President of Uzbekistan: Success of the entrepreneur – success of the people
ISLAMABAD: President Shavkat Mirziyoyev of Uzbekistan convened a meeting with the nation’s leading entrepreneurs to discuss year-end results on entrepreneurship development and outline plans for 2025. The meeting was held via video link.Uzbekistan’s New Era: Establishing a Democratic Legal State through Electoral Reform and Parliamentary Empowerment
The President began by delivering a speech highlighting key priorities and accomplishments:
- “Promoting entrepreneurship is our strategic mission. Entrepreneurs are our greatest asset and strongest pillar. Their support must be an everyday priority for leaders at all levels, especially at the local level. Local officials must engage frequently with entrepreneurs, visit businesses, and address their challenges. We must value and nurture our business community, as they are among our most vital resources,” emphasized President Mirziyoyev.
The President acknowledged the work of the Public Council for Support of Entrepreneurship, established under the President’s Office, which has acted as a vital link between the government and the business sector by offering concrete policy recommendations. This year, 5 laws and 101 decrees and resolutions were enacted to address key business concerns.
In recent years, liquidity in the economy has increased, enabling sustainable financing for investment initiatives. Enterprise bank balances have risen by 20 trillion soums, reaching 107 trillion soums, while public deposits grew by 25 trillion soums, totaling 105 trillion soums.
Loan issuance totaled 275 trillion soums by year’s end, and this figure is projected to exceed 300 trillion soums in 2025. Lending to small businesses will see a significant rise, increasing from 28% to 40%, or 120 trillion soums.
To meet entrepreneurs’ funding needs, banks plan to secure $6 billion from external sources without state guarantees in 2025. Factoring services expanded significantly this year, providing $100 million worth of services.
Infrastructure development remains a priority. In 2024, 35 trillion soums were allocated for roads, water, electricity, and gas infrastructure, with plans to increase this to 43 trillion soums in 2025. Electricity production reached 82 billion kilowatt-hours, with new capacities expected to boost this figure to 90 billion kilowatt-hours by 2025.
The energy sector saw 24 independent power producers operating within the country. Next year, Uzbekistan will launch its first online wholesale electricity market, with private management of regional grids in Samarkand, Jizzakh, and Syrdarya as a pilot project.
In tourism, investments worth 6.5 trillion soums facilitated the construction of hotels adding 24,000 beds. By 2025, an additional 30,000 beds will be added, alongside 25 new trade and tourism facilities.
Export growth also remains a priority, with $350 million allocated for export financing through a dedicated trade promotion company. This initiative generated $6 in export revenue for every dollar invested. An additional $300 million will be allocated for exports in 2024.
Entrepreneurs acquired 3,000 state-owned properties and 4,000 hectares of land worth 11.5 trillion soums in 2024. In 2025, another 4,500 properties and 6,000 hectares will be offered for business purposes.
Private sector involvement in road maintenance is expanding, with 260 kilometers handed over in 2024, a number expected to rise to 3,000 kilometers in 2025. Supported by the Asian Development Bank, 841 kilometers of roads in 86 districts will be constructed by local contractors.
In aviation, the number of private companies increased to 14, with six additional cargo planes and 16 passenger aircraft introduced. Airports in Bukhara and Namangan transitioned to private management, with ongoing tenders for airports in Andijan and Urgench.
The President underscored the importance of a stable tax policy for fostering an attractive business environment. Tax rates will remain unchanged. Starting January 1, 2025, VAT will not apply to state property and land sales, excise taxes on mobile communication will be abolished, and double land taxes on agricultural areas outside city limits will be removed.
Uzbekistan is progressing toward World Trade Organization (WTO) membership, necessitating the removal of privileges incompatible with WTO rules. However, measures will ensure fair competition among market participants.
Despite global geopolitical challenges, Uzbekistan’s economy grew by 6.3% in 2024, reaching $111 billion. Investments totaled $38 billion, while exports surpassed $26 billion. In 2025, GDP is projected to rise to $120 billion, exports to $30 billion, and investments to over $42 billion.
The President emphasized the critical role of entrepreneurs in job creation and poverty reduction, expressing gratitude for their contributions. Key measures for the upcoming year include tax benefits for businesses meeting specific social criteria, expanded support for industrial and technological innovation, and facilitation of international financing.
Uzbekistan’s entrepreneurial movement continues to gain momentum, with the President reaffirming unwavering support for business initiatives and projects.
