"Inflation is a tax on the poor, tourism should make people rich" — Mirziyoyev on Khorezm

On August 17, during a visit to the Khorezm region, Uzbek President Shavkat Mirziyoyev emphasized that inflation is a "tax on the poor" and spoke of the need to make the people wealthy through tourism. He set the goal of significantly reducing poverty and unemployment in the region by the end of this year, while simultaneously increasing investment and curbing inflation.

The head of state made these statements during an inspection of a new railway line linking Urgench International Airport with Khiva. During a conversation with local activists, the president discussed agriculture, income levels, investment, and tourism development.

According to Shavkat Mirziyoyev, 91,000 people in Khorezm live below the poverty line, approximately 39,000 are unemployed, and another 102,000 citizens reside outside the country.

"I want to say one thing. For a hundred years, cotton has kept us poor. Just yesterday, the Minister of Agriculture spoke on television. He says: this year's cotton yield will be no less than 50 centners, 4.5 million. It turns out that cotton can be grown profitably. If there's interest, money, income, and science," the president noted.

He also drew attention to the grain yield in the region.

"In Khorezm, the grain yield has reached 100 centners. When you were working, was it ever 100 centners? In Khorezm, 91,000 people live in poverty, 39,000 are unemployed, and 102,000 are abroad. I will allocate funds so that by the end of the year, there will be no poor or unemployed people left," the head of state declared.

Shavkat Mirziyoyev emphasized that the fight against poverty is inextricably linked to the need to curb price increases and increase food production.

"Why am I talking about this? To do this, you need to understand economics. We talk about 'inflation.' I explain it to them in simple terms. What is inflation? Inflation is a tax on the poor. If we don't curb inflation and increase food production, the meat the poor buy will double in price," he explained.

The president named curbing inflation as one of the key tasks assigned to decision-makers.

"Why don't we make Khorezm a model region? We'll conduct an experiment here by the end of the year," he said.

The president further stated that he had been briefed on plans to attract over $2.5 billion in investment to the region this year. To ensure a steady flow of investment, he ordered the establishment of a project office in Khorezm. Representatives from the Presidential Administration, the Cabinet of Ministers, ministries, and regional authorities will work separately on each project.

"A bird has two wings: poverty and unemployment—and investment. If we ensure a balance between these two areas, in a year or two, Khorezm will become a completely different region. Today, I said: make it a model." "I told the Senate leadership: 'Tell everyone: look what they're doing in Khorezm,'" he noted.

Shavkat Mirziyoyev also focused on the development of tourism in Khorezm. He recalled the installation of a monument to Jaloliddin Manguberdi, calling it one of his long-standing goals.

"Why did I bring about so many changes in Khorezm? I had dreams. Erecting a monument to Jaloliddin Manguberdi was my dream. Now, when it's shown on Uzbek television, my heart skips a beat," the head of state said.

According to government estimates, the number of tourists in Khorezm has reached 2.5 million to date, and is expected to reach 3 million by the end of the year.

He also linked tourism development to the integration of the airport, rail service, and other transport infrastructure.

"Why did I combine the train station, railway, and airport? I want to make the people rich through tourism. Why shouldn't we turn Khiva, built by our ancestors, into a source of prosperity? Today we are opening major projects, launching major ones. The time has come – now we need to create added value. What is added value? It's income," said Shavkat Mirziyoyev.

That same day, the president inspected the new 11-kilometer railway line connecting Urgench International Airport with the Khiva railway infrastructure. The project cost 225 billion soums. The new route is expected to carry approximately 650,000 local and foreign tourists annually, while travel time between Urgench and Khiva will be halved, from 80 to 40 minutes.

The route will be served by a Chinese-made six-car CR200J electric train, designed to carry approximately 400 passengers and reaching a maximum speed of 160 km/h. This is the first project in Uzbekistan to directly connect an airport to the railway network.

In July, the president criticized regional leaders for inflation exceeding the promised 3%. He also pointed to inflated data on livestock numbers and ordered a review of the meat balance, the establishment of imports, and the import of 100,000 head of cattle and 150,000 sheep and goats by the end of the year.