ISLAMABAD -UNS: On December 20 President of the Republic of Uzbekistan Shavkat Mirziyoyev held a meeting with country’s active entrepreneurs. Year-end results on entrepreneurship support and plans for 2025 were discussed at the meeting in a video format.
At the beginning of the meeting the Head of State delivered a speech outlining main objectives and achievements:
– Development of entrepreneurship – our strategic goal. Entrepreneurs are our strongest support and greatest strength. Therefore, their support should become the daily business of all leaders – from the center to the lowest level. Especially at the local level, hokims should interact more often with entrepreneurs, visit
enterprises, and live in their concerns. We should cherish and appreciate business
representatives, talented and with great potential. They are very valuable people for
us, – emphasized Shavkat Mirziyoyev.
In this connection, the activity of the Public Council for Support of
Entrepreneurship established under the President of the Republic of Uzbekistan has
been mentioned. The Council has become a bridge between the state and business,
putting forward concrete proposals. This year, 5 laws, 101 decrees and resolutions
have been adopted on the most pressing issues of business support.
In recent years, the economy has seen an increase in liquidity. This has
provided the ground for sustainable financing of investment projects. Funds in the
accounts of enterprises in banks have increased by 20 trillion soums, reaching 107
trillion soums. Deposits of the population increased by 25 trillion soums and
amounted to 105 trillion soums.
According to the year-end results, the total volume of issued loans reached
275 trillion soums. In 2025, this figure will exceed 300 trillion soums. Particular
attention will be paid to lending to small businesses: its share will increase from 28
to 40 percent, reaching 120 trillion soums.
To meet the needs of entrepreneurs, banks plan to attract $6 billion from
external sources without state guarantees in 2025. Owing to the expansion of
factoring opportunities, these services have been provided this year in the amount
of $100 million.
For the development of infrastructure – roads, water supply, electricity and
gas supply, railroads – 35 trillion soums were allocated in 2024, and next year it is
planned to allocate 43 trillion soums.
To supply enterprises with stable power supply, electricity production has
reached 82 billion kilowatt-hours. Due to the capacities introduced in 2024, the
production will increase to 90 billion kilowatt-hours in 2025. In 2025, 25 projects
worth $6.4 billion will add 4.8 gigawatts of additional capacity.
Currently, there are 24 independent power producers in the country. In 2025,
an online wholesale electricity market will start operating for the first time. As an
experiment, the power grids of Samarkand, Jizzakh and Syrdarya regions will be
transferred to the management of the private sector.
In the tourism sector, entrepreneurs have invested 6.5 trillion soums in
construction of hotels for 24 thousand beds. In 2025, this number will grow by
another 30 thousand. Another 25 complexes will be added to the 17 trade and
tourist facilities commissioned this year.
A separate company has been set up to promote trade, which has allocated
$350 million in export financing. For every dollar invested, entrepreneurs received
$6 in export revenue. In 2024, another $300 million will be allocated for this
purpose.
In 2024, entrepreneurs acquired 3 thousand state-owned properties and 4
thousand hectares of land with a total value of 11.5 trillion soums. In 2025, another
4.5 thousand buildings and 6 thousand hectares of land will be offered for business.
Private sector involvement in the repair and maintenance of roads, which
have long been in the monopoly of the state, is expanding. In 2024, 260 kilometers
of roads were handed over to entrepreneurs, and in 2025 this figure will increase to
3 thousand kilometers. With support from the Asian Development Bank, 841
kilometers of roads in 86 districts will be built by local contractors.
In the railway industry, digitalization and improved operational efficiency
reduced freight transportation time by 40 percent. By increasing the time for free
unloading of cargo at stations from 2 hours to 3 days, entrepreneurs saved 57
billion soums over the year.
In the aviation sector, the number of private companies reached 14.
Additional 6 cargo and 16 passenger airplanes were put into operation. Airports in
Bukhara and Namangan have been transferred to private management, tenders for
airports in Andijan and Urgench are underway.
