BAKU, Azerbaijan, June 25. Uzbekistan is taking
steps to increase the use of domestically produced construction
materials in large-scale infrastructure and tourism projects while
supporting local manufacturers through new policy measures and
targeted financial assistance.
This was reflected in the statement by the Press Secretary to
the President of the Republic of Uzbekistan.
Speaking at a videoconference meeting, President of Uzbekistan
Shavkat Mirziyoyev noted that investors involved in major and
mega-projects have requested value-added tax (VAT) exemptions for
imported construction materials. At the same time, domestic
manufacturers have expressed readiness to compete with foreign
suppliers on both quality and standards, provided similar tax
preferences are extended to locally produced goods.
"If VAT incentives are also extended to domestically produced
materials, we are ready to compete on both quality and standards,"
local manufacturers told the president.
To ensure a level playing field, responsible agencies have been
instructed to prepare a draft decision that would establish equal
conditions for supplying imported and domestic materials to large
investment projects.
The issue comes as many producers face financial difficulties.
According to official data, overdue loan debt among 457 enterprises
in the sector has reached 3.5 trillion soms (about $291.1 million).
Authorities attribute this largely to high production costs and
products that do not fully meet current market demand. Officials
have been tasked with developing short-term financial recovery
programs for each enterprise, supported by $50 million in funding
aimed at modernizing production facilities, lowering costs, and
expanding the manufacture of high-demand products.
The government’s focus on local production is also reflected in
its tourism development strategy. A recently adopted two-year
program envisions the construction of 34 major tourism facilities
and more than 1,000 accommodation establishments, including 200
hotels across the country.
One example is the "Kumushkon Resort" tourism complex in
Parkent, where 98% of the construction materials used are
domestically produced. Authorities have instructed regional
administrations to ensure that the share of local materials in
newly built hotels reaches at least 95%.
"Regional authorities must ensure that the share of local
materials used in hotel construction reaches at least 95%,"
Mirziyoyev said.
To support this objective, Uzbekistan plans to expand production
of key construction and finishing materials by the end of next
year. Targets include increasing output of paints and coatings from
119,000 to 150,000 tons, sanitary ware from 1.5 million to 2
million units, PVC pipes and fittings from 255,000 to 300,000 tons,
wallpaper from 6 million to 7.5 million units, and decorative
panels from 15 million to 18 million square meters.
"It is necessary to create a system that connects major projects
with local manufacturers," Mirziyoyev said.
Officials believe that strengthening domestic manufacturing
capacity and integrating local suppliers into major infrastructure
and tourism projects will help reduce import dependence, improve
industrial competitiveness, and create new opportunities for
economic growth.
Exchange rate: $1 USD = 12,020 UZS
