Our People > Sadokat Jalolova

Sadokat Jalolova

Journalist

Jalolova has worked as a reporter for some time in local newspapers and websites in Uzbekistan, and has enriched her knowledge in the field of journalism through courses at the University of Michigan, Johns Hopkins University, and the University of Amsterdam on the Coursera platform.

Articles

Child Online Safety

Uzbekistan Weighs Social Media Restrictions for Children Under 16

Uzbekistan is considering introducing legal restrictions on social media use by children under the age of 16, adding its name to a growing list of Central Asian countries debating how to protect minors in the digital age. According to Gazeta.uz, the proposal was announced by Minister of Preschool and School Education E’zozxon Karimova following an event at the ministry on June 26. Speaking to the publication, Karimova said discussions had already taken place with members of parliament and the Senate, and that a draft law could soon be prepared for public consultation. “We are currently thinking about this issue. We have discussed it with our deputies and senators. We want to prepare a draft law and submit it for public discussion. I believe we should also have such regulations,” Karimova said. The proposal comes as governments across the region grapple with concerns over children’s exposure to harmful online content, cyberbullying, and excessive screen time. Karimova stressed that the objective is not to remove smartphones from children’s lives but to encourage responsible use through legal safeguards and stronger enforcement. “We live in the age of technology. We cannot simply take phones away from our children. Of course, they need them. But there should also be a culture and limits to their use,” she said. She noted that Uzbekistan already requires students to leave their phones before entering school and has rules governing student behavior. However, she acknowledged that enforcement remains inconsistent. “These rules work in some places and not in others. We now want to strengthen enforcement and legally restrict children under the age of 16 from using social media,” Karimova added. The debate mirrors similar discussions elsewhere in Central Asia. Earlier this year, The Times of Central Asia reported that Kazakhstan was considering legislative amendments to prohibit children under 16 from registering on social media platforms, while exempting messaging services. Lawmakers in Kazakhstan say the proposals are intended to shield children from harmful content, including violence and pornography, while reducing cyberbullying. According to Kazakhstani officials, approximately 200 cases of bullying and cyberbullying involving children had already been recorded in 2025, prompting calls for tighter regulation. The government has also been exploring age verification mechanisms, including SIM card registration for younger users, alongside expanded digital literacy education in schools. A similar debate emerged in neighboring Tajikistan last year. As previously reported by The Times of Central Asia, lawmakers proposed banning social media access for children under 14 and requiring written parental consent for teenagers aged 14 to 17. While supporters argued that stricter controls were necessary to protect children from harmful online content, critics maintained that digital literacy, parental involvement, and education would be more effective than blanket restrictions. Uzbekistan has not yet published a draft law, and Karimova indicated that any proposal would first undergo public discussion before being submitted for legislative consideration.

2 months ago

Border Crossings

Kazakhstan and Uzbekistan to Upgrade Two Border Crossings to International Status

Kazakhstan and Uzbekistan are moving to improve cross-border travel and trade by upgrading two road border checkpoints to international status and extending their operating hours to 24 hours a day. According to Kazinform, Kazakhstan’s Senate has ratified a protocol amending the 2006 agreement between the governments of Kazakhstan and Uzbekistan on border crossing points. The amendments change the status of the Syrdarya-Malik and Tselinny-Oqoltin checkpoints from bilateral crossings, which serve only the two countries, to international border posts open to travelers from other countries. The protocol also replaces the current daylight-only schedule with round-the-clock service at both crossings and expands the categories of vehicles permitted to use them. Under the new rules, the Tselinny-Oqoltin crossing will accommodate passenger vehicles, empty freight trucks, oversized and heavy vehicles, as well as commercial cargo. The Syrdarya-Malik crossing will be open to passenger cars and empty freight vehicles but will not handle commercial goods. According to the Senate committee’s conclusion, the changes, together with the ongoing modernization of border infrastructure along the Kazakhstan-Uzbekistan frontier, are expected to distribute passenger and freight traffic more evenly and improve the efficiency of border operations. The move has also received support in Kazakhstan’s lower house of parliament. As reported by 24KZ, deputies in the Mazhilis approved the amendments. Transport Minister Nurlan Sauranbayev said the measures would increase checkpoint capacity, make border crossings more convenient for travelers, and support tourism and transit links between the two neighboring countries. Kazakhstan’s Ministry of Transport added that implementing the changes will not require additional spending from the state budget.

