13.05.2020

President of the Republic of Uzbekistan Shavkat Mirziyoyev has chaired a video conference today to discuss further steps to gradually relieve shutdown regime while maintaining a high level of vigilance, to steadily revitalize economic sectors, boost employment and population incomes.

The head of state noted that the pandemic is still underway across the world, and a number of countries are gradually loosening quarantine restrictions.

“The international community comes to the final conclusion that it is necessary to learn to live and work under pandemic, since the vaccine and the cure for coronavirus have not yet been found. We also began to soften the lockdown requirements, while maintaining strict control over the epidemiological situation, and we will consistently move in this direction.

We do this, first of all, to ensure employment and increase incomes of the population through the resumption of economic activity.

In this regard, we are studying the real situation in our country and international experience. A preliminary analysis shows that good results are achieved where hokims take full responsibility and act in consultation with people.

But in some places, due to a misinterpretation of the regime of mitigation of quarantine measures, the population, especially young people, take to the streets en masse without any need. This state of affairs, coupled with the increase in the number of people infected with infection in recent days, calls on us all to be wary.

In general, even after the threat of the coronavirus fades away, we should adopt some rules of the quarantine period as part of our daily lives. In particular, strict observance of personal hygiene, frequent disinfection, organization of various family ceremonies in a very limited format, wearing masks should an infectious disease emerge must become the norm.

We all ought to be clearly aware of one fact: the effectiveness of the new system that we introduced to combat the pandemic will depend only on us,” Shavkat Mirziyoyev suggested.

The meeting participants also touched on the work undertaken to counter the pandemic and support the population and enterprises amid lockdown mode.

For this purpose, 3 trillion soums was allocated from the Anti-Crisis Fund. In addition, to ensure economic activity, new investment projects have been launched in the amount of more than 1 trillion soums.

In addition, a delay was granted for the repayment of bank loans of 87 thousand business entities for a total of 18 trillion soums and of about 2 million citizens for a total of over 5 trillion soums.

Last month alone, 250 thousand entrepreneurs and enterprises, 83 thousand farms received a deferral of taxes and other payments totaling 400 billion soums. More than 11 thousand entrepreneurs using state property are exempt from rent payments.

Abiding by shutdown requirements, 10 thousand out of 14 thousand industrial enterprises that had suspended their activities for the period of quarantine have resumed work. Thus, 178 thousand employees returned to job.

The Ministry for Economic Development and Poverty Reduction has been instructed to carefully study, together with the hokims of the regions, the problems of 4 thousand non-working industrial enterprises and to help launch their activities by the end of May.

The President noted that support for entrepreneurs and the population amid the pandemic will not be limited to previously provided benefits and will be continued.

First, the social tax rate for small businesses and farms will be reduced from 12 percent to 1 percent in May-July. As a result, more than 260 thousand enterprises and farms will be able to save a total of 650 billion soums and use them as investment capital and working capital.

Second, small businesses and individual entrepreneurs will be exempt from land tax and property tax over the next three months. Thanks to this, more than 50 thousand entrepreneurs will save 300 billion soums, and their working capital will increase.

Also, under the decision announced earlier, in April-May, more than 1,000 entrepreneurs will not be charged 80 billion soums of interest for late payments of land and property taxes.

Third, entrepreneurs will be let to pay customs duties with a delay of up to 120 days. This will allow them to save 540 billion soums and direct these funds to the development of their business.

Fourth, to further support low-income families, another 200 billion soums will be allocated from the budget, which will allow to cover benefits for another 70 thousand families, or 10 percent more.

Fifth, if previously the government partially covered interest payments on investment loans with interest rate of up to 22 percent, now interest payments on loans with a rate of up to 26 percent will partially be covered.

In addition, the amount of compensation for loans worth up to 500 billion soums (previously, up to 10 billion soums) issued to entrepreneurs for working capital replenishment will be increased from 5 to 10 percent.

Sixth, the practice of lending to the population for the construction and repair of individual housing, introduced in Andijan, Namangan and Ferghana regions, will be applied in Tashkent. This will create about 10 thousand seasonal jobs in the capital.

Seventh, in order to increase domestic demand for the products of local enterprises and thereby support them, the government bodies will be granted the right to carry out purchases planned for the III-IV quarters of the current year in the II quarter.

In general, more than 2 trillion soums will be allocated from the budget to further support the economy and citizens.

