In the Khorezm region of Uzbekistan, the poverty rate has decreased from 6.7% to 3.9% since the beginning of 2026. Additionally, the financial situation of 127,000 people out of 29,000 families included in the Social Register has improved. This was announced by President Shavkat Mirziyoyev during a review of plans to increase household incomes, create jobs, and reduce poverty in the region.
Since the start of the year, income has increased for 162,000 residents, and 29,000 people have secured permanent employment. Furthermore, informal employment has been formalized for another 37,000 people.
Support for Low-Income Families
Under measures to support low-income families, over 126,600 people from 28,900 families received more than 40,000 different services. These services included permanent employment for 12,400 people, business startup assistance for 23,600 people, financial aid for 3,300 people, and vocational training for 1,100 people.
Nevertheless, there are still 39,000 unemployed people in Khorezm, and another 102,000 people are working abroad. Mirziyoyev noted that the mismatch between available vacancies and applicants' qualifications is one of the main problems in the region. Currently, there are over 50,000 vacancies in the region, but some remain unfilled due to a lack of workers with the necessary skills.
In response, Mirziyoyev instructed officials to revise the vocational training system and adjust it according to labor market needs. According to surveys, 63% of university students believe they do not receive sufficient practical skills during their studies. The President directed secondary and vocational education institutions to strengthen practical training, and universities to utilize their potential to teach people professions that are in demand.
Financing and Job Creation
A total of 6.4 trillion soms has been allocated for poverty reduction and employment promotion measures in the region. Of the 2.1 trillion soms in resources provided by commercial banks, 1.5 trillion soms in the form of loans have been directed to projects in mahallas. As a result, all mahallas in the region have gained access to financial support.
The President stated that the contribution of banks to reducing poverty and unemployment should be assessed based on concrete local results. Banks were instructed to act as 'project factories', transforming the opportunities and initiatives of mahalla residents into viable business projects.
By the end of the year, Khorezm plans to lift 81,000 people from poverty among 18,000 low-income families and provide permanent employment for 39,000 unemployed individuals. To achieve these goals, investment projects will be implemented in the fields of industry, services, tourism, transport, agriculture, and construction. It is expected that micro-industrial centers will create 250 new enterprises, bank-involved mahalla projects will be expanded, and additional measures will be taken to create jobs and formalize business activity.
It is planned to establish 36 cooperatives in areas such as poultry farming, animal husbandry, fish farming, furniture production, greenhouse farming, and crop cultivation. These cooperatives are intended to involve 15,800 low-income families from 201 mahallas. Additionally, 70 'locomotive' projects will be implemented in 12 core and 38 neighboring mahallas, which are expected to create 1,100 jobs. A total of 650 billion soms will be allocated for entrepreneurial initiatives, allowing for the implementation of 2,500 micro-projects.
Development of Shikhbogi Mahalla
During the meeting, the development plan for Shikhbogi mahalla in the Yangiarik district and neighboring mahallas Karmish, Sherobod, and Kattabog was also discussed. This area has 18,200 residents and 319 enterprises. Plans include the creation of an industrial zone, a micro-industrial center, a modern market, and service facilities, as well as launching intensive gardens and livestock and poultry complexes. Improvements to local roads, pedestrian infrastructure, and electricity and water supply systems are also planned.
The master plan for this area will be developed with the participation of foreign consulting organizations, and local designers will undergo additional training. This plan is expected to provide 1,500 stable jobs and increase household incomes by 20–30%. After the presentation, Mirziyoyev instructed officials to revise existing mechanisms for working with vulnerable groups and prepare proposals to take Uzbekistan's poverty reduction policy to a new stage. These proposals are expected to be discussed in a separate video conference.