Tashkent, Uzbekistan (UzDaily.com) -- Under the chairmanship of President Shavkat Mirziyoyev, a videoconference meeting was held on 17 July to analyze the pace of economic growth in regions and sectors in the first half of the year, and to discuss priority tasks until the end of the year.

The head of state presented the achieved results. Over the first six months of the current year, the gross domestic product grew by 6.4 percent. Industrial output increased by 7.8 percent, construction by 10.1 percent, services by 12.9 percent, and agriculture by 3.8 percent. Budget revenues reached 113 trillion soums, marking a 14 percent increase.

Overall, the value added created in the country since the beginning of the year amounted to 567.4 trillion soums, approximately US$45.1 billion, a figure recorded for the first time. During the period, total capital investments amounted to 229 trillion soums, including US$15.5 billion in foreign investments. Investments in the Andijan, Bulakbashinsky, Karakul, Karmaninsky, Davlatabad districts, and the cities of Namangan and Samarkand exceeded US$100 million, while in Sharaf-Rashid, Farish, Yangi Managansk, and Akhangaran districts, investments reached US$70 million.

Since the beginning of the year, 3,000 projects worth US$3.5 billion have been launched, creating 76,000 high-paying permanent jobs. Support for entrepreneurship included 82 trillion soums in credits and 15.5 trillion soums in subsidies, involving 600,000 people in business. Due to preferences and benefits, entrepreneurs managed to retain 56.3 trillion soums.

Reforms in the green energy sector have also begun yielding results. With the launch of 10 solar and wind power stations with a total capacity of 2.4 gigawatts, 1.6 billion kilowatt-hours of "green" energy were produced in the first half of the year, saving 500 million cubic meters of natural gas.

This year alone, 31.5 trillion soums from the budget were allocated for the improvement of neighborhoods, infrastructure enhancement for kindergartens, schools, healthcare facilities, roads, water, and electricity supply. An additional 1.5 trillion soums is planned to be allocated.

During the past six months, 18.6 thousand new housing units were constructed and put into operation. Around 26 thousand families received approximately 7 trillion soums in mortgage loans, with subsidies amounting to 545 billion soums for down payments and interest coverage.

The head of state emphasized the need to analyze existing problems and define specific plans and tasks.

"Despite the complex global situation, we are achieving tangible results in sustainable economic growth. This is recognized by the International Monetary Fund, World Bank, heads of partner states, rating agencies, and major investors. However, today it would be useful to identify shortcomings and determine specific tasks for utilizing reserves," said Shavkat Mirziyoyev.

Priority was given to economic, financial, taxation, entrepreneurship support, and poverty reduction issues. As a result of experiments in Saykhunabad, Uychi, Zarbdar, and Gizhduvan, more than 4,000 neighborhoods specialized in industry and agriculture, employing 1.6 million people officially, with 712 thousand new income tax payers emerging.

Measures were outlined during the meeting to provide new impetus to these processes. Specifically, district governors, bank leaders, and mahalla chairmen will now enter into a tripartite agreement for joint work. By December 1 of this year, based on the Saykhunabad experience, households will be offered financial packages, ensuring employment for 495 thousand people. In the second half of the year, the "Family Entrepreneurship" program coverage will be increased by 1.5 times, with 4 trillion soums allocated within its framework.

Following the Uychi experience, district governors and bank managers will meet with entrepreneurs to help them expand their businesses. District governors will address issues related to land access, electricity, water, roads, and other infrastructure, while banks will handle financing. It was noted that this approach will provide employment for 670 thousand people by the end of the year.

Based on the Gizhduvan experience, multi-story industrial buildings will be constructed in a thousand neighborhoods by the end of the year. Productions organized in households will be relocated there. Tax incentives will be provided to entrepreneurs operating on the upper floors of these buildings, creating conditions to formalize 140 thousand jobs from the shadow sector.

Based on the Zarbdor experience, flagship projects in industry, trade, services, and modern agricultural technologies will be implemented in districts. An additional 500 billion soums will be allocated for their implementation this year, creating another 150 thousand jobs.

The Prime Minister was tasked with approving a plan to ensure employment for 2 million 416 thousand people across districts by the end of the year using the aforementioned four experiences.

The meeting also addressed budget revenue issues. The importance of increasing tax revenues through assistance to enterprises and entrepreneurs, and increasing their income, was emphasized. Responsible officials were sternly warned against imposing payments and fees on entrepreneurs beyond what is stipulated.

Weak implementation of the privatization program and slow progress in reducing costs at large enterprises were noted.

It was emphasized that from now on, privileges and subsidies to entrepreneurs will be provided for one year with the condition of achieving target indicators, which will be extended or discontinued depending on the results.

This year, regional enterprises produced goods worth 164 trillion soums. However, industrial output declined in the cities of Kagane, Karaulbazar, Zafarabad, and Mirzaabad districts. Responsible persons were tasked with restoring full-fledged operations to 2 thousand enterprises by the end of the year.

