Uzbekistan Unveils $100M Initiative to Boost Trade and Agriculture with Mongolia

Uzbekistan is moving forward with an ambitious plan to invest $100 million in a wide range of joint economic initiatives with Mongolia, under a directive issued by President Shavkat Mirziyoyev.

The move is aimed at deepening cooperation in agriculture, trade, and light industry, and diversifying Uzbekistan’s regional partnerships, The Caspian Post reports via Uzbek media.

According to a presidential decree signed on July 18, the strategy includes tax incentives and concessional loans to support the import of small ruminants from Mongolia, boosting Uzbekistan’s wool and cashmere processing industries.

Among the key objectives is a tenfold increase in exports of fruit and vegetable products to the Mongolian market. The Ministry of Transport has been directed to arrange air shipments of food products to Mongolia, with a portion of the goods expected to be re-exported from Mongolia to third countries.

In support of long-term trade infrastructure, the Agency for Plant Quarantine and Protection and the Chamber of Commerce and Industry will establish a joint Uzbek-Mongolian trade house by 2026. In addition, Uzbek product fairs will be held in shopping centers across Mongolia, along with dedicated product stands in major marketplaces.

To enhance the textile sector, Uzbekistan will launch a pilot purchase of fine wool and cashmere from Mongolia through Uzsanoatexport, using financing from the Trade Development Company. These raw materials will be used to produce blended yarn and fabrics at local factories.

By late 2026, the government plans to open wool processing facilities that will use the imported materials. To support this, Uzbek specialists will receive advanced training at Mongolian textile plants.

In a gesture of reciprocal agricultural support, Uzbekistan will supply 10,000 frost-resistant, high-yield fruit saplings to Mongolia, which will be planted in a 15-hectare intensive orchard with a modern drip irrigation system.

To fund the initiatives, $50 million will be allocated to the Industrial Development Fund and another $50 million to the Trade Promotion Fund. These funds will also provide working capital for participating enterprises.

Uzbek Deputy Prime Minister Jamshid Khodjaev and Minister of Economy and Finance Jamshid Kuchkarov have been given two months to submit detailed financing proposals. The funds are expected to be repaid by the end of 2030.