Priority tasks have been identified to ensure economic growth and improve the population’s well-being in Andijan

On September 24, a meeting chaired by President Shavkat Mirziyoyev addressed the socio-economic development of the Andijan region, support for entrepreneurship, and the raising of household incomes, the press service of the head of our state reports.

Reviewing the results of reforms underway in the region, the Head of State noted that the economy grew by 8.8 percent in the first half of the current year. Positive trends were also observed in industry, the service sector, and investment. At the same time, it was emphasized that the most important criterion is the extent to which these figures translate into improvements in the daily lives of every family.

Although Andijan has limited land and natural resources, it boasts enterprising and proactive residents, high business activity, a large youth population, a strong industrial tradition, and a substantial market. In recent years, the volume of budget funds and credit resources allocated to the region has increased significantly, and local officials have been granted broad authority. Now, these opportunities must be channeled toward creating high-paying jobs and improving the population’s well-being.

The meeting primarily addressed the issue of improving the quality and effectiveness of investments. It was noted that attracting $7 billion in investment for the 1,000 hectares of land allocated to industry and entrepreneurship would enable the creation of at least 70,000 high-paying jobs.

However, attention was also drawn to the insufficient diversification of investments across countries and sectors, as well as low levels of investment in information technology and research and development. The need to strengthen the technological base of industries where the region possesses skilled personnel and export potential was underscored.

A task was set to shift toward developing indigenous technologies for the automotive and machinery manufacturing sectors, building upon the experience gained in Asaka. The importance of establishing the “Asaka Engineering Valley” and creating a value chain spanning software development, electronics, electromechanics, and engineering services was highlighted.

It is essential to improve the utilization of existing capacities in the textile industry, attract foreign designers, product developers, and brands, and shift toward the production of high-value-added goods. A decision was made to evaluate investment efficiency based on the value added per square meter of floor space.

Drawing on the experience of Karakalpakstan, the position of project manager will be introduced in other regions as well. The manager in Andijan will be responsible for shaping a new investment model for the region. Artificial intelligence will be used to assess the potential of districts in industry, services, and agriculture, and a plan will be developed to attract investment into the most efficient sectors.

Measures will be taken to create new jobs through the expansion and technological modernization of large enterprises. Targets set for the coming year include achieving at least 10 percent economic growth in the region, attracting $5 billion in investment, and raising export volumes to $1.5 billion.

Particular attention was paid to food security and increasing the income of the rural population.

Opportunities to expand livestock farming in Ulugnor were highlighted, specifically through the efficient use of land converted from cotton cultivation to fodder crops, as well as the utilization of field margins. Instructions were issued to develop projects for large-scale livestock complexes in Ulugnor and Buston.

New poultry farming projects will be launched in Jalakuduk and Khojaabad, modeled on the poultry meat production complex in Balykchi. A fish farming cluster will be established in Ulugnor. A dedicated company, “Agrostar,” will be established to bring hilly lands in the Jalakuduk, Markhamat, Asaka, and Andijan districts into economic use. Plans are in place to set up water supply systems for 4,000–5,000 hectares and begin establishing commercial orchards by spring. These orchards will be tended for three years before being handed over to the local population in a fully developed state.

In the fruit and vegetable sector, the goal is to adopt a “maximum yield per hectare” approach. Small-scale processing equipment will be leased to the public, and the creation of district-level brands will be incentivized. These measures aim to increase the processing rate of harvested produce to 30 percent and boost export volumes to $500 million. The greenhouse project model successfully implemented in Balykchi will be scaled up across the country.

Amidst declining global demand for cotton and rising export logistics costs, additional support measures have been outlined for farmers, agricultural clusters, and manufacturers of finished goods.

Both the farmer who sells cotton via the exchange and the cluster that purchases it will receive a subsidy of 500,000 soums per ton. Clusters growing cotton on their own land will receive a subsidy of 1.5 million soums per hectare. Instructions have been issued to prepare calculations for subsidizing a portion of loan interest rates for exporters of finished goods over a three-year period. Proposals will also be drafted to reimburse part of the cost of products sold through online marketplaces.

Specific incentive measures are envisaged for industrial enterprises that create a large number of jobs. Enterprises employing at least 1,000 people will be reimbursed for half of their employee training and professional development costs, as well as employee transportation expenses. Employees with at least five years of service will receive reimbursement for their children’s tuition fees. Grants will also be awarded to enterprises approaching the 1,000-employee mark.

To ensure a supply of skilled personnel for new industrial projects, the goal has been set to transform Andijan into the Fergana Valley’s hub for engineering talent. The need for close integration between the region’s higher education institutions and technical colleges and the industrial sector was emphasized.

