At the same time, it is more accurate to speak not of a single route, but of a portfolio of corridors. Relying on only one route increases the vulnerability of the entire system. A diversified network of routes through Afghanistan, Iran, the Caspian Sea, the Caucasus, and existing Eurasian directions creates redundancy, reduces risks, and strengthens the negotiating position of shippers.
The key project in the southern direction remains the trans-Afghan railway corridor Mazar-i-Sharif–Kabul–Peshawar. Its strategic value lies in its potential to connect Uzbekistan and other Central Asian countries with Pakistan’s ports, including Karachi, Qasim, and Gwadar. If implemented, such a corridor could reduce the distance and delivery time for certain types of cargo. However, the project requires the resolution of several complex issues: financing, security, technical parameters, railway gauge compatibility, the operating model, tariffs, and the distribution of risks among participants.
The Termez–Hairatan hub in Uzbekistan has particular significance. It is the closest entry point from Uzbekistan into Afghanistan and is already used as a logistics, humanitarian, and trade channel. The development of terminals, warehouses, customs capacities, multimodal transport services, and digital cargo-control systems could turn this hub into a stable anchor point for interregional trade.
Alongside the trans-Afghan route, the route through Iran is also important. For India, Central Asia, and Afghanistan, the Chabahar port is of particular significance, as are its links with the International North–South Transport Corridor and the Ashgabat Agreement. This option does not replace the trans-Afghan route, but it increases the resilience of the trade system. Events of recent years have shown that the closure or restriction of individual routes quickly increases the importance of alternative pathways through Iran and the countries of Central Asia.
Road corridors remain a necessary complement to railways. They are especially important for perishable products, small consignments, e-commerce, pharmaceuticals, and high-value-added goods. In this area, the key factors are not only roads, but also border procedures, the permit system for carriers, weight control, insurance, the safety of parking areas, and access to backhaul cargo.
The development of air connectivity plays a separate role. Direct flights between Tashkent, Samarkand, Almaty, Astana, Delhi, Mumbai, Lahore, and other cities do not create mass freight logistics, but they reduce barriers to business travel, tourism, education, medical services, and managerial oversight of investment projects. For modern business, such mobility is not a secondary factor, but a systemic one.
- Energy partnership: from project-based logic to a regional market
Energy is one of the most obvious areas of complementarity between Central and South Asia. The Central Asian countries possess significant resources in natural gas, hydropower, solar power, and wind generation. South Asia, primarily Pakistan, India, Bangladesh, and Afghanistan, faces high energy demand, seasonal consumption peaks, and the need for a more reliable supply structure.
The most advanced interregional project in the electricity sector is CASA-1000. According to World Bank materials, the project is intended to ensure the transmission of up to 1,300 MW of surplus summer electricity from Kyrgyzstan and Tajikistan to Afghanistan and Pakistan. The project also provides for high-voltage transmission infrastructure, including power transmission lines and converter stations. Its significance goes beyond the energy sector: it demonstrates the possibility of contract-based electricity trade between the subregions with the participation of international financial institutions.
In the gas sector, the best-known project is TAPI: Turkmenistan–Afghanistan–Pakistan–India. Its planned logic is straightforward: Turkmen gas is expected to flow through Afghanistan to the energy-deficient markets of South Asia. Published descriptions of the project usually indicate a length of approximately 1,800 km and a designed capacity of up to 33 billion cubic meters of gas per year. However, TAPI remains a complex project with a high dependence on security, financing, long-term contracts, payment guarantees, and political coordination among the participants.
CASA-1000 has not only political but also measurable infrastructural significance: the project cost is estimated at approximately US$1.2 billion, while the designed transmission capacity is 1,300 MW. The Kyrgyz component provides for around 456 km of 500 kV power transmission lines. This makes it possible to view CASA-1000 as the first major example of contract-based interregional electricity trade between Central and South Asia[5][6].
The new energy agenda includes not only the export of fuel and electricity, but also the development of low-carbon solutions. Uzbekistan, Kazakhstan, Kyrgyzstan, and Tajikistan are expanding projects in solar, wind, and hydropower, while also modernizing their grids. In the long term, South Asia could become a market for seasonal electricity and energy services from Central Asia. However, this requires rules for cross-border trade, compatible dispatch mechanisms, commercial guarantees, transparent tariffs, and investment in grid resilience.