The meeting participants discussed the epidemiological situation in the country and further loosening of quarantine based on proposals from regional heads. In particular, it was noted that in the “green” and “yellow” zones it is advisable to gradually allow the provision of services in strict accordance with sanitary and hygienic requirements.

The Republican Commission was instructed to approve the order of actions in accordance with which ministries and departments will take priority measures in the event the epidemiological situation worsens.

The urgent task remains to restore transport links between remote areas and the capital. In this regard, it is planned to resume flights between Tashkent and Nukus, Urgench, Termez, the movement of the high-speed Afrosiyob train to Samarkand, Navoi, Bukhara, Karshi and trains to the Ferghana Valley. The issue of removing restrictions on personal vehicles in cities is also being studied. The ministries of transport, internal affairs and health are instructed to submit relevant proposals to the Republican Commission.

It is known that due to the risk of infection, payments were transferred to non-cash form. Taking into account appeals of the population, especially pensioners, it was decided to issue wages, pensions and benefits in cash, but in full compliance with quarantine rules.

Instructions were given to create decent jobs and expand housing construction in the districts of Tashkent.

The current meeting discussed work on easing the lockdown measures and revitalizing the enterprises on the example of Samarkand and Kashkadarya regions.

Almost 20 percent of the country’s population lives in these two regions producing 11 percent of all industrial output of the country.

As a result of the relaxation of quarantine requirements in the last two weeks, 90 percent of enterprises in Kashkadarya region and 60 percent in Samarkand region have resumed their activities. But this is not enough to provide the population with income. Kashkadarya has 91 thousand poor families and Samarkand is home to 48 thousand. In each of these provinces, there are more than one hundred thousand unemployed.

The head of state emphasized that support for low-income families and their employment should be the top priority of regional leaders.

In Kashkadarya region, 75 percent of industrial production falls on enterprises of national subordination and significance. In the Kasbi, Kamashi, Mirishkor, Nishan and Chirakchi districts the industry is practically absent.

The Ministry of Investments and Foreign Trade was urged to develop, in conjunction with the regional hokimiyat, industrial development programs for these districts.

It was noted that only 42 percent of the cotton fiber harvested in the region is processed there, and therefore the importance of creating new sewing and knitting enterprises was emphasized.

Instructions were given to establish production of goods in high demand with mastering the reserves of sulfur, manganese, ferrosilicon, gypsum, dolomite and other raw materials.

Today, the population of the city of Samarkand exceeds 600 thousand people. The available housing and infrastructure are gradually exhausting their potential. Therefore, it is planned to expand the town at the expense of the Pastdargam, Nurabad, and Samarkand districts, to build new microdistricts, satellite cities. This will be another point of growth for the region, for the creation of thousands of jobs.

In Samarkand region, there are 120 non-metallic deposits, 33 of which are not industrially developed. For example, it is possible to establish industrial processing of 5.1 million cubic meters of expanded clay and decorative stones, 200 thousand tons of ferrosilicon.

Relevant officials were instructed to study the engineering and infrastructure security of existing fields and organize the production of modern building materials.

Proposals were voiced for the development of backward industrial areas, the expansion of the Nurabad part of the Urgut free economic zone.

Textile enterprises of the region are capable of producing 37 thousand tons of yarn. But only 48 percent of their capacities are currently involved.

In this regard, instructions have been given to increase the level of capacity utilization in the textile industry, the production of finished goods with higher added value in 2 cotton textile clusters of the region.

In accordance with the instructions given at the previous meeting, analysis was carried out of 217 villages in Samarkand region, the historically developed crafts there and their growth points were identified. The necessity of introducing this experience in other regions and ensuring employment of the population was indicated.

The task was set to transfer 1,200 hectares of dryland and pasture land in the Kattakurgan and Nurabad districts to the residents of the city of Kattakurgan, to provide work for 5 thousand people.

At the meeting, the head of state also expounded on changes in the government.

Today, the President adopted a decree on additional measures to improve the activities of the Cabinet of Ministers of the Republic of Uzbekistan, entrusting the Prime Minister with new functions, and redistributing tasks among his deputies.

Given the growing importance of social issues, the post of Deputy Prime Minister for Social Development has been introduced. Bekzod Musaev, hitherto Chairman of the State Tax Committee, has been appointed to this post.

It was also reported at the meeting that the President’s Advisor on Civil Service and Interaction with Representative Bodies of Government, Sherzod Kudbiyev, has been appointed Chairman of the State Tax Committee.

The hokims of Samarkand and Kashkadarya regions, chiefs of other regions and industries reported on the organization of work towards the implementation of defined tasks.