Tashkent, December 17, 2024 – The Europe Today: On December 16, President Shavkat Mirziyoyev chaired a meeting focused on advancing employment and income growth in Uzbekistan’s mahallas (local communities), with active participation from the banking sector. The discussion emphasized the banking system’s role in driving local economic development and lifting people out of poverty.
Mirziyoyev highlighted the positive outcomes from the banking sector’s initiatives at the regional level. Notably, in Uychi district of Namangan, 3.2 thousand active clients received support from banks, leading to the creation of 9 thousand jobs and reducing the number of low-income families by 6 thousand. In Saykhunabad district of Syrdarya, 12 thousand people were trained to earn a living from household plots through similar projects, while in Zarbdar district of Jizzakh, 13.5 thousand jobs were created. The Gijduvan district of Bukhara saw 28 thousand new jobs, pulling more than 10 thousand people out of poverty. Collectively, since the beginning of the year, these initiatives have resulted in a permanent income for 3.3 million people, bringing the total number of officially employed individuals to 10.5 million for the first time.
In districts like Khodjeyli, Asaka, Vabkent, Bulungur, Yangiyer, Kushtepa, and Shavat, the unemployment rate has dropped to below 5%. President Mirziyoyev urged the Central Bank and regional banks to expand these successful practices, providing further support to the population.
Looking ahead to 2025, the President emphasized that it would be a crucial year for ensuring employment and reducing poverty. Over the past six years, 750 thousand citizens have repaid loans and launched profitable businesses under the family entrepreneurship program, with 58 thousand opening new enterprises. Mirziyoyev stressed that banks must help these businesses grow into small and medium-sized enterprises (SMEs).
As part of the Small Business Support program, an unconditional loan of 300 million UZS will be provided, creating jobs for 1.5 million people. Banks are now issuing loans of up to 50 million UZS with minimal documentation, thanks to the initiative of People’s Bank, which has been supported by the Asian Development Bank. Building on this, nine state-owned banks plan to allocate $1 billion in loans next year, supporting 250 thousand people.
Next year, the government will focus on launching cooperatives for industries such as fish farming, rabbit breeding, livestock farming, and beekeeping in 30 districts. A total of 500 billion UZS will be allocated for this purpose.
Special attention will also be given to supporting startups and investment projects that generate jobs. State banks are to create venture companies and allocate $50 million to support startups in mahallas. Additionally, each bank will be encouraged to partner with the private sector to establish business accelerators.
To address unemployment in lagging districts, the government plans to attract experienced entrepreneurs from other regions, providing them with preferential loans and additional infrastructure support. These efforts aim to create income for 1.3 million people. If sufficient infrastructure is developed, entrepreneurs are poised to implement 3.5 thousand projects worth 31 trillion UZS, creating 200 thousand new jobs.
The government also plans to restructure 85 thousand hectares of land currently dedicated to unprofitable crops, combining them into larger farming units, which will be leased to leading entrepreneurs. This initiative is expected to increase efficiency and generate more income.
Mirziyoyev noted that 60 key cities and districts have the potential to eliminate unemployment and poverty altogether. However, achieving this goal will require the employment of 2 million people and the upliftment of 417 thousand families from poverty. To support these ambitious plans, it is essential to ensure the financial stability of the banking system, with the goal of attracting $6 billion from external sources and raising the volume of population deposits to $11 billion by next year.
Furthermore, microfinance and factoring services have reached 5.5 trillion UZS this year, with state banks now able to establish their own microfinance and factoring companies, attracting foreign investors. The sale of 3,000 real estate properties currently on banks’ balance sheets will also generate additional resources and create 150,000 jobs.
The President emphasized the need to strengthen financial discipline and personal responsibility within the financial and banking sectors to ensure the success of these initiatives.
Regional leaders and bank managers presented their plans for 2025, with the goal of providing income for more than 5 million people and lifting 1.5 million citizens out of poverty.
