Tashkent, Uzbekistan (UzDaily.com) —  Under the chairmanship of President Shavkat Mirziyoyev, a videoconference meeting commenced to review the outcomes of poverty reduction efforts in mahallas and to set priority objectives for 2025.

It was noted that the introduction of banking services at the mahalla level has yielded positive results. In districts such as Saykhunobod, Uychi, Zarbdor, and Gijduvan, entrepreneurial environments have undergone drastic transformations, household incomes have risen, and people have gained a sense of optimism about the future.

For example, in Uychi district, banks engaged with 3,200 active clients to address their challenges, resulting in 9,000 people obtaining permanent employment, and the number of people living in poverty reduced by 6,000.

In Saykhunobod, initiatives in 3,200 households have helped 12,000 individuals earn incomes from their personal plots. In Zarbdor, 13,500 jobs have been created, and in Gijduvan, 28,000. As a result, 10,500 people have been lifted out of poverty.

Overall, since the beginning of the year, 3.3 million people across these four pilot districts have gained stable incomes. Notably, the average monthly household income has increased from 7.5 million soums to 10.5 million soums.

Additionally, in 57 districts such as Khodjeyli, Asaka, Vobkent, Bulungur, Yangiyer, Kushtepa, and Shavat, collaboration among district governors, banks, and assistant governors has reduced unemployment levels to below 5%.

During the meeting, some leaders were criticized for their complacent attitude, reflected in comments like, "This is temporary; it will fade in a year or two." As a result, 297 managers were dismissed for their weaknesses and lack of accountability. They were replaced by young, proactive specialists with modern mindsets, committed to adopting innovative approaches and addressing population needs.

"I issue a strict warning: any leader who does not engage directly with mahallas to solve residents’ and entrepreneurs’ problems will not remain in their role. Change must impact everyone.

We see the global political and economic situation becoming more complex with each moment, and new challenges emerging. If we do not respond today, tomorrow will be too late," the President stated.

As part of preparations for the meeting, calculations were made to ensure incomes for over 5 million citizens and to lift 1.5 million people out of poverty by 2025.

To achieve these goals, regional economic sector leaders were urged to shift their perspectives, overhaul work systems, and adopt modern approaches. They were instructed to hold meetings with entrepreneurs and transition to work formats aligned with contemporary requirements.

More than 40 proposals and initiatives were developed to expand positive practices of governors and banks and address existing issues.

"Overall, 2025 will be the most crucial year for achieving employment and poverty reduction," emphasized the President.

Over the past six years, 750,000 citizens participating in the Family Entrepreneurship program have established profitable businesses by promptly repaying loans. Among them, 58,000 have opened new enterprises.

Banks were instructed to support such proven clients, helping them transition to small and medium-sized businesses. Under the "Support for Small Business" program, unconditional loans of 300 million soums will be provided. This initiative is expected to create 1.5 million jobs in the coming years.

Credit resources for the Family Entrepreneurship programs are allocated exclusively from state funds.

The People’s Bank, under the Financial Inclusion program supported by the Asian Development Bank (ADB), is offering loans of up to 50 million soums without requiring extensive documentation or collateral. Backing this initiative, the ADB has pledged US$150 million for the program.

Following this example, it was recommended to attract US$1 billion in foreign loans through nine state banks, providing income opportunities for 250,000 individuals.

Cooperatives established in 27 districts with active entrepreneurs’ involvement have shown promising results. The aim is to increase cooperatives in 30 districts focusing on areas such as aquaculture, rabbit breeding, livestock, and beekeeping, with an allocation of 500 billion soums.

Additionally, 15,000 entrepreneurs currently sell their products via online platforms, significantly boosting incomes. To support this, the UNDP, in collaboration with a private bank, is training 1,300 women to sell their products online.

President Mirziyoyev expressed gratitude to Akiko Fujii, UNDP Resident Representative in Uzbekistan, for implementing projects and introducing innovative ideas.

The support for startup projects that attract investments and create jobs will be expanded. State banks will establish venture companies, allocating a total of US$50 million to support startups in mahallas. Accelerators will also be created to help startups grow into full-fledged businesses.

Special approaches are needed for regions with difficult conditions to support entrepreneurship, reduce unemployment, and alleviate poverty.

For instance, Uzpromstroybank collaborated with a major exporter from Kuva to implement projects for broccoli cultivation and wood processing in Kungrad district, providing low-interest loans.

This practice was endorsed, and it was proposed to allocate additional loans to attract entrepreneurs to 71 districts with challenging conditions. Furthermore, 3.2 trillion soums will be directed toward the infrastructure of 1,000 mahallas in 2025.

Entrepreneurs are prepared to implement 3,500 projects worth 31 trillion soums, creating 200,000 new jobs. The Ministry of Economy and Finance was tasked with allocating 1 trillion soums to develop infrastructure for these projects.

The meeting highlighted the global economic challenges impacting national economies and stressed the importance of strengthening financial discipline and accountability across the financial and banking sectors.

To enhance banks’ sustainability, it was emphasized that resources must be drawn not only from state funds but also from external sources. Banks were advised to establish working groups for attracting foreign investments, conduct international roadshows, issue Eurobonds, improve ratings, and adapt to global standards.

President Mirziyoyev concluded by emphasizing the necessity of addressing existing banking system issues to achieve the goals of poverty reduction and sustainable economic growth. He called for continued collaboration between banks, entrepreneurs, and local authorities to implement transformative initiatives.