New tasks set for Karakalpakstan’s development and people’s well-being

In recent years, substantial resources have been allocated for the region’s development, along with special incentives and favorable conditions. Corporate income, land and property taxes were halved, electricity tariffs for industrial enterprises were reduced by 15 percent, and the social tax rate was set at 1 percent. Last year, investment in Karakalpakstan reached $1.7 billion – 22 times the 2021 level. In the first half of this year, the region’s economy grew by 10.2 percent, with Karakalpakstan ranking second after Tashkent.

A stable energy supply plays an important role in these transformations. In recent years, 860 megawatts of new generating capacity have been commissioned. The construction of wind power plants in Beruniy and Karauzyak districts has brought the share of green energy to 23 percent. Electricity generation has quadrupled to 5.33 billion kilowatt-hours, almost three times the annual demand of households and businesses.

During the visit, construction was launched on 47 projects worth a total of $7 billion. In particular, a 1,500-megawatt wind power plant worth $2.6 billion will be built in Kungrad district. The project also provides for the construction of 1,500 kilometers of high-voltage transmission lines and three 500-kilovolt substations. By 2030, wind power plants with a combined capacity of 3,300 megawatts are planned to be commissioned, bringing the share of green energy to 76 percent and creating 400 megawatts of energy storage capacity.

Major projects are also being implemented in transport and social infrastructure. A sanatorium in Bozatau district, an oncology and radiology center in Nukus, a children’s hospital and maternity hospital in Kungrad district, amphitheaters in Amudarya and Turtkul districts, as well as a gymnastics center and a branch of the Conservatory in Nukus, have been commissioned.

Concrete pavement has been laid on a 240-kilometer section of the A-380 highway passing through Kungrad district at a cost of $384 million. Construction has also begun on another 92-kilometer section passing through Turtkul, Ellikkala and Beruniydistricts, with the project valued at $233 million. As a result, transit traffic will increase 1.5-fold, while the time required to transport goods from Turtkul to the border with Kazakhstan will be reduced from one day to 10 hours.

From March next year, a high-speed train will operate between Tashkent and Nukus, reducing travel time from 16 hours to seven hours. Work will also begin on the reconstruction of the Tuyamuyin water treatment plant and the construction of a 100-kilometer water pipeline from Kungrad to Muynak.

At the meeting, particular attention was given to processing the region’s available land, mineral and energy resources into high value-added products. A new industrial and investment map will be developed based on the principle of “from resource to finished product.” The Kungrad – Karauzyak – Takhiatash corridor will be transformed into a “green industrial corridor” – an “intellectual economy triangle.”

The special zone established for the development of artificial intelligence and data centers will host six projects worth a total of $8 billion. The President instructed responsible officials to develop a five-year program and ensure a stable 1-gigawatt electricity supply for investors.

He also set the task of creating 1,500 high-paying jobs in Nukus, Kungrad, Karauzyakand Takhiatash within three years and increasing annual exports of cloud technologies and artificial intelligence services to $600 million.

The meeting highlighted the potential to generate between $50 million and $100 million in annual revenue by converting green energy into carbon credits.

The President instructed responsible officials to launch this mechanism within a month and begin negotiations with major importing countries. Export revenues will remain in Karakalpakstan and supplement resources allocated for infrastructure development. By the end of the year, a forest carbon credit program covering 50,000 hectares will be launched in the Aral Sea region.

Geological exploration has so far covered only 20 percent of the region, while comprehensive data on mineral reserves have yet to be compiled for investors. The President instructed responsible officials to establish a gold mining and processing cluster within a month, creating 1,000 jobs, as well as develop a comprehensive geological exploration program and reassess mineral reserves.

Projects worth at least $150 million will be launched in the textile and leather industries, $200 million in electrical engineering, $100 million in energy-efficient building materials, $120 million in automotive components and $50 million in pharmaceuticals.

A $50 million project is being launched in Takhtakupyr district in partnership with the Italian company Bonifica Ferrarizi. The project will involve growing tomatoes and grain crops on 2,000 hectares, followed by deep processing and exports to Europe.

The Head of State instructed responsible officials to hold investment presentations for each district and, together with regional hokims, launch projects designed to create between 2,000 and 3,000 high-paying jobs. He also set a target of attracting $5 billion in investment to Karakalpakstan next year.

Financial support for entrepreneurship will be expanded to increase employment and household incomes.

A 300 billion soum credit line at an interest rate of 16 percent will be made available to reliable bank clients. The Entrepreneurship Development Company will cover four percentage points of the interest rate, reducing the effective rate for entrepreneurs to 12 percent.

The interest rate on loans for family entrepreneurship will be reduced from 17.5 percent to 12 percent. Next year, the amount of available financing will double, with $100 million allocated to driver projects. These funds are expected to provide sources of income for at least 50,000 people. Another 100 billion soums will be allocated to implement two additional projects in each district aimed at accelerating economic growth and increasing employment. This will provide sources of income for 10,000 people.

The President noted that unlocking the potential of agriculture depends primarily on reducing water losses. Irrigating 417,000 hectares of land in the region requires 5.7 billion cubic meters of water, of which 38 percent, or 2.1 billion cubic meters, is currently lost.

