Economy of Uzbekistan

The economy of Uzbekistan was formerly associated with a Soviet-style command economy, with a slow transformation to a market economy. However, in recent years and since the election of President Shavkat Mirziyoyev, Uzbekistan has seen rapid economic and social reform, aimed at boosting growth and transforming Uzbekistan into a true, modern market economy. International Financial Institutions, including EBRD, Asian Development Bank and the World Bank are actively engaging in supporting Uzbekistan's successful reform process and have rapidly increased their presence in the country.

To this point, governmental economic policy reforms had been cautious. Under the administration of Islam Karimov currency conversion capacity was restricted and many other government measures to control economic activity, including the implementation of severe import restrictions and sporadic closures of Uzbekistan's borders with neighboring Kazakhstan, Kyrgyzstan, and Tajikistan led international lending organizations to suspend or scale back credits.

Uzbekistan is a major producer and exporter of cotton, and bans on cotton import were implemented in the early 2010s due to international human rights concerns. However, in 2022, the Cotton Campaign and other agencies, including the US Government, lifted all bans on the import of Uzbek cotton. According to the Organized Crime and Corruption Reporting Project (OCCRP), Vlast, and iStories, after February 24, 2022, Uzbekistan significantly increased its exports of cotton pulp and nitrocellulose, key components for making explosives and gunpowder, to Russia. According to Ekonomichna Pravda, at least two large Uzbek exporters have been working with Russian military-industrial complex enterprises. Documents from the Russian Federal Tax Service confirm that at least three Russian companies - Bina Group, Khimtrade, and Lenakhim - sold imported cotton pulp to military plants in Russia. Among them: Kazan Powder Plant (a strategic defense-industrial enterprise that produces gunpowder and charges for various types of weapons, subject to US sanctions), Tambov Powder Plant (a defense-industrial enterprise that produces ammunition and special chemicals, It is subject to US and Ukrainian sanctions), Perm Powder Plant (an enterprise involved in the production of Topol-M and Bulava intercontinental ballistic missiles, as well as Kornet ATGMs and Grad and Smerch multiple rocket launchers. It is under Ukrainian sanctions).

Uzbekistan is also a big producer of gold, with the largest open-pit gold mine in the world. The country has substantial deposits of silver, strategic minerals, gas, and oil.

Since 2016 and the new president Shavkat Mirziyoyev coming to his position, there have been significant economic reforms in Uzbekistan. The country liberalised the currency in 2017, allowing freer flows of foreign currency and allowing the import and export of goods, and the path to foreign investment. 2019 tax reforms also allowed company consolidation, tax simplification and the professionalisation of the Private sector. The Government is also committed to privatisation of State Owned Enterprises (SOEs), with the domestic IPO of UzAuto predicted in 2022.

The Uzbekistan Economic Forum run by the Ministry of Finance of the Republic of Uzbekistan, brings together IFIs, businesses, government officials and other stakeholders on an annual basis. The first iteration was in Tashkent, and the Uzbekistan Economic Forum II took place in Samarkand. In December 2022, the Uzbek Government received a loan from the World Bank of almost US$1bn to "implement strategic reforms". Today, the volume of GDP of Uzbekistan has reached 146B dollars