Uzbekistan aims to increase production of processed, export-oriented goods

TASHKENT (TCA) — President of Uzbekistan Shavkat Mirziyoyev held a government meeting on May 2 to discuss deep processing of raw materials and expanding the production of export-oriented goods, the president’s press service reported.

In recent years, special attention has been paid to the industrial sector, and high-tech factories, technology parks, manufacturing enterprises have been commissioned in the country. In 2018, the growth of value added in the production of manufactured goods exceeded 10 percent for the first time.

However, much remains to be done in industrial diversification. For example, 69 percent of industrial production is related to raw materials or primary processing.
Non-ferrous metals, energy resources and fresh fruits constitute 52 percent of the total exports, which testifies to the fact that crude production still prevails over finished goods in the economy.

The meeting discussed issues concerning the growth in the number of enterprises creating high added value and exporting ready-made products, and the efficient use of existing potential and raw materials.

The President pointed to the lack of production of goods similar to those imported, the low level of processing crudes. In particular, only 25 percent of the mined copper is processed, 80 percent of zinc, 99 percent of molybdenum, 88 percent of silk, and 60 percent of raw leather are exported in unprocessed form.

The Ministry of Economy and Industry, the Ministry of Agriculture, and the State Committee of Geology were tasked at the meeting to draw up a list of goods industrial production of which will be established in 2019-2021 based on the existing raw material base and structure of imports.

The President urged to work out additional projects for the production of consumer goods in small industrial zones.

An important factor in the development of industries is government support. In accordance with the President’s decree on measures for the further development of industrial cooperation and the expansion of marketable goods’ production, signed on May 1, a mechanism is being introduced to support domestic industrial producers through government procurement.

Sergey Kwan

TCA