Tashkent, Uzbekistan (UzDaily.com) — Under the chairmanship of President Shavkat Mirziyoyev, a video conference was held to discuss priority tasks for the development of local industry.

At the beginning of his speech, the Head of State emphasized that in today’s unstable and uncertain environment, every country primarily takes measures to protect sectors that generate the largest number of jobs.

In this context, it was noted that amid fluctuations in external markets, it is extremely important to support the textile industry, the production of construction materials and furniture — sectors employing about one million people — as well as to give new momentum to the jewelry industry, which is expected to become another “engine” of the national economy.

The President pointed out that if issues related to industry, exports, and revenues were addressed timely and comprehensively within the vertical system of “republic — sector — region — district,” industrial production growth could increase by another 2 percent.

For example, over the past four months, industrial output in Payarik nearly halved, and in the Pakhtachi district it fell by 38 percent, resulting in a decline in production by 210 billion soms.

In the capital, because the Sergeli and Yashnabad districts — which account for one-third of Tashkent’s industrial capacity — produced goods worth 300 billion soms less, the city lost 1.1% of its industrial growth.

In the Urtachirchik, Kibrai, Parkent, Okhangaron districts, as well as in the cities of Angren and Bekabad, 25 local enterprises produced goods worth 1 trillion soms less compared to last year, leading to export losses amounting to 30 million US dollars.

For instance, in January–March, industrial indicators showed growth in Karshi, Mirishkor, Bulungur, Denau, Uzbekistan district, and Khiva, but in April these regions sharply reduced their output.

In response, it was instructed that within three days, specific responsible officials from the republic be appointed for each direction within the “republic — sector — region — district” vertical and sent to the field for prompt resolution of all issues.

A warning was issued that if a problem is not resolved at any level of this vertical, the corresponding links of the system will bear responsibility.

Over the past four months, industry grew by 6.3 percent, reaching 290 trillion soms.

“This is the result of timely measures taken in the current challenging situation. However, production decreased by 4.5 trillion soms in 29 districts. These are by no means small figures,” the Head of State said.

The President reiterated that if industrial, export, and revenue-related issues were handled promptly and fully within the vertical system of “republic — sector — region — district,” an additional 2 percent increase in industrial production could be achieved.

Thus, over the past four months, industrial output in Payarik nearly halved, and in Pakhtachi district fell by 38 percent, leading to a decrease of 210 billion soms in total production.

Due to a 300 billion-som shortfall in output from Sergeli and Yashnabad districts, which account for one-third of the capital’s industry, Tashkent lost 1.1% in industrial growth.

Twenty-five territorial enterprises located in Urtachirchik, Kibrai, Parkent, Okhangaron districts and the cities of Angren and Bekabad produced goods worth 1 trillion soms less compared to last year, resulting in export revenue losses of 30 million dollars.

Furthermore, regions that showed industrial growth in January–March — Karshi, Mirishkor, Bulungur, Denau, Uzbekistan district, and Khiva — sharply reduced their performance in April.

In this regard, within three days, it was ordered to appoint specific responsible persons from the republic for each sector of the “republic — sector — region — district” vertical and send them to the locations to promptly address all problems.

It was also warned that if problems are not solved at any level of this vertical, strict accountability will be demanded from those responsible at each link of the system.

As emphasized at the meeting, exports grew by 20 percent in the first four months. The high growth rates were mainly driven by the chemical industry, food processing, fruit and vegetable exports, as well as IT, tourism, and transport services.

However, textile exports amounted to 825 million US dollars, which is 175 million less compared to the same period last year.

“Many focus on quality but cannot demonstrate it. Because our goods are ‘unknown’ on the external market, they are sold there at very low prices. The key to showcasing product quality and entering premium markets is international certification,” the President said.

Out of more than 1,500 large and medium-sized textile enterprises, only 244 have international certificates.

It was noted that if the Chamber of Commerce and Industry assists each enterprise in obtaining such certificates, it will increase both added value and export volumes.

Therefore, the task has been set to bring the number of certified enterprises to 20 in the Republic of Karakalpakstan, Kashkadarya, Navoi, Syrdarya, Surkhandarya, and Khorezm regions, and to assist at least 10 enterprises in obtaining certificates in other regions.

A new system will also be introduced to increase the number of national brands and to elevate existing ones to the international level.

A company will be established to support national brands. This company will attract brand managers, designers, marketers, and PR specialists from abroad; select at least 50 domestic products that have international certification, high quality, and competitiveness in foreign markets; grant them a quality mark and launch a large-scale advertising campaign to promote these brands internationally.

Currently, over 4,000 enterprises producing ready-made clothing, leather goods, and footwear operate in the country.

However, it was noted that there is a lack of shopping centers where national products could be sold in one place and made accessible to a wide range of consumers.

In this regard, a project to launch large-scale shopping centers called “Mall of Uzbekistan” will be initiated, where exclusively domestic goods will be sold. Retail spaces in these centers will be offered to entrepreneurs for rent at minimal prices.

For textile and leather-shoe enterprises where at least 15% of the workforce consists of members of low-income families, the corporate profit tax rate has been set at 2%, and the social tax rate at 1%.

Now, the threshold of 15% for employees from disadvantaged backgrounds will be halved. Additionally, employees with disabilities will also be taken into account when granting tax incentives.

Last year, 920 new enterprises started operating in the furniture sector. The total production volume in this sector reached 6.7 trillion soms.

To multiply these figures, a number of issues need to be resolved. In particular, 25–30% of furniture products are made at home. Many entrepreneurs are eager to transition from home-based production to an industrial scale.

