President Shavkat Mirziyoyev has outlined the key priorities for the economic development of Uzbekistan in 2024, as revealed by the president's press secretary. The ambitious goals set for the year include a targeted increase in the gross domestic product (GDP) by a minimum of 6%, aiming to reach a milestone of $100 billion.
Despite a 6% growth in the industry last year, concerns were raised as the value added in production did not surpass 40%. President Mirziyoyev attributed this disparity to the nation's heavy reliance on imports, high energy consumption, and excessive costs, expressing dissatisfaction with the existing figures.
Addressing these challenges, the President emphasized the need for a reduction in costs and improved efficiency across the economic landscape. While acknowledging a reduction in the tax burden on major industries, it was noted that some sectors were increasing costs instead of contributing revenue to the state. In particular, 10 large enterprises saw expenses outpace income.
Declaring the current year as a period of cost reduction and increased efficiency, President Mirziyoyev directed support mechanisms towards products generating high-added value and possessing market viability. Officials were instructed to implement measures across enterprises, targeting a 45% increase in added value, a 15% reduction in costs, and a 7% growth in the industry for 2024.
To achieve these objectives, large industries are tasked with reducing costs by UZS 20 trillion ($1.6bn) and receivables by UZS 8 trillion ($646.9mn). The Center for Economic Research and Reforms, the Institute for Macroeconomic and Regional Studies, and the Agency for Strategic Reforms have been mandated to conduct monthly analyses of at least two industries each, providing insights on cost reduction, increased added value, enhanced labor productivity, and utilization of new opportunities.
The overarching goal for the economic complex's management is to ensure a GDP growth of at least 6% through enhanced efficiency throughout the economy in the current year.
In a parallel effort, the President conducted a review of the system and instructed a proposal to reduce the number of deputies in the economic complex by 15%. The responsibilities of leaders and deputies at the district and regional levels, as well as those of 11 ministers and departments, were meticulously defined to align with the proposed reduction. This directive aims to streamline and enhance the effectiveness of the administrative structure within the economic complex.
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