BAKU, Azerbaijan, July 23. Despite Uzbekistan recording an impressive 8.5% economic growth rate in the first half of 2026, President Shavkat Mirziyoyev used a video conference not as an occasion to highlight achievements, but as an opportunity to reassess and redefine the government’s priorities for the remainder of the year. Instead of focusing solely on headline economic indicators, the meeting centered on enhancing productivity, strengthening corporate governance, accelerating privatization processes, reducing administrative barriers, and addressing structural constraints that continue to affect the country’s long-term competitiveness. The discussion reflected a growing recognition by Uzbekistan’s leadership that maintaining high economic growth requires not only investment and increased output but also improved efficiency, stronger institutions, and more effective implementation of ongoing reforms.
Economic growth remains strong, but higher targets set
The video-conference confirmed that Uzbekistan maintained one of the highest economic growth rates in the region during the first half of 2026. GDP expanded by 8.5%, supported by broad-based growth across major sectors. Services increased by 16.9%, construction by 13.8%, industry by 8%, and agriculture by 4.7%. Investment reached $28 billion, while exports totaled $14.4 billion.
At the same time, President Mirziyoyev emphasized that these results are no longer viewed as sufficient. He argued that economic growth of 9–10% will be necessary to improve living standards for a population approaching 40 million. This statement effectively raises the government's benchmark for success and signals that future policy will prioritize accelerating productivity rather than simply maintaining current growth.
An important political message also emerged from the meeting. Rather than allowing ministries to present traditional performance reports, the president demanded concrete proposals for new sources of growth and instructed officials to prepare contingency scenarios for possible deterioration in global economic conditions. This reflects a transition toward more proactive economic governance amid increasing external uncertainty.
Focus shifts from expansion to efficiency
A central theme of the video-conference was the growing importance of efficiency. While previous years focused heavily on expanding production and attracting investment, the government is now paying greater attention to how efficiently state-owned enterprises operate.
Shavkat Mirziyoyev highlighted significant increases in production costs at strategic enterprises, including Navoi Mining and Metallurgical Company, Uzbek Metallurgical Plant and Uzkimyosanoat. Rising production costs were presented as evidence that strong output alone does not guarantee improved competitiveness.
The president also pointed to operational shortcomings at Uzbekistan Airways, estimating that inefficient scheduling, delays and limited competition in auxiliary services result in annual revenue losses of approximately $120 million.
These remarks indicate that the government increasingly views corporate governance reform and operational modernization as essential components of future economic growth.
Franklin Templeton assessment becomes roadmap for SOE reforms
One of the most significant outcomes of the meeting was the presentation of Franklin Templeton's assessment of major state-owned enterprises preparing for privatization.
According to the analysis, substantial value can be unlocked through improved management rather than additional investment alone. Hududiy Elektr Tarmoqlari could potentially double its market value through operational improvements, while Uzbekistan Airways could increase its valuation by approximately 40% and Uzbektelecom by around 50%.
The government's decision to publicly reference these estimates suggests that independent international assessments are becoming an important benchmark for evaluating reform progress. Rather than focusing exclusively on privatization itself, authorities appear increasingly concerned with improving enterprise performance before bringing assets to the capital market.
Privatization enters a new stage
The meeting confirmed that privatization remains one of Uzbekistan's principal economic priorities.
The government announced preparations for a new privatization program involving approximately 100 trillion soums ($8.3 billion) worth of state assets. The package will include 1,300 real estate properties, 8,000 hectares of land, and government stakes in 66 companies.
Authorities also introduced more favorable financing conditions by reducing required down payments from 30% to 15% while allowing interest-free installment payments.
These measures suggest that the government is attempting to accelerate investor participation at a time when global investment conditions remain uncertain. Easier purchasing terms may help attract a broader range of domestic and foreign investors while speeding up the transfer of state assets into private ownership.
Business climate reforms move toward deregulation
Another major policy direction announced during the video-conference concerns regulatory reform.
