President Mirziyoyev Chairs Meeting to Boost Pharmaceutical Industry and Attract $1 Billion Investment

Tashkent, The Gulf Observer: President Shavkat Mirziyoyev on March 5 chaired a high-level meeting focused on expanding pharmaceutical production and accelerating the adoption of advanced technologies in Uzbekistan’s pharmaceutical industry.

During the meeting, the President emphasized that the pharmaceutical sector holds strategic importance as it directly impacts public health, quality of life, and the country’s economic security.

Officials noted that significant progress has been achieved in recent years. Over the past nine years, $1.8 billion has been invested in the sector, leading to the launch of 140 new production facilities. Currently, more than 300 pharmaceutical enterprises operate in Uzbekistan, including 58 companies directly engaged in the production of medicines.

As a result of these efforts, pharmaceutical output has increased 3.5 times, surpassing 7.3 trillion UZS, while the production of domestically manufactured medicines has doubled. Pharmaceutical products produced in Uzbekistan are now exported to 55 countries, and employment in the sector has exceeded 40,000 jobs. The total domestic market for medicines and medical products has reached approximately $2.5 billion.

Despite this progress, the President noted that further reforms are necessary to strengthen the industry. Authorities have been tasked with attracting at least $1 billion in investment into the pharmaceutical sector this year, increasing the share of domestically produced medicines in the local market to 70 percent by 2030, and raising exports to $1 billion within the next five years.

Uzbekistan has already established five pharmaceutical industrial zones covering 136 hectares, equipped with the necessary infrastructure. However, it was highlighted that some zones are underutilized. For instance, no products were produced last year in the 25-hectare Jizzakh pharmaceutical zone, while land in the Bostanlyk pharmaceutical zone has remained unused since 2017. Similarly, no new enterprises were launched last year in the Jizzakh and Samarkand zones, and only a limited number of investment projects were implemented in Bukhara and Khorezm.

The meeting also reviewed proposals from pharmaceutical entrepreneurs. One key proposal called for extending tax incentives granted to pharmaceutical zones to enterprises located in other regions. President Mirziyoyev supported the initiative and announced new incentives for the sector.

Starting April 1, new projects related to pharmaceutical production, as well as the cultivation and processing of medicinal plants, will be exempt from land tax for three years, regardless of their location. After project launch, profit tax and property tax will also be waived for three years.

Additionally, imports of raw materials, equipment, and components for producers of biologically active supplements and cosmetics will be exempt from customs duties. Pharmaceutical enterprises will also be permitted to manufacture such supplements on their existing production lines.

Authorities will publish by July 1 a list of medicines and medical products recommended for localization. Entrepreneurs producing these items will have access to foreign currency loans at 7 percent. Enterprises seeking deeper localization of existing products will receive loans from the Industrial Cooperation Fund for up to 10 years, at 6 percent in foreign currency and 12 percent in national currency.

The meeting also emphasized the importance of attracting foreign pharmaceutical companies and establishing technology transfer agreements. Nearly half of imported medicines currently originate from 34 foreign companies, and officials were encouraged to promote the establishment of their production facilities in Uzbekistan.

To stimulate localization, the royalty tax on foreign brand usage will be reduced from 20 percent to 5 percent. Enterprises that master the production of high-demand medicines within one year will also be reimbursed for 50 percent of their technology transfer costs from the Pharmaceutical Industry Support and Development Fund.

To further strengthen domestic production, the area of the Tashkent Pharma Park pharmaceutical cluster will be expanded by an additional 100 hectares to facilitate the manufacturing of the 100 most frequently imported medicines.

Export development was another key focus. Although pharmaceutical exports reached $220 million, only $14 million accounted for medicines. To address this gap, enterprises will be encouraged to align their production with international standards. While all 58 pharmaceutical companies currently hold national GMP certificates, they are now required to meet European GMP standards.

Beginning June 1, 50 percent of the costs incurred by local companies in obtaining Euro GMP certification will be reimbursed through the Trade Promotion Fund.

The meeting also discussed expanding the participation of domestic manufacturers in the public procurement system. Currently, some enterprises cannot supply products to government institutions because their localization level is below 30 percent. Under a new temporary measure, companies holding a domestic manufacturer certificate will be allowed to participate in public procurement regardless of localization levels until September 1.

Officials also raised concerns about illegal pharmaceutical trade. Last year, more than 57,000 types of unregistered and counterfeit medicines were identified in the country. The President instructed relevant agencies to prepare a draft law strengthening liability for the illegal trade and circulation of substandard medicines.

To strengthen the link between science and production, the government will establish the National Research Institute of Biopharmaceuticals by merging existing institutes specializing in chemistry and pharmaceuticals, vaccines and serums, and oriental medicine. The institute will be located within the Tashkent Pharma Park cluster, facilitating direct collaboration between researchers and manufacturers.

The park will also host preclinical research laboratories, biological and chemical research centers, and an international clinical research center with 250 beds. Professors and researchers from the Tashkent Pharmaceutical Institute and the Pharmaceutical Technical University will conduct research there, while students will gain practical training through a dual education system integrated with pharmaceutical enterprises.

Enterprises collaborating with scientists to develop new medicines will receive reimbursement of up to $100,000, while companies producing medicines developed by domestic researchers will receive subsidies of up to 100 million UZS to cover registration and clinical trial costs.

At the conclusion of the meeting, President Mirziyoyev reviewed proposals from industry representatives and instructed responsible officials to ensure the effective implementation of the announced reforms aimed at strengthening Uzbekistan’s pharmaceutical sector.