Energy cooperation must take into account climate and water-related factors. In Central Asia, hydropower is closely linked to irrigation and water resource management. In South Asia, electricity demand depends on temperature peaks, urbanization, and industrial growth. Therefore, energy projects should be accompanied by mechanisms for climate adaptation, forecasting water availability, improving energy efficiency, and developing energy storage systems.
- Investment cooperation and business ties
Investment cooperation between Central and South Asia is still developing on a case-by-case basis, but it has significant potential. Unlike trade in raw materials, investment requires a higher level of trust, legal certainty, protection of property rights, clear tax regimes, access to foreign-exchange settlements, and high-quality business information.
The most promising areas include pharmaceuticals, medical services, agro-processing, textiles, logistics, warehouse infrastructure, IT services, education, tourism, financial technologies, renewable energy, and the production of components for infrastructure projects. South Asian companies have strong competencies in IT, pharmaceuticals, and services, while Central Asia offers access to raw materials, industrial sites, growing domestic markets, and transit opportunities.
An important task is to move from one-off business contacts to a systematic investment pipeline. This requires project catalogues, clear requirements for investors, standardized public-private partnership models, dispute-resolution mechanisms, insurance against political and commercial risks, and joint workforce training programs.
Small and medium-sized enterprises are of particular importance. Large infrastructure projects create the foundation, but it is small and medium-sized businesses that fill corridors with real goods and services. For them, access to information, affordable logistics services, digital marketplaces, simplified payments, standardized documents, and support in entering a new market are critical.
Development institutions and international financial organizations can play a catalytic role. Their participation reduces risks, improves the quality of project preparation, and disciplines the participants. However, external financing does not replace national reforms. Without clear rules, transparent statistics, and effective courts, even concessional loans will not create a sustainable flow of investment.
- The strategic role of Uzbekistan as a connector state
Uzbekistan possesses a unique set of preconditions for playing the role of a connector state. It is located at the center of Central Asia, borders all the countries of the region as well as Afghanistan, and is also a major demographic and industrial market. For a country without access to the sea, the development of external corridors is not an optional task, but a condition for long-term competitiveness.
Uzbekistan’s role is not limited to transit. A transit country earns revenue from the movement of goods, but a connector state shapes rules, services, trust, and the institutional environment. This means developing multimodal hubs, creating logistics centers, digitalizing customs procedures, expanding railway and road links, training personnel, attracting banks and insurance organizations, and providing analytical support for projects.
The southern direction strengthens Uzbekistan’s foreign economic diversification. It complements the country’s already existing links in the northern, eastern, and western directions. At the same time, the diversification of routes reduces dependence on individual markets and transit pathways, which is especially important amid instability in global trade, changes in tariff policy, and geopolitical restrictions.
Termez occupies a special place in this strategy. It can serve as a border logistics center, a platform for trade with Afghanistan, a hub of humanitarian and commercial infrastructure, and a symbolic space for discussing connectivity between Central and South Asia. To turn this role into a sustainable result, investment is needed in terminals, railway approaches, warehouse capacity, services for carriers, and a system for analyzing cargo flows.
Uzbekistan’s strength also lies in its ability to put forward multilateral initiatives. Interregional connectivity cannot be implemented through bilateral agreements alone. It requires the alignment of interests among the countries of Central Asia, the countries of South Asia, Afghanistan, international financial institutions, business, and the expert community. In this sphere, Uzbekistan can act as a coordinator of the agenda and a provider of analytical solutions.
- Key barriers and ways to overcome them
The first barrier is incomplete infrastructure. Many corridors exist in the form of project concepts or partially functioning routes. To transform them into commercially sustainable directions, technical and economic feasibility studies, agreed tariffs, clear sources of financing, unified operational models, and transparent risk allocation are required.
The second barrier is security and the predictability of transit. For business, what matters is not only the length of the route, but also the likelihood of delays, losses, border closures, changes in rules, and additional payments. Therefore, transport policy should include insurance mechanisms, security standards, corridor monitoring, crisis protocols, and regular information exchange among government agencies.
The third barrier is administrative fragmentation. Different documents, uncoordinated customs procedures, weak advance declaration, the absence of mutual recognition of certain certificates, and limited digital interoperability increase the cost of trade. The solution lies in the transition to electronic transport documents, the expansion of the single-window principle, the introduction of risk-based control, and the coordination of technical standards.