Shavkat Mirziyoyev criticized the existing system under which 51 government agencies can impose penalties across 322 categories, noting that nearly 3 trillion soums (around $250 million) in fines have been collected since 2024.
Rather than emphasizing enforcement, the president instructed regulators to adopt a more advisory role and ordered ministries to prepare proposals within one week to reduce bureaucracy, administrative fees and penalties.
The initiative reflects Uzbekistan's broader effort to improve its investment climate by reducing compliance costs for businesses. It also corresponds with the government's strategy of encouraging entrepreneurship as a key driver of economic diversification.
Export policy shifts toward utilization of existing capacity
Although Uzbekistan has invested heavily in export-oriented manufacturing, the meeting demonstrated that the government believes existing industrial capacity is not being fully utilized.
During the discussion, officials reported that 509 export-oriented production facilities worth $11 billion have been launched during the past three years, yet 208 of them have not begun exporting.
Similarly, 29 of the country's 47 special economic zones recorded no exports during the first half of the year.
Rather than announcing additional investment programs, the president ordered the creation of rapid-response teams to help enterprises overcome operational barriers related to certification, financing, logistics and market access.
This approach reflects a broader policy shift from constructing new production facilities toward maximizing returns from investments that have already been made.
Infrastructure becomes a strategic bottleneck
Transport and energy infrastructure emerged as two of the most significant structural constraints discussed during the meeting.
In the energy sector, Shavkat Mirziyoyev estimated that modernization will require approximately $8 billion over the next decade. At the same time, electricity losses reached 17.2%, equivalent to 4.8 billion kilowatt-hours, while gas network losses totaled 7.6%.
In rail transport, the president acknowledged serious shortages of freight wagons despite rapidly growing trade volumes. Around 70% of Uzbekistan's foreign trade cargo moves by rail, making logistics increasingly important for sustaining export growth.
The government therefore instructed officials to seek $200 million in World Bank financing for railway modernization while also developing plans to attract 10,000 idle freight wagons from partner countries.
These initiatives demonstrate that infrastructure development is becoming increasingly linked with industrial competitiveness rather than being viewed as a separate policy area.
Inflation management remains supply-oriented
Unlike many countries that rely primarily on monetary tightening to control inflation, Uzbekistan continues to pursue a supply-side strategy.
President Mirziyoyev reiterated that inflation should be restrained by increasing the availability of goods and services rather than through restrictive macroeconomic measures alone.
Special attention was given to rising meat prices, with regional governors instructed to prepare detailed procurement strategies and make greater use of government support for imports.
This approach illustrates the government's preference for targeted market interventions designed to stabilize prices while preserving high economic growth.
Regional policy increasingly focuses on competitiveness
The meeting also revealed growing attention to regional economic imbalances.
President Shavkat Mirziyoyev criticized widening import-export gaps in several regions and instructed governors to prioritize import substitution and export-oriented production.
Commercial banks were also ordered to explain why 9.3 trillion soums (about $774.7 million) worth of assets remain unsold on their balance sheets, reflecting the government's broader effort to mobilize dormant economic resources.
By linking regional performance more closely with exports, investment and industrial efficiency, the government appears to be strengthening accountability at the local level.
Overall assessment
The July 21 video-conference represents an important transition in Uzbekistan's economic policy. While maintaining its emphasis on rapid growth, the government is increasingly prioritizing productivity, corporate governance, privatization, infrastructure modernization and regulatory reform.
Rather than announcing a fundamentally new economic strategy, the meeting refined existing reform priorities by placing greater emphasis on implementation and efficiency. The repeated references to international assessments, operational performance and measurable outcomes indicate that the authorities are seeking to transform strong macroeconomic growth into sustainable long-term competitiveness.
Overall, the video-conference suggests that the second half of 2026 will be characterized less by the launch of new reforms than by efforts to ensure that previously announced policies deliver tangible economic results.
