Science and Education in Karakalpakstan issn 2181-9203 Science Magazine chief editor

Science and Education in Karakalpakstan. 2023 №2/1 ISSN 2181-9203 
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program, to determine the reasons that prevented the achievement of the goals set in the program. 
Taking into account the proposal to develop a program to stimulate investment in the state economy 
in one of the main areas of activity, it is appropriate to determine the main components of the 
proposed program. These include: 
- determining the purpose of program development; 
- formulation of specific goals for the development and implementation of the program 
(specific goals with appropriate economic indicators); 
- defining a system of specific measures for managing organizational, economic factors and 
regional and state influence factors on investment attraction; 
- identification of planned investment projects, defining their advantages and attractive 
features for investors; 
- creating a list of possible sources of attracting investment resources, determining the share 
of local and state funds in financing; 
- determining the system of benefits, measures to help investors, measures aimed at reducing 
risks for investors; 
- determining the exact means and methods of attracting investors. A small mechanism 
formed using the software method involves assessing the situation before developing measures. 
The analysis carried out before the start of investment attraction programs and plans is an 
important means of obtaining information necessary for making management decisions. Correct 
information increases the efficiency of management and regulation of economic processes. 
Its functioning will be possible only if the effective mechanism of state guarantees and the 
Organization of the insurance and reinsurance system of foreign investments, together with the 
legislative, regulatory and information support system, promote the development of the banking and 
credit system. The creation of an effective system for attracting foreign investment, first of all, 
assumes the formation of a qualitative legislative framework. 
The presence of contradictions and the uncertainty of a number of important legislative 
issues lead to the need to make amendments to the law “On ownership in the Republic of 
Uzbekistan” and the “Land Code of the Republic of Uzbekistan” to establish the property rights of 
foreign investors. A number of concept issues require clarification at the state-legal level. The 
currency regulation system needs a deeper justification. In the mechanism of attracting investments, 
it is important to carry out relevant structures for working with foreign investments, mechanisms for 
implementing state policies for raising capital, single integrated international organizations for state 
management of investment processes, to conduct an examination of the most important projects and 
to create a system for their selection on a competitive basis. 
Also, the introduction of preferential taxation is an important condition. The system of tax 
and customs incentives includes “tax holidays”, reductions in tax rates for reinvestment of profits or 
investments in certain regions and sectors, protection from double taxation, exemption from 
customs duties on the import of the latest machinery and equipment, or reduce; technologies, know-
how, export of own production products to cover foreign exchange costs, etc. 
This mechanism is aimed at creating a favorable investment environment and increasing 
investment activity. It provides a well-founded conceptual basis and strategy for attracting foreign 
investments, a system of tax benefits, determines the priority directions for the use of foreign 
investments, helps to expand the opportunities for foreign investors to participate in the process of 
privatization and establishment of joint ventures. Therefore, this complex mechanism for attracting 
foreign investment: 
- improving the investment environment and increasing investment activity; - a system of 
tax incentives; 
- determining the priority directions for the use of foreign investments; 

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