President Shavkat Mirziyoyev chaired a meeting focused on supporting macroeconomic stability and economic growth. Addressing the pressing issue of the fragile economy, the president highlighted that the shadow economy continues to cast a significant shadow, especially in the realms of services, industry, and construction.
The losses to the GDP from the activities of the shadow economy amount to UZS 135 trillion ($10.9bn), with a significant impact on the state budget, resulting in a shortfall of UZS 30 trillion ($2.4bn).
Mirziyoyev emphasized that 41% of construction companies reported only one official employee in their reports. Despite this, the volume of work they claimed to have completed in the past year equaled UZS 4 trillion ($323.9mn). A concerning observation was that 5,000 fruit and vegetable farms with 25 hectares or more of land formally employed only one person.
Despite the efforts of 14 departments currently engaged in combating the shadow economy and economic crime, the president noted the absence of a unified system for coordinating their activities.
The president pointed out additional challenges faced by the Department of Economic Affairs within the General Prosecutor's Office. Mirziyoyev explained that the department's functionality was limited due to the lack of investigative powers and numerous legal conflicts in legislation. One example highlighted was the absence of criminal liability for the "cash-out" firms, allowing violators to continue their illicit activities without consequence.
To address these issues, the Department of Economic Affairs is set to undergo significant changes. It will conduct in-depth analysis, operational-search operations, searches, and investigations. The head of the department will simultaneously serve as the deputy prosecutor general. The department will also receive modern information systems and specialized tools.
The transformation of the department will extend to five economic spheres: construction, pharmaceuticals, alcohol and tobacco, illegal imports, and the illicit acquisition and export of capital. Additionally, a separate department within the General Prosecutor's Office will be established to specifically address the challenges posed by the shadow economy, with regional subdivisions to reinforce these efforts.
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