Uzbekistan introduces major pharmaceutical sector incentive and reform package

2026-03-05

Presidential Decree No. 35, signed on 5 March 2026, sets out a comprehensive package of measures to boost pharmaceutical production, attract investment, promote exports and strengthen R&D infrastructure. The decree establishes production targets of UZS 8.5 trillion, export targets of USD 300 million and investment pipeline targets of USD 1 billion for 2026, alongside tax exemptions, credit interest subsidies and the creation of BioPharma City.

What has changed and why it matters

Presidential Decree No. 35, signed on 5 March 2026, represents the most detailed pharmaceutical support package to date, combining production and export targets, financial support mechanisms, tax exemptions, institutional reform and workforce development.

Production, investment and export targets for 2026

• Production output of UZS 8.5 trillion (approx. USD 703 million)
• Investment project pipeline worth USD 1 billion
• Exports of USD 300 million
• Mastery of production of 350 new products
• Expansion of Tashkent Pharma Park into "BioPharma City" with 100 additional hectares

Mandatory digital labelling — new obligations for importers

Importers are now included as entities entitled to receive labelling codes. A new requirement mandates importers hold a power of attorney from the foreign manufacturer, certified by competent foreign authorities. Importers assume full operational responsibility for labelling imported products. Phased inventory: manufacturers by July 2026, wholesale by September 2026, retail pharmacies by November 2026.

Redistribution of customs duties

75% of customs duties collected on imported medicines are transferred monthly to the Pharmaceutical Sector Support and Development Fund, reinforcing the import substitution agenda.

Financial support for domestic manufacturers

From 1 June 2026: 50% reimbursement of technology transfer costs (capped at USD 50,000), 50% of R&D costs (capped at USD 100,000) for generic equivalents, 50% of GMP/FDA/WHO certification costs (capped at USD 50,000), and credit interest subsidies for high-tech projects.

Tax exemptions

Land tax exemption for three years from project start. Profit and property tax exemption for three years from commissioning. Reduced 5% profit tax rate for non-resident royalty income from technology transfer until 2030.

Pharmaceutical regulatory sandbox

A regulatory sandbox covering testing and registration of drugs, medical devices and new products is to be introduced by September 2026.

What this means for your business

For companies considering manufacturing investment, the decree creates a well-funded incentive regime. For those already operating through importers and distributors, the extension of digital labelling responsibility to importers and the requirement for certified powers of attorney require immediate attention. Companies in pharmaceuticals, medical devices, BAS and cosmetics should assess the implications as a priority.