Photo courtesy by kun.uz
President of Uzbekistan Shavkat Mirziyoyev has signed a decree outlining ambitious targets for the development of the country’s textile and knitwear processing industry. The goal is to increase textile exports to $4 billion by the end of 2025. The document, published on the Lex.uz portal, came into effect on January 22.
The plan includes a phased increase in Uzbek textile exports, aiming for $5 billion in 2026 and $7 billion by 2027.
A key focus is to grow exports to the U.S. and European markets to $500 million. The share of finished textile products in total exports is to be raised to 70%, driven by advanced technologies, modern design solutions, and partnerships with international brands.
Foreign investment and loans in the textile industry are expected to reach $5 billion.
The presidential decree outlines specific support mechanisms for businesses. Revenues from export duties on yarn and fabric will be fully allocated to the Industry Support Fund, which will channel funds to commercial banks for financing companies producing textiles and finished products. This year, $15 million will be allocated for these purposes, and at least 80% of the fund's revenues will be utilized in 2024.
Entrepreneurs will have access to preferential loans for equipment purchases. Loans in foreign currency will be offered for a term of seven years, with the funds usable for advance payments on machinery, covering up to 15% of its cost. The annual interest rate will be set at 4%, including a 2% bank margin.
The decree also establishes a joint-stock company, Trade Development Company, to assist businesses with technical matters, such as obtaining international quality certifications. This organization will allocate $2 million to implement the Made in Uzbekistan program, promoting local products and brands on international marketplaces through advertising and placement campaigns.
Additionally, the Trade Development Company will receive a $100 million loan from the Uzbekistan Fund for Reconstruction and Development. The loan will have a five-year term at 4% annual interest, with repayment starting on January 1, 2028.
This strategic initiative reflects Uzbekistan’s push to modernize its textile industry, integrate into global markets, and enhance the competitiveness of its products on an international scale.