The scale of the financial challenge can be assessed through the example of CAREC: in 2021–2024, transport investment under the program amounted to US$8.61 billion, with a significant share of financing provided by international partners. This shows that infrastructure corridors require not only a political decision, but also a sustainable financial architecture[7][8].
Administrative barriers have a measurable expression. According to CAREC monitoring, in 2022, the average border-crossing time on road corridors was 9.9 hours, while on railway corridors it was 40.6 hours. This confirms that the digitalization of documents, advance declaration, and risk-based control can produce an effect even without the immediate construction of new arterial routes.
The fourth barrier is financial constraints. Infrastructure projects require large capital investments and have long payback periods. A combination of budget funds, loans from international financial organizations, public-private partnerships, guarantees, project financing, and blended-finance mechanisms is needed. At the same time, each project must undergo an assessment of commercial viability, not only political attractiveness.
The fifth barrier is the lack of market information. Companies often do not know potential partners, market requirements, logistics tariffs, certification rules, or available financial instruments. This barrier can be reduced through digital trade platforms, business missions, sectoral catalogues, regular exhibitions, analytical reviews, and consulting centers under chambers of commerce and industry.
The sixth barrier is climate and resource-related risks. Mountainous areas, droughts, floods, changes in glacial runoff, and extreme weather events affect roads, energy, and agriculture. New corridors should be designed with climate resilience in mind, while energy projects should take into account the water balance and the seasonality of demand.
Practical priorities through 2030
|
Area |
Short-Term Focus |
Medium-Term Result |
|
Transport |
Modernization of border terminals, digital cargo tracking and recordkeeping, corridor statistics |
Reduction in delivery time and cost, increased reliability of routes |
|
Trade |
Electronic documents, advance declaration, work on harmonizing standards |
A more predictable regime for exporters and carriers |
|
Energy |
Contractual models, grid investments, consideration of seasonality |
Regional electricity trade and diversification of supplies |
|
Investment |
Project catalogues, guarantee instruments, support for SMEs |
Expansion of private-sector participation and industrial cooperation |
|
Institutions |
Project registry of the Termez Dialogue and annual monitoring |
Transition from declarations to measurable results |
- The Termez Dialogue as an institutional foundation for cooperation
The Termez Dialogue on Connectivity between Central and South Asia can become an important institutional platform for coordinating the interregional agenda. In 2025, the first dialogue was held in Termez, dedicated to the formation of a shared space of peace, friendship, and prosperity. The very choice of Termez emphasizes the city’s practical role as Uzbekistan’s southern hub and as a symbolic point of connection with Afghanistan and South Asia.
The effectiveness of such a format will depend on whether it can move from general statements to the management of a project-based agenda. For this purpose, it would be advisable to structure the dialogue around four permanent tracks: transport and logistics, trade and standards, energy and climate, and investment and human capital. Each track should have a project map, progress indicators, responsible participants, and a mechanism for annual updates.
The participation of business is of particular importance. States can sign framework documents, but real demand for corridors is generated by exporters, importers, carriers, banks, insurance companies, terminal operators, and manufacturing enterprises. Therefore, within the framework of the Termez Dialogue, business sessions, B2B platforms, sectoral presentations, and discussions of specific barriers faced by companies are necessary.
The expert track should serve as an evidence base. It can prepare an annual report on the state of connectivity between Central and South Asia, a corridor-readiness index, monitoring of transportation time and costs, a review of regulatory barriers, analysis of investment projects, and recommendations for governments. In this area, Uzbekistan’s analytical institutions can play a leading role.
The Termez Dialogue is also important as an instrument for involving Afghanistan in economic processes on a pragmatic basis. This is not a matter of political legitimization, but of reducing economic isolation, developing transit procedures, supporting sustainable livelihoods, and creating incentives for stability. This logic corresponds to the interests of all participants, since Afghanistan’s economic predictability directly affects the cost and security of interregional routes.
- Connectivity and the Sustainable Development Goals
Economic connectivity between Central and South Asia is directly linked to the UN Sustainable Development Goals. The development of energy networks supports SDG 7, the expansion of trade and employment corresponds to SDG 8, the construction of resilient infrastructure is linked to SDG 9, the reduction of spatial isolation contributes to SDG 10, climate resilience relates to SDG 13, and regional coordination and partnerships correspond to SDG 16 and SDG 17.
However, the link with the SDGs does not arise automatically. Infrastructure can promote development, but it can also deepen inequality if benefits accrue only to major actors while local communities bear the costs. Therefore, projects should include environmental assessment, social safeguards, consultations with the population, management of land-related issues, occupational safety measures, and transparent compensation mechanisms.
