Uzbek Industrial Reform Delivers US$3.8 Billion Import Substitution

Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan has announced the first results of its new industrial cooperation and public procurement system, introduced under Presidential Decree No. PF-17 of 4 February 2026.

The establishment of the Industrial Cooperation and Public Procurement Agency has brought together production localization, industrial cooperation, public procurement and value chain development under a single management system.

The reform is aimed at creating an integrated "order-production-technology-science-public procurement" model to expand the production of import-substituting goods, increase the share of domestic producers in public procurement and strengthen cooperation between enterprises.

More than 1,700 localization projects

During the first half of the year, 1,746 projects were implemented under the Localization Programme, enabling domestic production of dozens of products that had previously been imported.

These include sodium cyanide production at Navoiyazot, BYD car seats at O‘z-Tong Hong Kompani, interior trim components for KIA Sonet vehicles at O‘z-Hanwoo in Andijan Region, and electronic printed circuit boards at Vodiy Circuits in Namangan Region.

Overall, production of 83 new product types has been launched, with total import substitution reaching US$3.8 billion.

Direct dialogue with business

Ahead of the sixth Open Dialogue between the President and entrepreneurs, the Agency organized meetings in 208 districts and cities across the country.

More than 2,700 entrepreneurs participated, raising 447 issues related to manufacturing, localization, public procurement, certification and industrial cooperation.

Of these, 155 issues were resolved during the meetings, 75 received official clarification, and specific follow-up measures were identified for 214 issues, which have been placed under implementation monitoring.

National Industrial Chain exhibition generates new contracts

This year, the National Industrial Chain exhibitions were held in Akhangaran and Samarkand Region, bringing together major customers, domestic manufacturers, research organizations and technology suppliers.

The events resulted in agreements and contracts worth 3.8 trillion soums. They also showcased 856 new products with localization potential valued at US$1.5 billion.

Most agreements related to public procurement, industrial cooperation projects and plans to launch new production.

Greater domestic participation in investment projects

The new system places particular emphasis on increasing the share of value added created within Uzbekistan.

Within this year's US$53 billion investment portfolio, the potential for domestic value creation has been estimated at US$21.1 billion.

In investment projects worth US$27.6 billion implemented during the first half of the year, the share of value added generated within the national economy reached 36%.

Public procurement becomes more efficient

Total public procurement amounted to 188.4 trillion soums during the first six months of the year, including 72.9 trillion soums in budget procurement and 115.5 trillion soums in corporate procurement.

Competitive procurement accounted for 60% of the total, generating savings of 7.8 trillion soums in budget funds.

To improve procurement transparency, digital technologies are being introduced. Currently, 90% of offers placed on the Uzbek Republican Commodity Exchange and 75% of orders on the Cooperation portal undergo automated moderation using artificial intelligence.

A new preferential loan product of up to 100 million soums has also been launched on the Cooperation portal to cover deposits and commissions. The financing is interest-free for up to 30 days. So far, 48 enterprises have received loans totaling 5.9 billion soums.

International cooperation expands

During the reporting period, the Agency held more than 30 meetings with international financial institutions and organizations.

It established cooperation with the World Bank, the Asian Development Bank, the Islamic Development Bank, Ernst & Young and other international partners on improving public procurement, developing local content and strengthening institutional capacity.

The Agency also signed several cooperation memorandums and studied the experience of more than 40 countries.

Priorities for the second half of the year

In the second half of 2026, the Agency will continue developing the industrial cooperation and public procurement system.

Key priorities include holding new National Industrial Chain exhibitions focused on the energy, chemical and petrochemical sectors, expanding domestic producers' participation in public procurement, launching an artificial intelligence-based module for determining average market prices, and further digitalizing procurement processes.

Additional plans include organizing the Make in Uzbekistan exhibition, the Regulators Forum, launching a modern training and certification platform for public procurement officers, and preparing for the PRIMO-19 international forum to be held in Tashkent in 2027.