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Uzbekistan invests in development of textile industry

Business Materials 24 April 2020 15:44 (UTC +04:00)
Uzbekistan invests in development of textile industry

BAKU, Azerbaijan, Apr. 24

By Ilkin Seyfaddini - Trend:

Uzbekistan will allocate $300 million to develop the textile industry in the country, Trend reports citing the Uzbek media.

President Shavkat Mirziyoyev held a meeting April 23 on ensuring stability in the textile industry and mitigating the impact of the pandemic on the industry, the report said.

The President ordered to extend the deadline for final payment for cotton fiber, sold until April 1, 2020, from 90 to 150 days. Furthermore, the mechanism of immediate VAT refund after export registration at customs will be introduced.

"More than 2,000 enterprises operate in Uzbekistan in this area, employing 365,000 people. The export potential of the sector has doubled in the last three years. Last year, products worth $1.6 billion were supplied to foreign markets. In addition, Uzbekistan has resources and funds sufficient to bring exports to $15 billion and provide employment to more than 3 million people," the report says.

The head of state instructed to increase the production of finished goods 4-5 times within five years, and develop foreign markets by increasing the competitiveness of goods. During the meeting, instructions were also given on the organization of large export enterprises with the participation of foreign companies and production of goods under well-known brands.

New enterprises will be organized in Namangan, Samarkand and Tashkent regions to export finished products, and $300 million will be allocated for the implementation of these projects under the credit line of the Uzbek Fund for Reconstruction and Development, the message said.

The Ministry of Investment and Foreign Trade and Uztukimachiliksanoat association (cotton producers association) were entrusted to obtain the status of beneficiary of GSP+ system for duty-free trade in the EU market.

Moreover, Association plans to accelerate the certification of products under the BSI standard with the assistance of the International Finance Corporation.

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