Special attention should be paid to women, youth, and small enterprises. New corridors create demand for services in logistics, trade, catering, repair, digital support, education, and tourism. If access to these opportunities is opened to local entrepreneurs, infrastructure will become a source of inclusive growth, not merely transit rent.
Climate risk is already becoming an economic factor. According to World Bank estimates, by 2030, nearly 90% of South Asia’s population may be exposed to intense heat, while more than one fifth of the population may face the risk of severe flooding. For Central Asia, the key constraint is water: in Uzbekistan, the volume of water withdrawal significantly exceeds internal renewable resources, and the current water deficit may increase to 7 billion m³ by 2030 and to 15 billion m³ by 2050[9][10][11].
The climate dimension of connectivity is becoming increasingly important. South Asia and Central Asia are exposed to the risks of extreme weather events, glacier melt, droughts, floods, and tensions around water. Therefore, new roads, railways, power transmission lines, and logistics centers should be designed with long-term climate scenarios in mind. For the energy sector, this means combining electricity trade, energy efficiency, renewable sources, and grid resilience.
From the standpoint of sustainable development, the most promising model is not one of raw-material transit, but one of value-added creation. This implies agro-processing, industrial cooperation, service chains, digital trade, the localization of selected industries, and workforce training. In this case, connectivity is transformed from the movement of goods into a mechanism of structural modernization.
- Conclusion
Economic connectivity between Central and South Asia is one of the key conditions for the sustainable development of the macroregion. It is capable of expanding sales markets, reducing transport isolation, strengthening energy security, supporting employment, and creating new incentives for regional stability. At the same time, the expected effect depends not on a single project, but on a coordinated package of measures.
The main practical conclusion is the need for a portfolio approach. The trans-Afghan railway, the route through Iran, road corridors, air connectivity, the CASA-1000 and TAPI energy projects, trade digitalization, logistics hubs, and investment platforms should be viewed as mutually complementary elements. Each of them has different implementation timelines, risks, and economic logic; therefore, the regional strategy should ensure redundancy and flexibility.
Uzbekistan has objective advantages for the role of a connector state. Its geography, demographic potential, industrial base, southern hub in Termez, and active foreign economic agenda make it possible to bring together the interests of Central and South Asia.
The Termez Dialogue can become a platform where political will is translated into project-level discipline. For this to happen, it should generate not only declarations, but also a list of projects, indicators, road maps, evaluation mechanisms, and permanent channels of interaction among business, experts, and government agencies.
In the long term, connectivity between Central and South Asia should be oriented not only toward increasing trade volumes, but also toward improving the quality of development. A sustainable macroregion will take shape where infrastructure is connected with institutions, energy with climate responsibility, trade with industrial cooperation, and diplomatic initiatives with evidence-based analysis and practical results.
Muhammad Babadjanov,
Head of Department
at The Institute for Macroeconomic and Regional Studies
under the Cabinet of Ministers of the Republic of Uzbekistan
[1] https://www.worldbank.org/en/programs/south-asia-regional-integration/trade
[2] https://data.worldbank.org/?locations=TJ-UZ-KZ-TM-KG
[3] https://data.worldbank.org/country/south-asia
[4] https://uzembassy.kz/en/article/the-mazar-i-sharif-kabul-peshawar-railway-will-open-up-broad-prospects-for-international-trade
[5] https://www.worldbank.org/en/country/afghanistan/brief/updated-q-a-on-casa-1000-resumption-in-afghanistan
[6] https://www.worldbank.org/en/news/press-release/2023/11/01/additional-financing-for-casa-1000-project-for-the-kyrgyz-republic
[7] https://www.carecprogram.org/uploads/03-CAREC-Transport-Strategy-2030-Midterm-Review-Draft-Report.pdf
[8] https://cpmm.carecprogram.org/2022-report/key-results/
[9] https://www.worldbank.org/en/news/press-release/2025/06/03/climate-resilience-in-south-asia-will-be-private-sector-led
[10] https://data.worldbank.org/country/uzbekistan
[11] https://www.adb.org/news/features/numbers-climate-change-central-asia
NEW UZBEKISTAN: THE "GREEN" PATH OF DEVELOPMENT
📅 15.05.2025
In the 21st century, "green" development has become not just a trend, but an unavoidable path for all of humanity. In the face of rapid climate change, intensifying water resource scarcity, and loss of biodiversity, sustainable development has become a priority for every nation. The President of the Republic of Uzbekistan, Sh.M. Mirziyoyev, speaking at international, regional, and national forums, consistently promotes the agenda of sustainable "green" development as the key to the prosperity of future generations.
