TASHKENT, Uzbekistan, May 2. A key recommendation for Uzbekistan’s economic development is the gradual reduction of the state's role, said Koba Gvenetadze, IMF Resident Representative to Uzbekistan, during a media roundtable at the country’s Central Bank, Trend reports.
Gvenetadze emphasized that Uzbekistan is making significant progress toward building a more market-driven economy. One notable step is the country’s energy regulator, which is set to begin determining electricity tariffs by 2026 or 2027. This change aims to ensure that tariffs reflect market conditions, considering factors such as electricity prices, gas consumption, necessary sector investments, and the need to reduce inefficiencies.
“As these enterprises shift focus toward performance and profitability, they will be better equipped to respond to market forces and price fluctuations,” he added.
In addition to the energy sector, the government is also focused on expanding regulatory bodies across other sectors, including transport. This will help ensure more transparency and allow the public to better understand how prices are formed across various industries.
In terms of debt management, Uzbekistan’s public and publicly guaranteed debt stood at 32.6 percent of GDP by the end of 2024, with total external debt at 57.2 percent. To ensure sustainable debt levels, the government collaborates with the World Bank on annual debt sustainability analyses.
Recent reports have indicated that Uzbekistan’s debt stress is low but emphasize the importance of cautious borrowing. The government has been advised to avoid excessive debt accumulation and to limit the relaxation of rules around foreign borrowing.
“We also recommend that borrowing should be done in a way that ensures debt as a percentage of GDP does not increase over time,” said Gvenetadze.
Additionally, the Ministry of Finance has raised concerns about the risks associated with public-private partnerships (PPPs), although a robust monitoring system is in place to manage these projects effectively.
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