$ 500 million and 5.5 trillion sums will be allocated from the government budget and banks for the development of the service sector

On April 22 of this year, the President Shavkat Mirziyoyev held a video conference on the development of the service sector in the regions.

The meeting noted that the coronavirus pandemic has severely affected and suspended the development of the service sector. Strengthening this industry plays an important role in the economy and life of the population. In order to provide a new impetus for the development of the service sector, the President instructed to monitor the implementation of existing projects and assist entrepreneurs in the development of new projects.

Moreover, the head of state mentioned the issues of project financing. At least 18 trillion sums of loans for projects in the service sector should be allocated  this year.
In addition, the state will allocate an additional $ 300 million through commercial banks. 
 $ 150 million of them will reach the regions by July 1.

Governors, heads of sectors and officials of makhallas ( institution of civil society) were instructed to form a list of projects on the principle of “makhalla-district-bank”. At the same time, it will be envisaged to organize at least 20 types of services in each makhalla, and at least 70 types of services in regions and cities.

The National Bank will attract an additional $ 200 million for the opening of tourist, transport, medical, educational services and large shopping centers in 28 big and medium cities.
In general, $ 500 million or 5.5 trillion sums will be allocated from the budget and banks to the service sector.

It was noted that the heads of ministries and departments are responsible for the development of services in their area.
 - Ministers need to create a legal basis for private sector activity in their field, simplify the requirements for obtaining permits and open the way for entrepreneurship. It is necessary to clearly define what a state enterprise can do, in what kind of activity a public-private partnership or participation of the private sector is possible, the President said.

The directions that need to be involved in the system of all ministries and departments are indicated in the same way.

It was noted that in order to bring services closer to the population, it is important to build service centers in makhallas using lightweight structures. In addition, it is planned to create special streets for trade and services in 28 cities and regional centers with a population of more than 150 thousand people. These streets will be able to accommodate 100 thousand business entities.

The most important question for the service industry is choosing the right location. Therefore, the Ministry of Construction, together with the khokims of the regions, was instructed to select locations for the location of streets and centers specializing in trade and services, develop their projects, divide them into lots and put them up for sale on a competitive basis. These commercial and service facilities may be allowed to operate 24 hours a day, subject to applicable requirements.
Instructions were given to organize multidisciplinary clinics and medical clusters around them on the basis of private partnerships, centers for teaching foreign languages, preparatory and professional courses on the territory of higher educational institutions.

At the meeting, the responsible persons reported on the upcoming measures to realize local potential, support entrepreneurs and increase the volume of services.