AsiaCentral AsiaUzbekistan

Seven new free economic zones in Uzbekistan will specialize in growing medicinal plant feedstock in specific natural conditions

In the near future, the industrial map of Uzbekistan will be enriched with Nukus-Pharm, Zomin-Pharm, Kosonsoy-Pharm, Syrdaryo-Pharm, Boysun-Pharm, Bustonlik-Pharm and Parkent-Pharm zones.

Experts see the establishment of these zones as a fairly expected step to catalyze the stagnant Uzbek pharmaceutical industry. Today, the republic imports 6,300 names of various medicines, while producing about 2,000 names. They call a strong dependence on foreign feedstock and raw materials as the main factor hindering the further growth.

The country’s capacity for growing medicinal plants is not being fully utilized. Thus, only 71 out of 350 species are currently cultivated on industrial plantations. As a result, extremely low harvest volumes do not allow for the stable production of marketable drugs.

A new decree of the head of state is called to change the situation. The zones will be created in ecologically clean regions of Karakalpakstan, Jizzakh, Namangan, Syrdarya, Surkhandarya and Tashkent regions. Core government agencies will soon develop a targeted program on the establishment of industrial plantations, and a list of specific types of medicinal plants recommended for cultivation, followed by the organization of enhanced processing and production of medicines and biologically active additives.

All enterprises on the territory of the zones, will be released from various taxes, as well as mandatory contributions to the target state funds for various periods, depending on the amount of investment. They will also be granted with certain customs preferences.

In turn, the government will undertake all the expenses to connect each production site in zones to the external road, transport, engineering and communication infrastructure.

In context

There are currently 146 pharmaceutical companies in Uzbekistan. In 2016, the share of domestic medicines in the total volume of products on the country’s pharmaceutical market was 55%.