The External Economic Factors Analyzed, Necessary Measures Set

31 Mar 2022

On March 31, a videoconference was held under the chairmanship of the President Shavkat Mirziyoyev on ensuring the macroeconomic stability and additional business support.

The international experts are predicting that the current challenging situation in the global economy will last for a long time. This, certainly, cannot but have a negative impact on domestic prices, especially on food products and inflation.

This circumstance is regularly being analyzed at the meetings with the President and the necessary response measures are taken. This has yielded its results. The situation in the domestic market is stable.

In particular, the rise in prices for meat, milk, potatoes, eggs and rice is not allowed. At the Commodity and Raw Materials Exchange, the volumes of exhibiting food products from foreign suppliers have been expanded. The foreign exchange market and the exchange rate have stabilized.

“Our people should not have concern and anxiety about this. We have enough reserves to prevent sharp fluctuations in the foreign exchange market,” the President has said.

It was emphasized that the reduction in food prices in the forthcoming month of Ramadan is a good deed, for this it is necessary to provide practical assistance to entrepreneurs. To this end, till the end of the year, the effect of benefits on funds allocated for the import of food products has been extended.

The republican staff led by the Prime Minister and regional staff headed by khokims (governors) were established. They are instructed to monitor the market prices on a daily basis and take measures for additional supplies of products based on consumer demand. The task was set to establish daily supervision over the listing of food products and raw materials on the stock exchange and prevent the artificial price increases.

“Currently the world is going through a difficult period, every day we face new challenges. However, you cannot sit and wait for what will happen next. We need to quickly identify and tackle problems, find new opportunities,” Shavkat Mirziyoyev has said.

The additional support measures for entrepreneurs have been identified to reduce the impact of external risks.

In particular, the banks shall provide entrepreneurs with an additional 10 trillion Uzbek soums of revolving loans for the purchase of raw materials and replenishment of turnover. Both volumes and preferential rates of loans allocated under government programs for horticulture, family businesses, as well as mortgage and educational loans will be preserved.

“No matter how difficult it is, we will not reduce funds and increase the burden,” the President stated.

It was also instructed not to apply fines under the new tax administration mechanisms till the end of the year, as well as to extend the period of customs benefits.

The meeting has touched upon the outcomes of the Tashkent Investment Forum.

The contracts and agreements for nearly $8 billion were concluded during the forum. Most of the foreign entrepreneurs have expressed a desire to start or develop their business in Uzbekistan.

It was noted that all conditions will be created for investors for a full implementation of these agreements and initiatives. The heads of economic sectors have been tasked with negotiating with foreign companies on integration into their production chains. The necessity to create wholesale trade zones in Navoiy, Samarkand, Tashkent, Bukhara and Surkhandarya regions was noted which will supply products to the markets of neighboring states.

The strict guidelines were provided to reduce costs in regions and industries, suspend spending on repairs, purchase of cars, furniture and office supplies.

In the current precarious situation in the international financial markets, it will become more difficult to attract funds from abroad. In such circumstances, the decent way is to use the available resources wisely and efficiently.

For example, to date, the funds raised by 105 projects for $9 billion are not being used or are being reimbursed slowly.

In this regard, the Deputy Prime Minister was instructed, together with the heads of industries and khokims, to carefully consider each project, speed up implementation, and terminate the inefficient and unpromising projects.

A special attention at the meeting was paid to ensuring employment of the population.

“This issue should be considered not only as an economic indicator, but also from the point of view of the social protection of our people,” Shavkat Mirziyoyev said.

The indicators of job creation by regions and districts are analyzed with shortcomings to have been indicated.

To date, 67 types of activities are classified as forms of self-employment. It was noted that the number of such professions will be increased to 20, which will provide employment for an additional 150,000 people.

The government was instructed to increase the scale of social support for the population in need of assistance.

The officials in charge reported on the issues discussed at the meeting.

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