General Information and Exim policy of

Uzbekistan
Presented by :
Shubham Chaudhari
MBA 2 ( Div A – 18MA08 )

Guided by : Prof. Landge Sir

Introduction
 The country occupies an area of 447,400 km², Uzbekistan is about the size
of Sweden, or slightly larger than the U.S. state of California.

 The landscape of Uzbekistan is dry with mostly flat-to-rolling sandy desert,

inclusive sand dunes.

 Only about 10% of the country's area is intensively cultivated with irrigated
land in river valleys and oases.

 Uzbekistan has a population of 31 million people (in 2015). Capital and

largest city is Tashkent .

 Spoken languages are Uzbek and Russian.

 Uzbekistan is famous for the Registan was the heart of the ancient city
of Samarkand, with its three madrasas (institutions for the study of
Islamic religion and knowledge) it is the main visitor attraction in the
city.
 Government: 
Type: Republic; authoritarian presidential rule, with little power outside the executive
branch.
Independence: 1 September 1991 (from the USSR).
Constitution: 8 December 1992.

 Climate: Desert-continental; long, hot summers, mild winters; semiarid grassland in east.

 People:
Nationality: Uzbek, Uzbekistani.
Population : 31 million (2015)
Ethnic groups: Uzbek 80%, Russian 5.5%, Tajik 5%, Kazakh 3%, Karakalpak 2.5%, Tatar
1.5%, other 2.5%.
Religions: Muslim 88% (Sunni), Eastern Orthodox 9%, other 3%.
Languages: Uzbek (Turkic tongue) 74%, Russian 14%, Tajik 4.5%, other 7%.
Literacy: 97-99%

 Natural resources: Gold, uranium, copper, natural gas, tungsten, potassium salts,

phosphorus and kaolin
 Agriculture products: Cotton, fourth-largest producer worldwide;
vegetables, fruits, grain, livestock.

 Industries: Textiles, food processing, machine building, metallurgy,

natural gas.

 Exports - commodities: energy products, cotton, gold, mineral

fertilizers, ferrous and nonferrous metals, textiles, foodstuffs,
machinery, automobiles. 

 Exports partners: Switzerland 25.8%, China 17.6%,  Kazakhstan 14.2%, 

Turkey9.9%, Russia 8.4%,Bangladesh 6.9% (2015)

 Imports - commodities: machinery and equipment, foodstuffs,

chemicals, ferrous and nonferrous metals.
 Uzbekistan is the 89th largest export economy in the world and the 96th most complex
economy according to the Economic Complexity Index (ECI). In 2017, Uzbekistan exported
$8.38B and imported $11.2B, resulting in a negative trade balance of $2.84B. In 2017 the
GDP of Uzbekistan was $49.7B and its GDP per capita was $6.87k.

 The top exports of Uzbekistan are Gold ($3.67B), Petroleum Gas ($692M), 

Non-Retail Pure Cotton Yarn($594M), Ethylene Polymers ($370M) and Refined Copper
 ($309M), using the 1992 revision of the HS (Harmonized System) classification. Its top
imports are Vehicle Parts ($574M), Packaged Medicaments($468M), Refined Petroleum
 ($419M), Coated Flat-Rolled Iron ($310M) and Sawn Wood ($226M).

 The top export destinations of Uzbekistan are Switzerland ($3.68B), China ($1.4B), Russia

 ($1.01B), Turkey ($815M) and Kazakhstan ($714M). The top import origins are China
 ($2.72B), Russia ($2.62B), Kazakhstan ($1.25B), South Korea ($1.18B) and Turkey($677M).

 Uzbekistan borders Afghanistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan by

land and Azerbaijan by sea.
Economic Indicators of Uzbekistan's Growth Growth
Top Imports

 In 2017 Uzbekistan imported $11.2B, making it the 85th largest importer

in the world. During the last five years the imports of Uzbekistan have
increased at an annualized rate of 1.7%, from $10.3B in 2012 to $11.2B in
2017. The most recent imports are led by Vehicle Parts which represent
5.12% of the total imports of Uzbekistan, followed by 
Packaged Medicaments, which account for 4.18%.

 https://oec.world/en/profile/country/uzb/
Top Exports
 The following export product groups represent the highest dollar value in Uzbekistani global
shipments during 2018.

 Gems, precious metals: US$2.6 billion (30.8% of total exports)

 Mineral fuels including oil: $1.7 billion (19.9%)

 Cotton: $931.3 million (11%)

 Copper: $580.8 million (6.9%)

 Fruits, nuts: $526 million (6.2%)

 Plastics, plastic articles: $490.4 million (5.8%)

 Knit or crochet clothing, accessories: $244.1 million (2.9%)

 Vegetables: $198.1 million (2.3%)

 Zinc: $162.9 million (1.9%)

 Fertilizers: $153 million (1.8%)

 http://www.worldstopexports.com/uzbekistans-top-10-exports/
 Advantages
 The following types of Uzbekistani product shipments represent positive net exports or a trade balance
surplus. Investopedia defines net exports as the value of a country’s total exports minus the value of its total
imports.
In a nutshell, net exports represent the amount by which foreign spending on a home country’s goods or
services exceeds or lags the home country’s spending on foreign goods or services.

