IMF Urges Uzbekistan to Accelerate Transition Reforms and Implement Asset Declaration Law
Uzbekistan Making Progress in Market Reforms, IMF Urges Completion of Transition Phase
The International Monetary Fund (IMF) has commended Uzbekistan for its significant progress in implementing market reforms but has emphasized the need to complete the transition phase. Following a mission to the country, the IMF has called on the government to accelerate the adoption of the law on public officials’ income declaration, shift from state intervention to market-based institutions, and establish effective regulation mechanisms.
While recognizing Uzbekistan’s notable achievements in economic reforms, the IMF has recommended further efforts to complete the transition phase through institutional reform, price liberalization, and privatization. Recent adjustments to energy tariffs and regulated prices have been described as important steps towards establishing a market-based pricing model, but the IMF has stressed the importance of further liberalizing prices to reflect real market conditions.
The IMF has also highlighted Uzbekistan’s progress in joining the World Trade Organization and expanding external economic relations with neighboring countries and regions, including the Gulf states. These developments are expected to diversify trade and enhance competition.
In order to ensure a level playing field for public and private enterprises, the IMF has emphasized the need for transparent support accompanied by structural reforms and phased-out over time. It has also called for a reduction in the state’s role in the economy and the acceleration of privatization of large state-owned enterprises in line with international standards.
The IMF believes that creating favorable conditions for the establishment and closure of businesses will boost competition and strengthen the private sector. Reforms in public administration, the labor market, and climate action have been listed as key priorities, with the adoption of a law on conflict of interest and capacity-building efforts for civil servants receiving praise.
Draft laws on asset declarations for public officials and the protection of whistleblowers are expected to be reviewed soon, and the IMF has called for their accelerated adoption. The labor market is facing challenges such as low female participation and mismatches between worker qualifications and market needs, prompting the need for labor market reforms.
On the climate front, the IMF has recommended finalizing energy tariff reforms, improving water use efficiency, promoting agricultural diversification, and implementing reforestation projects. Despite efforts to introduce a system for declaring the income and assets of public officials since 2017, the implementation of the income declaration system has faced delays. The IMF has urged the responsible authorities to expedite the adoption of the draft law on income declarations.