The recently published book "The Path of 'Green' Development for New Uzbekistan" presents 310 quotes and 54 initiatives by Sh. Mirziyoyev, proposed during the period of 2017-2025, addressing climate change mitigation, rational use of water and natural resources, biodiversity conservation, and transition to a "green" economy.
Structurally, the book is divided into three chapters: "'Green' Development - the Path Chosen by Humanity," "Central Asia - The Course Towards 'Green' Development and the Future," and "New Uzbekistan on the Path of Sustainable Development."
Green development: the path humanity has chosen
In the context of the global climate crisis, depletion of natural resources, and deterioration of environmental quality, an increasing number of countries are transitioning to a sustainable development model. Within this concept, a "green" economy is replacing raw material-industrial models centered on extraction, exploitation, and disregard for environmental risks.
The leader of Uzbekistan has repeatedly emphasized that for Central Asian countries, "green" development should become the foundation for a new stage of modernization: ..."only by efficiently utilizing limited land and water resources, addressing environmental issues, and embarking on the path of 'green' development, 'green' economy, and 'green' energy can we ensure sustainable development of the country and the well-being of its population. This is the only correct path." This quote reflects a fundamental shift in state policy: from narrow economic thinking to a strategic approach that focuses not only on profit and growth but also on environmental preservation, ecosystem sustainability, and public health. This is precisely why Sh. Mirziyoyev advocates the idea that the green course is not a fashionable trend, but a long-term necessity. Supporting the transition to green energy sources, reducing greenhouse gas emissions, strengthening environmental legislation, and educating the public are all part of a systemic green reform.
The President consistently emphasizes that responsibility for the future lies not only with developed countries but also with emerging economies. In this context, he declared at the UN General Assembly (2023): "At this pivotal historical moment, we all must reflect on what kind of planet we will leave for future generations." This appeal aims to mobilize the global community, but primarily reflects Uzbekistan's internal transformation - a course towards sustainability, resource conservation, and climate justice. In this regard, we present the following scientifically grounded proposals of the President.
Firstly, "climate change has become one of the main challenges for sustainable development in Central Asia," declared the President of Uzbekistan at the COP28 summit in Dubai. He emphasized that "the transition to a 'green' economy and achieving carbon neutrality are strategic objectives of New Uzbekistan."
Secondly, "Climate change has become one of the main challenges to sustainable development. This is especially acute in Central Asia and adjacent regions against the backdrop of the Aral Sea tragedy - one of the most devastating ecological crises of our time."
Thirdly, "the rise in air temperature in Central Asia is twice the global average, the number of extremely hot days has doubled, and a third of glacier masses have melted."
Fourthly, "soil degradation, regular dust and sand storms, drinking water shortages, air pollution, biodiversity loss, sharp decline in crop yields, and many other factors are negatively impacting the quality of life of millions of residents in the region."
Fifthly, the President also called for "swift agreement on the Global Framework for Climate Change Adaptation within the Paris Agreement." He also addressed the topic of global transition to a low-carbon economy. According to him, this process "must be fair, transparent, and inclusive" and "must necessarily take into account the interests of developing countries."
Sixthly, to transform the Aral Sea region into a Zone of Innovation, Technology, and New Opportunities, the head of Uzbekistan invited everyone to close cooperation "in creating an International Climate Technology Expo Hub in this region." Additionally, the President proposed to "establish scientific exchange and conduct joint research on the platform of the Climate Science Forum," which is being created on the basis of Green University in Tashkent, involving scientists and experts from foreign countries.
Central Asia: Charting a Course Towards "Green" Development and Future
Global climate change is one of the most serious problems of our time, affecting all countries worldwide and becoming a significant obstacle to sustainable "green" development. The observed warming is causing extreme natural phenomena across the globe, such as droughts, hurricanes, scorching heat, fires, torrential rains, and floods.
Uzbekistan and other Central Asian states are among the countries most vulnerable to environmental disasters. Against the backdrop of a general increase in climate threats, Central Asia is developing its own regional response to the challenges of global warming and environmental degradation. The initiatives of the President of Uzbekistan on international platforms demonstrate that green transformation is not just a national priority, but also an interstate one.
