A mission of experts from the International Monetary Fund (IMF), which visited Uzbekistan, has recommended accelerating deep reforms in the state sector to develop the country's economy. The focus is on privatizing state-owned enterprises operating profitably in competitive industries and liquidating inefficient, loss-making companies. In a statement, the IMF emphasized that these measures could boost labor productivity, attract foreign and local investment, and stimulate private sector development.
The mission's report provides specific proposals for improving corporate governance for remaining state enterprises in strategic and non-competitive sectors. These include tightening profitability requirements based on market standards, enhancing transparency in appointing supervisory boards, divesting from non-core activities, and ensuring compliance with international auditing and reporting standards. Such reforms would help eliminate "soft" budget constraints arising from state influence and various forms of support.
The IMF paid particular attention to the role of the recently established National Investment Fund (NIF). The organization noted that the NIF's success in attracting foreign institutional investors will depend on clear mandates, operational independence, and the ability to restructure state enterprises. This fund could become a key instrument for effectively managing privatization processes and increasing investment flows.
Additionally, the mission highlighted the need to continue reforms in public administration, labor market, and climate policy. This includes adopting laws to protect whistleblowers and declare assets of public officials, increasing women's employment, reducing the informal sector, and developing a skilled workforce. According to the IMF, these measures would strengthen the governance system and enhance investor confidence.
Finally, the fund's experts called for strengthening market discipline and competition in the economy by bolstering the activities of network regulators, abolishing exclusive rights in key sectors, and completing reforms related to joining the World Trade Organization (WTO). In their assessment, these measures would increase private investment flows and enhance competition, potentially positively impacting Uzbekistan's economic growth.
Source: www.gazeta.uz