Uzbekistan’s Karakalpakstan to Cut Family Business Loan Rates to 12%
Economy
Uzbekistan’s Karakalpakstan plans to cut interest rates on family entrepreneurship loans from 17.5% to 12%. Next year, resources will be doubled, with $100 million allocated to “driver” projects based on the experience of Uychi and Zarbdor districts, with the goal of creating income opportunities for at least 50,000 people.
Over the past two years, 370 billion soums have been allocated for business infrastructure, helping launch 2,200 retail and service facilities and create nearly 10,000 jobs. A 60-seat kindergarten, football field and workout areas have been established in Diyqan arna mahalla in Nukus district. District khokims have been instructed to prepare two more projects each to support economic growth and employment. A further 100 billion soums will be allocated, with financing to begin within a week.
Water management is another priority. Irrigating 417,000 hectares of farmland in Karakalpakstan requires 5.7 billion cubic meters of water, while losses amount to 38%, or 2.1 billion cubic meters. Of the 115 million cubic meters passing annually through the Yonbosh canal in Turtkul, 44 million are lost. Fully concreting the canal could provide water to an additional 9,000 hectares and create a feed base for 15,000 cattle.
In Bozatau district, concreting 8 kilometers of the Erkindaryo canal would increase usable farmland by 3,000 hectares and improve water supply to 15,000 hectares. Three water facilities and 22 artesian wells could create another 5,000 hectares of feed-producing land. A total of 135 billion soums will be allocated, with both canals to be concreted by March 1.
Last year, 276 water pumps were replaced with energy-efficient equipment, saving 16 million kWh of electricity annually. Another 59 pumps in Karakalpakstan and 200 in other regions will be upgraded by April 1. A Japanese grant of $4.5 million attracted for water infrastructure modernization is expected to be increased to $100 million next year.
Livestock development will also receive additional support. Karakalpakstan has 4.3 million hectares of pasture, of which 2.5 million hectares are considered underused for increasing household incomes and livestock numbers. Beruniy Agrostar is restoring 2,000 hectares in Kungrad, Beruniy and Chimbay districts and plans to develop another 5,000 hectares next year. In Bozatau, 100 billion soums will be allocated to adapt 7,500 hectares for feed production.
More than 200 farmers have studied Egypt’s experience, including 26 farmers from Karakalpakstan. At the initial stage, the approach will be introduced across 20,000 hectares. A $60 million loan and $8 million grant being attracted from the Asian Development Bank for livestock development will be directed primarily to the project.
Credit limits for large livestock complexes will be increased to 50 billion soums. The cost of breeding bulls transported by air to Karakalpakstan will be subsidized at 10%, up to 4 million soums per head. Within a month, projects for livestock complexes with capacity of at least 100,000 head will be prepared, while procedures for loans to purchase cattle will be simplified.
Water management is another priority. Irrigating 417,000 hectares of farmland in Karakalpakstan requires 5.7 billion cubic meters of water, while losses amount to 38%, or 2.1 billion cubic meters. Of the 115 million cubic meters passing annually through the Yonbosh canal in Turtkul, 44 million are lost. Fully concreting the canal could provide water to an additional 9,000 hectares and create a feed base for 15,000 cattle.
In Bozatau district, concreting 8 kilometers of the Erkindaryo canal would increase usable farmland by 3,000 hectares and improve water supply to 15,000 hectares. Three water facilities and 22 artesian wells could create another 5,000 hectares of feed-producing land. A total of 135 billion soums will be allocated, with both canals to be concreted by March 1.
Last year, 276 water pumps were replaced with energy-efficient equipment, saving 16 million kWh of electricity annually. Another 59 pumps in Karakalpakstan and 200 in other regions will be upgraded by April 1. A Japanese grant of $4.5 million attracted for water infrastructure modernization is expected to be increased to $100 million next year.
Livestock development will also receive additional support. Karakalpakstan has 4.3 million hectares of pasture, of which 2.5 million hectares are considered underused for increasing household incomes and livestock numbers. Beruniy Agrostar is restoring 2,000 hectares in Kungrad, Beruniy and Chimbay districts and plans to develop another 5,000 hectares next year. In Bozatau, 100 billion soums will be allocated to adapt 7,500 hectares for feed production.
More than 200 farmers have studied Egypt’s experience, including 26 farmers from Karakalpakstan. At the initial stage, the approach will be introduced across 20,000 hectares. A $60 million loan and $8 million grant being attracted from the Asian Development Bank for livestock development will be directed primarily to the project.
Credit limits for large livestock complexes will be increased to 50 billion soums. The cost of breeding bulls transported by air to Karakalpakstan will be subsidized at 10%, up to 4 million soums per head. Within a month, projects for livestock complexes with capacity of at least 100,000 head will be prepared, while procedures for loans to purchase cattle will be simplified.
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