Therefore, individual entrepreneurs will be allowed to hire up to five employees and engage in furniture manufacturing. Young entrepreneurs who wish to start or expand their business will be offered loans for a term of seven years of up to 5 billion soms at an interest rate of 18% per annum.

In the “Furniture Centers” located in Oltinkul and Khanka, more than 100 enterprises have installed modern equipment and are engaged in furniture production. Entrepreneurs who previously worked under cramped home conditions are now accommodated in a single complex and operate under a cluster system.

An order has been given to establish similar furniture centers following the example of Khanka in the Sharof Rashidov, Yangi Namangan, Pastdargom, Urtachirchik, Kuva, and Buvayda districts, as well as in Yunusabad and Uchtepa districts.

Imported raw materials account for 50–60% of the cost of furniture production. Producers seeking to reduce costs have requested a reduction in customs duties on fittings, accessories, paint, glue, particleboard, and other materials.

“I support this proposal so that our national products become more competitive,” the President said.

An order has been issued to submit a draft resolution to set a customs duty of 1% on 14 types of raw materials, fittings, and accessories for a period of three years.

A centralized system for the procurement and delivery of timber and wood materials for furniture production will be organized.

Last year, furniture exports reached 20 million US dollars. It was noted that with proper attention to quality, design, and branding, export volumes could increase tenfold even with current production capacities.

In this context, expenses related to obtaining international certificates for furniture manufacturers, as well as 50% of the salaries of foreign designers, marketers, and process engineers hired from abroad, will be reimbursed.

The exhibition stand space at international fairs, for which rent is reimbursed, will be increased from the current 20 to 40 square meters.

An order has been given to attract qualified specialists and organize annual training for 1,000 furniture craftsmen in modern skills.

In 2024, production volume in the jewelry industry exceeded 200 million US dollars, and exports grew by 17%, reaching 92 million dollars.

At the same time, it was noted that despite the extraction of over 100 tons of gold annually, only a small part of the available potential is utilized.

It was also noted that the industry continues to have a high share of the “shadow” economy: annually, about 550–600 million dollars of turnover is attributed to unofficial jewelry markets. For example, while independent gold miners surrendered 40 kilograms of gold in 2020, last year this figure dropped by a factor of 100.

At the meeting, proposals were voiced to bring the industry out of the “shadow”: to allow individual entrepreneurs to trade jewelry and to partially compensate expenses for hiring foreign designers, technologists, and gemologists who work with precious stones, aiming to create a national brand in the jewelry sector.

The Head of State supported these proposals.

Now jewelers will also be able to trade jewelry as individual entrepreneurs.

An order was given to modernize informal jewelry markets in the regions and legalize their activities.

Expenses for attracting foreign specialists will be partially compensated, up to $2,500, provided that at least five apprentices are trained.

Overall, it was noted that the time has come to switch to an industrial production method in the jewelry industry, protect the domestic market, and support national brands.

To this end, equipment and components used in jewelry manufacturing will be exempt from customs duties.

The procedure for purchasing gold from the Navoi and Almalyk mining complexes with deferred payment will be extended for another three years.

In addition, when establishing cooperation with reputable brands, expenses for acquiring their designs and molds will be reimbursed up to $30,000.

Based on foreign experience, attractive jewelry centers for both producers and investors have been opened in Yakkasaray district, as well as in Andijan and Khiva.

A decision was made to create similar centers throughout the country.

Responsible officials were instructed to launch six more such centers this year, where raw materials, laboratories, training centers, showrooms, and stores will be consolidated in one place, and foreign designers and technologists will be invited to train jewelers.

“Let everyone hear this: jewelers must not face any problems related to raw materials,” the President declared.

In this regard, the amount of gold presented on the exchange will be increased from 6 to 8 tons this year.

The established jewelry centers in Tashkent, Andijan, and Khorezm, as well as planned centers in Bukhara, Namangan, Samarkand, Fergana, and other regions, will be supplied with gold reserves according to demand.

“We must frankly say: in a sphere where there is no order, discipline, and transparent system, it is impossible to make a sharp breakthrough. After all measures taken, the rule of law will be ensured for those working in the ‘shadow’ sector,” the President noted.

It was also emphasized that the Authenticity Inspection, together with the Tax Committee and the General Prosecutor’s Office, must establish strict control over the jewelry industry.

Entrepreneurs will be given one month to label jewelry under the control of the Authenticity Inspection and legalize their income.

In general, responsible persons were tasked with conducting a thorough industry analysis and developing a system to incentivize all participants in the raw materials—production—trade chain to come out of the “shadow” economy and operate legally.

Population growth and urbanization processes are increasing demand for construction materials.

Since the beginning of the year, the volume of contracting work has increased by 10.3%. However, warehouses have accumulated large stocks of ceramic tiles, drywall, glass, and basalt wool, despite the fact that goods worth 225 million dollars with similar characteristics are imported annually.

Now, a system of priority financing will be introduced for developers when granting loans for working capital, provided they use domestic construction materials.

Last year, the Construction Inspectorate identified 1,600 cases of the use of substandard building materials following inspections.

In response, a registry of manufacturers of construction materials and their products will be created on the "Transparent Construction" platform. A quality rating of the products will be maintained and updated quarterly.

New types of energy-saving construction materials are emerging. However, it was noted that many of these materials lack standards, and the existing ones do not meet international requirements.

Responsible officials have been tasked with adopting 68 international standards by the end of the year.

During the meeting, reports were heard from industry leaders and regional officials, as well as proposals from entrepreneurs.