Speaking at the 78th session of the UN General Assembly (2023), the President emphasized: "Today, the world is facing a severe ecological situation. The triple planetary crisis, caused by climate change, loss of biodiversity, and environmental pollution, is intensifying.
Under these challenging conditions, Central Asia, which continues to grapple with the tragedy of the Aral Sea, is becoming one of the regions most vulnerable to climate change."
This quote indicates the need for regional integration in the field of environmental safety. The President emphasizes the importance of joint actions in the management of natural resources, in particular transboundary waters. He initiated the development of a Regional Strategy to combat desertification and land degradation, emphasizing that sustainable agriculture and biodiversity conservation are only possible through coordinated efforts.
As part of this initiative, the following proposals were put forward:
First proposal: establishment of a Regional Center for Climate Technologies;
Second proposal: creation of a unified "green" energy space;
Third proposal: joint projects for reforestation and combating desertification, particularly in the dried-up seabed of the Aral Sea;
Fourth proposal: development of transboundary water diplomacy based on the principles of the Helsinki Convention.
In recent years, at Uzbekistan's initiative, the UN General Assembly has adopted more than ten special resolutions. Many of these directly address environmental issues in Central Asia and reflect Uzbekistan's active role in regional environmental diplomacy.
It is particularly noteworthy that all international initiatives and efforts of Uzbekistan's leader in this field are rooted in our national values, passed down from our ancestors over millennia. It should be emphasized that the environmental initiatives presented by the head of state at global forums receive widespread support from the international community and make a tangible contribution to ensuring sustainable "green" development at the global level.
For instance, one of Uzbekistan's landmark achievements was the adoption of a Special Resolution by the UN General Assembly in 2021, declaring the Aral Sea region a zone of environmental innovations and technologies. This marks the first time the UN General Assembly has granted such a high status to a region. This is because, due to the drying up of the Aral Sea, the Aral Sea region has become the epicenter of a global ecological disaster, a territory with an elevated risk to human health and ecosystem instability.
Water resource management issues in the region also remain within the focus of the President of Uzbekistan. "Effective water resource management with neighboring countries is key to sustainable development not only for Uzbekistan but for our entire region." This statement is particularly relevant for Central Asia, where water is becoming an increasingly scarce and politically sensitive resource. The leader of Uzbekistan advocates for the establishment of sustainable mechanisms for the distribution and joint management of water flows, which should reduce tensions and ensure harmonious development.
At the SCO summit in Bishkek (June 14, 2019), Shavkat Mirziyoyev proposed adopting the SCO "Green Belt" program to introduce resource-saving and environmentally friendly technologies in the organization's member countries. At the 14th ECO Summit (March 4, 2021), the Head of Uzbekistan put forward an initiative to develop and approve a medium-term strategy aimed at ensuring energy sustainability and broadly attracting investments and modern technologies to this sector.
At the Third Consultative Meeting of Central Asian Heads of State, held on August 6, 2021, in Turkmenistan, the President of Uzbekistan advocated for the development of a regional "Green Agenda" program for Central Asia. This program aims to facilitate the adaptation of countries in the region to climate change. The main focus areas of the program could include gradual decarbonization of the economy, rational use of water resources, integration of energy-efficient technologies into the economy, and increasing the share of renewable energy production.
Overall, against the backdrop of the increasing prominence of the international climate agenda, Uzbekistan's ongoing systemic environmental policy in the field of environmental protection aims to further improve the ecological situation in the Central Asian region.
Uzbekistan's New Path Towards Sustainable Development
Today, Uzbekistan is actively integrating the principles of "green" transformation into its development strategies, laying the foundation for long-term sustainable growth. This is not merely a response to global challenges, but also an aspiration to enhance the quality of life for our citizens, generate new employment opportunities, and foster the country's sustainable "green" development. At present, "green" development in Uzbekistan has been elevated to the status of a nationwide movement. The primary objective of New Uzbekistan's transition to a "green" course is to safeguard human dignity, improve the population's well-being, and protect the fundamental rights of its citizens.
For Uzbekistan, the transition to "green" development is not an abstract concept or something far removed from reality. This notion has become an integral part of our country's constitutional course, encompassing all sectors of the economy and public life.
President Sh. Mirziyoyev emphasizes: "It is of great importance to accelerate the transition to an economy based on the careful management of water, energy, and other natural resources.
