Karakalpakstan attracted $1.7 billion in investments last year, which is 22 times higher than the figure for 2021, announced Uzbekistan's President Shavkat Mirziyoyev during a meeting on the region's socio-economic development in Nukus.
Mirziyoyev noted that the economy of Karakalpakstan has become one of the fastest-growing in the country. In the first half of the current year, the region's economic growth reached 10.2%, allowing Karakalpakstan to take second place after Tashkent.
According to the president, the increase in investment activity is due to the introduction of special incentives for the region. Taxes on profit, land, and property were halved, the electricity tariff for industry was reduced by 15%, and the social tax was set at 1%.
New Projects and Initiatives
Before the meeting, construction began on 47 new projects in Karakalpakstan with a total value of $7 billion. Additionally, six projects worth $8 billion will be implemented in a special zone created for artificial intelligence and data processing center projects.
The president also presented industry initiatives. Heads of the chemical industry were instructed to implement additional projects worth $200 million above the initial plan of $400 million, which will create 5,000 jobs.
In the textile and leather industries, projects worth at least $150 million are planned for five districts of the republic. Projects worth $200 million in electrical engineering, $100 million in energy-efficient building materials, $120 million in auto parts manufacturing, and $50 million in pharmaceuticals are also planned.
Attracting Foreign Capital
Mirziyoyev specifically highlighted projects involving foreign capital. A Chinese investor invested $33 million in the Urusay gold ore deposit in Karauzyak. A German company invested $30 million in the development of the quartz deposit in Beruninsky district, which will allow for the annual export of crystalline silicon worth $25 million.
The Italian company Bonifika Ferrarizi is starting a $50 million project in the Takhtakupyr district for growing and processing tomatoes and grain for export to Europe.
According to the president, investment tours will take place in every district of the region before October 15. Regional governors must attract investors for projects that will create between 2,000 and 3,000 high-paying jobs. Overall, Mirziyoyev set the goal of attracting $5 billion in investments to Karakalpakstan.