Securing economic stability in Uzbekistan: key pillars

President of the Republic of Uzbekistan Shavkat Mirziyoyev chaired a meeting with officials on June 9, 2020, to discuss pressing issues of ensuring the stability of the national economy.

The coronavirus pandemic has caught the world in tricky situation. The emerging global crisis is having a serious impact on the economies of all nations. According to the World Bank forecast, in 2020 the global product is expected to decline by 5.2 percent, the United States GDP – by 6.1 percent, the Russian – by 6, and in the European Union – by 9.1 percent. Economic growth is anticipated at 1 percent in China and 1.5 percent in Uzbekistan.

Over the past three months, 2.3 trillion soums of tax incentives were granted in our country to sectors of the economy, 3.6 trillion soums were allocated from the Anti-Crisis Fund.

At the meeting today, the head of state noted the availability of all opportunities to ensure further economic growth this year through the use of new approaches and tools, and outlined eight key tracks along this path.

Thus, the priority areas are identified as:

- ensuring economic and financial stability;

- poverty reduction and employment growth;

- acceleration of reforms in the banking system;

- increase in foreign direct investment;

- boosting the export potential and securing foreign exchange earnings;

- strengthening competitiveness in industry;

- development of small business;

- widespread adoption of digital technology across all walks of life.

During the discussion of the first course of action, it was entrusted to optimize budget revenues and expenses. The President instructed to provide additional income by resuming the activities of enterprises and improving tax administration, and when entering into external loan transactions, rule out crossing the established frames.

As part of the second direction, it was stressed that we need to restore 810 thousand permanent jobs this year, create 310 thousand permanent and 633 thousand seasonal jobs.

In accordance with the presidential decree on measures to simplify state regulation of entrepreneurial activity and self-employment, adopted on June 8, the list of activities that self-employed people can engage in has been expanded from 24 to 67.

Shavkat Mirziyoyev urged the executives, taking into account the Chinese experience, to assign ministries and departments to certain villages with a high level of poverty, to create a system of assistance to those in need, develop family business and private backyard farming. It was proposed to send students who studied under government scholarships to such areas to work for 3 years.

Fundamental reforms have been launched in the banking system. The meeting participants emphasized the importance of accelerating the measures defined, the timely implementation of the transformation process in ten banks with state share, and indexation of interest rates in line with the anti-inflationary policy.

Deputy Prime Ministers were given instructions on attracting and developing foreign direct investment.

Amid the pandemic, boosting exports and securing foreign exchange earnings are rather critical. A sharp decline in demand in foreign markets has a serious impact on Uzbek exporters.

In this regard, in the framework of the fifth priority track, the Ministry of Investment and Foreign Trade has been tasked with ensuring export performance at no less than in 2019.

The meeting participants deliberated on industrial development issues. It was pointed out that in some sectors there is no integrated chain for the deep processing of raw materials and the production of value-added goods.

For example, the localization of copper processing is less than 25 percent, of silk it is less than 20 percent. Inter-sector cooperation has not been fully established. In particular, interaction in the electrical industry and agriculture would make it possible to produce goods worth at least $ 80 million. The chemical industry can supply synthetic fibers and polyester for the textile sector, cords and various dyes for the automotive and construction materials industries, as well as flavorings for the food industry.

To this end, the President insisted that Industrial Policy Strategy be devised to provide for the transfer of modern technologies, improve energy efficiency and competitiveness of industries.

The head of our state gave a directive to pay special attention to the chemical, textile, construction, automotive, electrical and food industries, and to accelerate the process of reforming public enterprises.

In Uzbekistan, small business is considered one of the main points of economic growth. It was stressed at the meeting that judicial system needs reforming to effectively protect private property for the creation of free competition.

The President pointed to the low share of small business in high-tech industries, and outlined the task to develop a mechanism for government incentives for such entities. Instructions were given for the creation of small industrial zones in the regions.

On June 8, at the presentation organized for the head of state, the tasks were identified for the accelerated development of digital technologies, their widespread adoption in all sectors. At today’s meeting, Shavkat Mirziyoyev underscored the need for organizing this work within the framework of the designated eighth priority.

Responsible executives voiced their vision at the meeting to streamline short and medium-term works toward effective economic development.

Official website of the President of Uzbekistan