The task of developing 'green' and digital technologies, as well as production enterprises, is also crucial for us."
This is not merely a scientific and philosophical statement, but a guiding principle of state environmental policy. Under this slogan, various programs are being developed:
- increasing the share of renewable energy (target - at least 30% by 2030);
- reducing water losses in the agricultural sector through the use of digital systems and precision farming;
- improving energy efficiency of residential and industrial buildings;
- creating "smart" and "green" cities, including within the framework of the "Tashkent - Green Capital" project.
One example is the construction of solar and wind power plants in Navoi, Bukhara, and Samarkand regions. These projects are being implemented with the participation of major foreign investors (Masdar, ACWA Power) and are creating new jobs while reducing the burden on hydrocarbon resources.
Sh.Mirziyoyev also emphasizes the need to cultivate new ecological thinking in young people: "Understanding nature, environmental education and upbringing, forming environmental awareness and ecological culture among the population, especially among youth, which promote kindness, compassion, and mercy, are among the important tasks that must be accomplished to preserve the environment."
In this context, special attention is paid to environmental education, promoting sustainable practices, and supporting startups in the field of eco-technologies and green innovations. The creation of a national environmental performance rating for regions and institutions has become a tool for stimulating sustainable change.
Thus, Uzbekistan is becoming an example of a systematic approach to sustainable "green" development, combining environmental goals with economic growth and social justice. The principles of the "green" economy are increasingly being integrated into national planning, making Uzbekistan not only a participant but also an active driver of the international green agenda.
Conclusions: Prospects for the Future
First conclusion. The approach being implemented in New Uzbekistan under the leadership of President Shavkat Mirziyoyev exemplifies the synergy of political will, scientific knowledge, national policy, and international cooperation. "Green" development is not a trend or a temporary solution. It is a strategic choice, a path chosen by humanity, and Uzbekistan demonstrates how this path can be realized in the face of global challenges.
Second conclusion. The initiatives and statements of Uzbekistan's leader demonstrate that green development for Uzbekistan is not a temporary agenda, but a strategic vector for a promising future. The framework of an environmentally responsible state is being systematically formed: with new laws, institutions, technologies, and public awareness.
Third conclusion. A distinctive feature of the Uzbek approach is its comprehensiveness: from global leadership in climate diplomacy to the practical transformation of energy, land use, and water management. Sh. Mirziyoyev not only articulates the principles of sustainable development but also ensures their institutional establishment, investment, and public support.
Fourth conclusion. Thus, the path to a "green" future, proposed and implemented by New Uzbekistan, can serve as a model for countries facing similar challenges and opportunities. This is a path where economic progress goes hand in hand with care for the planet, where political will translates into concrete actions, and sustainability becomes a new norm for human development.
Ministry of Investment, Industry and Trade of Uzbekistan Reports on Outcomes of Public Borrowings (2017–2025)
📅 22.01.2026
Uzbekistan’s total external debt amounted to $75.4 billion as of October 1, 2025.
According to the Ministry of Investment, Industry and Trade of Uzbekistan (MIIT), $37.4 billion of this amount accounts for the government’s external debt.
It is important to note that the issue of investment and external financing always attracts interest and raises questions. This is natural, as society wants to understand where resources come from and what results the country achieves.
The key principle here is simple: the purpose of attracting investment and resources is to improve living standards. This is not about “impressive reports” or “eye-catching figures,” but about tangible improvements felt in everyday life-jobs and household incomes, infrastructure, access to clean water, energy and transport, and quality social services.
The economic logic is also clear: for the economy to grow faster, resources are needed- capital, technology, equipment, and new markets. If a country stops attracting resources, growth slows down: fewer jobs are created, it becomes harder to modernize logistical and social infrastructure, expand water supply, and ensure affordable energy.
Therefore, Uzbekistan is consistently working to attract investments - to accelerate economic development, boost GDP, and ultimately improve both the quality and longevity of life. Notably, since 2020, life expectancy has shown steady growth - from 73.4 years to 75.1 years in 2024.
At the same time, what matters to people are not slogans, but measurable results - changes that can be seen and assessed.
By structure, Uzbekistan’s total external debt as of October 1, 2025, amounted to $75.4 billion. Of this, $37.4 billion is government external debt, while the remaining $38 billion consists of borrowings by private and state-owned enterprises without a government guarantee (corporate debt).
