The International Monetary Fund (IMF), in its 'Selected Issues' report on Uzbekistan, has assessed the scale and role of the state sector in the country's economy. According to the report, assets of state-owned enterprises (SOEs) reached 101% of GDP by end-2024, with their number totaling 2,148.
Financial SOEs accounted for 52% of GDP, while non-financial SOEs made up 49%. Among non-financial SOEs, the mining industry held the largest share of assets at 31%, followed by oil & gas and electric power at 19% each. The remaining 31% comprised transport infrastructure, chemicals, and other sectors.
Mining companies generated 29% of revenue, 69% of profits, and 87% of dividends from non-financial SOEs. In the financial sector, nine state-owned commercial banks accounted for 96% of all financial SOE assets.
The IMF noted that SOE assets are concentrated in partially competitive or regulated sectors (utilities, energy, finance). However, by number, about 84% of SOEs operate in competitive sectors. The state still dominates agriculture, cotton and grain procurement, the insurance market, wholesale alcohol trade, and other areas.
Large non-financial SOEs in Uzbekistan are more widespread than international norms, and most are fully state-owned. In emerging markets like Brazil and China, about 60% of utility companies have mixed ownership, which enhances efficiency incentives.
The state's share in banking assets stands at 63%, significantly above the 23% average for middle-income economies. Research indicates that high state ownership in commercial banks can increase financial sector vulnerability and create contingent liabilities for the budget.
SOEs remain a major employer: in 2024, they employed 566,300 people – 4% of total employment, 8% of formal employment, and about 19% of central government sector employment. The largest employers were mining (18%), transport (16%), and oil & gas (14%).
From 2020 to February 2026, the number of SOEs decreased from 2,965 to 1,917. Reasons for removal included privatization (515), liquidation (1,313), reorganization (757), and transfer to charter funds or PPPs (260).
Major SOEs include Navoi Mining and Metallurgical Combinat, Almalyk MMC, Uzbekneftegaz, Uztransgaz, National Electric Networks of Uzbekistan, Uzkimyosanoat, Uzbekistan Railways, Uzbekistan Airways, UzAuto Motors, and nine state banks.
The IMF concludes that deep reform of SOEs is necessary to reduce the 'large footprint of the state' in the economy and complete the transition to a market economy. This would improve resource allocation efficiency, reduce dependence on state support, and create a level playing field for private business.
Source: www.gazeta.uz