Uzbekistan Targets US$ 3.3 Bn Textile Exports By 2026
President Shavkat Mirziyoyev has approved a resolution aimed at boosting Uzbekistan’s textile and knitwear sector, with an ambitious target of raising output by 9% to UZS 146 trillion by 2026. Export earnings are projected at US$ 3.3 billion, up from just over US$ 1 billion in the first eight months of 2025, which marked a 25% year-on-year decline, the Ministry of Justice said.
To support producers, farmers will receive subsidies of UZS 1 million for every ton of raw cotton harvested and sold on time. Companies cultivating or purchasing cotton at their own expense will be reimbursed 10% of their costs.
Clusters, which play a pivotal role in Uzbekistan’s cotton-to-textile value chain, will get relief on loans taken to finance the 2022–23 cotton harvest. Penalties accrued on unpaid interest as of August 1 have been scrapped. They will also be allowed to first repay principal debt, with interest to be cleared in equal installments over 12 months. Firms meeting repayment schedules will be compensated for 50% of their interest outgo.
The government has also slashed the social tax rate for textile companies and clusters to 1% for three years starting September 1. Imports of blended fabrics and materials for the leather and sericulture industries will be exempt from customs duties during the same period.
In a bid to improve social infrastructure, clusters and enterprises employing over 200 workers will be encouraged to set up kindergartens, eligible for the same subsidies as private preschools.
The president had earlier announced the cancellation of UZS 377 billion in penalties on cotton-related cluster debts, noting the new repayment scheme would free up nearly UZS 800 billion in working capital for the sector.
