13.08.2025

On August 13, a meeting was held under the chairmanship of President Shavkat Mirziyoyev on the issues of utilizing export potential and reserves of the textile sector.

Textile is one of the key sectors, ensuring 3% of the country’s economy and 14% of the industrial output. It employs over 500 thousand people. In the past five years 396 enterprises worth $3,5 billion were put into operation, the output volume reached $10 billion.

However the volatile conditions of the world market, decrease in demand and fall in prices require taking operative support measures.

In the past three years the world price for cotton decreased on average from 3 thousand to 1,5 thousand dollars per ton. To adapt to such conditions the soft loans for purchasing cotton resources were extended three times in the years of 2022-2023, last year subsidies worth 1 million soum for each ton were provided.

Many textile enterprises have debt for commercial credits. Only 16% of them have international certificates, which hinders the competition in the external market.

The cancellation of the cotton boycott in relation to Uzbekistan and joining the GSP+ system of preferences, allowing to export products to Europe duty-free, opened significant opportunities. However the cooperation with international brands and export volumes do not correspond to these conditions. 

By the instruction of the President opinion of over 200 entrepreneurs were reviewed to study such problems. New opportunities and tasks were determined at the meeting based on the results of these sessions. 

Primarily, the attention is paid to the issues of financial recovery and decreasing costs.

This year, the repayment period for clusters’ loans for the 2022–2023 harvest was extended to five years, subject to collateral. Starting from August 1, clusters that have proper collateral will repay only the principal debt. Interest accrued to the Agriculture fund and banks will be collected after the full repayment of the principal. In the event of timely repayment of both the principal and interest, half of the interest due to the Fund will be returned to the entrepreneur.

In addition, penalties in the amount of 377 billion soums accrued as of August 1 on loans for the 2022–2023 harvest will be written off. Financial recovery measures will be developed for 144 enterprises with obligations under commercial loans.

To ensure the timely collection of the current cotton harvest, farmers will be provided with subsidies of 1 million soums per ton. If enterprises grow or purchase cotton using their own funds, they will be compensated 10 percent of the raw material’s value.

All enterprises in the textile chain are being assigned a social tax rate of 1 percent. At the same time, the requirement for maintaining a social registry is being abolished, and the mandatory share of textiles in sales is being reduced from 90 to 70 percent.

Enterprises that organize kindergartens for the children of their employees will receive subsidies for each child under conditions similar to those for private preschool institutions.

The cost of yarn largely depends on electricity prices. In this regard, enterprises will be allowed to connect solar panels installed for their own needs to the grid.

These measures will provide significant support for development. However, clusters that lack fiber processing capacities must establish effective cooperation with spinning enterprises. Otherwise, starting next year, they will lose their cluster status and the right to concessional loans for the cotton harvest. The government has been instructed to develop attractive financial measures for such clusters.

The meeting also thoroughly examined issues related to increasing production and export volumes.

Currently, the price of yarn and fabric produced in the country is on average 10–15 percent higher than that of competitors, as 90 percent of products are made from cotton. Meanwhile, artificial fibers and blended fabrics are widely used worldwide.

To ensure that enterprises have access to cheaper raw materials, mixed fabrics and textiles will be exempt from customs duties until January 1, 2028.

In addition, if several dyeing enterprises unite to build treatment facilities, part of their expenses will be reimbursed by the Trade development company.

Export companies will be provided with five-year loans of up to 10 billion soums at the Central Bank's base rate through the Trade development company to open branches in the regions. The salaries of foreign designers, technologists, engineers, and marketers will be compensated on the condition that at least 200 jobs are created and decent wages are paid.

Quality and compliance with standards are key conditions for entering global markets. In this regard, the Agency for technical regulation has been instructed to facilitate the obtaining of international certificates by textile enterprises and to increase the number of such enterprises to 300.

The importance of expanding exports of finished clothing to the European and US markets has been noted. Thus, in the US, the textile market is estimated at about $100 billion annually. By adapting products to requirements, it is possible to occupy a niche. To this end, instructions have been given to open trading houses in New York and St. Louis.

The Ministry of foreign affairs and ambassadors have been instructed to develop a roadmap for cooperation with major brands and invite them to a large exhibition in Tashkent.

It was noted that the use of artificial intelligence in business activities can increase revenues by 20-30 percent and reduce the level of the shadow economy. In this regard, a program will be developed to implement an ERP system in textile enterprises.

The meeting also addressed organizational issues. Given the rapidly changing rules of global trade, the need for a special approach to managing the industry was noted.

In this regard, an Agency for the development of light industry will be created, responsible for the textile, leather and silk industries.

A separate fund will be set up for the agency, through which state support and preferential working capital will be provided to enterprises. The fund will receive $200 million. A council of experienced entrepreneurs will be created under the agency.

The new structure, together with this council, will be responsible for reducing production costs, increasing production and export indicators, developing cooperation, and financially rehabilitating enterprises operating at low capacity. The task has also been set to attract international consultants and develop a textile development program until 2030, as well as to expand the leather, silk, and carpet industries.

The Prime minister has been instructed to establish strict control over the implementation of the tasks set.

The meeting reviewed best practices and heard the opinions of industry leaders and entrepreneurs.