The operations of the Andijan Technical Institute will undergo transformation. Plans are in place to recruit foreign managers and faculty members and to update educational curricula. A dedicated design faculty will be established at the institute, linked to industrial enterprises through a dual education system.

It was highlighted that the region’s rivers and canals hold immense potential for supplying energy to the growing industrial sector. Andijan’s hydropower potential stands at 200 megawatts. Significant interest from entrepreneurs in constructing small and micro-hydropower plants was noted. Moreover, the production of turbines for these facilities has already been established within the region itself.

A task has been set to implement turnkey micro-hydroelectric power plant construction projects and lease them to entrepreneurs, as well as to introduce effective financial mechanisms, all within the framework of a two-year program.

To meet the population’s growing demand for modern services, new retail and service spaces will be created. This initiative will utilize buildings and land plots vacated following the relocation of state organizations to the city of Babur, thereby attracting additional investment and creating thousands of jobs.

The objective is to transform the district centers of Asaka, Shahrihan, and Kurgantepa, as well as the city of Khanabad, into hubs for high-yield business activity. Their master plans will be adapted to accommodate projects focused on developing trade and the service sector.

It was emphasized that expanding opportunities for entrepreneurship requires a new approach to banking operations. State-owned banks must operate based on the principle of fostering client business growth, rather than relying solely on traditional collateral requirements and standardized terms applied universally.

Financial products based on actual cash flows, orders, contracts, turnover, and business value chains will now be widely implemented. Long-term contracts between small businesses and major clients will be accepted as loan collateral. For projects valued at up to 500 million soums, business plans will not be required; instead, funds will be allocated based on cash flow. To obtain loans for purchasing raw materials for export-oriented production, a single insurance policy will suffice as collateral.

It was also noted that tax authorities must support the expansion of entrepreneurial activities and the preservation of jobs. Issues faced by enterprises experiencing declining revenues or workforce reductions will be examined directly within the *mahalla* (local community). A tax inspector, a *hokim’s* assistant, and a *mahalla* banker will jointly submit proposals regarding tax payment deferrals, loan term extensions, the provision of working capital, and assistance with market access and export promotion.

Tasks aimed at expanding the region’s transport and logistics capabilities have also been defined. In anticipation of increased freight traffic along the China–Kyrgyzstan–Uzbekistan railway, a logistics complex project worth $600 million will be launched in Kurgan-tepa and Khanabad. The construction of the “Keskan-yor” border crossing point—agreed upon with Kyrgyzstan—will help increase freight volumes and reduce delivery times.

Design work for the “Khanabad–Andijan” toll road will commence, taking into account the new transport flows. It was noted that a high-speed train service between Tashkent and Andijan is launching this month, reducing travel time from six to four hours. Practical construction work on the toll road along this route is scheduled to begin next year.

In discussions regarding the creation of decent living conditions for the population, it was noted that 25,000 people have already moved into homes in the city of Babur, and construction has begun on housing designed for an additional 200,000 residents.

Entrepreneurs implementing projects in the new city—such as the construction of retail, business, hotel, private educational, medical, and sports facilities—will receive support. Given the long payback period for investments in such facilities, a proposal was approved to set the initial cost of land plots for these projects at half the rate charged for residential construction.

Plans were outlined for the construction of new overpasses in the city of Andijan and the commissioning of a bypass bridge in the center of the Asaka district. Modernization of drinking water supply and sewage systems will continue. Construction of a second line for the Khanabad–Andijan main water pipeline will improve the water supply for one million residents. Sewerage networks in the city of Andijan will be upgraded, and the capacity of wastewater treatment plants in Altynkul will be increased.

Particular attention was paid to ensuring employment for women. To support women currently unable to work due to a lack of kindergarten places for their children, instructions were issued to accelerate the opening of new family-run kindergartens. A dedicated fund of $20 million will be established in the region to support women’s employment.

Plans were made to utilize digital technologies extensively to ensure public safety. Deputy positions focused on digitalization and combating cybercrime will be introduced within the leadership of internal affairs agencies in the cities of Andijan and Shahrikhan, as well as the Andijan district. Measures will be taken to prevent offenses and traffic accidents using artificial intelligence, and public awareness regarding protection against cyberattacks will be increased. The Head of State emphasized that the *mahalla* is being improved through the hard work and engagement of every individual. Instructions were issued to prepare a plan to give 100 *mahallas* in Andijan the “look of a New Uzbekistan” next year.

At the conclusion of the meeting, reports from officials were heard, and a dialogue took place with the residents of Andijan.

With this, the President concluded his visit to Andijan and returned to Tashkent.