Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan plans to increase the volume of textile and garment exports to US$7 billion by 2028. 

President of Uzbekistan Shavkat Mirziyoyev has signed a decree aimed at developing the value chain in the textile and garment-knitting industry. The decree outlines key targets for 2025–2027. 

According to the decree, textile exports are projected to reach US$4 billion by 2025, US$5 billion by 2026, and US$7 billion by 2027. Exports of finished products to the U.S. and European markets are expected to account for US$500 million of the total. 

The Statistics Agency reported that in January–December 2024, textile exports amounted to US$2.87 billion, representing 10.6% of total exports. However, this figure reflects a 6.7% decline compared to the same period in 2023. 

The share of finished garments in total exports is expected to increase to 70%. This growth will be driven by the adoption of advanced technologies, modern design solutions, and collaborations with international brands. 

To support industry development, Uzbekistan plans to attract US$5 billion in foreign investments and loans, aimed at advancing yarn processing. Funding will be sourced from export duties on yarn and fabrics, which will be allocated to the Industry Support Fund. 

In 2025, US$15 million from the fund, and from 2026 at least 80% of incoming funds, along with subsidies worth US$15 million for the purchase of production equipment, will be channeled to commercial banks to finance equipment procurement. These loans will have a term of up to seven years in foreign currency with an annual interest rate of 4% (including a 2% bank margin). 

The Chamber of Commerce and Industry and the Uztextile Industry Association will be allowed to participate as founders in special project ventures (SPVs), contributing up to 25% of the charter capital. Their shares are to be redeemed within five years after project implementation. 

Additionally, successful project implementation will require a positive conclusion from the State Enterprise Center for Comprehensive Examination of Projects and Import Contracts. 

The Joint-Stock Company "Trade Development Company" will use the Trade Facilitation Fund to cover expenses related to obtaining international certifications such as GOTS, OEKO-TEX, and BCI. 

To promote domestic products on international marketplaces, the Chamber of Commerce and Industry has been tasked with implementing the "Made in Uzbekistan" program. This initiative will include training industry specialists to work with marketplaces, as well as creating and promoting national brands. A budget of US$2 million from the Trade Facilitation Fund has been allocated for these purposes. 

A Special Textile Industrial Zone will be established in the Namangan region to serve as a hub for producing deeply processed garments and home textile products. Residents of the zone will benefit from special tax, customs, and currency incentives. 

The decree also provides for the creation of a factoring organization under the "Trade Development Company" with a charter fund of 10 billion soums. The company will receive US$100 million from the Reconstruction and Development Fund for five years at an annual rate of 4%. These funds will be used to provide factoring and leasing services to textile enterprises.