A total of 135 billion soums will be allocated to concrete the Yonbosh canal in Turtkuldistrict and the Erkindarya canal in Bozatau district, as well as to construct hydraulic structures and artesian wells. Task was set to complete the concreting of both canals by March 1, plant fodder crops on 17,000 hectares and provide sources of income for 2,000 people next year. Grants attracted for the modernization of water management facilities will be increased to $100 million. By April 1, 59 water pumps in Karakalpakstan and 200 in other regions will be modernized.

Unused pastures and land plots will be developed to strengthen the fodder base for livestock farming. In Kungrad, Beruniy and Chimbay districts, 2,000 hectares of land are being restored, with another 5,000 hectares to be developed next year. In Bozataudistrict, 100 billion soums will be allocated to bring 7,500 hectares of land into productive use for fodder cultivation. A subsidy of 500,000 soums per hectare will be provided for growing fodder crops.

President Shavkat Mirziyoyev supported a proposal to increase financing for large livestock complexes to 50 billion soums. A subsidy covering 10 percent of the cost of breeding bulls transported by air – up to 4 million soums per head – will also be provided.

The Head of State instructed responsible officials to develop, within a month, projects for livestock complexes designed to accommodate at least 100,000 head of cattle.

In Takhtakupyr district, fodder production will be organized based on Xinjiang’s experience, with 5,000 sheep and goats to be imported. By the end of the year, projects covering 10,000–15,000 hectares are expected to be developed, with plans to breed 100,000 sheep and goats annually. Task was set to increase the capacity of KegeyliNaslli Parranda by two to three times, transform it into a holding company and introduce poultry farming courses at the technical college.

In horticulture, a three-year program will establish plantations of salt-tolerant plum varieties and late-ripening apricots on 30,000 hectares. Work on the first 10,000 hectares will begin this year. The regions will receive land with guaranteed water supply, seedlings adapted to local climatic conditions and the necessary technologies. Experienced farmers and agronomists will be engaged, and facilities for processing the produce will be established. The program is expected to create employment for 20,000 people and increase fruit exports to at least $500 million within three years.

Starting next spring, melons will be grown on 10,000 hectares in Nukus district. The best varieties and specialists will be brought in from Spain, the United States, the Netherlands and China, and a holding company will be established to process and export the produce. The local technical college will be equipped with a laboratory and a testing ground and transformed into a center for sharing best practices in melon farming.

The meeting also addressed the creation of a comfortable urban and mahalla environment for residents. Construction of Nukus City, designed for 50,000 residents, has begun in the Ashshikol area of Nukus. Energy-efficient buildings, business, shopping and service centers, as well as green spaces, will be developed across 270 hectares.

The Nur and Elobod mahallas in Nukus will be improved based on the experience of Kichkirik mahalla. In Kegeyli, work has begun to cover 3.5 kilometers of a drainage canal and create 100 service facilities and 320 jobs. The President instructed regional hokims to implement similar projects in one mahalla and one central street in their assigned districts by Navruz.

Particular attention was paid to equipping young people with modern professional skills. The Head of State set the task of providing 1,000 young people with high-paying jobs in information technology and logistics within a year, followed by another 5,000 young men and women over the next two years. He also instructed responsible officials to engage at least 10 talented compatriots to teach information technology to young people in remote areas and launch relevant projects.

The Nukus City College No. 1 has introduced the international Pearson BTEC program, with graduates receiving professional certificates recognized in 70 countries. The college produces 37 types of small-scale equipment and trains young people in instrument manufacturing. From the new year, this experience will be introduced at one college in each of Amudarya, Beruniy, Chimbay and Kungrad districts. From October 1, the maximum loan amount for purchasing tools and equipment will be increased from 20 million to 50 million soums, while the age limit for receiving compensation for vocational training expenses under the “master – apprentice” system will be raised from 30 to 40.

Preschool education coverage has reached 84 percent, although the figure remains low in seven districts. Entrepreneurs opening private kindergartens in Karakalpakstan will be eligible for loans at an annual interest rate of 7 percent for 15 years, including a five-year grace period.

The range of high-tech healthcare services is expanding. Liver and kidney transplants are performed in Nukus, while the Aral Sea Region Children’s Hospital provides 150 types of high-tech medical services. This year, 1,500 complex operations have been performed. Medical insurance has been introduced, and healthcare institutions have been equipped with $10 million worth of medical equipment.

The Nukus Medical Scientific Academy, the Children’s Clinic, the Oncology Center and a new multidisciplinary hospital will be integrated into a University Medical Cluster. From January 1, the monthly allowance of up to 200 percent currently provided to doctors who take up positions in Muynak will also be extended to Bozatau and Takhtakupyr districts.

The Head of State emphasized the importance of combining the experience of mahalla biys and aksakals, the energy of young people and the initiative of residents to create comfortable living conditions in every city and village. He noted that leaders should begin their work by visiting local communities and engaging directly with residents, while cleanliness and landscaping should become part of everyday culture.

The President proposed holding appropriate events next year to mark the 200th anniversary of the birth of Berdakh Kargabay uly, the great poet and thinker of the Karakalpak people. 

He emphasized that the poet’s wise words, “Always serve the people, do not think of yourself, care for the people,” remain relevant today. He instructed responsible officials to develop, within a month, a program for studying, digitizing, preserving and promoting the poet’s scholarly and creative legacy among young people.

At the conclusion of the meeting, regional and industry leaders presented their reports, and the President held a dialogue with representatives of the Karakalpak public.

With this, President Shavkat Mirziyoyev has concluded his visit to Karakalpakstan and returned to Tashkent.