Measures for the development of industry in the regions defined

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November 8, 2022

Measures for the development of industry in the regions defined

On November 7, President Shavkat Mirziyoyev chaired a meeting on the development of the local industry.

Small-scale production is increasing in the regions thanks to the conditions created in Uzbekistan for entrepreneurship. Workplaces are being created, demanded products are being manufactured.

However, the current difficult situation in the world, disruptions in the operation of transport and logistics chains affect this industry as well.

For 9 months of this year, the volume of industrial production in Uzbekistan increased by 5.3 percent. However, there was a decrease in production at 65 large enterprises in the regions. Despite the allocation of the necessary funds by the state, the infrastructure has not yet been brought to 118 industrial zones. The possibilities of the GSP+ system in export are not used to the full extent.

These and other shortcomings, priority tasks for the next year were discussed at the meeting, which was held in a critical spirit.

“Heads of industries, hokims should look for opportunities in this difficult situation, use internal reserves, come up with proposals and initiatives”, Shavkat Mirziyoyev said.

Instructions were given to provide guaranteed raw materials to manufacturers of household appliances, carpets and furniture, to assist enterprises that cannot operate at full capacity.

As is known, last year Uzbekistan joined the GSP+ system of preferences of the European Union. More than 6.2 thousand types of products can be exported to the European market duty-free. Along with this, the state provides subsidies for transportation costs up to 70 percent. However, Europe accounts for only 6 percent of textile exports, 3 percent of electrical goods, and 1 percent of silk and food products.

The Head of the state noted the need for assisting domestic enterprises in obtaining international certificates and entering the foreign market. The possibility of increasing the volume of industrial exports to Europe up to $700 million next year was noted.

One of the largest branches of the local industry is the textile industry. In recent years, entrepreneurs of Uzbekistan have mastered this direction well. However, some products are still imported.

Therefore, the Uzbekistan textile and garment industry Association was tasked with localizing at least 50 types of new products. For such projects, $100 million will be allocated to commercial banks, and $50 million to carpet production. The state compensates 70 percent of transportation costs for the export of fabrics and knitwear to European countries, Türkiye, Egypt, Morocco.

In general, it was noted that it is necessary to develop the textile industry with new dynamics. Next year a program will be adopted to export industry products worth more than $5 billion.

Another important area is the production of building materials. The industry’s potential allows to produce a wide range of goods and provides jobs for a large number of people. In this regard, the President took the initiative to develop an industrial mortgage program aimed at supporting such enterprises. In the first stage, $50 million will be allocated for this. Loans will be issued for 7 years with a two-year grace period.

Industrial zones of building materials will be created in the city of Nukus, Bulakbashi, Karaulbazar, Farish, Chust, Pakhtachi, Sariasiya, Uzbekistan districts, and a cluster of porcelain and sanitary ware in the city of Angren.

The goal was set to bring exports in this industry to $1 billion.

Uzbekistan is famous for its long tradition of furniture production. So, about 100 mahallas in Bukhara, Namangan, Samarkand, Andijan, Fergana and Khorezm specialize in this. The President noted the need for creating the furniture industry centers around these mahallas to expand conditions for artisans.

An instruction was given to extend the validity of customs benefits for furniture manufacturers until January 1, 2024, to increase the number of projects in this area.

There are also ample opportunities in the jewelry business. Uzbekistan has a $300 million worth market. This demand can easily be met by local jewelers. Therefore, starting from December 1, several preferences will be established to support them.

In particular, guarantees from any banks and the Export Promotion Agency will be accepted for deferred payment for gold and silver. This option will also be available to individual jewelers. The requirement for a license for the temporary import and export of raw materials required for jewelry will be abolished, precious and decorative stones will be exempt from customs duties.

Particular attention at the meeting was paid to increasing exports.

“Next year we will expand export support. From now on, there will be a system in which subsidies to industries will be given depending on the volume of exports. Following today’s meeting, an additional $300 million and 350 billion UZS will be allocated for the development of the regional industry. If the goals are achieved, it will be possible to provide an additional $2 billion in exports next year”, the President said.

Measures to export goods of a regional industry worth more than $8 billion next year were analyzed. The ambassadors of Uzbekistan were instructed to promote the attraction of modern technologies and investments from abroad.

Information on the issues discussed at the meeting was heard from the heads of industries and hokims.