Regional upgrade top priority as Karakalpakstan receives new wave of $2bn investment

A new stage of economic transformation is under way in Karakalpakstan, where authorities have announced 27 large-scale projects worth nearly $2 billion with an aim to boost growth in the region.

The initiative tagged 'Karakalpakstan regional development programme' is designed to accelerate regional growth, modernise infrastructure, and create more than 10,000 new jobs across key sectors.

The upcoming projects will cover vital areas such as gas supply, road construction, logistics, agriculture, industry and healthcare, geared towards improving living standards of the populace and expanding access to essential public services.

The government also aims to achieve an annual growth of 6 to 6.5 % in the region’s economy under the new economic plans. To meet these targets, Uzbekistan plans to attract between $150 million and $200 million in foreign and performance-based financing, promoting results-driven development and stronger private-sector participation.

Officials describe the initiative as a strategic step towards balanced development across all regions of Uzbekistan, ensuring Karakalpakstan continues to benefit from national progress while contributing to the country’s overall prosperity.

While specific details of the funding sources have not been fully disclosed, investments are expected to come from a mix of state allocations, international financial institutions such as the Asian Infrastructure Investment Bank (AIIB) and the European Bank for Reconstruction and Development (EBRD), and foreign investors from countries including South Korea, China, Saudi Arabia, Germany and Russia.

In the past two years, 64 investment projects have been completed in Karakalpakstan alone, generating more than 5,000 jobs.

These efforts are expected to strengthen the region’s economic resilience and open up new opportunities for local communities.

Beyond economic indicators, the programme reflects Uzbekistan’s wider commitment to national cohesion, fostering unity and shared progress among all regions.

By narrowing regional disparities and investing in Karakalpakstan’s social and economic potential, the government aims to reinforce a sense of belonging, equality and partnership across the nation.

Analysts note that inclusive growth, where every region benefits from the country’s success, remains essential for long-term stability and social harmony.

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