BAKU, Azerbaijan, July 21. Uzbekistan’s President Shavkat Mirziyoyev criticized the rise in production costs at a number of large state-owned enterprises, noting that inefficiency leads to a decline in profitability.
This was reflected in a statement released by the press office of the Uzbek President, citing Mirziyoyev’s remarks at a government meeting dedicated to reviewing economic performance for the first half of 2026 and setting priorities for the year ahead.
According to the statement, the government has shifted from evaluating companies based on overall spending reductions to analyzing the production cost of individual goods, a methodology he said provides a more accurate picture of operational efficiency.
"In the past, sectors reported lower costs by reducing overall expenditures as a percentage," Mirziyoyev said. "Analyzing the production cost of each unit now reveals the real situation."
The review found that production costs have increased across several of Uzbekistan's largest industrial enterprises. At the Navoi Mining and Metallurgical Company (NMMC), the production cost of one ounce of gold rose by 8.2%, while the company's overall expenses increased by 6.2 trillion soums (about $517.7 million), or 22%, compared with the previous year.
The president also cited rising costs at other strategic enterprises. At the Uzbek Metallurgical Plant, the production cost of steel grinding balls increased by 5.4%, while at Uzkimyosanoat, the cost of producing urea rose by 11.1% and ammonium nitrate by 8.3%.
Mirziyoyev said the government is also working with global asset manager Franklin Templeton, which has completed an assessment of 13 major state-owned companies scheduled for initial public offerings (IPOs). The review is expected to help improve corporate governance and operational efficiency ahead of their planned listings.
The president also highlighted operational shortcomings at Uzbekistan Airways, saying inefficient route planning, long intervals between flights, frequent delays and a lack of competition in catering and maintenance services are costing the airline an estimated $120 million in annual revenue.
The findings form part of Uzbekistan's broader efforts to reform state-owned enterprises, improve productivity and prepare major companies for greater private-sector participation. The government has made corporate governance reforms, cost optimization and privatization key pillars of its economic modernization agenda as it seeks to attract investment and strengthen the competitiveness of strategically important industries.
