Tuesday, 29, November, 2022

On January 28, President Shavkat Mriziyoyev signed the New Uzbekistan’s Development Strategy for 2022-2026 Decree.

The document approved the state program for the implementation of the strategy, which includes seven priority areas. In particular, in the framework of the third area, it is planned to expedite the economic development and the GDP growth.

Economy

It is expected that the gross domestic product (GDP) per capita in the next five years will increase by 1.6 times through the stable high growth rates in the economic sectors. Its is planned to increase GDP per capita to $4,000 by 2030 and create the basis for joining the category of "countries with upper-middle income."

It is planned to reduce annual inflation to 5% by 2023, as well as reduce the state budget deficit, ensuring it is no more than 3% of GDP from 2023.

At least 5% of the budget of each district will be directed to solving the most pressing problems identified on the basis of proposals from the public in the framework of the Citizens' Budget program. The level of external debt will grow no more than 4.5 billion dollars a year.

It is planned to increase the share of industry in GDP and achieve a 1.4-fold increase in industrial production. To do this, 23 large enterprises in the fields of engineering, chemistry, oil and gas, energy, mining and metallurgical industry, transport must independently tap the domestic and foreign financial markets and draw funds for investment projects by obtaining an international credit rating.

Energy resources and industrial production

In addition, as part of the transformation processes in the energy sector, the President instructed to abolish the monopoly on the supply of electricity and introduce market mechanisms in the industry.

In addition, it is planned to liberalize the energy and natural gas market with the establishment of guarantees of social protection, the widespread attraction of private investment into the field, the introduction of social consumption standards to protect vulnerable segments of the public.

It is planned to ensure an uninterrupted supply of oil products to the economy and the public.

Copper industry clusters are also expected to be set up to double the production of copper and other products using copper, and to produce $8 billion worth of goods.

It is planned to increase the natural gas processing from 8 to 20% and achieve the volume of production of chemical products up to $2 billion.

In the automotive industry, it is planned to develop cooperation and increase the level of localization with an increase in production by 1.4 times and its exports by 2 times. An industrial cluster of agricultural engineering will be created in Chirchik with the transfer of a number of factories from Tashkent.

The production of building materials and textile products in the next five years will be increased by 2 times, leather and footwear products by 3 times, pharmaceutical products by 3 times, high value-added products in the electrical industry by 2 times and exports by 3 times. furniture products - 2.8 times. It is planned to bring the level of provision of the domestic market with domestic medicines to 80%,

It is also planned to increase the volume of exploration, to attract private investors and leading foreign companies to the field.

14 monopolies are expected to be ended through abolition of exclusive rights and the privatization of state-owned companies.

The program also provides for the uninterrupted supply of electricity to the economy, the active introduction of green economy technologies in all areas, and an increase in the energy efficiency of the economy by 20%.

By 2026, it is planned to increase the volume of electricity generation by an additional 30 billion kWh, bringing the total generating capacity to 100 billion kWh.

By bringing the share of renewable energy sources up to 25% by 2026, savings of up to 3 BCM of natural gas are expected.

It is planned to ensure the stable operation of the energy system of Uzbekistan and its reliability when interacting with the energy systems of neighboring states.

It is also planned to take measures for the production and use of electric vehicles, to reduce emissions of harmful gases into the atmosphere per unit of GDP by sectors of the economy by 10%.

The development of the digital economy is defined as the main "driver" with an increase in its share by at least 2.5 times.

By the end of 2026, the level of digitalization of production and operational processes in the real sector of the economy, in the financial and banking sectors is planned to be increased to 70%.

It is planned to increase the volume of the software products industry by 5 times, their export - by 10 times, bringing it up to $500 million.

Investment

In the next 5 years, the President instructed to attract $120 billion worth of investments, including $70 billion of foreign investment.

On the basis of public-private partnership, it is expected to attract investments in the amount of $14 billion in the energy, transport, healthcare, education, environment, utilities, water management and other industries.

It is envisaged to establish foreign economic relations between the business of the provinces of the republic and foreign countries. In particular, it is planned to develop investment and foreign economic relations of the Syrdarya province with China, the Surkhandarya province with Russia, the Jizzakh province with India.

An Investor Assistance Center will be set up in Surkhandarya province, a Business Assistance Center at NMMC in Navoi province, a Center for Advanced Projects and Engineering in Tashkent, and Innovation and Technology Centers in each district to provide practical assistance to businesses.

The Tashkent International Investment Forum will be held annually in the capital.

Over five years, the stock market turnover is planned to increase from $200 million to $7 billion, complete the transformation process in banks with state shares, and bring the private sector's share in the banking system to 60% by the end of 2026.

Exports

The volume of exports in 2026 is planned to be increased to $30 billion (according to the results of 2021 - $16.6 billion), and the share of the private sector in exports - up to 60%.