 Gems, precious metals: US$2.6 billion (Down by -31.5% since 2017)

 Mineral fuels including oil: $915.5 million (Up by 1054.7%)

 Cotton: $914.5 million (Up by 2.8%)

 Copper: $573.5 million (Down by -1%)

 Fruits, nuts: $516.1 million (Up by 15.5%)

 Knit or crochet clothing, accessories: $221.9 million (Up by 1.9%)

 Vegetables: $163.1 million (Up by 45.2%)

 Zinc: $162.4 million (Down by -14.3%)

 Fertilizers: $135.4 million (Down by -13.3%)

 Inorganic chemicals: $68.5 million (Down by -46.2%)

 Opportunities
 Overall Uzbekistan incurred an -$8.3 billion trade deficit for 2018, swelling by 150% from -$3.3 billion in red

ink one year earlier.

 Below are exports from Uzbekistan that result in negative net exports or product trade balance deficits. These

negative net exports reveal product categories where foreign spending on home country Uzbekistan’s goods

trail Uzbekistani importer spending on foreign products.

 Machinery including computers: -US$3.9 billion (Up by 69.9% since 2017)

 Vehicles: -$1.9 billion (Up by 105.8%)

 Iron, steel: -$1.3 billion (Up by 37.9%)

 Electrical machinery, equipment: -$1 billion (Up by 47.2%)

 Articles of iron or steel: -$689.6 million (Up by 53.6%)

 Pharmaceuticals: -$596.8 million (Up by 3%)

 Wood: -$542.1 million (Up by 36.1%)

 Cereals: -$320.8 million (Up by 51%)

 Optical, technical, medical apparatus: -$273.3 million (Up by 5.1%)

 Furniture, bedding, lighting, signs, prefab buildings: -$262.7 million (Up by 96.6%)
Export Companies
 Not one Uzbekistani corporation ranks among Forbes Global 2000 for 2016.

Wikipedia lists exports-related companies from Uzbekistan. Selected examples are

shown below:

 Avialeasing (cargo airliner)

 MAN Auto-Uzbekistan (vehicles)

 Navoi Mining and Metallurgy Combinat (uranium, precious metals)

 SamKochAvto (buses, trucks)

 Tashkent Aviation Production Assoc. (aircraft)

 Uzbekneftegaz (oil, gas)

 Trade Policy
 As a part of the economic system reform of the Republic of Uzbekistan, over the past period
the Ministry has initiated several policies on liberalizing foreign economic activity and
increasing the export potential of the Republic.

 In foreign economic sphere, the strategy of expansion and strengthening of trade and
economic relations with foreign countries was continued, firstly with China, the Russian
Federation, Kazakhstan, South Korea, Turkmenistan, Turkey, and Germany.
In 2017 the turnover of the Republic of Uzbekistan with foreign countries increased by 11,3%,
incl. exports increased by 15,4%, imports – 7,2%. Volumes of trade has grown with all major
foreign trade partners, inch with China by 16,8%, Russia – 16,1%, Kazakhstan – 9,7%, Kyrgyzstan
– 51,6%, Tajikistan – 20,2%, Afghanistan – 15,2%, South Korea – 27,1%, Turkey – 31,8%, Germany
– 15,9% and others.

 For the first time in the history of modem Uzbekistan, joint production of domestic products
was launched abroad, assembly production of cars of JSC “GM Uzbekistan” has started in
Kazakhstan, and the similar projects on establishing industrial assembly of cars, agricultural
machinery, electrical products, construction materials and textiles are being implemented in
Kyrgyzstan.
 During the 2017 there were 21 top level visits, 700 documents were signed in the trade,
economic and investment spheres for a total of about USD 60,0 billion, including USD 11,0
billion trade contracts.
All export restrictions have been removed: the procedure for exporting goods without
prepayment and guarantee obligations, expansion of tax benefits for exports has been
introduced. Unnecessary and outdated permitting procedures have been eliminated.
The compulsory sale of foreign currency earnings, which in fact was a tax on exports, has also
been eliminated.

 The rates of import customs duties and excise tax on food products, imported consumer goods,
and commodities used in the manufacture of finished products have been reduced drastically.
As a result, the arithmetic average rate of customs duty in Uzbekistan became 6,45%.

 Over the past period, more than 950 new enterprises have been involved in export activities,
with exports amounting to over USD 0,6 billion, 118 new types of goods exported, the
geography of supplies expanded to 62 new markets.
The share of high added value finished goods in the export of the Republic of Uzbekistan
increased from 28,5% to 34,5%, export of cars grew by 3,3 times, electric and cable products
-1,7 times, pharmaceuticals – 1,2 times, textile – 1,3 times.
 We are working on trade expansion measures through establishing trading houses (with show-
rooms) in foreign countries.

 Today more than 1 000 trading houses are operating abroad, out of them 75 have been
established in 2017, including 26 in the countries of Central Asia.

 In 2017 domestic enterprises have taken part in more than 80 international exhibitions and fairs
in 20 countries of the world, we have signed export contracts and agreements amounting to USD
1,36 billion.

 At the same time, in accordance with the Five priority areas of Uzbekistan’s Development
strategy for 2017-2021, and in order to further increase export volumes, involve new enterprises
in export and develop export of new products, based on integrated marketing research, the
Ministry has developed a Concept on development of export activities of the Republic of
Uzbekistan for 2018-2022. According to this Concept, we are expecting increase in exports of the
Republic of Uzbekistan by 2022 to the level of up to USD 30 billion, or 2,6 times more than
current export indicators.

 In order to reduce the transport expenditure component in overall export of goods, Uzbekistan
has received discounts of up to 40% on the transportation of mineral fertilizers, cotton fiber, fruit
and vegetable products and non-ferrous metals across the territories of Kazakhstan, Russia,
Turkmenistan, Azerbaijan, Georgia and Iran.
Thank
You….!