Entrepreneurs in Karakalpakstan will be allocated 12% loans

Entrepreneurs in Karakalpakstan to be allocated 12 percent loans

A meeting dedicated to the socio-economic development of Karakalpakstan is being held in the city of Nukus under the chairmanship of Shavkat Mirziyoyev. This was reported by the president's press service.

Sector heads were instructed to define specific plans for projects, jobs, and value added in Karakalpakstan based on the "raw material – finished product – export" chain.

Projects worth at least $150 million will be implemented in the textile and leather industries in Amudarya, Beruniy, Takhtakupir, Kegeyli, and Turtkul.

Projects worth $200 million in the electrical engineering industry will be organized in the city of Nukus, Nukus district, and Karauzak, and projects worth $100 million in energy-efficient building materials will be established in Karauzak, Bozatau, and Beruniy.

Projects worth $120 million for the production of automotive spare parts will be launched in the city of Nukus, and projects worth $50 million in the pharmaceutical sector will be initiated in the city of Nukus, Kanlikul, Kegeyli, Chimbay, and Bozatau.

A $50 million project is starting in Takhtakupir with the Italian company Bonifica Ferraresi. Tomatoes and grain will be grown on 2,000 hectares using Italian technology, deeply processed, and exported to Europe.

By October 15, "road shows" will be held for each district. Regional governors will attract their investors and start projects that will create 2-3 thousand high-income jobs.

In general, the task of attracting $5 billion in investments to Karakalpakstan next year was set.

At the meeting, issues of turning Karakalpakstan into a poverty-free region, increasing employment, and raising population incomes were discussed.

In Karakalpakstan, 2,000 entrepreneurs have repaid 2 trillion 145 billion soums in loans on time over three years, becoming reliable clients of banks. Based on the "client growth" model, there is an opportunity to provide jobs and income to at least another 30-40 thousand people.

The bank responsible for the region is opening a 300 billion soum credit line at a 16 percent rate for reliable clients. Due to the Entrepreneurship Development Company covering 4 percent of it, the rate for the entrepreneur will drop to 12 percent.

The remaining 8 banks were also instructed to develop similar favorable products within a month.