The development of transport corridors can be beneficial for all countries in the region. The participants of the session “Transformation of trade flows in Central Asia and their capitalization”, held as part of the Tashkent International Investment Forum, had the opportunity to discuss the prospects for interaction, growth points, as well as the future of ongoing projects.
The session was moderated by EBRD Regional Economist Eric Livni. It is noted that historically the routes of the Great Silk Road crossed in the region of Central Asia. Today, improving transport infrastructure, reducing delays in the delivery of goods, and removing barriers directly affect economic performance.
Adviser to the President of the Republic of Uzbekistan
on the development of sectors of the economy, the implementation of investment and foreign trade policy, Ravshan Gulyamov, noted during the session that in recent years, neighboring states have been actively opening their companies in our country. Uzbekistan is aimed at cooperation in several areas – both in various sectors of the economy and tourism.
Shavkat Mirziyoyev also spoke about this at the Tashkent International Forum. At the opening of the international event, he said that the reforms are expected to increase gross domestic product to $100 billion and annual exports to $30 billion over the next five years. In addition, the share of the private sector in GDP will reach 80%. “Our goal is to make Uzbekistan one of the highest income countries in the world by 2030,” he said.
Chief Executive Officer of the VEON Group of Companies Kaan Terzioglu noted the importance of digitalization in the development of states. Uzbekistan has the potential to introduce information technologies and train personnel for this industry since digital technologies are necessary for many areas – the economy, education, and the social sector. Speaking about the goals of the holding company, he focused on the distribution of 5G networks in the territory of the Central Asian countries.
Speaking about the achievements of the country, Deputy Minister of Investment and Foreign Trade Badriddin Abidov noted that last year the special system of preferences of the European Union for sustainable development and good governance (GSP +) came into force, where Uzbekistan was accepted as a beneficiary country under the General Scheme preferences (GSP). This allowed investors and representatives of the private sector, primarily from EU countries, to implement promising projects in Uzbekistan.
Along with this, due to the modernization of the transport system, the countries of Central Asia may gain new competitive advantages due to an increase in trade turnover, as well as solving problems in the transport and logistics sector.
State Minister of Investment, Chairman of the Investment Council under the Prime Minister of Pakistan Muhammad Azfar Ahsan noted that Uzbekistan opens its doors to many investors from different countries. Thanks to this step, 25 firms from Pakistan are working in Uzbekistan. In addition, there is an interest in the development of transport corridors through access to seaports and strengthening cooperation at the international level.
Regional integration, especially in the transport and transit sector, will improve the efficiency in realizing the transport and transit potential of the countries of Central Asia, and will also contribute to its investment attractiveness as a common market.
It is necessary to build logistics through trade and logistics centers, emphasized the Director-General of Kyrgyz Eco LLC – “Kyrgyz Eco Export” Ulan Maksymbekov. Much depends on the pricing of goods, and this, in turn, depends on the well-established transport infrastructure. Recent events in the world lead to changes, including in economic cooperation, the speaker said. If we shorten roads, we will create new conditions for development.
One of the successfully implemented projects at the international level was China’s One Belt, One Road initiative, which directly uses the transit potential of Central Asia. Iran, Afghanistan, Pakistan, India can become an important direction of trade.
Deputy Minister of Economy and Commerce of the Kyrgyz Republic Kanatbek Abdrakhmanov spoke about the cooperation between Uzbekistan and Kyrgyzstan, which has evolved historically. Neighboring states have the potential to develop the transport and logistics system. The Deputy Minister also noted the prospects for establishing transport corridors with China, India, Turkey, and the EU countries. He stressed that the ongoing international forum is a good opportunity to discuss topical issues of the industry face to face, and new conditions for the development of the foreign economy will create jobs for the population of the two countries.
CEO for the Caucasus and Central Asia, Procter & Gamble Deger Kurtaslanoglu spoke about the experience of this foreign company in the conditions of the transformation of the modern market. In addition, the expert stressed that Uzbekistan today is an excellent platform for investment by international companies.
It was also noted during the event that the countries of Central Asia have large export potential. Producing products with a focus on the neighboring state can be beneficial for all parties.
Mangold Consulting President Klaus Mangold emphasized that investing in people will never cease to be relevant. Small and medium-sized businesses will develop only with improved logistics, the expert believes. In recent years, Uzbekistan has been improving its transport routes to enter the European market, he noted and wished young people to work on themselves and contribute to its development.