2 months ago

Ishonch Fund

Uzbekistan Completes First Ishonch Fund Health Project for Maternal and Newborn Care

Uzbekistan has completed the first healthcare program financed through the Ishonch Fund, a mechanism established under the restitution agreement between Uzbekistan and Switzerland to channel returned assets into public development projects. The initiative invested $43.5 million in maternal and newborn healthcare across the country, marking the fund’s first large-scale use for social sector reform, the Ministry of Economy and Finance said. The project, “Every Mother and Child Survives and Thrives: Reducing Preventable Maternal and Newborn Deaths in 227 Perinatal Centres of Uzbekistan,” was launched in September 2023. It officially concluded at a June 25 ceremony attended by representatives of Uzbekistan’s government, the Swiss Embassy, United Nations agencies, and international development partners. Implemented jointly by UNICEF, UNFPA, and the World Health Organization, the program focused on modernizing perinatal services, upgrading medical infrastructure, and improving the skills of healthcare professionals. More than 231 perinatal healthcare facilities across Uzbekistan received modern medical equipment, including advanced incubators, respiratory support systems, anesthesia machines, and other life-saving devices. Around $31 million of the project’s budget was dedicated to purchasing and installing this equipment, expanding the capacity of hospitals to care for mothers with high-risk pregnancies and newborns requiring intensive treatment. Investment also extended to the country’s medical workforce. More than 80,000 healthcare professionals completed specialized training in modern perinatal care, high-risk pregnancy management, neonatal intensive care, and laboratory diagnostics. The program also supported the development and revision of 49 national clinical protocols, helping align maternal and newborn care with international medical standards. Public outreach formed another major part of the initiative. Nationwide awareness campaigns encouraging women to receive regular antenatal care reached nearly 20 million people, while improved maternal and perinatal healthcare services benefited almost four million citizens. According to monitoring data presented at the closing event, the share of preventable maternal deaths declined from 77.3% in 2022 to 62.8%, a decrease of 14.5 percentage points. Survival rates among newborns, particularly babies born with extremely low birth weight, increased by around 13% during the life of the program. Regina Castillo, UNICEF Representative in Uzbekistan, said the results demonstrate what can be achieved through cooperation between Uzbekistan’s government, Switzerland, civil society, and UN agencies. “The introduction of modern medical equipment and advanced clinical practices in hundreds of perinatal facilities has significantly expanded access to high-quality maternal and newborn healthcare services across the country,” she said. Swiss Ambassador Konstantin Obolensky linked the project to Switzerland’s asset restitution priorities. “The restitution of illicitly acquired assets and their transparent and accountable use remain among Switzerland’s key priorities,” Obolensky said. “The Ishonch Fund serves as a practical example of how returned assets can directly improve people’s quality of life.” Deputy Minister of Economy and Finance Otabek Fazilkarimov said the effective use of restituted assets plays an important role in developing human capital and advancing reforms in the social sector. The Ishonch Fund finances development programs implemented by UN agencies under the oversight of representatives from both governments, the UN, and civil society. As previously reported by The Times of Central Asia,...