It is planned to increase the exports value of cars by a factor of three, bringing it to $1 billion, the export of tourism, transport, information and other services, including software services, by 1.7 times, bringing their exports to $4.3 billion.

It is forecasted that the share of finished products and semi-finished products in the export structure will increase by 3.3 times (now - $5.2 billion, 44% of exports), the number of exporting enterprises - from 6,500 to 15,000, and the geography of exports - from 115 to 150 countries.

200 companies will be selected through an open competition to become the country's leading exporters.

Free trade zones will be set up in the border areas with neighboring states.

The share of the private sector in GDP is planned to be increased to 80%.

An open dialogue between the President of Uzbekistan and businesses will be held annually.

The provinces are expected to create 200 new industrial zones, develop a system of business incubators, and develop factoring services.

The tax burden on businesses is planned to be reduced from 27.5% to 25% of GDP by 2026.

Land

It is planned to increase the income of farmers at least twice, ensuring the annual growth of agricultural volumes by at least 5%.

Districts will specialize in the cultivation of a particular type of product.

It is planned to develop 464 thousand hectares of new and retired land areas by allocating land to agricultural clusters on the basis of an open competition. 200,000 hectares of land under cotton and grain will be reduced with their allocation on the basis of an open competition to the public on a long-term lease.

An increase in the area of ​​intensive orchards is projected to triple, greenhouses – by two times, export potential by an additional $ 1 billion.

As part of the state program to reform the water management system and save water, it is planned to save at least 7 BCM of water, reduce electricity consumption at water facilities, and introduce a water management system based on PPP.

In addition, it is expected to expand the fodder base of livestock with an increase in production by 1.5-2 times, livestock products by 1.5-2 times.

Provinces and urbanization

Five-year programs will be implemented in districts and cities. Shavkat Mirziyoye instructed to increase the volume of the provincial economy by 1.4-1.6 times while ensuring the balanced development of the provinces.

In the future, Samarkand and Namangan are planned to be turned into Million Inhabitants Cities. It is planned to build and put into operation the first blocks of New Andijan, designed for 450 thousand inhabitants, bringing the level of urbanization in the Kashkadarya province to 50%.

The introduction of the “City Comfort Index” is expected to assess the quality of life of the public in cities.

Branches of the innovative training and production technopark INNO in Tashkent will be set up in four provinces of branches.

It is planned to develop a general scheme for the resettlement of the public, as well as the construction modern residential areas in cities in place of old housing on an area of ​​​​more than 19 million square meters on the basis of renovation and housing construction programs, the creation of conditions for the resettlement of more than 275 thousand families into new areas.

The construction of engineering communications and social infrastructure facilities will continue under the Obod Qishloq and Obod Mahalla programs, taking into account the “growth points” of each locality.

It is planned to build and update in the provinces about 80 thousand km of main and distribution electric networks, over 20 thousand transformer points and more than 200 substations.

It is planned to bring the level of drinking water supply to the public up to 87% (in 2020 - 67.4%), upgrade sewerage systems in 32 large cities and 155 district centers.

Wastewater treatment systems will be removed from Tashkent, as well as new facilities will be built on the basis of PPP.

Tourism

In the next 5 years, the volume of services should increase by 3 times with the creation of 3.5 million new jobs in the sector.

It is planned to develop trade services and roadside services by creating 130 modern markets and shopping malls, as well as 65 large and 5,000 small roadside infrastructure service facilities.

The share of the shadow economy in the service sector is expected to decrease by 3 times (now it is more than 50% of GDP).

Businesses will receive more reliefs to increase the attractiveness of the service sector.

The number of local tourists is planned to be increased to over 12 million, foreign tourists - to 9 million, as well as to increase the number of people employed in the tourism sector - by 2 times, bringing their number to 520 thousand.

In Zaamin, Farish, Bakhmal districts and the Aidar-Arnasay lake system, additional tourist and recreation areas will be built and projects worth $300 million will be implemented with the creation of 25,000 jobs.

It is planned to increase the volume of tourism services by at least 10 times in the next 5 years by transforming Samarkand into a “Tourism Gate”. In 2022, the tourist center of Samarkand will be created, which includes the historical complex "Eternal City" with the necessary infrastructure.

The program for the development of ecotourism is planned to be implemented in Karakalpakstan and the Aral Sea province, pilgrimage and ecological tourism - in the Navoi province, separate tourism programs in the Khorezm, Bukhara and Tashkent provinces, and it is also expected to improve the tourist infrastructure in Tashkent.

It is planned to develop a unified transport system in conjunction with all modes of transport, create conditions for daily trips on regular transport routes between major cities, as well as improve the public transport system and develop its infrastructure in Tashkent and the provinces.

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