Notably, according to international classifications, Uzbekistan’s government debt level is regarded as moderate and manageable. The government’s external debt of $37.6 billion amounts to roughly 26% of GDP (with official GDP around $145 billion), well below the threshold levels that are generally seen as potentially risky for macroeconomic stability worldwide.
What has been achieved through government borrowings in 2017-2025:
- Reconstructed 1,564 km of highways
- Electrified 470 km of railway lines
- Built 6,793 km of drinking water networks and 664 km of sewage networks
- Constructed 59 km of heat pipelines, 1,286 individual heating units, 166 water distribution facilities, and 31 sewage pumping stations
- Created 2,737 MW of additional electricity capacity and laid 1,106 km of high-voltage power lines
- Commissioned additional generation of 2,084 MW, producing 16,423 million kWh of electricity and 551.8 thousand Gcal of thermal energy
Modernization of Transport and Urban Services:
- Purchased 4 Boeing 787-8 aircraft
- Acquired 2 high-speed Talgo-250 passenger trains
- Added 30 electric locomotives
- For the subway system: 70 cars and 29 train sets
- 1,900 buses
- 1,000 ambulances
- 541 units of equipment for household waste collection
- 13 heat boilers
Education and Social Sector:
- Established 119 educational and research laboratories in 60 universities
- Equipped 6,213 state preschool institutions with furniture, learning materials, and office equipment
Agriculture and Water Management:
- Restored 1,593.1 km of canals
- Modernized 3,396 hydraulic structures
- Drilled 423 vertical wells
- Established modern greenhouses on 2.2 thousand hectares and intensive orchards on 12.6 thousand hectares
- Built cold storage facilities with a capacity of 334.9 thousand tons
- Launched processing enterprises with a capacity of 258.2 thousand tons of products
- Created farms for 12.3 million poultry, 5,752 sheep, and 26.3 thousand cattle
These figures reflect already utilized borrowings. A significant portion of infrastructure and social sector modernization projects is still underway and will continue to deliver benefits as the work is completed.
Overall, as a result of the comprehensive measures implemented during 2017-2025, over 2 million jobs were created, exports increased by 270%, and GDP per capita grew by 418%.
What is fundamentally important is that resources can only be mobilized under strict rules, transparency, and oversight. In his Address to the Oliy Majlis and the people of Uzbekistan, the President highlighted that parliamentarians will oversee the entire project cycle - from selection and competitions to implementation and results. Project statuses, stages, and milestones will be published in real time, ensuring full transparency of competitions, tenders, and the fulfilment of obligations.
Uzbekistan’s approach to investment is clear and straightforward: the country needs resources for growth, while simultaneously ensuring full oversight, transparency, and measurable results for the population. This is exactly how the work is organized - openly, in stages, with clear accountability.
Dunyo IA
Tashkent hosts the 8th Central Asian Expert Forum
📅 13.08.2025
On August 14-15, 2025, the VIII Central Asian Expert Forum (CAEF) will be held in Tashkent under the title “Central Asia – a common space of trust, security and sustainable development”.
Established in 2018, the CAEF is held annually in the country chairing the Consultative Meeting of the Heads of State of Central Asia. The forum serves as an important platform for discussing the current state and prospects of regional cooperation, as well as developing recommendations for the further development of cooperation in Central Asia.
The Forum is organized by the Institute for Strategic and Regional Studies under the President of the Republic of Uzbekistan (ISRS). Event partners include the Regional Center for Preventive Diplomacy for Central Asia, the European Union Delegation to Uzbekistan and the Organization for Security and Cooperation in Europe (OSCE), and the Konrad Adenauer Foundation.
The Forum will traditionally bring together heads and specialists of strategic institutes, research centers, and academic institutions from across the region. For the first time, prominent experts from the EU, ASEAN, the Nordic Council, as well as researchers from the Russian Federation, the USA, Great Britain, Switzerland and Azerbaijan have been invited to participate in its work in order to exchange experience in regional studies.
The Forum’s program will focus on prospects for deepening regional cooperation and explore specific measures to promote multifaceted collaboration.
In addition, the Forum will feature separate events: a scientific-practical conference on shaping regional identity and a roundtable discussing prospects for partnership between Central Asia and Northern Europe.
The upcoming expert dialogue is expected to identify common interests and outline priorities for Central Asia’s future development. The resulting recommendations will enrich the agenda of the forthcoming Consultative Meeting of the Heads of State of Central Asia, scheduled to take place this year in Uzbekistan.
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