Gas and Power Outages Stifle Business Growth in Tashkent, Says Central Bank
Concerns Rise Among Businesses in Tashkent Over Tax Administration and Economic Uncertainties
A recent report from the Central Bank has highlighted a surge in complaints from businesses in Tashkent regarding tax administration, rising fuel prices, economic uncertainties, and frequent gas and electricity outages at the end of 2024. The fourth-quarter business sentiment report revealed that while some positive factors were noted, significant challenges remain for entrepreneurs in the region.
During the period from October to December last year, 53% of surveyed entrepreneurs reported an improvement in the business environment in their areas, with factors such as improved banking services, expanded lending opportunities, and changes in the competitive environment contributing to a better business climate. However, issues with customs tariffs, tax administration, monopolization, road infrastructure, and the gas and electricity supply system have not seen significant improvements.
In Tashkent specifically, the percentage of respondents reporting improved business sentiment decreased to 52%. While some sectors such as manufacturing, construction, education, and public utilities showed improvements, others like supply chains, agriculture, trade, and finance experienced a decline in sentiment.
The report also noted that while positive trends in gas and electricity supply observed in the third quarter slightly deteriorated by the end of the year. Nearly half of the respondents did not notice any changes, but around 30% reported improvements while approximately 25% reported worsening conditions.
One of the main obstacles to operations identified by businesses was gas and electricity outages, with the quarterly indicator rising from 19% to 25%. Other major issues included rising rental costs and a lack of working capital and demand, though there were some improvements in these areas. However, complaints about tax administration difficulties, rising fuel costs, and economic uncertainties have increased.
Looking ahead to the next quarter, 56% of respondents expect an improvement in economic and business conditions, while 33% do not expect any changes, and 13% anticipate worsening sentiment. Despite some positive developments, it is clear that challenges persist for businesses in Tashkent, and efforts will be needed to address these concerns moving forward.