2 months ago

Higher Education

Uzbekistan’s Universities Climb Sustainability Rankings as Afghan Training Program Expands

Fifty higher education institutions from Uzbekistan have been included in the Times Higher Education (THE) Sustainability Impact Ratings 2026, marking another year of strong international recognition for the country’s universities. The results were announced on June 24 during the Global Sustainable Development Congress in Jakarta, Indonesia, while separate education initiatives in southern Uzbekistan are also extending training opportunities to hundreds of Afghan citizens. The THE Sustainability Impact Ratings assess how universities contribute to the United Nations Sustainable Development Goals (SDGs), evaluating performance across education, research, governance, social responsibility, environmental sustainability, and international cooperation. According to the ranking results, 24 Uzbek universities placed among the world’s top 1,000 institutions, reflecting the country’s growing emphasis on integrating sustainable development principles into higher education. Two universities recorded Uzbekistan’s highest overall positions, both ranking in the 101-200 band: Tashkent State University of Uzbek Language and Literature and Tashkent State University of Economics. They were followed by the National University of Uzbekistan and the National Research University “TIIAME” in the 201-300 group. Uzbekistan's universities also achieved notable results in individual Sustainable Development Goals. Alisher Navoi Tashkent State University of Uzbek Language and Literature ranked eighth in the world for Gender Equality, while Tashkent State Technical University placed fifth globally for Affordable and Clean Energy. Fergana Polytechnic Institute ranked sixth in the same category, and two medical universities from Samarkand and Tashkent secured places among the world’s top institutions for Good Health and Well-being. The country’s presence in the rankings has expanded significantly in recent years. Uzbekistan was represented by 12 universities in 2021, rising to 30 in 2022, 47 in 2023, 53 in 2024, 59 in 2025, and 50 institutions in the 2026 edition. At the same time, Uzbekistan is continuing to position itself as a regional education hub. UzA reported that more than 600 Afghan citizens have completed free technical and vocational training courses at the Educational Center for Afghan Citizens in Termez District, Surkhandarya Region. The training formed part of the $2 million European Union-funded project, implemented in partnership with the United Nations Development Programme, aimed at expanding educational opportunities and supporting the socio-economic integration of Afghan citizens. In addition to vocational training, the project covered tuition fees and scholarships for 136 Afghan students enrolled in higher education institutions. Thirty graduates with the strongest business proposals were awarded $2,000 vouchers to launch small businesses, while 39 participants received grants of up to $4,000 to purchase equipment and expand production or service-based enterprises. The project also upgraded the training center with new computer equipment, servers, a conference hall, a co-working space, and a 29-seat bus.

2 months ago

Anti-Corruption

Uzbekistan Creates Corruption Convicts Registry in Anti-Graft Overhaul

Uzbekistan has adopted sweeping amendments to its anti-corruption legislation, creating an electronic registry of people convicted of corruption offenses, expanding criminal liability, and imposing new restrictions on those found guilty. President Shavkat Mirziyoyev signed the law on June 22 as part of the government’s broader campaign to strengthen accountability and reduce corruption across the public sector. Officials say the reforms are intended to reinforce what the law describes as an “intolerant attitude toward corruption” throughout society. One of the most significant changes is the creation of an electronic register of individuals convicted of corruption-related crimes. The Ministry of Internal Affairs must enter a person’s details into the registry within three working days after a guilty verdict becomes legally binding. Their information will remain there for the duration of their criminal record. Those listed in the registry will face a series of restrictions. They will be barred from entering the civil service, receiving state awards, standing for elected office or certain appointed positions, serving on public advisory councils, and holding senior posts in state-owned enterprises or public educational institutions. Companies in which a convicted individual owns more than 50% of the shares will also be prohibited from participating in public procurement and public-private partnership projects. The amendments also expand criminal liability for corruption-related offenses. Harsher penalties now apply to crimes committed through abuse of official position, by organized groups, or using information technologies and computer systems. The law introduces tougher punishment for officials who deliberately fail to act for personal gain and strengthens penalties for procurement-related violations. Beyond criminal sanctions, the legislation requires state bodies and organizations to identify positions with a high risk of corruption, regularly assess corruption risks, and develop measures to reduce them. The Anti-Corruption Agency, working together with the Ministry of Justice, will oversee the methodology used for these assessments and maintain a nationwide corruption risk map based on crime statistics, enforcement practices, public opinion surveys, and other official data. The reforms also seek to encourage whistleblowing. Employees who report corruption within their own government institution cannot face disciplinary action for two years without prior notification to the Anti-Corruption Agency. The law also guarantees state incentives for whistleblowers, including one-time financial rewards, certificates of appreciation, commemorative gifts, or other forms of recognition permitted by law. In addition, employees responsible for compliance and internal anti-corruption controls in state institutions will receive enhanced legal protections, including special procedures governing searches, questioning, detention, and criminal investigations involving them. In May 2026, The Times of Central Asia reported that the government had introduced mandatory anti-corruption reviews for major investment projects worth at least $50 million. Under those rules, large public investments must undergo corruption risk assessments before moving forward, as authorities seek to strengthen oversight of public spending and major development initiatives.

