RESOLUTION OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

of September 19, 2025 No. PP-290

About measures for acceleration of reforms and expansion of the export potential in the textile and sewing and knitted industry

For the purpose of further acceleration of the performed reforms in the textile and sewing and knitted industry, creating favorable conditions for diversification of industry, and also deep conversion of raw materials and increase in export of finished goods I decide:

I. Main objectives

1. Determine the main target indicators which are subject to achievement in the textile and sewing and knitted industry for 2026:

(a) ensuring increase in production for 9 percent and finishing it to 146 trillion sum;

(b) attraction in industry of foreign investments in the amount of 2 billion US dollars;

(c) finishing export to 3, 3 billion US dollars;

(d) creation of 50 thousand workplaces within the projects realized in industry.

II. The practical measures directed to financial improvement of the companies of the cotton and textile and sewing and knitted industry

2. Agree with the offer of the Ministry of Economics and the finance, the Central bank on implementation of measures directed to financial improvement of the companies of the cotton and textile and sewing and knitted industry.

3. Determine that within measures of financial improvement of the companies of the cotton and textile and sewing and knitted industry for the cotton and textile clusters having credit debt, allocated by fund of the state support of agricultural industry (further - Fund) for harvest of cotton of 2022-2023 by means of commercial banks (further - clusters):

(a) the clusters which completely provided with property mortgage providing are allowed to pay since August 1, 2025 only principal debt, after repayment of principal debt - percent with equal shares within the next 12 months. At the same time the Fund performs percentage payments for budget advance in proportion to the payments provided by this Item;

(b) to the clusters which timely paid according to the existing repayment schedule both principal debt, and percent 50 percent of the amounts of the percent collected on these credits in Fund after August 1 of the current year return;

(c) the penalty fee amounts added for percent unpaid as of August 1, 2025, are written off;

(d) the penalty fee amounts collected for percent unpaid till August 1, 2025, go in full for reduction of principal debt on the credits, in the absence of principal debt - for repayment of principal debt on other operating credits;

(e) the penalty fee amounts collected and sent till August 1, 2025 to Fund by commercial banks with reduction of principal debt are subtracted due to decrease in the amount in the payment schedule of the loan selected to Fund from the Government budget. At the same time the amount of deduction is determined by Inspectorate for the state financial supervision.

4. To the Prosecutor General's Office and Tax Committee:

(a) in one-day time to attach to each cluster and the spinning company which for unpaid interests adds penalty fee, ranking officers of Inspectorate for the state financial supervision and the Tax Committee;

(b) to establish strict control of unconditional and high-quality accomplishment of the measures determined by Item 3 of this resolution;

(c) till October 10, 2025 to enter information on the done work in Administration of the President of the Republic of Uzbekistan.

5. At the expense of the funds allocated from the Government budget by means of Fund:

(a) for the purpose of ensuring timely collection without loss of harvest of cotton of 2025 to allocate to farms of subsidy in the amount of one million sum for each ton of cotton raw realized by them at the exchange biddings (on which it is drawn up electronic the invoice) to processing enterprises, including clusters;

(b) to compensate 10 percent of cost of raw materials in case of cultivation or purchase of cotton clusters and the industry companies at the expense of their own means.

6. Determine that since 2026:

(a) the soft credits allocated from Fund for cotton harvest are provided only to the clusters having capacities of conversion of cotton fiber or which adjusted system of cooperation with the spinning companies;

(b) when purchasing cotton raw by means of the exchange biddings agreements (future, forward and spot) consist in the amounts corresponding to production capacity of clusters.

(c) purchase of cotton raw on the basis of the futures contract through the exchange biddings is not allowed by the clusters and the textile companies which did not return in full at the scheduled time the soft credits allocated by fund for final calculations of harvest of cotton in the year preceding financial year.

7. To the deputy prime minister D. Kuchkarov, Central bank, Agency on development of light industry in a month:

(a) to develop specific measures for improvement of the clusters, the textile and sewing and knitted companies having obligations on commercial credits by each company;

(b) to take measures for prolongation of term of commercial credits of the companies recognized having possibility of improvement up to 7 years.

III. Privileges

8. Since September 1, 2025 for the term of three years:

(a) to establish rate of the social tax for cotton and textile clusters, the companies of the textile and sewing and knitted industry - 1 percent;

(b) to exempt from customs duty the mixed fabrics and cloth, necessary raw materials for the tanning and silk industry imported according to the lists created in accordance with the established procedure which are not made in the Republic of Uzbekistan.

9. Determine allocation from the Government budget of subsidy to the preschool educational organizations formed by the cotton and textile and sewing and knitted companies in which the number of the workers performing labor activity based on the employment contract exceeds 200 people, on the conditions established for the non-state family preschool educational organizations.

IV. Additional measures for support of growth in volumes of production and export at the textile and sewing and knitted companies

10. For the purpose of support of increase in energy efficiency on production enterprises:

(a) the procedure for acceptance in power pool system and purchases of excesses from own consumption by production enterprises of the electric power developed by means of solar panels more than 1 MW is determined by the Cabinet of Ministers;

(b) part to 10 percent points of interest rate of the credits obtained for construction of solar photo-electric stations on production enterprises is compensated for the account of fund of stimulation and support of energy efficiency;

(c) for financing of works on construction of solar photo-electric stations on production enterprises long-term preferential credit lines of the international financial institutions and foreign banks in the amount of 200 million US dollars are attracted.

11. To the Uzbek technical regulation agency:

(a) till August 1, 2026 to finish the number of the textile and sewing and knitted companies having the international certificate to 300;

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