IMF urges Uzbekistan to finalize transition reforms and expedite asset declaration law

In its concluding statement following a mission to the country, the IMF acknowledged Uzbekistan’s notable achievements in economic reforms, while recommending further efforts to complete the transition phase through institutional reform, price liberalization, and privatization.

The Fund noted that recent adjustments to energy tariffs and regulated prices are important steps toward establishing a market-based pricing model, but emphasized that prices must be further liberalized to reflect real market conditions.

The IMF also highlighted Uzbekistan’s progress in joining the World Trade Organization and the expansion of external economic relations with neighboring countries and other regions, including the Gulf states. According to the Fund, these developments will help diversify trade and enhance competition.

To ensure a level playing field for public and private enterprises, the IMF stressed that support should be provided transparently, accompanied by structural reforms, and phased out over time.

It also emphasized the need to reduce the state’s role in the economy and accelerate the privatization of large state-owned enterprises in line with international standards. Regulatory frameworks should encourage market institutions and limit direct state intervention.

The IMF believes that creating favorable conditions for the establishment and closure of businesses will boost competition and strengthen the private sector.

Institutions, labor market, and climate

The IMF also listed reforms in public administration, the labor market, and climate action as key priorities. The adoption of a law on conflict of interest, the launch of a Virtual Anti-Corruption Academy, and capacity-building efforts for civil servants were all praised.

Draft laws on asset declarations for public officials and the protection of whistleblowers are expected to be reviewed soon. The IMF called for the accelerated adoption of these laws and the finalization of a National Anti-Corruption Strategy.

The labor market faces several challenges, including low female participation, a large informal sector, and mismatches between worker qualifications and market needs. Labor market reforms are receiving special attention to address these issues.

In order to advance the climate agenda, the IMF recommends finalizing energy tariff reforms, improving water use efficiency, promoting agricultural diversification, and implementing reforestation projects.

On the income declaration system for public officials

Uzbekistan has been working to introduce a system for declaring the income and assets of public officials and their spouses since 2017. The initial plan required officials to declare not only their own property, income, and expenditures, but also those of their parents, spouses, and children. The most recent version includes only income declarations, limited to spouses and minor children.

A presidential decree had mandated the launch of the income declaration system as of January 1, 2022, but this has not been implemented. The draft law was submitted to the Cabinet of Ministers on November 13, 2021, but has yet to be introduced to the Legislative Chamber of the Oliy Majlis, according to earlier statements from the Anti-Corruption Agency.

In 2024, the agency’s director Akmal Burkhanov noted that the draft law on income declarations was nearly finalized, having been approved by the relevant ministries and reviewed by the Ministry of Justice.

Despite presidential instructions to expedite the law’s adoption, deadlines have repeatedly been postponed. Most recently, at the beginning of March, the president directed the responsible authorities to submit the draft law for public discussion and have it reviewed by April 1.