3 months ago

Investment Project Implementation

Uzbekistan Pushes to Turn $43 Billion in Investment Deals into Economic Growth

President Shavkat Mirziyoyev has instructed officials to accelerate the implementation of investment agreements signed during the 5th Tashkent International Investment Forum, stressing that every deal must deliver tangible economic results rather than remain on paper. Speaking at a government meeting on June 25, Mirziyoyev said the forum resulted in 177 agreements worth $43 billion with foreign partners. He added that each agreement should be transformed into concrete projects that create jobs and generate higher added value. “Every agreement must become a project, a workplace, and a source of high added value,” the president said. Officials were ordered to prepare decisions addressing 120 proposals submitted by foreign investors during the forum. Mirziyoyev also called on ministers and regional governors to rethink their approach to investment, placing greater emphasis on quality and efficiency. According to the president, half of all investment attracted to Uzbekistan over the past five years has gone to just four regions, but economic returns differ sharply. In Fergana, he said, every UZS 1 million invested generates an additional UZS 273,000 ($22.78) in gross regional product. In Samarkand, the figure is UZS 262,000. In Bukhara, it is UZS 117,000 ($9.76), roughly half the return in stronger-performing regions. The meeting also focused on the growing demand for construction materials driven by Uzbekistan’s ambitious development plans. Earlier this year, the government adopted a long-term housing program aiming to double the number of new homes built annually to 280,000 by 2040 and increase the number of “New Uzbekistan” residential districts from 61 to 120. In addition, Uzbekistan is commissioning 20 to 25 million square meters of commercial buildings every year, creating annual demand for at least $10 billion worth of construction materials. During the investment forum, the government also presented $27 billion in new infrastructure projects to international investors. These include a nuclear power plant in Jizzakh, a fourth copper processing plant in Tashkent Region, New Tashkent Airport with an annual capacity of 20 million passengers, a 55,000-seat stadium in New Tashkent, and a 282-kilometer highway linking Tashkent and Samarkand. Mirziyoyev said these large-scale projects require construction materials that meet strict international standards and instructed officials to establish a new system linking domestic manufacturers with major investment projects. The president also ordered the government to prepare proposals ensuring equal conditions for imported and locally produced construction materials. While foreign investors have requested value-added tax exemptions for imported materials used in major projects, domestic manufacturers argue that the same incentives should apply to local products, saying they are ready to compete on quality and standards. The meeting also addressed financial difficulties in the construction materials sector. According to officials, 457 companies have accumulated 3.5 trillion soums ($292,101,250) in overdue loans because their products remain too expensive or fail to meet current market demand. To help revive the sector, Mirziyoyev ordered officials to develop recovery plans for each company and allocate $50 million to modernize production facilities, reduce manufacturing costs, and support the production of more competitive goods.

