Nozimjon Kholmurodov. Photo: Press Service of the President of Uzbekistan
Uzbekistan will set up a Light Industry Development Agency to coordinate the textile, leather, and silk sectors. President Shavkat Mirziyoyev announced the plan on August 13 during a video conference dedicated to expanding exports of ready-made garments to Europe and the United States, standardizing the industry, and advancing digitalization.
The agency will be headed by Nozimjon Kholmurodov, first deputy minister of investments, industry, and trade. It will have a council of experienced entrepreneurs and a special $200 million fund to provide preferential working capital to businesses in the sector.
The agency’s tasks will include maintaining an ongoing dialogue with the business community, developing measures to reduce production costs, increasing output and exports, and expanding the use of “processing in customs territory” schemes to double exports of finished products. It will also work to strengthen cooperation and support financially troubled enterprises operating below capacity.
The president instructed relevant agencies to:
- Raise the number of enterprises with international certification to 300;
- Develop a “road map” for working with global brands with turnovers exceeding $1 billion and invite them to a major exhibition in Tashkent in September;
- Open one trade house each in St. Louis and New York City;
- Introduce ERP systems and artificial intelligence technologies in enterprises to boost revenues by 20–30 percent, increase business transparency, and curb the shadow economy, with the state covering part of ERP training costs.
It was noted that the U.S. textile market is worth about $100 billion annually, and with well-designed support measures, Uzbekistan’s exports there could grow five- to sixfold. Mirziyoyev stressed that amid rapid changes in global trade rules and logistical challenges, special approaches are needed to develop the textile sector. He also unveiled initiatives to advance the leather, silk, and carpet industries.
The president said the total support measures amount to the equivalent of 7 trillion soms ($560 million).
“These investments must deliver results. Those who understand how hard it is today to bring even one som of additional revenue into the budget will appreciate the importance of this support,” he said.
Mirziyoyev instructed that, in cooperation with international consultants, a program for textile industry development through 2030 be prepared, along with proposals for modernizing the leather, silk, and carpet sectors.
