Uzbekistan To Reform Its State-Owned Enterprises
Uzbek SOE privatization, foreign investment and other reforms all being planned
Uzbekistan’s President Shavkat Mirziyoyev has said the Government plans to transform its state-owned enterprises, announced at a videoconference on 14 March on sustainable economic development and transformation of state-owned enterprises.
In order to develop a market economy and improve the competitive environment in the country, state-owned enterprises are being transformed. Issues of accelerating transformational processes and privatization of state assets were discussed at the meeting.
In particular, the President pointed to the slow pace of improving operational efficiency at 25 state-owned enterprises. The necessity of a complete rejection of state support for enterprises that do not meet modern requirements and operate at a loss was emphasized.
Reforms in the transport sector were also considered. Measures have been identified to increase the flow of transit passengers, simplify the system for issuing permits for charter flights, and turn local airports into regional transit hubs.
The goal for national Uzbekistan Airways airline to introduce modern approaches to work in conditions of free competition and prevent an increase in air ticket prices was set.
During the meeting, the expected results in the economy in the first quarter of this year were analyzed. Particular attention was paid to the commissioning of new enterprises and the creation of jobs, increasing incomes and social support for the population.
Uzbekistan has been undergoing a period of economic and structural reforms since 2016 and the rise of Mirziyoyev as a reformist politician following the death of the previous Presidential incumbent, Islam Karimov. Since then, the country has signed trade agreements with the European Union and the United Kingdom, has attracting a slew of Western foreign investors and has become a primary example for Central Asian nations in terms of managing political and economic reform.
Chris Devonshire-Ellis is the Chairman of Dezan Shira & Associates. The firm assists British and Foreign Investment into Asia and has 28 offices throughout China, India, the ASEAN nations and Russia. For strategic and business intelligence concerning China’s Belt & Road Initiative please email email@example.com or visit us at www.dezshira.com