TASHKENT
Uzbekistan plans to spend around 1.6 trillion soums ($152 million) to improve the infrastructure of the country’s free economic and industrial zones as a part of its plan to reform the economy.
President Shavkat Mirziyoyev held talks with officials last week to discuss plans for investments projects in free economic and small industrial zones as well as infrastructure improvements. These include 332 projects worth $1.1 billion in the free economic zones and 1,800 projects worth 9.5 trillion soums in the energy refinery sector.
As for infrastructure improvement, 584 billion soums will be allocated for the construction of electricity, gas and water supply networks, sewerage and roads in 17 free economic zones. Another 395 billion soums will be allocated for the development of 145 small industrial zones.
The Central Asian country is making efforts to improve its investment climate after more than two decades of economic isolation. The closed, autarkic system viewed most foreign investments as a threat. That ended when Islam Karimov, who had led Uzbekistan since before the Soviet breakup, died in 2016.
Mirziyoyev, once a prime minister under Karimov, has made attracting foreign investors one of his top priorities in an increasingly ambitious plan to open Uzbekistan to the outside world.
Additional funds are expected to be allocated for large investment projects and the accelerated development of industry and business in 33 underdeveloped regions of the most populous country in Central Asia.
There are 23 free economic and 348 small industrial zones in Uzbekistan. So far, projects worth $2.6 billion have been implemented in free economic zones, and projects with a total cost of five trillion soums in small industrial zones.
Free economic zones are exempt from land tax, income tax, property tax of legal entities, the single tax payment for micro-firms and small enterprises. They are also exempt from customs duties for construction materials that are not produced in Uzbekistan and for materials that are imported for project purposes.