The President emphasized the importance of maintaining a stable tax policy
to maintain an attractive business environment. The main tax rates will remain
unchanged. From January 1, 2025, state property and land will be sold VAT-free,
excise tax on mobile communications will be abolished, and double land tax on
agricultural land outside the city limits will be discontinued. Publishing enterprises
will be exempted from income tax for 5 years.
Preferences for IT park residents, exempting them from all kinds of taxes,
will be extended until 2040. Preferences for private schools, kindergartens and
foreign specialists will be valid until 2030.
The process of Uzbekistan’s accession to the World Trade Organization
(WTO) is reaching its final stage. In this regard, privileges contrary to the WTO
rules are canceled. At the same time, all conditions will be created for market
participants to work in a fair competitive environment.
Transportation and logistics infrastructure also remain in focus. The work of
the “Khanabad”, “Mingtepa”, “Karasuv” and “Uchkurgan” border points has been
resumed. In 2025, additional corridors will be built at “Gishtkuprik”, “Navoi”,
“Davut-ota”, “Shavat” and “Gulbakhor” border crossings, which will increase their
capacity fivefold.
Despite the challenging geopolitical environment, the country’s economy
grew 6.3 percent in 2024 reaching $111 billion. Industry, agriculture and services
attracted $38 billion in investment, while exports exceeded $26 billion.
The President noted the key role of entrepreneurs who create jobs and reduce
poverty in achieving these results, expressing gratitude to them.
Next year, it is planned to increase GDP to $120 billion, exports to $30
billion, and investment to more than $42 billion.
At the meeting, opinions were exchanged on the necessary steps to achieve
these goals. The entrepreneurs suggested simplifying business procedures,
deepening processing of raw materials, increasing production of high value-added
products and boosting exports. Having listened to the views expressed, the Head of
State defined corresponding measures.
Primarily, the importance of increasing the incomes of private sector workers
was emphasized. In this regard, textile and leather enterprises that pay their
employees a salary of at least 2.5 million soums and have at least 15 percent of
employees from low-income families will receive tax benefits. For such companies,
the rate of profit tax and income tax for their employees will be only 1 percent.
The Head of State noted that similar social criteria for granting benefits can
be applied in other sectors of the economy.
The President underlined the need for entrepreneurs not to limit themselves to
bank loans, but to adapt to international standards and independently attract funds
from abroad. For this purpose, a center will be created, which will support
entrepreneurs’ access to international financial markets with the participation of
international consulting companies.
There are 142 so-called “champion” companies with more than 5,000
employees and annual revenues exceeding 1 trillion soums. They become multi-
profile corporations, contributing to the development of related industries.
To support such promising entrepreneurs and stimulate others, it is proposed
to provide them with land and buildings directly, as well as transfer state-owned
enterprises into long-term management.
It is known that 7 out of 10 richest companies in the world work in the field
of information technology and fintech services. Additional benefits will be
provided for the establishment of such companies in Uzbekistan. In particular,
duty-free import of laboratory equipment and technological installations for
research and development (R&D) centers will be allowed.
Uzbekistan has about a thousand deposits with reserves of more than 100
types of minerals. To utilize them for production of high value-added products, 400
new deposits will be put up for auction in January.
Land released from cotton and grain crops will be auctioned in large lots of
up to 50 hectares and sold to professional investors to create industrial plantations.
On plots of up to 20 hectares it will be possible to create blast freezing, sorting and
packaging facilities.
It is planned to develop an updated Customs Code, which will meet the
requirements of the World Trade Organization (WTO) and modern conditions.
At the end of the meeting, the Head of State once again reaffirmed his
commitment to supporting initiatives and projects of entrepreneurs.
– The entrepreneurial movement in Uzbekistan is turning into a great force,
and this process is irreversible. No matter what high goals and objectives we set for
ourselves at the state level, we and our people count on you above all. The richer
our entrepreneurs are, the richer our people and the greater the power of our state
will be. The success of an entrepreneur is the success of our entire nation –
underscored the President.