Disciplinary measures were taken against 28 district governors and city leaders who allowed systemic deficiencies in their activities. Governors of the Karauzyak, Takhiatash, Uchkuduk, Tashkent, Furkat, Gurle, Mirzaabad, Yangiaryk, Mingbulak districts, and Gazgan city were relieved of their duties.

Following the economic discussions, the meeting agenda shifted to address issues related to transport, communications, construction, and housing and communal services.

The question of reducing construction costs was analyzed. It was noted that besides land and construction materials, the complexity of project approval and obtaining special technical conditions significantly impacts construction costs. It was highlighted that the largest share of the shadow economy is associated with construction.

In this regard, the Ministry of Construction was tasked with updating all procedures that hinder entrepreneurship in this sector.

To enhance quality and enforce order, the Inspection for Construction and Housing and Communal Services will be transferred under government jurisdiction, with expanded authority. Penalties for unauthorized construction or deviations from approved projects will be tightened.

The procedure for entrepreneurs to obtain technical conditions for electricity and gas connections will be digitized. An automated system for selecting connection points will be implemented, eliminating human factors.

The Investment Program for this year allocated 20.5 trillion soums to 1,896 projects. Specifically, plans include constructing and equipping 618 schools, 176 kindergartens, 80 clinics, and 67 hospitals.

It is planned to build 2,152 multi-story buildings, delivering over 100,000 apartments. Additionally, water supply will be improved across 570,000 hectares, with 13,000 kilometers of roads and 195 bridges put into operation.

The full implementation of electronic payment systems in public transport and funding passenger transport based on gross contracts in all regional centers were also addressed.

The head of state individually reviewed each of these areas and gave instructions to accelerate projects whose implementation is delayed. The President emphasized that people should feel the results of these socially significant efforts.

The meeting also extensively discussed investment, export, and agriculture issues.

Over the past six months, the economy attracted US$15.5 billion in foreign investments, including US$14 billion in direct investments. The President highlighted their effectiveness, noting that every dollar of foreign investment created an average of three dollars in added value over three years. Alternatively, every US$1,000 of foreign investment increased tax revenue by an average of US$600. However, some sectors and regions show lower performance in this regard.

Responsible officials were tasked with thoroughly analyzing the effectiveness of projects planned for the next year.

There was an emphasis on promptly installing and putting into operation 593 pieces of equipment worth US$183 million, which were imported previously. Measures were defined to expedite the launch of stalled investment projects and resolve their issues.

This year, 1.5 trillion soums were allocated for the infrastructure of industrial zones. Additionally, banks have access to available resources amounting to US$650 million from the Reconstruction and Development Fund, as well as US$1 billion raised from abroad. Efficient utilization of these funds and accelerating project implementation were highlighted as essential.

Over the past six months, production within the localization program has increased by 34 percent. The goal now is to increase the share of domestic products in major investment projects.

In response, regional governors and industry leaders have been tasked with analyzing 200 large projects totaling US$50 billion across regions. They are to develop localization programs for goods and services, emphasizing the importance of regional enterprises’ active participation via cooperative portals.

During the export analysis, it was noted that industries and regions have exported US$8.7 billion worth of goods since the beginning of the year. However, exports in 9 districts did not reach even half of last year’s figures.

Recent trends show many countries imposing tariff and non-tariff barriers to protect their domestic markets. Corresponding ministries and agencies have been instructed to reach agreements to ease these barriers.

In the first half of this year, exports of fruits, vegetables, and food products amounted to US$910 million. It was emphasized that there’s a critical need to significantly increase exports of processed fruits and vegetables.

Currently, 382 projects have been launched to expand storage, sorting, and processing capacities. By year-end, plans include constructing 10 agro-logistic centers and refrigerated warehouses capable of handling 230,000 tons, increasing storage capacity for fruits and vegetables to 63 percent.

The head of state stressed the necessity of developing new seed varieties to boost exports. The Ministry of Agriculture has been tasked with revising the seed breeding system based on China and Türkiye’s experiences and expanding the gene bank for crops.

A three-year program will be developed to establish industrial orchards and vineyards on 75,000 hectares of inefficient orchards and 100,000 hectares of low-yield lands. Preferential credits will be allocated through the Agricultural Fund for these orchards.

Issues concerning the financial sustainability of cotton-textile clusters were also discussed. It was decided to extend the preferential credit term granted to them until April 1, 2025, and this year, preferential credit for cotton purchases will be provided to spinning enterprises in the clusters. The status of economically inefficient clusters with high outstanding financial obligations will be reassessed.

To enhance productivity, the goal is to raise mechanization levels in cotton and fruit and vegetable farming to 50 percent. To achieve this, farmers and rural residents will receive an additional 6,500 units of machinery by year-end.

Reports from Cabinet Ministers, Ministers, and regional governors were presented at the meeting, outlining plans to sustain economic growth until the end of the year.