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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