3 months ago

Sustainable Aviation Fuel

Allied Biofuels Advances $6.1 Billion Sustainable Aviation Fuel Project in Uzbekistan

Allied Biofuels has signed a key engineering agreement with Sinopec Engineering Group Co., Ltd. for its planned sustainable aviation fuel (SAF) and electro-synthetic sustainable aviation fuel (e-SAF) project in Uzbekistan, marking another step forward for one of Central Asia’s largest clean energy developments. The agreement was signed during the 5th Tashkent International Investment Forum. Under the front-end engineering design and detailed engineering contract, Sinopec Engineering Group will undertake front-end engineering and design, detailed engineering, systems integration, and cost development work for the project, laying the groundwork for a future engineering, procurement, and construction (EPC) contract. The project, valued at approximately $6.1 billion, is expected to become Central Asia’s first large-scale integrated bio-aviation fuel complex. According to Allied Biofuels, the facility will combine biomass processing, advanced refining technologies, renewable energy systems, green hydrogen production, and power-to-liquid fuel technologies within a single industrial platform. Once operational, the complex is expected to supply sustainable aviation fuels to both domestic and international markets at a time when airlines worldwide are seeking lower-carbon alternatives to conventional jet fuel. The signing comes amid growing global investment in SAF production as governments and aviation companies work to reduce emissions from air transport. The project is expected to reinforce Uzbekistan’s ambitions to become a regional center for sustainable aviation and clean fuel production. “This agreement marks a key step in advancing our SAF and e-SAF project in Uzbekistan from development into engineering and execution readiness,” said Alfred Benedict, managing director of Allied Biofuels. “Sinopec Engineering Group’s technical capability will help strengthen the project’s delivery pathway as we progress one of Central Asia’s most important clean fuels infrastructure developments.” Gong Yu, regional business development manager at Sinopec Engineering Group, said the company was pleased to support the project and contribute its engineering expertise to the next phase of development. Sinopec Engineering Group, headquartered in Beijing, is one of China’s leading engineering companies, with experience in refining, biofuels, green hydrogen, and large-scale industrial infrastructure projects. Under the contract, the company will provide engineering design, systems integration, and estimating services for the Uzbekistan facility. The latest agreement follows another milestone announced in May, when Uzbekistan Airports and Allied Biofuels FE LLC signed a memorandum of understanding on the future supply of SAF and e-SAF in Uzbekistan. The agreement outlined plans to begin supplying cleaner aviation fuels from 2030 and included cooperation on developing the necessary infrastructure and supply chains. According to Allied Biofuels, the refinery is expected to produce approximately 160,400 tonnes of SAF, 257,000 tonnes of e-SAF, and 5,040 tonnes of green diesel annually. The facility is also planned to operate using a 4.45-gigawatt renewable energy system supported by battery storage and green hydrogen infrastructure, making it one of the most ambitious clean fuel projects currently under development in the region.

