Embassy of the Republic of Uzbekistan in the State of Kuwait

President: This year will be the year of vital awakening and the rise of our economy

On March 14, President Shavkat Mirziyoyev visited Saykhunabad district of Syrdarya region. Here, a videoconference was held on measures to increase the population’s incomes through full use of the capabilities of private lands and households.

The meeting was attended by the leadership of the Republic of Karakalpakstan and regions, hokims of 208 districts and cities, their deputies, and representatives of banks and mahallas. The Head of state emphasized that the residents of Saykhunabad strive for a better life, for which they need to be provided with conditions and create sources of income.

“We allocate significant funds for developing entrepreneurship, employment, and poverty reduction. Why did we organize the “mahalla of seven”? Why did we bring the system of fighting poverty to every home? Our goal is to use private plots, establish production at home, expand services on the streets, and teach how to earn an income of 1-2 million UZS from every hundred square meters”, the Head of state said.

However, the results in Saykhunabad are far from expected. The systems responsible for the district’s agriculture, construction, and investment are not working correctly, and entrepreneurship is not growing.

For this reason, the First Deputy Hokim of Syrdarya region, the Hokim of Saykhunabad district, and several other leaders were relieved of their posts.

At the meeting, the problems and untapped opportunities of the regions were analyzed using the example of Saykhunabad district.

The government allocates significant resources to banks. Last year, 120 billion UZS were allocated to Saykhunabad to support entrepreneurship, and the district’s entrepreneurs received tax benefits worth 85 billion UZS.

However, the results do not correspond to the effort expended. The number of formal jobs in the private sector increased by only 968. In 2023, 167 new entrepreneurs appeared in the district, half of whom had not started working.

Banks are just taking the easy way out and allocating resources to their regular customers. Ordinary people who want to become entrepreneurs and create jobs in the mahalla are left behind. They are not provided with ready-made projects that would help them escape poverty.

Last year, the volume of industry in Saykhunabad practically did not grow. In 16 out of 19 mahallas, no industries create high-added value. There are 16 buildings and structures with ready-made infrastructure standing idle. There are no initiatives to process raw materials, train people to produce goods or cooperate.

The district’s greatest reserves and opportunities are land. Saykhunabad is one of 26 districts where the area of household plots exceeds 20 acres. The main crops on household plots remain fodder and corn. The production and export of highly profitable fruits and vegetables are not organized.

The Syrdarya flows through the territory of Saykhunabad. Easy access to water has ingrained in the mind the idea that water is free. Only 22 percent of lands have implemented water-saving technologies. Farms do not use laser leveling. Due to incomplete implementation of the plan for concreting canals, little water flows to 5,000 hectares of land in 9 mahallas.

Measures to solve these problems and reduce unemployment were discussed at the meeting.

First, the task has been set to ensure an increase in the population’s income through personal plots and the development of small industries and services in 17 thousand households in Saykhunabad. To do this, those in charge, together with the hokim’s assistants, will distribute 19 mahallas and 794 streets among themselves and develop a feasibility study for each of them based on the “driver” areas.

For the first time, an experiment was conducted in Saykhunabad: each of the 19 mahallas was provided with one mini-tractor and four motor cultivators. The hokim’s assistants will now develop business plans for the population based on the criterion of “minimum 1-2 million UZS of income per hundred square meters”. Together with mahalla agronomists, they will provide services for plowing and planting crops on their plots. This experience will be spread throughout the country.

An important issue is organizing a procurement system for grown products. To this end, an export-promoting enterprise with an authorized capital of 1 billion UZS will be opened in the district. It will provide 4 thousand farms with seeds of high-yielding pumpkin, mung beans, beans, rosemary, broccoli, and thyme, buy the grown products, and export them.

In addition, grants of 300 million to 1 billion UZS will be allocated to mahalla exporters and progressive entrepreneurs.

Ten exemplary intensive gardens will be created in each of the 19 mahallas. They will cooperate with exporters, and complexes for storage, sorting, and processing with a capacity of 2,000 tons will be organized. Each exemplary farm will subsequently teach this to its neighbors. For this purpose, a tripartite agreement will be reached between the hokim, the garden owner, and the bank.

Growing poplars for furniture factories is also possible. Therefore, 100 hectares of empty land around the area's canals and drainage networks will be divided among 500 farms to plant poplars.

In Saykhunabad, only 60 thousand birds are reared industrially every year. This is very little. Therefore, four large poultry farms will be created, with which 2 thousand farms will establish cooperation. As a result, farms can raise 10 million birds a year, producing an additional 22 thousand tons of poultry meat.

In addition, in mahallas through which the Syrdarya River passes, artificial reservoirs will be built for fish breeding, hives for beekeeping, and honey exports will be distributed.

Families wishing to increase their livestock numbers will be allocated 400 hectares of land for fodder crops. As part of the family entrepreneurship program, an unsecured loan of 33 million UZS in cash will be provided for the purchase of cattle, sheep, and goats. This will create conditions for increasing the number of livestock on 1.5 thousand farms. Milk collection centers will be launched in such mahallas.

The need for assistance in organizing small-scale production at home was emphasized. For this purpose, 60 billion UZS will be allocated to the district to improve business infrastructure. Projects will be implemented based on 21 empty buildings with the involvement of investors. A small industrial zone will be created in “Farovon” mahalla on 35 hectares, where industrial projects worth at least $100 million will begin.

The Head of state noted that last year, not a single multi-storey building was built in Saykhunabad and gave instructions on this issue.

In general, as it was emphasized, this system should cover every mahalla, every street, and every household in Saykhunabad. Responsible persons have been instructed to implement this new system in all 9,452 mahallas of the country.

“This year will be the year of vital awakening and the rise of our economy. To achieve this, local officials must work selflessly and lead others”, Shavkat Mirziyoyev said.

At the meeting, reports and proposals of hokims and sector leaders, representatives of the economic complex, and chairpersons of mahallas were heard.