IMPORT SUBSTITUTION AT ADVANCED PACE

In the first three months of 2016, the estimated effect of import substitution in Uzbekistan exceeded $345 million.

The Uzbek government has been successfully implementing a package of measures on import substitution and development of domestic production. These two processes have paved the way to the establishment of new manufacturable industries, production of modern goods, and filling the domestic market with quality goods that are noticeably cheaper than their imported counterparts. Moreover, the process has ensured creation of jobs and stimulation of domestic demand. Dozens of new large industrial enterprises in oil and gas, engineering, electrical and metallurgical industries have been built in Uzbekistan during the years of independence. Most importantly, these processes have been gaining pace from year to year.

The volume of import-substituting production has increased by 220 times as a result of localization programs that have been implemented since 2000. During the first quarter of the current year alone, enterprises have produced goods totaling 981.3 billion soums under 534 projects as part of the Program of Localization of Finished Products, Components and Materials for 2019, 1.5 times up from the previous year.

Since the beginning of 2016, enterprises have established the production of 37 new types of localized products, including petrochemical equipment and spare parts for conveyor equipment, isolation valves, speedometers for vehicles, fitness equipment, children’s bicycles and scooters, electric storage water heaters, and other finished goods.

Besides, Uzbekistan has increased the production of gasoline, ammonium sulfate, sodium nitrate, drills, rotary pumps, cement clinker, granulated sugar, barley grains, carpets and rugs, knitted garments, pro-vitamins and vitamins, medicines and other finished products. In particular, since the beginning of the current year, domestic enterprises have launched the manufacture of 18 new kinds and 24 models of finished sewing and knitted products, 38 kinds of pastries, fruit and vegetable, meat and dairy canned foods, 26 kinds of drugs and other consumer goods.

As a result of the International Industrial Fair and Cooperation Exchange in 2015, Uzbekistan signed contracts for the current year on the development of the production and supply of previously imported products for 2.1 trillion soums. That should allow reducing the volume of imports by $637.5 million in key economy sectors in the current year.

The Program of Localization is important in terms of increasing the volume of exports and expansion of geography of deliveries of production, increasing the share of products with high added value. In 2015, for instance, Uzbekistan exported 52 types of new products, including washing machines, energy-saving lamps, and cosmetics.

THE NEWSPAPER "UZBEKISTAN TODAY"