3 months ago

Kyrgyz-Uzbek border

Chongara and Tash-Tobo: The Villages That Changed Countries Without Moving

About 2,500 people in Chongara and Tash-Tobo now live under Kyrgyz jurisdiction. The transfer reduces the number of Uzbek enclaves in Kyrgyzstan and clears the way for a much shorter road across the Batken Region. For Umitbek, the change first appeared online. Chongara, his home village, passed from Uzbekistan’s Ferghana Region into Kyrgyzstan when the legal border moved. “We are welcoming the decision with joy,” Umitbek told Azattyk. “Ninety-nine percent of our village is Kyrgyz.” Umitbek already holds a Kyrgyz passport, while many neighbors have Uzbek documents. Some households include citizens of both countries. The village has Kyrgyz and Uzbek schools, and families have chosen between them. Kyrgyz presidential spokesman Askat Alagozov announced the transfer on June 23. “Now registration procedures will be conducted in these villages, after which their residents will be granted Kyrgyz citizenship,” Alagozov said. He did not give a timetable for the process. Kyrgyzstan transferred plots of equal area to Uzbekistan as part of the settlement. Public announcement did not identify those plots or state their total size. The two governments also conducted a separate exchange involving 236 hectares. That land will support a road between the villages of Sai and Tayan, and shorten the journey between Aidarken and Batken from 225 kilometers to 55, or about 76% of the present route. Officials have yet to publish a construction date or budget. A Century Inside Another Republic Chongara and Tash-Tobo were Uzbek exclaves, pieces of Uzbekistan completely surrounded by Kyrgyz territory. Their unusual status grew from Soviet boundary decisions made a century ago. Chongara’s administrative link to the Uzbek Republic dates to territorial decisions around Sokh in 1925. Tash-Tobo was also assigned to the Uzbek Soviet Socialist Republic that year. A parity commission confirmed its enclave status in 1955. These lines served as internal administrative boundaries during the Soviet period. Villages that had shared roads, water systems and family links found themselves divided by customs posts and citizenship rules. Uzbekistan previously had four exclaves inside Kyrgyzstan: Sokh, Shakhimardan, Chongara, and Tash-Tobo. Following the latest transfer, only Sokh and Shakhimardan remain under Uzbek jurisdiction. Sokh is the largest and most complicated. It lies within Kyrgyzstan, but has a largely ethnic Tajik population. Roads around the enclave have long shaped travel through the western Batken Region. A Settlement Built Over Two Decades Kyrgyzstan and Uzbekistan began formal border negotiations in 2000. Progress remained slow while relations between the two governments were strained. The process accelerated after Shavkat Mirziyoyev became Uzbekistan’s president in 2016. A 2017 agreement settled about 1,170 kilometers of the roughly 1,378-kilometer frontier. The remaining sections involved land, roads, and water infrastructure. The two foreign ministers signed a further border treaty in Bishkek on November 3, 2022, which covered sections left outside the 2017 settlement. On January 27, 2023, Mirziyoyev and Kyrgyz President Sadyr Japarov exchanged ratification instruments during a state visit to Bishkek. The legal delimitation fixed the agreed line on maps. Physical demarcation then placed that line on the ground. The 2022 package also...

3 months ago

Tashkent International Investment Forum

Rail Reform and Regional Corridors Put Uzbekistan at the Center of Central Asia’s Logistics Map

At the Tashkent International Investment Forum, officials and transport executives discussed railway reform and new corridor projects, with private investment as a main point. World Bank Senior Transport Specialist Mansur Bustoni described rail as “essential” for Uzbekistan, which depends on land routes for access to seaports and export markets. The World Bank wants to help turn Uzbekistan Railways from a state monopoly into “a commercial bankable enterprise,” he told the forum. Uzbekistan Railways has about 4,700 route kilometers, according to Bustoni. The system carries around 60 million tons of freight and 15 million passengers a year and contributes about 8% of GDP. Much of that freight is linked to exports. The World Bank is supporting 44 activities across seven reform programs. Bustoni listed legal separation inside Uzbekistan Railways, financial reform, operational efficiency, and investment planning among the main areas. Each activity has been ranked by priority, he added. Tariff reform was one of Bustoni’s main topics. He called the proposed change “not a price hike.” The aim is to replace ad hoc increases with rules-based pricing. Cost-reflective tariffs would give the railway company more predictable revenue and reduce state cross-subsidies. Bustoni also cited capital-market plans. Uzbekistan’s infrastructure company is part of the National Investment Fund of the Republic of Uzbekistan (UzNIF), which he described as a $2.4 billion fund managed by Franklin Templeton, with a planned dual listing in London and Tashkent. The railway sector recorded a roughly $188 million net loss in 2023, reached break-even in 2024, and is expected to post a positive $138 million result in 2025, he added. [caption id="attachment_50833" align="aligncenter" width="2560"] Image: TCA[/caption] Transport Corridor Europe-Caucasus-Asia (TRACECA) Secretary General Jasurbek Choriyev linked corridor development to Uzbekistan’s national priorities. He cited double-digit growth in passenger air traffic over five years and 15 million tourists last year, attributing the figures to national data and analysts at Airports Council International and the World Bank. Uzbekistan’s aircraft fleet has expanded to more than 100 planes from about 40 to 50 in recent years. A target of 188 aircraft by 2030 could be reached earlier, Choriyev noted. Uzbek airlines are also carrying more freight on the China-Europe route, driven in part by e-commerce. Choriyev described rail as the backbone of national connectivity, carrying about 90% of internal and external traffic. He pointed to the China-Kyrgyzstan-Uzbekistan-Iran railway and gave 2030 as the expected completion date, with 2028 or 2029 possible. He also cited the Trans-Afghan corridor as a route to Pakistan. About 52% of Uzbekistan’s rail network is electrified, with a target of 70% by 2030. Innokenty Ivanov, a principal consultant at Freshfields, said Uzbekistan’s railway reform is creating legal routes for private investment through market mechanisms and public-private partnerships. The reform covers the reorganization of Uzbekistan Railways as a holding company and a legal framework for private investment and independent operation. Ivanov compared the process with Germany, where railway reform led to long-term contracts between the government and the infrastructure company. Financing tied to measurable targets gives investors more certainty...

3 months ago

International Monetary Fund

IMF Growth Forecast for Uzbekistan Warns of Inflation and Global Risks

Uzbekistan’s economy performed strongly in 2025, with the International Monetary Fund (IMF) reporting growth across sectors. Inflation fell and the fiscal deficit narrowed. The Fund urged policymakers to keep monetary policy tight and continue reforms as geopolitical tensions and global uncertainty add risks. Uzbekistan’s real GDP expanded by 7.7% in 2025, driven by strong domestic consumption and investment. The unemployment rate fell by 0.7 percentage points from the previous year to 4.8%. Growth was supported by rapid expansion in services and construction. Consumer price inflation declined from 9.8% at the end of 2024 to 7.3% at the end of 2025. The IMF attributed the improvement to the fading impact of energy price increases introduced in 2024 and the appreciation of the Uzbek som against the U.S. dollar. Tight monetary policy by the Central Bank also helped bring down inflation. Core inflation declined during the year. External balances improved as the current account deficit narrowed to 3.9% of GDP. Strong exports and remittance inflows supported the decline. High commodity prices also helped. International reserves remained at comfortable levels, equivalent to around 13 months of imports. The fiscal deficit fell to 2.1% of GDP, below the government’s target of 3%. The IMF expects economic growth to remain resilient in 2026, forecasting GDP growth of 6.8%. Continued reforms and investment are expected to support activity. Remittances and elevated gold prices should also help sustain growth. The Fund projects growth will moderate to around 6% in 2027 as domestic demand gradually slows. Despite the positive outlook, risks have increased because of the conflict in the Middle East and its potential impact on the global economy. Uzbekistan has limited direct trade and remittance links with countries affected by the conflict. However, higher oil prices and trade disruptions could affect the country indirectly through key trading partners. Weaker global growth could add further pressure. The IMF warned that inflation is likely to remain above the Central Bank’s 5% target in 2026. Higher global oil prices, combined with strong domestic demand, could slow disinflation. The Fund recommended that the Central Bank keep its policy rate at a restrictive level and tighten monetary policy further if inflationary pressures persist. The Fund advised the government to avoid spending increases beyond those already planned in the budget. Any support measures linked to the Middle East conflict should be temporary and targeted toward vulnerable groups, rather than broad subsidies or price controls. The IMF called for faster privatization of state-owned commercial banks and enterprises. It also recommended stronger corporate governance and continued work to improve fiscal transparency and debt management. The Fund highlighted labor market challenges, including low female labor force participation and skills mismatches. High levels of informal employment remain another concern. Further progress in governance reform and competition policy could help attract additional private investment. The IMF said Uzbekistan’s commitments linked to accession to the World Trade Organization could also support long-term economic growth. The country enters 2026 from a position of economic strength, but maintaining stability and continuing...

3 months ago

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